Philanthropy: Gen Next in focus to drive charity

MUMBAI: They were born with a silver spoon in their mouth and have grown up seeing their grandfathers and fathers giving to charities in a big way. As philanthropy in India sees a shift, next-generation philanthropists (NGPs) are being looked upon as torch bearers to take forward the giving legacy of their families.

NGPs are a critical group of individuals who inherit wealth from their families, have a legacy of giving and have now taken the plunge into philanthropy.

The number of ultra-high net worth individual (UHNWI) households has more than doubled to 1,46,000 in fiscal year 2016 from 62,000 in FY 2011, according to the India Philanthropy Report (2017) by Bain & Company and Dasra. The landscape of philanthropy in India is changing as many multi-generational philanthropic families transition responsibility and decision-making power from one generation to the next. India will witness one of the largest transfers of wealth — close to $128 billion — from one generation to the next in the coming decade, according to a Karvy Private Wealth report.

Deval Sanghavi, co-founder of the strategic philanthropy foundation Dasra, said, “NGPs will have a significant role to play in India’s development story, given the quantum of wealth being transitioned from one generation to the next.”

In a report by Hemendra Kothari Foundation, Dasra and Synergos, shared exclusively with TOI, NGPs are extremely active, impact-driven and bring their entrepreneurial approach to philanthropy. When TOI spoke to a section of NGPs to understand their vision and approach to philanthropy, what emerged was a desire to fund research-driven solutions.

Ayushi Patni, daughter of Amit Patni, who plays a key role in the philanthropic initiatives of the Patni family, has grown up seeing her grandfather and mother set up charitable hospitals. “The only thing I found lacking was that it was not done in a structured manner. That is something which I would definitely emphasise on in the future as and when I take it forward. As a millennial, we believe in real-time data. I want to make sure what I give is used correctly,” said Patni, who has decided to not only fund higher education for a bunch of students, but also help them realise their ambitions.

NGPs are breaking away from traditional forms of giving and are investing not only their wealth but also their time and business skills to the sector. Hemendra Kothari’s daughter, Aditi Kothari Desai, who is executive director & head (sales and marketing) at DSP BlackRock Investment Managers, believes she is quite similar to her father when it comes to giving. “For the prior generation, the focus was more on infrastructure — building a school or college. Today, we talk about foundations. We give to social entrepreneurs. That is a change that has come from my grandfather and his father’s generation to us. While they worked on the hardware, we work a lot on the software,” said Desai, who is also a trustee of the Hemendra Kothari Foundation and Wildlife Conservation Trust.

Considering that majority of the funds are given to education (55% of the top 49 givers in India give to education), child welfare, old-age and disaster relief, it has created supply-side gaps in several other sectors. Mariwala Health Initiative (MHI) decided to take on a different cause, i.e. mental health. When Rajvi Mariwala, daughter of Marico founder Harsh Mariwala, is not donning her canine behaviourist hat, she is spending time fulfilling her responsibilities at MHI.

As against the previous generation’s socially conscious welfare-based approach, Mariwala is keen on looking at aspects like inclusion and inter-sectionality in the causes she funds. “It’s not enough for me that you are doing some great work in the area of mental health. I expect more detailing about whether I am serving a population from the OBC or how do I account for women being more active on mental health services,” said Mariwala.

One of the biggest barrier for raising money for mental health is that it is an unknown field. But Mariwala is determined to take mental health awareness to a different level. MHI is trying to figure out how it can encourage more NGOs to use it. “Mental health is not restricted to a specific age, gender, caste or region. The canvas is really wide. We want to overhaul the system,” she said.

Philanthropic firms are looking upon NGPs to take on the mantle quickly as India is estimated to face a financial shortfall of approximately Rs 533 lakh crore ($8.5 trillion) if it is to achieve the sustainable development goals by 2030.