Democratising and decentralising philanthropy in India

Philanthropy holds the potential to transform lives and drive social change, yet a discernible trend has emerged where a significant portion of international and diaspora-funded philanthropy in India disproportionately benefits a select few non-profits, predominantly led by privileged social leaders who are based in metropolitan areas in India. This piece delves into this concerning pattern, examines its implications, and proposes a multifaceted approach to potentially democratise and decentralise philanthropy, empowering non profit leaders from marginalised communities across the nation.

Understanding the Concentrated Trend

The focal point of philanthropic resources towards a few privileged entities can be attributed to a combination of familiarity, comfort, and existing networks. This preference unintentionally sidelines smaller grassroots organisations and leaders from marginalised backgrounds. Statistical insights emphasise the magnitude of this issue. According to a study by Dalberg Advisors, nearly 70% of funding from international donors goes to organisations headquartered in just three Indian cities: Delhi, Mumbai, and Bengaluru. The Centre for Social Impact and Philanthropy reported that less than 10% of funds disbursed by Indian philanthropic foundations directly target marginalised communities.

It is evident that we have :

• Funding Distribution Disparity : A report by the India Philanthropy Report revealed that more than 2/3rd of overseas funding from Indian diaspora donors miss rural initiatives that often address more urgent needs.

• An Upper-Caste Leadership Bias: According to a study by the Dalit Bahujan Resource Center, 80% of leadership positions in large Indian non-profits are held by individuals from upper-caste backgrounds,who have access and exposure to the networks.

• Regional Disparity: A study by The Bridgespan Group found that the majority of funding is concentrated in a few select states, perpetuating regional inequalities. The UNDP reported that Bihar, one of India’s most economically disadvantaged states, received just 1% of philanthropic funding despite its pressing development needs.

• Ignorance towards social issues of marginalised communities : A recent study by the Centre for Social Impact and Philanthropy reported that only a small fraction of funding from Indian philanthropic foundations—less than 10%—is directed towards organisations addressing social justice issues of marginalised communities. An alarming gap persists when it comes to funding initiatives addressing systemic inequalities, caste discrimination, tribal rights, and other social justice matters—crucial aspects for a more equitable society.

Implications of the Concentration

The skewed distribution of resources in philanthropy has far-reaching consequences:

• Limited Impact: Concentrated funding restricts the scope of addressing diverse issues and hampers the overall impact on underserved communities.

• Exclusionary Practices: The absence of representation from marginalised voices perpetuates inequalities, sidelining the experiences and needs of minorities and underrepresented groups.

• Unimaginative Solutions: The preference for established organisations can hinder innovation, preventing fresh perspectives and creative solutions from emerging.

• Dependency: Relying solely on a few organisations creates dependency on external support, limiting the growth of sustainable local initiatives.

A scope of a new approach, a new platform for the leaders who do not get represented.

If it is about familiarity, comfort and existing network, then how all of this could be created for non profit leaders who do not have access to these. There is a scope of a platform that showcases the work of non-upper-caste, minority, and women leaders from India to the philanthropic community, especially the Indian diaspora in the US, which can be a transformative step towards inclusive giving. Here’s how the platform could function :

• Identification and Exposure: Identifying and spotlighting grassroots leaders and organisations from non-upper-caste, minority, and women leaders, who are working for marginalised communities especially on social justice issues and giving them a platform to share their stories, initiatives, and impact directly with potential donors.

• Storytelling with Impact: Utilise multimedia storytelling to vividly convey the challenges faced by marginalised communities and the innovative solutions local leaders are driving.

• Transparent Metrics: Provide transparent metrics that exhibit the outcomes of initiatives, showcasing the tangible change achieved through philanthropic support.

• Need based, trust based support : Most of the non profit institutions which are founded by the non-upper-caste, minority, and women leaders need long term, institutional building support. From unconditional support to their salaries to providing infrastructure cost to establish the organisations, these founders/organisations require more trust based, long term support.

• Cultural Sensitivity: Ensure the platform respects and promotes cultural sensitivity by encouraging the use of local languages, highlighting diverse traditions, and acknowledging historical contexts.

• Engage Diaspora: Harness the influence of the Indian diaspora, especially in the US, by organising virtual events, webinars, and discussions that facilitate direct interaction between donors and grassroots leaders.

To harness the full potential of philanthropy in India, a paradigm shift is necessary. By focusing on empowering grassroots leaders from diverse backgrounds through a dedicated platform, we can catalyse inclusive change and dismantle the barriers perpetuating the concentration of resources. Let us seize this opportunity to redefine the landscape of philanthropy, uplift marginalised communities, and create a legacy of equitable transformation