Family-led&nbsp;philanthropy is well-placed to address the funding gap in India's social sector, while the ultra-rich are increasingly focusing on under-represented segments like arts, culture and heritage, and environment and sustainability, says a new report released on Thursday.&nbsp;

According to the 'India Philanthropy Report 2024' by Dasra and Bain &amp; Co, family philanthropy increased by 15 per cent in 2022-23. &nbsp;This figure is projected to grow at an annual rate of 16 per cent until March 2028, adds the annual report.

Family philanthropy includes contributions from Ultra High Networth Individuals (UHNIs), High Networth Individuals (HNIs) and affluent givers.

"India’s historic culture of giving, rooted in familial and community allegiance, has broadened to incorporate philanthropic giving to recipients that a funder may have no connection with, and may never meet," says Sapphira Goradia of the Vijay and Marie Goradia Foundation.

The report classifies UHNIs as those having a net worth of over Rs 1,000 crore (over $120 million). Anyone with a net worth in the range of Rs 200 to Rs 1,000 crore ($25-$120 million) is categorised as an HNI. Individuals with a net worth of less than Rs 200 crore ($25 million) but more than $850,000 are considered affluent.

Driven by higher contributions from billionaires Azim Premji and Shiv Nadar, donations from UHNIs increased by over 60 per cent in 2022-23 to Rs 6,850 crore ($835 million).

The report adds that Premji, the former chairman of Wipro, increased his contributions by more than $125 million, while HCL founder Nadar increased his contribution by over 700 crore ($85 million) in the previous Financial Year.

India's Financial Year runs from April 1 to March 31.

The number of UNHI philanthropists in India has grown from 100 to 120 between April 2020 and March 2023. Of these, 70 have been consistent donors, while 50 have donated sporadically.

Meanwhile, donations from HNIs and affluent individuals highlight India's economic rise in the post-liberalisation era. Philanthropic activity by HNIs and affluent individuals grew by 7 per cent to reach Rs 26,000 crore ($3.1 billion) in the previous financial year.

Over the next five years, the number of HNIs and affluent individuals is expected to grow to 1.7 million, the report says, adding that they represent a cumulative net worth of nearly $5.6 trillion.

In fact, HNIs and the affluent, the report argues, have a higher propensity to donate for causes than UHNIs. Currently, they constitute 22 per cent of India's private philanthropy. This figure can potentially reach over 35 per cent of total private philanthropy by March 2028.

“We anticipate an increase in philanthropy among HNIs and UHNIs in India, driven by growing wealth in capital markets and a strong desire to contribute to society.&nbsp; Maximizing their giving potential and impact requires a focus on transparency, governance, and heightened awareness within the sector," says Sonali Pradhan of wealth management firm Julius Baer.&nbsp;

The recent rise in family-led donations in India is commendable. But they pale in comparison to countries like the United States, United Kingdom and China, where the ultra-rich contribute 6 to 10 times more.

Moreover, private philanthropy is still just a fraction of India's social sector spending. At least 95 per cent of the social sector spending is still public-driven and stood at Rs 23 lakh crore ($280 billion) in FY23. &nbsp;

Even this huge figure is not enough for a country as massive as India. As a percentage of the Gross Domestic Product, social spending stands at 8.3 per cent of GDP, instead of the desired 13 per cent needed until 2030.

At the moment, private philanthropy, including those by the super-rich, provides hope to India's massively under-funded social sector. The report notes: "Private philanthropy can play a much more catalytic role at the intersections of government, business, foundation, civil society, and community."

Family-led philanthropy is well-placed to address the funding gap in India's social sector, while the ultra-rich are increasingly focusing on under-represented segments like arts, culture and heritage, and environment and sustainability, says a new report released on Thursday.

Family-led philanthropy is well-placed to address the funding gap in India's social sector, while the ultra-rich are increasingly focusing on under-represented segments like arts, culture and heritage, and environment and sustainability, says a new report released on Thursday. According to the 'India Philanthropy Report 2024' by Dasra and Bain & Co, family philanthropy increased by 15 per cent in 2022-23. This figure is projected to grow at an annual rate of 16 per cent until March 2028, adds the annual report. Family philanthropy includes contributions from Ultra High Networth Individuals (UHNIs), High Networth Individuals (HNIs) and affluent givers. "India’s historic culture of giving, rooted in familial and community allegiance, has broadened to incorporate philanthropic giving to recipients that a funder may have no connection with, and may never meet," says Sapphira Goradia of the Vijay and Marie Goradia Foundation. The report classifies UHNIs as those having a net worth of over Rs 1,000 crore (over $120 million). Anyone with a net worth in the range of Rs 200 to Rs 1,000 crore ($25-$120 million) is categorised as an HNI. Individuals with a net worth of less than Rs 200 crore ($25 million) but more than $850,000 are considered affluent. Driven by higher contributions from billionaires Azim Premji and Shiv Nadar, donations from UHNIs increased by over 60 per cent in 2022-23 to Rs 6,850 crore ($835 million). The report adds that Premji, the former chairman of Wipro, increased his contributions by more than $125 million, while HCL founder Nadar increased his contribution by over 700 crore ($85 million) in the previous Financial Year. India's Financial Year runs from April 1 to March 31. The number of UNHI philanthropists in India has grown from 100 to 120 between April 2020 and March 2023. Of these, 70 have been consistent donors, while 50 have donated sporadically. Meanwhile, donations from HNIs and affluent individuals highlight India's economic rise in the post-liberalisation era. Philanthropic activity by HNIs and affluent individuals grew by 7 per cent to reach Rs 26,000 crore ($3.1 billion) in the previous financial year. Over the next five years, the number of HNIs and affluent individuals is expected to grow to 1.7 million, the report says, adding that they represent a cumulative net worth of nearly $5.6 trillion. In fact, HNIs and the affluent, the report argues, have a higher propensity to donate for causes than UHNIs. Currently, they constitute 22 per cent of India's private philanthropy. This figure can potentially reach over 35 per cent of total private philanthropy by March 2028. “We anticipate an increase in philanthropy among HNIs and UHNIs in India, driven by growing wealth in capital markets and a strong desire to contribute to society. Maximizing their giving potential and impact requires a focus on transparency, governance, and heightened awareness within the sector," says Sonali Pradhan of wealth management firm Julius Baer. The recent rise in family-led donations in India is commendable. But they pale in comparison to countries like the United States, United Kingdom and China, where the ultra-rich contribute 6 to 10 times more. Moreover, private philanthropy is still just a fraction of India's social sector spending. At least 95 per cent of the social sector spending is still public-driven and stood at Rs 23 lakh crore ($280 billion) in FY23. Even this huge figure is not enough for a country as massive as India. As a percentage of the Gross Domestic Product, social spending stands at 8.3 per cent of GDP, instead of the desired 13 per cent needed until 2030. At the moment, private philanthropy, including those by the super-rich, provides hope to India's massively under-funded social sector. The report notes: "Private philanthropy can play a much more catalytic role at the intersections of government, business, foundation, civil society, and community."

'India Philanthropy Report 2024': HNIs and affluent take the lead in social sector spending

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'India Philanthropy Report 2024': HNIs and affluent take the lead in social sector spending

Joe Biden's social spending plan in trouble, moderate democratic senators want major changes