Over the last few years global philanthropy is on a rise, primarily due to the initiative taken by Bill and MELINDA Foundation. They played a fundamental role in increasing awareness on humanitarian and social issues which in many ways set the benchmark for global philanthropy while Chan Zuckerberg Initiative is a game changer. Still the poverty and inequity is rising in the world.
According to report by BCG, around the world more than $ 3mn children die of chronic hunger under the age of 5 years more than those combined from Malaria, Tuberculosis and AIDS.
A report Food For Thought estimates 38% of children in least developed countries have stunted growth due to malnutrition. This could cost global economy $ 125bn when the children grow up. 19,000 children die everyday of preventable diseases. According to UNICEF 90% of children with disabilities never go to School. Although the penetration of 90% in primary education has been achieved in developing economies, 130M children still do not know basics.
This is a follow up report on Philanthropy in India with brief over view of Global based on the report published by Bain India Philanthropy Report 2015. India is a Global Outlier among emerging markets based on the level of prosperity with a very high proportion of the population donating to charitable causes. India has added 100 mn donors since 2009. In 2013 28% of adult population donated money and 21% their time compared to 14% in 2009.
India climbs up to No. 69 in World Giving Index, up from No. 134 in 2010. Bill & Melinda Gates Foundation for example has invested $ 1 bn in India during the past decade with foreign philanthropic donation doubling from $0.8 bn in 2004 to $1.9 bn in 2012. Side pic India’s philanthropic sector is mature compared to countries with similar profiles.
UK tops in terms of penetration closely followed by Canada, Ireland and Netherlands with USA the king in both penetration and absolute terms.
Supply side of philanthropic system has kept pace with domestic foundations like Azim Premji, Reliance Foundation and NALCO Foundation set up in past five years. Nonprofit organizations under the Foreign Contribution Regulations Act (FCRA) increased from 30,000 to 44,000 in the past 10 years in India. Education, Child Welfare and Old Age are the top priority sectors in India with 40% of the HNWI survey respondents causes like education and child welfare. This is great and my focus areas in Humanitarianism but more focus must be given to Arts and Culture considering India’s great cultural history.
Long Way Ahead
There is still a long way ahead for philanthropy in India although India has done fantastically well over the last few years. In UK 74% of people made charitable donations while it is still around 28% in India ( Data as of 2013)
Side Pic Source: trak.in
One of the key enablers not only in India but across emerging economies is accountability and measurability. There have to be safeguards on how to measure the impact of all the donations to humanitarian causes and bring in accountability. This will stop rampant corruption. Teach For India follows a model of impactful education. One of the most important reasons for taking the LLC model for philanthropy by Chan Zuckerberg model was to bring in more accountability and measurable results in their philanthropic initiatives. This is hard earned money and there are many free loaders in NGO sectors. According to Bain report about 50% of donors surveyed said they did not a sufficient number of credible organizations through which they could donate. There are number of credible organizations in India in NGO sector but a more transparent structure would help in proliferating philanthropy in India. The best way is of course if every citizen in India could devote a few hours per week in social issues including but not limited to working in NGOs, writing creative articles showcasing humanitarian achievements, opening small social and charitable groups etc. Mr Modi’s government has been proactive in channeling better sanitation in India considering only 36% of India’s population has access to improved sanitation.
Pic Source Up: Indian-express Below Future Challenges
How many more children have to die of malnutrition not only in India but globally before we act