Philanthropy

Wealthy Indians Increased Charitable Giving In 2011, Plan To Give More This Year [DO NOT EDIT]

Tom Burroughes , Group Editor, 23 March 2012

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A survey by Bain & Co shows that wealthy Indians gave more to charity in 2011 than in the previous year and they intend to contribute more this year.

Charitable giving among wealthy Indians rose in 2011 to 3.1
per cent of total income, compared to 2.3 per cent in the previous year, with
more than half pledging to give even more in 2012, according to Bain &
Company’s 2012 India Philanthropy Report.

The firm’s third annual report of charitable giving in India surveyed
400 wealthy individuals with more than $400,000 in assets, excluding primary
residence, consumables and collectibles. Overall, more than 60 per cent of the
survey group was under 40 years of age—more than one-third were 30 years or
younger.

Though donations by India’s
affluent, as a percentage of their income, still lag their Western counterparts
- the US, at 9.1 per cent,
is among the highest - the survey showed significant charitable momentum
building in India
among all age groups.

Almost four out of five of those surveyed said they were
“novices” at charitable giving, with less than three years of philanthropic
experience, versus only 13 per cent of high net worth individuals in the US. In India,
more than half (52 per cent) planned to give more in 2012, and of that group,
about two in five planned to increase their giving by 10 per cent or more.

“India’s
young and wealthy have an especially strong commitment to giving back,” said
Arpan Sheth, a Bain & Company partner in Mumbai and the report’s author.

Younger wealthy Indians, the Bain survey found, give a
smaller proportion of their income—two percent, compared to 3.9 for their older
peers. But almost 60 percent of the younger group plans to increase donations
in 2012. Two-thirds of all surveyed expect to increase donations in the next
five years, with two in five saying they will increase giving by over 20
percent in that period.

The 2012 Bain canvass again showed that education remains
the most popular cause for giving in India, but it registered a sharp
increase in the second most popular category, food and clothing. Housing and
shelter rounded out the top three.

Obstacles to giving remain but were cited less than in
previous years. Half of this year’s survey respondents said lack of
accountability among charitable organizations held them back from increasing
contributions, down from 70 percent last year. Other main obstacles—an
unsupportive tax system and lack of awareness regarding charitable options—saw
similar declines.

 

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