Bain & Company and Dasra reports mark a 10% surge in philanthropy & 7% rise in CSR Spending

According to the India Philanthropy Report by Bain & Company and Dasra, private philanthropy has grown 10% to Rs 1.2 lakh crore in FY23, including corporate social responsibility funding and donations from the wealthy and retail donors. CSR mandate compliance increased in this period, but moderate spending growth was seen by this segment at 7%, less than half of family philanthropy’s 15% expansion and retail giving’s 12% more.

Lagging due to the lingering impact of COVID on company profits. Despite this, the number of companies meeting the 2% CSR requirement doubled to 60%. Healthcare and education continue to receive the majority of CSR funds, but there is a growing focus on the environment and sustainability. Young, first-generation wealthy individuals are entering non-traditional areas of philanthropy, such as climate change and diversity initiatives. The report also notes an increase in professionals accumulating wealth and engaging in philanthropy. Foreign private giving was estimated at Rs 23,000 crore in FY23 and is expected to grow slowly due to increased scrutiny and the potential preference for low-income countries. Despite regulatory tightening, foreign funding as a share of the total did not decrease in 2023. India’s total spending on the social sector, primarily from public funds, grew 13% annually in the last five years, reaching Rs 23 lakh crore, or 8.3% of GDP in FY2023, falling short of the 13% of GDP estimated by Niti Aayog for UN Sustainable Development Goals commitments by 2030.