Viksit Bharat will get closer as family philanthropy gains momentum

Family philanthropists have collaborated with governments, NGOs and corporates to tackle systemic challenges. According to the India Philanthropy Report 2024, with an annual growth rate of 16% projected until 2027-28, the influence of family philanthropy is set to rise. 

Inclusive development, with equity—particularly gender equity—as a key facet, is imperative for the country to fulfil the vision of a Viksit Bharat by 2027. Family philanthropists are well placed to be catalysts in this journey by investing in gender-transformative initiatives and addressing funding gaps in underserved sectors and geographies.

The potential: Family philanthropy is gaining momentum in India, with donations from ultra high net-worth individuals (UHNIs) surging over 60% in 2022-23 to ₹6,850 crore, driven by major contributions from Azim Premji and Shiv Nadar. 

The number of UHNI donors grew from 100 to 120 between 2020-21 and 2022-23, with 70 consistent donors and 50 contributing sporadically. This reveals significant potential for more sustained engagement.

This uptrend extends beyond UHNIs. High net-worth and affluent donor donations grew by 7% in 2022-23, reaching ₹26,000 crore. By 2028, the HNI group is expected to reach 1.7 million, representing a cumulative net worth of ₹460 trillion. But we need a concerted effort to enhance transparency, governance and awareness within the sector to realize its full potential.

Bridge gaps: While philanthropic growth is promising, gaps must be bridged. Without a strong focus on gender, equity, diversity and inclusion, these efforts risk falling short of truly inclusive development. 

Education and healthcare continue to dominate philanthropic funding, often dwarfing other areas. Although diversification of funding is going up—particularly for gender equity, arts and culture, climate action, mental health and sports for development—significant funds are still needed.

India’s philanthropic landscape, though increasingly dynamic and inclusive, lacks a robust dialogue on critical issues like socio-economic inequity. Despite the spotlight on women and girls, many women’s organizations remain underfunded and under-resourced. 

Tackling these challenges requires a stronger commitment to supporting diverse communities and adopting an intersectional approach that prioritizes caste, gender and regional disparities.

Moreover, most giving is concentrated in Tier 1 cities like Delhi, Mumbai and Bangalore, often leaving other areas underfunded. Also, Indian UHNIs still donate less than peers in the US, UK and China, who contribute six to 10 times more.

A new era: Despite gaps, promising trends in family philanthropy suggest a shift towards diversification and innovation. Now-gen and inter-gen givers, including first-generation wealth creators and traditional philanthropists, are funding systemic change. 

While still supporting education and healthcare, they are increasingly focusing on underfunded causes, using collaboration, data and technology to drive large-scale impact. 

Their growing interest in Gender, Equity, Diversity and Inclusion (GEDI) and climate action marks a pivotal shift in giving mindsets. They aim to strengthen philanthropic infrastructure by supporting intermediaries, networks, research and capacity building. 

Raj Mariwala’s Mariwala Health Initiative makes mental health services accessible to marginalized communities, for example, while the Kamath brothers’ Rainmatter Foundation supports climate action.

Historically under-represented in wealth and decision-making, women are assuming more prominent roles in family philanthropy, using their experiences to tackle gender challenges. 

They are increasingly adopting a GEDI lens, focusing on complex issues like mental health, scientific research and climate action, with a strong emphasis on supporting underserved communities, including women survivors and nomadic tribes in remote areas. 

Leena Dandekar’s Raintree Foundation promotes community stewardship for sustainable ecosystems, while Rohini Nilekani is investing in programmes that engage men and boys towards achieving gender equity. 

Meanwhile, Rati and Riah Forbes champion the cause of marginalized groups like children with disabilities and people from Nomadic and Denotified Tribes.

Beyond traditional family-led philanthropy, India is seeing a rise in professionals taking up causes as they accumulate wealth. These individuals aspire to strengthen the philanthropic ecosystem, marking a shift towards more effective giving. 

Govind Iyer, for instance, has been pivotal in building networks like Social Venture Partners, fostering greater professional involvement in grant-making and learning.

A call to action: Family philanthropists are well placed to address deep-rooted inequities and drive innovation across sectors. By making bold, patient and long-term commitments with an intersectional focus, they can propel India’s development. 

Through strategic collaboration with governments, businesses and civil society, family philanthropy can help ensure nobody is left behind in our Viksit Bharat journey.