Funding by individual philanthropists grew by 21 per cent between 2014 and 2018 according to a new report launched today by DASRA and Bain & Company.
The India Philanthropy Report 2019 uncovers a continuous increase in social sector funding in India with contributions across the board. While the government continues to remain the largest contributor, private funding, led by individual philanthropists expanded its base, outpacing public funding. This overall trend is expected to continue in the future as well, given India’s strong economic growth and a rising middle class, fast becoming the donor base.
Deval Sanghavi, co-founder, Dasra said, ‘Philanthropists can provide risk capital, knowledge and expertise to encourage innovations in India’s social sector through field approach which governments may not be able to create. As we approach 2030, we also need all stakeholders to come together in a collaborative manner and channelize all our finite resources to achieve SDGs so that millions of underprivileged can thrive.’
A breakdown of individual contributions reveals that while large donations (Rs 10 crore or more) by ultra-high net worth individuals (UHNIs) account for 55 per cent of individual philanthropist funding, about 80 per cent of this figure results from Azim Premji’s donations to his philanthropic organisation – APPI. Take out that contribution across the years, and the segment has seen a 4 per cent decrease since 2014.
The report says, what has got the nation this far, will not be enough to help achieve UN’s Sustainable Development Goals (SDGs), 2030. India’s social sector requires a significant funding ramp-up if it is to achieve the SDGs. Even if India sustains its current funding growth rate and channels all philanthropic capital into these five SDGs it will face an annual shortfall of $60 billion if it is to achieve even five of the 17 SDGs by 2030. However, this is not yet a match for a funding requirement of $370 billion per year to achieve even five of the 17 SDGs by 2030.
‘A large part of the funding gap is expected to be bridged by public funds; however, private funding is also punching way below its full potential. Indian ultra-rich and corporations need to step up further if it has to meaningfully cover a part of the SDG shortfall.’ Arpan Sheth, partner Bain & Company said.
Download and read the full report here.