Friday 29 / November / 2024
Mumbai: India's ultra-high-net-worth individuals (UHNIs) hold the potential to enhance their philanthropic impact, with contributions potentially tripling to Rs 75,500 crore annually, according to a report by Accelerate Indian Philanthropy (AIP) and Boston Consulting Group (BCG), titled "Wealth with Purpose: A Report on Private Indian Philanthropy".
The study engaged over 100 UHNIs from wealth segments ranging from Rs 200 crore to Rs 2000 plus crore, underscoring a transformative shift in Indian philanthropy, driven by a desire for strategic and sustainable impact.
The study found that 90 per cent of the surveyed UHNIs are eager to amplify their philanthropic efforts. If UHNIs allocate just 5 per cent of their incremental wealth, their annual contributions could surge to Rs 75,000+ crore--an over three-fold increase compared to current levels.
This potential for significant growth highlights an untapped reservoir of philanthropic capital that could drive profound social change in India.
Indian philanthropy is transitioning from traditional charitable donations to a more strategic and impactful approach.
This shift is largely driven by young, first-generation wealth creators who are increasingly focusing on long-term solutions and experimental models designed for scalable impact.
These emerging philanthropists are prioritizing systemic change over short-term relief efforts, reflecting a broader cultural evolution in how wealth is utilized for social good.
The report introduces the TIE model, which categorizes philanthropic engagement into three areas- Treasure (financial resources), Involvement (time, talent, ties), and Evangelization (advocacy and influence).
This model emphasizes a holistic approach to philanthropy, suggesting that substantial and sustainable impact requires more than just financial contributions--it also involves active participation and advocacy.
Collaboration emerges as a critical factor in amplifying philanthropic impact. The report advocates for increased knowledge sharing and joint efforts among philanthropists, which can enhance the overall ecosystem and scale of impact.
By working together, philanthropists can overcome common barriers and create a more effective and interconnected philanthropic network.
The study identifies six distinct philanthropic archetypes in India- inspiration seekers, cause champions, emerging givers, core givers, strategic enablers, rainmakers.
Each archetype represents different stages and motivations in the philanthropic journey, offering a nuanced understanding of the diverse approaches to giving in India.
Key trends include early engagement, the importance of scale, and a preference for direct grant-making.
However, barriers persist, such as personal challenges (e.g., time constraints, motivational issues), structural issues (e.g., procedural complexities, information gaps), and cultural challenges (e.g., beliefs about wealth preservation and lack of social recognition).
Despite these obstacles, the next generation of philanthropists is showing increased openness and involvement.
Ashish Dhawan, Founder-CEO, The Convergence Foundation and AIP Core Founder, said, "Personal wealth accumulation in India is surpassing global averages and there is an opportunity for philanthropy to play a much bigger role but currently it lags behind global giving averages."
He added, "Philanthropy can play a catalytic role in driving India's economic and social transformation, and our vision, through AIP, is to collectively accelerate philanthropy towards that end. We advocate for philanthropy to create systemic impact by way of addressing the country's growth and developmental challenges at a population-level and in a sustainable manner."
Neeraj Aggarwal, Chair, Asia-Pacific, Boston Consulting Group, said, "This report highlights a crucial positive trend in India -the rise of a robust philanthropic culture. Realizing the dream of 'Viksit Bharat' requires collective commitment. We now have an evolved set of philanthropists who are not only giving but also getting involved with their time and ties, engaging in bold experimentation, and tackling large-scale issues."
He added, "At the same time, we have an emerging new generation that not only believes in early engagement but also prioritizes long-term solutions over short-term charitable work. The report highlights six such archetypes of philanthropists each with different motivations, but each equally critical to bringing us closer to our aspirations. I hope it inspires transformative contributions."
Amitabh Jaipuria, CEO of Accelerate Indian Philanthropy, echoed these sentiments, stressing the importance of both increased giving and personal involvement.
"India's UHNIs are uniquely positioned to drive the country's social and economic transformation through their philanthropic efforts. This report serves as a guide for UHNIs to understand the evolving landscape of philanthropy, recognize their potential impact, and adopt strategies that can contribute to India's transformation," Jaipuria said. (ANI)
