As per the report by Bain and Company and Dasra, philanthropic donations have been estimated to grow at 12 per cent annual growth in the next 5 yeas
MUMBAI: Social sector funding or philanthropic giving in India has reported a 20 per cent jump in FY 2021. This rise in social sector funding has been triggered largely due to the increased government expenditure. Moreover, at the same time, philanthropic donations have been estimated to grow at 12 per cent annual growth in the next 5 years, as per a recent report by Bain and Company and Dasra.
The report – called ‘India Philanthropic Report 2022‘ – argues that this growth in philanthropic activity across the country will be triggered by growth in three main segments – CSR, family philanthropy which includes high-net worth individuals (HNIs) and ultra- high-net worth individuals (UHNIs), and retail.
As per this report, India is still short of NITI Aayog’s estimate of the total funds required to achieve its UN Sustainable Development Goals (SDG) commitments by 2030, with total supply of funds at an average of 7 per cent of the GDP in recent years and 8.3 per cent of the GDP in 2021.
Private sector funding or private philanthropy has two sources: domestic and foreign philanthropists. Domestic philanthropists are corporations – corporate social responsibility and corporate trusts and individuals. Foreign philanthropists are categorised into high-net worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs) and retail, depending on their net worth and donation amount.
