According to the India Philanthropy Report 2021, co-produced by Bain & Co. and Dasra, funding from family philanthropy has tripled in FY20, to nearly ₹ 12,000 crore in FY2020.
According to the report, private philanthropy increased nearly two-thirds of family philanthropy, including funds from foreign, corporate, retail and high-net worth individuals (HNIs) or families since the fiscal year (FY). is. 2019
In FY 2020, private sector funding was at 64,000 crores, about 23% more than FY 2019. While foreign contributions account for 28% of all funding, domestic corporation donations or Corporate Social Responsibility (CSR) and retail. Investors hold another 28% in the account.
The remaining 20% comes from family philanthropy, the biggest source of growth, accounting for nearly two-thirds of the funding increase since FY 2019, the report said, “at its full potential, family philanthropy is a Can unlock investable funds. It can double almost the entire philanthropic space in India. “
However, despite this increase in funding, the social sector remains undersanded. “Furthermore, an epidemic-induced setback in the social sector clearly indicates that India will face a significant annual funding shortfall in the near future,” the report said.
It states that domestic corporations have seen a drop in profitability during the past year and therefore a decrease in the corpus available for CSR. Additionally, the CSR Corpus has shifted from traditional nonprofits and sectors to other COVID-19 relief initiatives.
It states that family businesses have outperformed non-family businesses in India for more than a decade — the result of the performance of this business is the creation of new wealth.
Stating that there are fewer barriers to family philanthropy than other sources, but there are biases. “Education and health-focused funding dwarf other causes, and continue to receive a higher share of the giving family of 47% and 27% respectively. This bias is particularly stark given in many areas of India, we are further on gender equality indicators than indicators related to health and education, which receive a significantly higher share of domestic philanthropic wealth than gender equality. 1% sits. It has been added.
The India Philanthropy Report 2021 also indicated that the depth of India’s wealth is expanding, with an increasing number of Indian ultra-high-net-worth families. If these families start matching their global peers (2% to 3% of their wealth), family philanthropy may generate an additional annual investable fund of ₹ 60,000 to ₹ 100,000 crore for the non-profit sector. .
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