Report: Family philanthropy set to change India’s giving landscape

While private sector philanthropic giving grew by a modest 7% in the financial year 2024, reaching ₹1.3 lakh crore ($16 billion), over the next five years it is expected to grow at 10% –12% annually, driven mostly by family philanthropy from ultra-high-net-worth individuals (UHNIs), high-net-worth individuals (HNIs), affluent individuals, and CSR.

These were the big findings from India Philanthropy Report 2025, released by strategic philanthropy organisation Dasra along with Bain & Company.

The country’s overall social sector funding has grown at a steady rate of 13% over the last five years, approximately ₹25 lakh crore ($300 billion) in 2024. In spite of this growth, the sector is ₹14 lakh crore ($170 billion) short of estimates by the NITI Aayog, with the gap projected to increase to ₹16 lakh crore ($195 billion) by 2029.

“As we see an increasing number of families committing to long-term, strategic giving, the potential for this sector to address both underfunded and niche causes has never been greater," shares Arpan Sheth, Partner, Bain & Company.

Family-owned or family-run businesses remain central to India’s CSR landscape, the report found. These businesses account for 65% to 70% of private sector CSR spending annually that totals approximately ₹18,000 crore ($2.2 billion).

Notably, the top 2% of family-owned or family-run run businesses contribute 50%-55% of the total CSR funding from this segment, underscoring the outsized role of a few key players.

Interestingly, the CSR spending that included contributions from both private sector and family-owned/run firms has increased its share of domestic private giving

from 23% in 2019 to 25% in FY24. This is expected to grow at an annual rate of 10–12% over the next five years. On the other hand, overall giving from HNIs and affluent givers grew by 11% in 2024 driven by an increase in HNI and affluent population.

“For generations, families have shaped India’s progress through values-led giving. With the right support, families in India and the diaspora can scale high-impact nonprofits, drive social innovation, and position India as a global leader in development," shared Neera Nundy, co-founder and partner at Dasra, and co-author of the report.

For the report, Dasra’s GivingPi network of 350+ philanthropic families was leveraged to derive emerging insights on family philanthropy. This included in-depth conversations with philanthropic families to understand key shifts in the giving landscape.

The report found that families are increasingly supporting underfunded and niche causes such as gender, equity, diversity and inclusion (GEDI), climate action, arts & culture, and animal welfare. They are also strengthening the philanthropy infrastructure by investing in collaboratives and building narratives, sector capacity, and institutions.

Significantly, 55% of families have women leading their giving priorities, and 33% have both Inter-gen and Now-gen givers influencing their philanthropy, indicating a shift towards more inclusive, diverse, and forward-thinking decision-making.

Family philanthropy is also becoming more organised, with 65% of families hiring dedicated staff to manage their philanthropic efforts. Furthermore, grant-making is emerging as the favored approach, with 41% of families focusing exclusively on grants, while 23% combine grant-making with direct programme implementation.

Key barriers persist, including a lack of awareness and limited philanthropy infrastructure. Strengthening the philanthropy support ecosystem will be essential in addressing these gaps and encouraging greater contributions from both domestic and international donors.

Highlights

Family philanthropy is rapidly evolving, with Ultra High Net worth Individuals’ contributions expected to increase at 22%–24% annually over the next five years.

HNI and affluent population’s giving is projected to grow at 12% to 14% per annum.

CSR spending, with its share of domestic private giving increasing to 25% in 2024 from 23% in 2019, is expected to grow at 10-12% annually in the next five years.

Families are increasingly supporting causes such as Gender, Equity, Diversity and Inclusion (40%) and climate action (29%), with 39% aspiring to strengthen the philanthropy ecosystem.

55% of families have women anchoring their philanthropic efforts and 33% of families have Inter-gen and Now-gen givers shaping their philanthropy.

Published on: Wednesday, March 05, 2025, 03:22 PM IST