Family philanthropy accounts for 65-70% of private sector CSR spending: Report

Global consultancy Bain & Company and strategic philanthropic organisation Dasra, on Thursday, released the India Philanthropy Report (IPR) that revealed that social sector funding has grown at a steady rate of 13% over the last five years, approximately Rs 25 lakh crore ($300 billion) in FY 2024.

Despite this growth, the sector is Rs 14 lakh crore ($170 billion) short of estimates by NITI Aayog. The gap is projected to increase to Rs 16 lakh crore ($195 billion) by FY 2029.

The report pointed out that India's social sector spending is projected to increase to approximately Rs 45 lakh crore ($550 billion; 9.6% of GDP) by FY 2029, with public funding continuing to account for about 95% of this. The spending is rapidly growing in the healthcare segment, bolstered by higher post-pandemic allocations while education spending is expected to grow at a moderate pace.

Private sector funding grew by a modest 7% in FY 2024, reaching Rs 1.3 lakh crore ($16 billion). Looking ahead, private sector funding is expected to accelerate to 10% –12% annual growth over the next five years, largely driven by family philanthropy from ultra-high-net-worth individuals (UHNIs), high-net-worth individuals (HNIs), affluent individuals, and CSR.

Family-owned or run businesses account for 65%-70% of private sector CSR spending annually—totaling approximately Rs 18,000 crore ($2.2 billion), within the broader 85% contribution from private sector companies. Notably, the top 2% of family-owned/run businesses contribute 50%-55% of the total CSR funding from this segment, underscoring the outsized role of a few key players.

CSR spending, including contributions from both private sector and family-owned/run firms, has increased its share of domestic private giving to 25% in FY24 from 23% in FY19 and is expected to grow at an annual rate of 10–12% over the next five years. On the other hand, overall giving from HNIs and affluent givers grew by 11% in FY24 driven by an increase in HNI and affluent population. Their giving is expected to grow at 12-14% annually over the next five years. In contrast, UHNIs—who typically donate in large blocks—are expected to see a faster annual growth rate of 22–24% over the same period.

Emerging insights from GivingPi, based on in-depth conversations with philanthropic families, highlight key shifts in the giving landscape. Families are increasingly supporting underfunded and niche causes such as gender, equity, diversity, and inclusion (GEDI), climate action, arts & culture, and animal welfare. They are also strengthening the philanthropy infrastructure by investing in collaboratives and building narratives, sector capacity, and institutions.

Notably, 55% of families have women anchoring their giving priorities and 33% of families have Inter-gen and Now-gen givers shaping their philanthropy, signaling a shift towards more inclusive, diverse, and forward-thinking decision-making. Family philanthropy is also becoming more structured, with 65% of families employing dedicated staff to manage their philanthropy. Additionally, grant-making is emerging as the preferred approach, with 41% of families focusing solely on grant-making, while 23% combine grant-making with direct programme implementation.

“As we see an increasing number of families committing to long-term, strategic giving, the potential for this sector to address both underfunded and niche causes has never been greater. With the right support and infrastructure, private sector funding can play a central role in reshaping India’s social landscape, driving sustainable impact for generations to come,” said Arpan Sheth, partner at Bain & Company.

“For generations, families have shaped India’s progress through values-led giving. With the right support, families in India and the diaspora can scale high-impact nonprofits, drive social innovation, and position India as a global leader in development,” said Neera Nundy, co-founder and partner at Dasra, and co-author of the report.