Family businesses contribute 40 pc to private philanthropy: Report
Family businesses not only remain an integral part of the Indian economy, they also contribute around 40 per cent to private philanthropy, according to India Philanthropy Report 2025 (IPR) by Bain & Company and Dasra.
ANI
Feb 27, 2025 14:00 IST
New Delhi [India], February 27 (ANI): Family businesses not only remain an integral part of the Indian economy, they also contribute around 40 per cent to private philanthropy, according to India Philanthropy Report 2025 (IPR) by Bain & Company and Dasra.
Family Businesses Contribute 40 per cent to Private Philanthropy in India: Report
New Delhi [India], February 27 (ANI): Family businesses are a key driver of philanthropy in India, accounting for 40 per cent of private donations, according to the India Philanthropy Report 2025 by Bain & Company and Dasra.
Their contributions come from both personal giving by ultra-high-net-worth individuals (UHNIs) and high-net-worth individuals (HNIs) and corporate social responsibility (CSR) spending by family-run enterprises.
It said, "Family-owned/run businesses contribute 65-70 per cent of private-sector CSR spending annually, totalling approximately INR 18,000 crore with the top 2 per cent of family-owned/run firms contributing 50-55 per cent of the total family owned/run businesses."
The report highlighted that these businesses have long championed social responsibility, even before the government mandated CSR spending in 2014.
Notably, the top two per cent of these businesses contribute 50 per cent-55 per cent of the total CSR contributions made by all family-run firms, underlining the important role of a few key players in India's philanthropic landscape.
The report stated that the growing wealth of Indian business families is reflected in the rapid rise of family offices, which have increased sevenfold from 45 in 2018 to 300 in 2024. These offices are expected to drive institutionalized, multi-generational, and value-driven philanthropy in the country.
Additionally, 40 per cent of philanthropy support organizations currently cater to family-led initiatives.
The report suggests that if more structured services and strategic support systems are established for family philanthropy, India could witness an additional Rs50,000-55,000 crore (USD 6-7 billion) in philanthropy over the next five years.
With the growing influence of family businesses in CSR and philanthropy, experts believe that a well-structured approach could further unlock their potential, ensuring long-term and sustainable contributions to India's social and economic development.
Apart from unlocking greater domestic philanthropic capital, the expansion of the Indian diaspora from 18 million in 2019 to 35 million in 2024, along with their increasing wealth, offers significant potential for growing social sector funding.
However, contributions from the diaspora may be hindered by a lack of awareness and the sector's nascent infrastructure. Philanthropy support organizations can play a key role in bridging these gaps.
The report outlined that India is emerging as a global leader in developing scalable, cost-effective solutions to address social challenges.
It also stated that family philanthropists--with their patient capital and long-term vision--are uniquely positioned to drive global impact by supporting frugal innovation by India's dynamic non-profits. (ANI)
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