Wealthy Indians are learning the art of giving — fast. In 2011, they gave 3.1 per cent (2.3 per cent in the previous year) of their income for charitable purposes, with more than half pledging to give even more in 2012.
Younger wealthy Indians gave a smaller proportion of their income for charity (two per cent) as compared to their older peers (3.9 per cent), but what gives hope is almost 60 per cent of the younger group planned to increase donations in 2012. Two-thirds of all surveyed expected to increase donations in the next five years, with two in five saying they would increase giving by more than 20 per cent in that period, according to the Bain & Company’s India Philanthropy Report 2012.
“India’s young and wealthy have an especially strong commitment to giving back. We are encouraged by the emergence of the next generation of donors, who are even more committed to supporting this charitable culture as their wealth grows,” said Arpan Sheth, partner, Bain & Company, Mumbai, and the report’s author.
The 2012 Bain canvas showed education was the most popular cause for giving in India, but it registered a sharp increase in the second most popular category, food and clothing. Housing and shelter rounded out the top three. Also, around half of this year’s survey respondents said a lack of accountability among charitable organisations prohibited them from increasing contributions.
The report said donations by affluent Indians as a percentage of their income still lagged their Western counterparts. The percentage in the US (at 9.1) is among the highest. The 2012 report by the global business consultancy surveyed 400 wealthy individuals with more than Rs 4 lakh each in assets, excluding primary residence, consumables and collectibles. Overall, more than 60 per cent of the survey group was under 40 years of age with more than one-third being 30 years or younger.