By Rajan Navani and Neera Nundy

Philanthropy in India is gaining momentum, with private giving increasing by 10% in FY 2023, totalling Rs 1.2 lakh crore, according to the India Philanthropy Report 2024. Among the most promising trends is the rise of family philanthropy, which saw a 15% increase last year. This growth, driven by contributions from ultra-high-net-worth individuals (UHNIs), high-net-worth individuals (HNIs), and affluent givers, is projected to continue at a 16% annual rate through FY 2028. 

This upward momentum reflects the maturation of India’s philanthropic landscape, transitioning from a tradition-bound sector to a dynamic, strategic force. Over the past decade, the philanthropic ecosystem has seen significant growth in participation and engagement. Intermediary organisations have emerged to guide philanthropists, foundations, and corporations on their giving journeys. Simultaneously, increased research and insights from these intermediaries and consultancies are offering a clearer understanding of philanthropic trends. Platforms and networks that foster collaboration among funders have become more accessible, enhancing knowledge sharing across the sector. The rise of collaborative funds has expanded opportunities for contribution, while wealth management firms are establishing dedicated philanthropy advisory desks to meet the growing demand for impactful giving strategies. 

Challenges in India’s Philanthropic Infrastructure 

Despite these positive developments, a significant gap remains between the giving potential of domestic givers and the needs of India’s disadvantaged communities. Six critical areas of infrastructure remain fragmented, hindering the full potential of philanthropic capital in India. 

Data Fragmentation and Accessibility: Many philanthropists grapple with crucial questions: Where can I find credible NGOs to support? How can I ensure a specific NGO is reliable? These concerns highlight a major challenge—the absence of a centralised, comprehensive data source. Currently, data on philanthropy is fragmented, often undigitised, and difficult to access. This lack of reliable information hampers informed decision-making and effective partnership-building, ultimately limiting the impact of philanthropic efforts. 

Limited Access to Research and Actionable Insights: Philanthropists are often passionate about the causes, regions, or communities they wish to support. They strive to make informed decisions by deeply understanding these issues. However, the knowledge they seek is often scattered across various platforms and presented in technical or theoretical language that can be difficult to digest, particularly for those without specialised expertise. While research on philanthropy in India is growing, its fragmented nature complicates access, and the tendency to treat social issues like education, sanitation, healthcare, and employment in isolation further diminishes its practical value.

Gaps in Strategy and Execution Support: Philanthropists often have the capital and a directional vision of what they want to achieve, but they may lack the time and expertise to translate that vision into action, particularly within India’s complex development ecosystem. Donors struggle to navigate this landscape due to the absence of robust support systems and the difficulty in finding advisors and consultants who truly understand the sector’s intricacies. 

Limited Availability of Shovel-Ready Vehicles: The philanthropic sector struggles with a lack of well-designed, investment-ready vehicles that align with the diverse needs of donors. Although there is a range of giving patterns and aspirations, there are currently few options that cater to these variations. This shortage of tailored vehicles hinders the effective deployment of philanthropic capital, making it difficult to scale impactful giving. 

Need for Stronger Peer Networks and Role Models: Another challenge is the limited exchange of knowledge and experiences among philanthropists. While peer networks are emerging, they tend to be concentrated within specific groups or regions, which can limit broader learning and collaboration opportunities. Without expanding these networks to connect philanthropists across different geographical areas and causes, there may be duplication of efforts, and missed opportunities for cross-learning.

Creating a Unified Narrative for Philanthropy in India: Philanthropy has yet to become a mainstream conversation in India. The absence of a cohesive, nationwide narrative makes it difficult to establish philanthropy as a social norm. Without a unified message that resonates across the country, the catalytic potential of giving remains underleveraged, limiting broader participation and hindering the development of a more pervasive culture of philanthropy. 

Opportunity for Family Philanthropy in Strengthening Philanthropic Infrastructure 

Family philanthropists have long played a pivotal role in India’s development, contributing both through their family businesses and personal giving. As family businesses increasingly adopt more strategic, professional approaches to managing wealth through family offices, the same intention can be extended to their philanthropic efforts. Establishing a ‘family philanthropy office’ offers families the opportunity to align their investments and philanthropy, maximising both financial returns and social impact. 

Also read: Reimagining Philanthropy for the India we dream about

Given the flexibility of family philanthropic capital, family philanthropists are uniquely positioned to address gaps in India’s philanthropic ecosystem by deploying patient capital that supports innovation. Particularly for those who have been giving for many years, there is a significant opportunity to lead efforts in strengthening the sector by focusing on the six critical areas discussed above. By investing in nonprofit capacity building, developing investment-ready vehicles, enhancing advisory services, and funding research, innovation, monitoring, and evaluation, evolved family philanthropists can help build the necessary infrastructure that transcends traditional boundaries and fosters systemic change. 

Some families are already leading the way in ecosystem strengthening. According to the India Philanthropy Report 2024, there is a growing aspiration among various cohorts within family philanthropy—including Inter-Gen givers, Now-gen givers, professionals, and women—to invest in these areas. For instance, 39% of these groups prioritise ecosystem strengthening, recognise the critical need to bolster capacity building, create innovative giving platforms, and develop specialised systems and processes.

The rising interest among Inter-Gen and Now-Gen givers in these emerging investment areas underscores the shifting focus within family giving. It presents an inspiring opportunity for others in the broader philanthropic community. By harnessing this momentum, these families can lead a collective effort to strengthen India’s giving ecosystem, ultimately paving the way for more impactful and sustainable social change. 

Conclusion 

As India stands on the cusp of social and economic change, the role of philanthropy has never been more critical. By embracing bold strategies and strengthening the philanthropic ecosystem, family givers, in particular, can shape a more inclusive and equitable future for India. The decisions made today will echo across generations, steering India toward a future defined by innovation, compassion, and shared prosperity.

(The authors: Rajan Navani is the founder and CEO at Jetsynthesys and Neera Nundy is a co-founder at Dasra. Views expressed are the authors’ own and not necessarily those of financialexpress.com.)