As the number of the super rich grows in India, so is the individual philanthropic giving, which soared six-fold between 2011 and 2016 from about Rs 6,000 crore to Rs 36,000 crore, a report has said.
According to the seventh annual India Philanthropy Report 2017 brought out by Bain & Company in collaboration with Dasra, a substantial portion of this amount has come from a few established givers, who have pledged large sums of their networth to philanthropy.
This growth, aided by higher GDP growth and a faster rise in the number of ultra-high net-worth individuals (UHNWIs), is only expected to rise further, the report said.
The number of UHNWI households has doubled since 2011, while their net worth has tripled in the same period.
The number of people who have volunteered their time and money between 2009 and 2015 has also increased, up 2 and 1.5 times, respectively, said Arpan Sheth, a partner at Bain & Company and a co-author of the report.
The report underlined the critical role of private philanthropy despite the government being the largest enabler of change.
The study maintained that the domestic philanthropy market has matured. This is evident from the funding patterns from individual philanthropists that have been steadily outpacing contributions from foreign sources and CSR efforts.
In 2016, corporates' share of private philanthropy halved to just about 15 per cent of the total share, down from 30 per cent in 2011. Similarly, government's share in total funding is steadily declining, though it still remains the largest contributor (Rs 150,000 crore in 2016), Sheth said.
Private donations, on the other hand, made up 32 per cent of total contributions in the reporting year, which was only 15 per cent in 2011, said Deval Sanghavi, co-founder and a partner at Dasra.
Bain & Company is a leading management consulting firm that advises clients on strategy, operations, technology, organisation, private equity and M&As etc, while Dasra is a philanthropic foundation based in Mumbai.
In the 2015 report by Bain, it had indicated that more than 40 per cent of HNI givers aimed to increase their contribution towards philanthropy over the next five years.
A Kinght Frank wealth report released last week said the country was home to 2 per cent (13.6 million) and 5 per cent of the world's billionaires (2,024) in 2016. Also, Asia's third largest economy is expected to add 1,000 new super-rich individuals per annum in the next decade.
Between 2015 and 2016, India saw a 12 per cent rise in the UHNWIs and this is expected to grow at 150 per cent over the next decade, it said, adding the number of UHNWIs rose by a whopping 290 per cent last decade.
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