How to think about philanthropy to really make a difference

As India approaches its 100th year of independence in 2047, domestic philanthropy emerges as a pivotal force in building the resilience of the nation. Despite strong GDP growth and striving to become a $5 trillion economy by FY 2025, India has a long way to go to achieve its UN SDG commitments. According to the India Philanthropy Report 2023, published by Dasra and Bain and Company, Corporate Social Responsibility (CSR) is expected to sustain its historical growth and reach $6.4 billion (INR 52,000 crore) by FY 2027. Family philanthropy, on the other hand, has grown at 12 percent over the last five years, reaching $3.6 billion (INR 29,600 crore) in FY 2022.

The report further highlights that Indian Ultra High Net Worth Individuals (UHNIs) could boost their total philanthropic contribution by 8–13 times if their giving matched their counterparts in China, the UK, and the US, revealing the catalytic potential of family philanthropy in India. Towards India@100, CSR and family philanthropy need to play complementary roles, nurturing innovative models that effectively address systemic challenges.
Here’s what philanthropy can do differently.

“Where” philanthropy needs to focus?

1. Adopt a strong Gender-Equity-Diversity-Inclusion (GEDI) lens: The philanthropic community needs to urgently reflect on how we, as a society, care for our most vulnerable populations. It is imperative to intentionally shift our funding focus towards organizations that serve the most marginalized communities, particularly at the intersections of caste, class, ethnicity, disability, gender, among others. This focus can be adopted in terms of both funding decisions with grantee partners, as well as increased incorporation of the GEDI lens within the culture and principles of grant-making institutions.

2. Invest in underfunded sectors and rural, localized, community-led
efforts: Funders need to expand their focus beyond large, well-established city-based nonprofits and historically preferred sectors such as education and health care to support more grassroots organizations that have the greatest proximity to vulnerable communities and underserved causes such as waste management, animal welfare, wildlife conservation, mental health, sports for development, arts and culture, artisan livelihoods, and climate, among others.

3. Invest in strengthening the infrastructure for philanthropy and social
impact: Philanthropic capital with the freedom to be more flexible can be catalytic in strengthening the infrastructure for giving and social impact. This includes supporting nonprofit leadership and organizational capacity building, setting up investment-ready vehicles, providing funds for horizontals such as research, data, and technology for monitoring and evaluation and innovation, among others. Philanthropy must also invest in human-centric storytelling that helps mainstream a bottoms-up narrative and amplifies the voices of the communities at the grassroots.

Contributions made by UHNIs (net wealth >INR 1,000 crore), HNIs (net wealth of INR 200–1,000 crore), and affluent givers (net wealth of INR 7–200 crore) together make up family philanthropy.

‘How’ giving approaches need to evolve?

1. Adopting a systems-change mindset: Philanthropists need to make long-term commitments to influence issues at a systems level. They must embrace a comprehensive approach, engaging with various stakeholders to address underlying causes rather than surface-level symptoms. By working at the intersection of diverse stakeholders, philanthropy can fuel collaboration across government, businesses, foundations, civil society, and communities.

2. Support social innovation and cutting-edge ideas: Philanthropy can
provide patient capital that can reduce risk and fuel innovation. This risk capital can act as a safety net, enabling innovators to pursue unconventional solutions. Beyond funding, philanthropy’s distinct position can nurture an ecosystem of networking, mentorship, and knowledge-sharing.

3. Strengthening public systems: Philanthropy can strengthen public systems through strategic collaboration with government institutions. By partnering on key initiatives, philanthropic organizations can leverage the scale, reach, and resources of the public sector to amplify their impact and catalyze change within public systems through co-funding programs, sharing expertise, and aligning efforts to address pressing social challenges.

4. Embracing newer models of collaborative giving: The landscape of
philanthropy is witnessing an emerging shift as givers embrace collaborative approaches to tackle critical challenges. Examples include:

• Pooled Funding Vehicles – Collaboration of two or more funders who
collectively support projects or issue-specific initiatives, focusing on a common theme. For example: GROW Fund and Rebuild India Fund.

• Building Institutions and Centers of Excellence – Collaboratively establishing organizations that contribute to creating a legacy and fostering
excellence in specific areas. Examples include Ashoka University and The
Museum of Art & Photography.

• Collaboratives – Platforms that convene diverse stakeholders for long-term, outcome-based initiatives spanning multiple years. For example: 10-19 Dasra Adolescents Collaborative, Anamaya – the TribalHealth Collaborative.

• Philanthropic Pledges – Widespread movements that make philanthropy
aspirational, encouraging engagement from peers. Examples include the Young India Philanthropic Pledge and Living My Promise.

• Philanthropy Networks – Communities for philanthropists to engage in
peer-to-peer interactions, fostering connections and exchange of learnings. Examples include GivingPi, Accelerate Indian Philanthropy, ACT Grants and Social Venture Partners.

5. Trust-based giving and listening to NGO partners: Philanthropists need to be more flexible in their giving, allowing the realities of local contexts to shape their giving decisions instead of relying on top-down approaches. They must also engage in more open communication and listen to their non-profit partners as equal stakeholders and expert implementation organizations that are most proximate to the needs and challenges of vulnerable communities.

Paving the Way towards 2047

As India approaches its centennial milestone, philanthropy’s role becomes even more critical. To expedite progress and enhance resilience towards India@100, a strategic focus is imperative—addressing complex challenges, fostering innovation, and strengthening public systems. Quadrupling efforts from the last 75 years is vital, harnessing philanthropic capabilities, networks, and expertise for a shared purpose.

Philanthropy must adopt bold and innovative approaches — embracing a systems-change mindset, investing in underfunded sectors and cutting-edge ideas, and fostering a trust-based relationship with NGOs to drive lasting impact. Philanthropy’s catalytic potential can only be fully realized through collaboration with NGOs, governments, foundations, and corporates — fostering knowledge exchange, uniting in a collective voice, and jointly investing in scalable, inclusive, and sustainable solutions that address India’s most pressing challenges, surpassing the achievements of the past 75 years.

With the stakes higher than ever, Indian philanthropy must galvanize the best of learnings, philanthropic capital and partnerships from the world and champion the Global South story by acting strategically towards building a more resilient nation by 2047.