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Chief Executive
Charities Aid Foundation
India
 Indian Philanthropy traditionally«

ï Profound influence by religion

ï ½
Ôgiving),  
Ôalms),  Ôalms), 
Ôprescribed
offerings),   
Ôvoluntary offerings)
ï urowth of non-government, non-profit, voluntary sector inspired by
uandhian principles; village oriented community organisations
ï Institutionalised philanthropy gained momentum from
industrialisation; Tata, Birla, uodrej, Bajaj, Mahindra
ï Foundations and trusts established by corporate leaders
ï Advent of µinternational¶ agencies in 1950s fuelled growth of the
Indian voluntary sector
 Philanthropic uiving & Investing
ï In 2004, total Indian Fundraising market estimated to be over USD
500 million annually Ôexcluding religious and untracked donations)*
ï Individual donations represent 80% of total contributions, corporate
represent 10-20%
ï Top cities in terms of donations-Mumbai, Delhi, Bangalore,
Chennai and Calcutta.Emerging cities Pune, Jaipur & Ahmedabad
ï Characteristics: uiving highly ingrained in Indian culture where
both corporates and individuals donors prefer to donate to causes
most directly related to them
ï Popular areas for giving: child-related, age care, health and
poverty
ï Average Donation: USD 20-50 per donor annually
* Charity Fundraising Market-Industry Overview, Synovate Business Consulting, 2005
Philanthropic investors and investments

ï |    
  
  

ï Financial assistance from financially more wealthy societies to assist
with disaster situations and poverty in India
ï       
ï Fairly recent and promising development is the emergence of Indian
donor agencies that raise and regrant funds locally, India¶s most critical
development and equity challenges
ï HelpAge, Child Rights and You ÔCRY),Save the Children, CAF, uIVE
ï   
ï Most preferred giving options of the Indian diaspora
ï !  
ï Presence of large MNCs have led to increased investment in the
development space
 Indian Philanthropy: Barriers to growth and
professionalisation

ï The knowledge gap

ï Information on credible, transparent, accountable charities still

unavailable for a large part of the population
ï Data on sources, amounts, recipients and impact of
philanthropy does not exist

ï Lack of philanthropy professionals

ï Lack of support structure
ï Inadequate legal structure
ï Excessive government oversight and bureaucratic requirements
ï For HNIs ±approach needs to be defined and marketing strategy
reviewed
Nature of the Third Sector Organisations in
India

ealth Others
7 eligious
66 6
S orts/cul
ture

o unit
ducation
/social
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 Indian Philanthropy: Opportunities

ï Vigorous economic growth

ï 0% per annum returns from stock markets this year
ï US$2 billion foreign investment
ï Rapidly growing ³millionaire club´
ï urowing faster than in most other countries
ï No of NHI* individuals grew by 19. % in 2005
ï The no of such individuals now stands at 8 ,500 as compared to
0,000 in 2004**
ï Financial Banks which cater to the HNI with a surplus income of
over Rs 2 cr ÔUS$ 444K) have estimated this segment to grow by
20%
‡Defined as individuals with financial assets of Rs 4.5 crs ÔUSD 1 Million) and above.
‡** According to World Weath Report ÔCapgemini and Merrill Lynch).
Wealth of richest Indians

ï Lakshmi Mittal - $20 billion

ï Azim Premji - $11 billion
ï Mukesh Ambani - $ billion
ï Anil Ambani - $5.5 billion
ï Kushal Pal Singh - $5 billion
ï Sunil Bharti Mittal - $4.9 billion
ï Kumar Mangalam Birla - $4.4 billion
ï Tulsi Tanti - $ . billion
ï Pallonji Mistry - $ . billion
ï Anurag Dikshit - $ .1 billion
 HNW Market: Who services them currently?

ï DSP Merrill Lynch caters to 450 HNI families, which is an

increase of 50% over last year
ï ABN Amro has 500 client groups in 2,000 and plans to target
,000 to 4,000 client groups every 5 years
ï HSBC & BNP Paribas exploring similar terrain
 Opportunities & Role of Advisors

ï At the beginning of this new millennium the opportunity and imperative to

increase philanthropic giving is greater than at any other time in history

ï There is good sociological evidence that many HNI and families are searching
for personal validation and meaning within their lives, and that philanthropy and
service represent increasingly important ways to achieve such meaning

ï Advisors are key to expanding social capital because they interact with clients at
times at which their clients ± existing or potential donors -- have the greatest
capacity to make major gifts: e.g., when creating a wealth plan, planning their
estates, or selling a business or major asset.

ï In addition, advisors are often in the best possible position to uncover the
³hidden´ philanthropic potential of their community; i.e., those individuals who are
not presently philanthropic but have the potential to discover their charitable
interests and apply their social capital to addressing society¶s needs.
 Developing Advisors

ï Develop strategy to work with Wealth Managers, Legal Advisors

with the objectives of:

ï Contributing substantially to what is now known about the

Indian advisor¶s role in encouraging philanthropy and
establishing a benchmark for advisor activity today
ï Inventory and illuminate the factors that encourage and support
advisors in ³asking the philanthropic question´
ï Motivate and support advisors in becoming more consistent in
encouraging their clients to become active and strategic
philanthropists
ï Tap the experience of donors in educating advisors about
being effective philanthropy advocates
 Contd ...

ï Design and host a forum in HNI cities - New Delhi, Mumbai and
Bangalore for advisors, donors, and philanthropy promoters and
intermediaries to learn and share best practices for advancing
philanthropy, and support the creation of tools to do so

ï Establish an interdisciplinary partnership of advisors, donors,

advisor professional associations, and others who are active within
organized philanthropy who seek to ³promote philanthropy´ to
continue this work in the years ahead, and ³market´ the importance
of philanthropy counseling to India¶s advisor professions.
Creating Tools for better access &
knowledge
ï Create tools
ï Model presentations for advisor-to-advisor work
ï Model presentations for advisor-to-client discussions
ï Commission and gather "stories´ of successful work with clients
around social investing
ï Outreach to advisor professional associations

ï Create a ³speakers bureau´ of prominent advisors who

understand the importance of involving professional advisors
in the promotion of greater social investment
Recognize...

ï HNIs are special

ï Customer Relationship Managers ÔCRMs) cannot access or
perform the role of Advisors
ï Strategies are important: Access, Marketing,
Communication
ï Scale is important
ï Information including Business Plans of organisations are
relevant
ï Transparency & Accountability key to succeed
ï Western Philanthropy - Capitalism works for global Indians
but local context is important