India: myriad shapes of philanthropy

In Mewat, in rural north-western India, for example, the predominantly Muslim Meo community donates fixed amounts of grain to mosques, which distribute wealth. Different religions have inspired different mechanisms for giving, though none are uniform across India.

Although these traditional mechanisms for giving are still important, class, caste and the social relationships based on them are in transition. Religious giving is strongest in rural areas, although the influence of the village communities has weakened since independence.

Government is the largest funder of the non-profit sector in India, frequently through contractual relationships with non-governmental organisations (NGOs) to increase services to discrete groups. Post-independence, social change in India has been strongly influenced by increasing state intervention between competing social groups, redistribution of land and industry-based modernization.

Following the decline in state regulation of the economy in the 1990s, money and business assets are the dominant form of wealth in urban centres. In rural society, the Green Revolution – started with funding from the US-based Rockefeller Foundation – has increased wealth in the form of land, water bodies, and property.

At present, philanthropy is developing more in urban areas. A study conducted by Sampradaan Indian Centre for Philanthropy (SICP) indicated that 96% of upper and middle class households in urban areas donate for a charitable purpose. However, promoting giving must address all forms of wealth, as giving money is not the key to developmental problems in all areas. For instance, community grain banks offer a solution to pockets of inadequate nutrition in India and grain can finance further development projects.

One example of innovation through giving institutions is the emerging community foundations across the country. SICP is promoting a community foundation in Mewat by trying to build a network of donors within the small middle class community and the local Muslim clergy. Lessons from this project will be shared to encourage others.

Diaspora giving continues to play an important role, though as it has developed from being mainly family-focussed to encompass broader philanthropic aims, it is increasingly being channelled through foreign foundations. 

Although many Indian companies’ community development and CSR programmes have had little visible impact, there are examples of strategic company philanthropy. The Tata Institute of Fundamental Research, for example, is a world-class centre of research in mathematics and sciences, borne out of the vision of Tata Group of Companies in the 1940s. The Tata family was awarded a Carnegie Medal of Philanthropy in 2007 for its “longstanding commitment to philanthropic causes”.

To bring the goal of sustainable development closer, the state must accept the necessity of private wealth and other voluntary resources: sharing wealth is key to creating more wealth. For its part, the Planning Commission of India has started formulating the National Voluntary Sector Policy to encourage, but not control, the non-profit sector. Equally however, the non-profit sector must demonstrate professionalism, effective governance and transparency to attract and retain both public and private donors.

Therefore, a strategic focus, as well as further research of the myriad forms of philanthropy across India, will be vital to encouraging and supporting all forms of giving.

Dr Sandeep Deshmukh is Executive Director of the Sampradaan Indian Centre for Philanthropy (SICP). ‘Sampradaan’ means ‘giving wisely’ in Sanskrit, and we translate this in practice too. We are encouraging the development of community foundations in India through a broad-based process of selection and voluntarism. Wealthy donors interested in India may contact Sampradaan or any of our three partner community foundations: Mewat Foundation (Trust), Sainik Sangh and Kodagu Model Forest Trust. www.sampradaan.org.