There is a noticeable shift in the mindset of Indian philanthropists from traditional charity to strategic giving. It is estimated that 90% of ultra-high-net-worth individuals (UHNIs) are not only eager to increase their financial contributions, often directing their wealth towards systems change initiatives, but also want to deepen their involvement in advocacy and support to ensure lasting impact.

There is a growing preference towards supporting organizations and initiatives that adopt a systems-change approach. Young first-generation wealth creators are leading this shift, focusing on long-term solutions rather than one-time charitable acts.

That is some of the information from a new report “Wealth India Philanthropy.” The 148-page report is a collaborative effort between Accelerate India Philanthropy (AIP) and Boston Consulting Group (BCG). The report delves into the motivations, challenges, strategies and decision-making processes of UHNIs in India across various stages of philanthropy.

The report’s authors digested conversation with 100 ultra-high-net-worth individuals who shared their experiences and insights during an interview. 

Ashish Dhawan, founder and CEO of The Convergence Foundation and an AIP Core Founder, wrote in the report’s forward that his foundation is a strong advocate “of a systems-change approach which involves working with governments for scale and sustainability and addressing the root cause of the problem for outsized impact. It is heartening to see younger philanthropists championing systemic giving, with 40% of those supporting it being under 40.” 

Report authors found that “90% of our respondents — especially those with a net worth of over ₹500 crore — expressed a strong desire to give more. Additionally, a substantial number of respondents with a net worth of over ₹2000 crore already engage in or expressed a desire to engage in strategic philanthropy.”

The analysis showed that even modest increases in philanthropic allocations of UHNIs’ wealth can unlock substantial additional capital. “If UHNIs channel just 5% of their annual incremental wealth, they could contribute an estimated ₹75,500 crore annually, which is approximately five times the total corporate social responsibility spent by India Inc in FY2023,” according to the authors. 

Donors in India want to move beyond giving only money and elevate their level of personal involvement. “We found that when philanthropists start engaging more with their time and talent and start leveraging their vast entrepreneurial, strategic and organisational (CQ) skills, they magnify their impact multi-fold,” researchers wrote. “By providing access to their networks, philanthropists also play a vital role in building visibility of non-profit organisations (NPOs) for fund-raising, talent acquisition and collaboration for population-level impact.” 

Many of the more experienced and evolved philanthropists in the study have decided to make philanthropy a part of their life and identity, going beyond giving or even advancing specific causes to espousing the cause of philanthropy as a whole. The researchers found that philanthropists believe in stepping out and leveraging all their networks and influence towards building a vibrant philanthropic movement. 

To see the full report, go to https://bit.ly/4bVmXfJ

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Source From Non Profit Times