Private giving in India rose sharply in 2010; 40 per cent of wealthy individuals plan to increase donations over next five years, according to Bain & Company's "India Philanthropy Report"

FOR IMMEDIATE RELEASE

PRIVATE GIVING IN INDIA ROSE SHARPLY IN 2010; 40 PER CENT OF WEALTHY INDIVIDUALS PLAN TO INCREASE DONATIONS OVER NEXT FIVE YEARS, ACCORDING TO BAIN & COMPANY’S “INDIA PHILANTHROPY REPORT 2011”

Mumbai, India—June 29, 2011— Donations by wealthy Indians helped to significantly increase private giving in India in 2010 which rose by at least 50 percent since 2006 as a percentage of GDP, to approximately $5-6 billion—according to Bain & Company’s “India Philanthropy Report 2011” released today. The report, which includes a survey of over 300 wealthy individuals, also finds that future giving is poised to rise further, as the rich population in India grows and as the philanthropic system becomes more advanced.

The report, authored by Bain Partner Arpan Sheth and New Delhi-based Manager Madhur Singhal, finds that 40 per cent of wealthy individuals in India plan to increase philanthropic donations over the next five years.

“Indians reached more deeply into their wallets in 2010 to give to charitable causes,” said Mr. Sheth, who is based in Bain’s Mumbai office where he heads the firm’s India Private Equity practice. “Our research findings suggest even greater levels of giving going forward as the wealthy population grows and India’s philanthropic network becomes more evolved and efficient.”

However, as the Bain study shows, India’s private charitable donations at between 0.3 and 0.4 percent of GDP in 2010—up from 0.2 percent in 2006—still lag behind developed countries: in the US, private giving (including bequests) accounted for 2.2 per cent of GDP in 2009; in the UK, it was 1.3 per cent in 2010.

The report identifies a key reason for the disparity: individual donations in India still constitute only 26 per cent of all private charitable contributions, while corporate donations and foreign funds make up the other 74 per cent. In the US, on the other hand, individual charitable donations are 75 per cent of all private giving; in the UK, they make up 60 per cent.

As wealthy individuals in India increase their philanthropic spending, corporate India is also playing a bigger role in private giving. Companies have stepped up social spending at a faster rate than their own profit growth. Bain’s 2011 report estimates that corporate giving in India now totals $1.5 billion—increasing five-fold since 2006.

The report suggests that much more needs to be done to alleviate India’s myriad and deep-rooted problems. It highlights four imperatives for actions which could boost the growth of philanthropy in India. These are:

• Increasing accountability and transparency throughout the giving chain
• Creating more capable and professional NGOs
• Continuing to promote a giving culture
• Working with the government to promote policies conducive to philanthropy

“Undertaking these steps would give a boost to philanthropy in India, which is already growing substantively as the wealthy increasingly start giving back,” said Sheth.

For a copy of Bain & Company’s “India Philanthropy Report 2011” or to schedule an interview with Arpan Sheth, Indian media please contact Kamil Zaheer at kamil.zaheer@bain.com or +91 98115 38880 and international media please contact Cheryl Krauss at email: cheryl.krauss@bain.com or +1 646 562 7863.

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