Philanthropic contributions made by the ultra-high-net-worth individuals (UHNIs) -- having a total net wealth of more than ₹1,000 crore -- in India have increased by over 60% to ₹6,850 crore in FY 2023, compared with ₹4,230 crore in the previous financial year, according to a report.
The India Philanthropy Report 2024, which is a collaborative effort of Bain & Company and Dasra, states that the growth this time was primarily driven by higher contributions from concurrent donors for FY 2022 and 2023.
This growth was majorly due to the significant contributions made by Azim Premji and Shiv Nadar. "Premji increased his contributions by more than ₹1,000 crore, and Nadar increased his contributions by more than ₹700 crore in FY 2023.
This increase was in tandem with the rise in net worth of UHNI philanthropists (excluding Azim Premji and Gautam Adani), which grew by more than 15% during FY 2023," the report stated.
It further highlighted that the number of UHNI philanthropists in the country has increased from 100 to 120 between the 2021 and 2023 financial years. Out of the 120 UHNI philanthropists in India, 70 have remained consistent donors, while 50 have donated sporadically, it added.
Despite an increase in their donations, the UHNIs in India continue to "donate less than their counterparts in the US, UK, and China, who contribute 6 to 10 times more," the report read.
While the overall private philanthropic growth remained stagnant with the total giving of ₹1,05,000 crore for two consecutive years in FY22 and FY21, this time the private philanthropy grew by 10% in FY23, to ₹1,20,000 crore ($15 billion).
"Family philanthropy, which includes contributions from UHNIs (net worth > ₹1,000 crore), HNIs (net worth of ₹200–1,000 crore), and affluent givers (net worth of ₹7–200 crore) increased by 15% in FY 2023. It is projected to grow at an annual rate of 16% until FY 2028," the report stated.
The overall donations from high net-worth individuals (HNIs) and affluent individuals jumped by 7% in FY23 to reach ₹26,000 crore. In India, the total number of HNIs and affluent individuals is expected to reach 1.7 million in the next five years, representing a cumulative net worth of ₹460 lakh crore.
"Data indicates that HNIs and affluent individuals have a higher propensity to give (over 0.7% net worth) than UHNIs (0.1% net worth)... The contribution from HNIs and affluent donors in private philanthropy has the potential to reach more than 35% by FY 2028 compared to 22% in FY 2023," the report added.
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