Donating for a cause may have just hit a high with companies and individuals contributing around Rs 70,000 crore towards philanthropy in 2016, as against Rs 23,000 crore in the previous year, a Bain research said.
“Foreign sources are no longer the biggest sources of private philanthropy. Although philanthropy from foreign sources has continued to increase over the years, the domestic philanthropy market has overtaken it. The rapid growth of philanthropy from individuals bodes well for the sustained growth of Indian philanthropy,” India Philanthropy Report 2017: The Individual Philanthropist’s Path to Full Potential said.
According to the report, philanthropy has been on the upswing in India over the past five years. Although fund-raising continues to be one of the primary concerns in the development sector, it has seen steady growth in the recent past, thanks primarily to private sources. Though the current trend is heartening, a greater for more philanthropic funding and resources is needed, given that the required scale of development remains significantly large.
Moreover, with the new Corporate Social Responsibility (CSR) regulation in the Companies Act, more companies are required to invest about two percent of their profits in social causes. According to the Companies Act, every company with a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or a net profit of Rs 5 crore is required to spend about two per cent of their profits to CSR. Top 100 listed Indian companies have managed to improve their corporate social responsibility (CSR) compliance, according to a separate KPMG survey.
“The philanthropic ecosystem has been thriving due to the combined efforts of both the public and private sectors. Overall, total funds for the development sector have grown at a healthy rate of approximately 9% over the past five years, increasing from approximately Rs 150,000 crore to approximately Rs 2,20,000 crore. While the government remains the largest contributor (Rs 150,000 crore in 2016), its share in total funding has been declining steadily. Private contributions primarily accounted for the Rs 70,000 crore five-year growths. Private donations made up 32% of total contributions to the development sector in 2016, up from a mere 15% in 2011,” the Bain report added.
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The CSR Journal Team