Economic growth, domestic regulation on Corporate Social Responsibility and global interest in India’s development are transforming the role of domestic philanthropic giving. First, the rapid expansion of the economy over three decades of strong economic growth, with a concurrent increase in domestic wealth, bodes well for the potential for philanthropic giving. Second, the Indian Companies Act of 2013 regulates Corporate Social Responsibility (CSR) and mandates higher corporate spending towards specific sectors. Third, global interest in India’s social and economic development is high – reflected in important levels of external funding – and it has become the largest recipient of international philanthropic flows, while external financing from foreign direct investment (FDI) and personal remittances have increased as a percentage of GDP.
   The OECD invited 178 of the largest CSR and philanthropic organisations in India to be part of a survey to map India’s domestic giving sector and compare it to other sources of funding, such as ODA, international philanthropic flows and public social expenditures.Â
   Domestic philanthropic funding has at least matched international philanthropic funding in recent years, with close to USD 1.8 billion in domestic spending between 2013 and 2017. Education, health and rural development attracted the largest funding. Some other areas, like gender equality, receive very limited funding. Domestic philanthropic giving is highly concentrated in the States of Maharashtra, Karnataka and Andhra Pradesh. Comparing funding from private giving with poverty rates reveals that domestic philanthropic giving in India focuses rather on populated areas than those with high poverty incidence.Â
   An analysis based on comparable data covering three sources of funding for development in India ̶ namely, domestic philanthropy, international philanthropy and ODA ̶ shows some overlaps and opportunities for collaboration. Health and education clearly stand out as two main priority areas for philanthropy and CSR in India. For water supply and basic sanitation, there are important overlaps in funding amongst ODA, international and domestic philanthropy, as well as CSR and public spending. This suggests potential for more large scale partnerships between ODA donors, private donors and the public sector.Â
   Increasing domestic philanthropic flows also pose a new challenge for the non-profit sector. Additional resources from mandatory CSR and larger voluntary donations from individuals and foundations are becoming available, so it is urgent to strengthen the ability of the non-profit sector to further absorb those resources and transform them into positive development outcomes.
The original content was published on http://www.oecd.org/development/philanthropy-centre/researchprojects/
Photo credit: Pepe Pont
DISCLAIMER:
The views expressed in the blog and the report attached are the author's own and do not necessarily reflect those of the SDG Philanthropy Platform. The SDG Philanthropy Platform is a global initiative that connects philanthropy with knowledge and networks that can deepen collaboration, leverage resources and sustain impact, driving SDG delivery within national development planning. It is led by the United Nations Development Programme (UNDP) and Rockefeller Philanthropy Advisors (RPA), and supported by the Conrad N. Hilton Foundation, Ford Foundation, Oak Foundation, Brach Family Charitable Foundation, and many others.