Philanthropy in India is no more about just giving to the poor. It?s serious business now ? down to plan management, start-up mechanics, finance specialists, project directors, internal and external auditors, setting targets and meeting them… Welcome to new-age benevolence.
Consider this: the books of the Shiv Nadar Foundation, set up in 1996 by the HCL founder, are audited by one of the top four accounting firms in India. Confirms TSR Subramanian, trustee, Shiv Nadar Foundation: ?Checks and balances are a priority. We trust everybody, but verify to the last drop.? Subramanian adds the Foundation is very close to Nadar?s heart but he has a hands-off yet very professional approach of running it. ?It?s a professional team that runs the show and the guidance comes from the top. Every project has a project director who works in close coordination with the finance division. We have our set of monthly, quarterly and yearly reviews. This is coupled with a monthly reporting system, where the project director and his team discuss targets and implementation problems, which help us to reshape and retarget our goals.? And, Nadar attends every quarterly review meeting.
Ann-Veruschka Jurisch, head of Philanthropy and Foundations, Spectrum Value Management, says, ?There is an increased interest in both innovation and personal engagement in one?s giving. People no longer only donate but also want to have their money well spent. Initiatives like the EdelGive Social Innovation Honours or Kushii’s World Action Forum are examples of it. Another trend is that traditional grant giving is slowly getting replaced by venture-like ways of giving ? with a stress on impact and hard figures, and by fostering social entrepreneurship.?
This was the inspiration for Tamil superstar Suriya, popularly known as Surya, to set up the Agaram Foundation in 2006. Suriya believes that every educated person can support five more people. ?If you follow the ladder of education, you can climb really high,? he says. Despite a busy schedule, Suriya keeps in constant touch with his team over e-mails, conceptualises workshops and makes it a point to attend the monthly meeting. ?It happens on the first of every month. I try to be in town and plan my shooting schedules accordingly. It?s always at the back of mind.? Suriya has a project designing team that plans the future course with him. ?The team consists of veterans and professionals from the education field who lay the blueprint and delivery mechanics for every project,? he adds.
Pushpa Sundar, independent consultant and a senior development worker, observes how there is growing interest among the rich for supporting bigger causes, rather than short-term charity or cheque-book philanthropy. ?This is particularly noticeable among the educated and newly wealthy, first-time entrepreneurs.? In a transformed milieu, Nandan Nilekani and Ramachandra Guha have set up the New India Foundation that supports social science research. Vineet Nayyar, former bureaucrat and now managing director of Tech Mahindra, created waves when he donated shares worth Rs 30 crore to Essel Social Welfare Foundation run by his wife Reva Nayyar. The Essel Foundation is an umbrella organisation to NGOs, supporting education of underprivileged children, including the girl child and the visually handicapped. Clearly hinting at a trend where personal engagement and association with causes they strongly identify are paramount.
According to Parul Soni, executive director, development advisory services, E&Y, ?Frontrunners in society feel the need to contribute for the marginalised. In the process, they strive to make a social investment, which, in turn, enhances the brand value and also creates a new segment in the supply chain.? Soni adds contributors are now creating their own special purpose vehicles to achieve an impact and mitigate risks.
He cites the successful example of Emergency Management Research Institute (EMRI), the brainchild of Satyam Computer founder Ramalinga Raju. EMRI is now managed by the GVK Group of Industries and runs the highly successful 108 Ambulance Service in nine states, in a tie-up with over 6,800 private and government hospitals.
Globally, too, there is a distinct paradigm shift from giving as a form of charity to giving as a form of social investment. Contributors are now using venture capital techniques of investment and business acumen to get the best results. eBay founder Pierre Omidyar chose a similar model that ?aimed to promote equal access to information, tools and opportunities, connections around shared interests and a sense of ownership for participants?. The Omidyar Network has already invested around $45 million in India and is looking to invest around $150-200 million in the next couple of years.
Ramesh Ramanathan, co-founder, Janaagraha Centre for Citizenship and Democracy, points out that the trend is just about picking up in India. ?We are amidst the third phase of philanthropy, which is slowly but surely moving from family set-ups to the Western way of separating grant-making from operations. I am a beneficiary of this wave and truly welcome it. We all want impact and results by the end of the day,? Ramanathan rounds up.