60% biz leaders focus on improving their community: Study

There has been a tremendous spurt in philanthropic activities in India over the last two years. According to a recent study by the Indian School of Business, large pledges have been made by business leaders including Azim Premji, Shiv Nadar, GM Rao and Rakesh Jhunjhunwala.

The study, titled Catalytic Philanthropy in India: How India’s ultra-high net worth philanthropists are helping solve large-scale social problems, was done by the Centre for Emerging Markets Solutions (CEMS), an inter-disciplinary research centre at ISB, and FSG India, a nonprofit consulting firm, to understand the giving trends among the Indian philanthropists. It surveyed 45 ultra-high net worth individuals and families, who have investable assets of $30 million or an annual income of $20 million. Corporate foundations were excluded.

Indian philanthropists prefer to operate through personal foundations rather than giving directly to NGOs, institutions or beneficiaries, and they are more oriented towards ‘charity’ mindset rather than engineering large-scale social change, it points out.

More than 60 per cent focus on improving their community where they live, 53 per cent focus on social and religious cause, 27 per cent give for social change and 27 per cent give in memory of their loved ones.

Education is the primary area of giving, more than 45 per cent of the Indian philanthropists donate for education, 48 per cent for community development and 13 per cent for healthcare, the study says.

More than 60 per cent cite giving back to society as their main motivator compared with about 25 per cent who cite effecting meaningful and measurable social change as their main motivation.

The study also shows that the choice of funding issues and the way in which resources are directed within them will change as Indian philanthropy matures and donors gain a deeper understanding of the broader set of issues.