The Family and the Nation:
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The potential of family philanthropy is transformational. At scale, it can double the total size of private philanthropic funding available in India. Read the latest India Philanthropy Report to learn more about this source of funding, and tune in to our session highlights to hear panelists from The Gates Foundation, British Asian Trust, Cipla Foundation and more talk about what we can do to support and encourage it.
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Key takeaways
- We are entering the golden decade for family philanthropy. In fiscal year 2020, it accounted for almost two-thirds of the increase in funding to the sector.
- If ultra-high net worth families in India start giving in line with their global peers (2-3% of their wealth), family philanthropy could generate an additional annual investible corpus of INR 60,000 - 100,000 crore.
- Family foundations have the ability to write their own mandates. As such, it is a flexible source of funding, with the potential to support innovation, capacity building, advocacy and public policy, and governance.
- More and more, families are seeking to define and align their family and philanthropy values, as well as their business and philanthropy goals.
- New Generation (Now-Generation) funder engagement is key to growing family philanthropy because of their impatience to get things done, and their willingness to engage with new sectors.
- Family foundations starting their journey would benefit from starting with a sector they have domain expertise in, learning from networks, and listening to community members.
session highlights
As detailed in the India Philanthropy Report 2021, private-sector funding totalled about INR 64,000 crore in fiscal year 2020—close to 23% more than in 2019. Of this, family philanthropy was the biggest source of growth, accounting for almost two-thirds of the increase in funding.
Family philanthropy is thus a growing source of capital for our sector. Importantly, it’s a source that is flexible and can be used to fund innovation, capacity building, advocacy and governance. And it’s growing at a time when other philanthropy sources such as retail giving, and CSR are constrained. So, what can we do to support and encourage its rise?
Panelists in this session discussed the values they brought to their family philanthropy, with Dr Yusuf Hamied talking about self-reliance, and Sonal Sachdev Patel about trust, humility and respect. Also discussed were the ways in which panelists had integrated their business principles and their giving.
When reflecting on the past year, Hitan Mehta highlighted how people have been more open to collaboration, and the need to capitalize on this momentum. Panelists spoke about what family philanthropy needs going forward, including: a blend between operating and grant-making foundations, greater involvement of new-generation givers, and dedicated efforts to bridge the gap with the government. Lastly, the need to institutionalize family giving was discussed, as doing so would activate a network, and ultimately, unlock more capital.
Family philanthropy is thus a growing source of capital for our sector. Importantly, it’s a source that is flexible and can be used to fund innovation, capacity building, advocacy and governance. And it’s growing at a time when other philanthropy sources such as retail giving, and CSR are constrained. So, what can we do to support and encourage its rise?
Panelists in this session discussed the values they brought to their family philanthropy, with Dr Yusuf Hamied talking about self-reliance, and Sonal Sachdev Patel about trust, humility and respect. Also discussed were the ways in which panelists had integrated their business principles and their giving.
When reflecting on the past year, Hitan Mehta highlighted how people have been more open to collaboration, and the need to capitalize on this momentum. Panelists spoke about what family philanthropy needs going forward, including: a blend between operating and grant-making foundations, greater involvement of new-generation givers, and dedicated efforts to bridge the gap with the government. Lastly, the need to institutionalize family giving was discussed, as doing so would activate a network, and ultimately, unlock more capital.
quotes
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“If you’re a bit unsure, do what you do best. Get involved in how people are giving in your field, because you will understand it, you will have domain experience, it won’t be as daunting.” – Rumana Hamied, Managing Trustee of Cipla Foundation |
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“The potential of family philanthropy is transformational. At scale, we believe, family philanthropy can double the total size of private philanthropic funding available in India.” – Dinkar Ayilavarapu, Partner,Bain & Company |
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“The fact that India was able to mount a pretty successful response [to COVID-19] by many yardsticks, had a lot to do with the very significant increase in giving by philanthropic families and individuals.” – Hari Menon, Country Director, India, Bill & Melinda Gates Foundation |
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“We as philanthropists can sometimes exist in an echo chamber. The voices that we hear and the people that we encounter, they look and sound the same as us.” – Sonal Sachdev Patel, GMSP Foundation |
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“I hear families seeking ways to move away from cheque writing, towards more strategic, sustainable interventions, where they bring their money, but also their time, their dedication, their expertise and their professionalism.” – Jo Ensor, Founder & CEO, Pi (Philanthropy Insight) |
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“This pandemic, more than anything else, has underlined that there is no longer a proportionate or linear equation between the size or budget of an NGO and the ability to scale a solution.” – Priya Agarwal, Founder & Director, Antarang Foundation |
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“Philanthropic families are an important lever for change, but often struggle to find their footing, which is why it’s so important to build and fund the infrastructure to support their efforts.” – Nick Tedesco, President & CEO, The National Center for Family Philanthropy |
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“India has demonstrated in the last 21 years (since we started Dasra) the bold, ambitious nature of our business leaders – of our families – to make a difference in society and to build some of the best companies we see globally. Yet that same boldness and ambition doesn’t translate to philanthropy.”
- Deval Sanghavi, Dasra |
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