Indian Giving

Ninety percent of what is written about philanthropy is based on info from the USA. Yet, philanthropy is but an infant in North America.
 
The JN Tata Endowment  pre-dates the Carnegie Foundation. There are suggestions that that Rockefeller’s philanthropy was influenced by Swami Vivekananda. In any case, philanthropy in the US did not really take root until the early 20th century.

In Europe, philanthropy is in its childhood. Philanthropy came to Europe from Arabia, in the 11th Century. Ancient philanthropy however, traces its roots back to Islamic and Hindu scriptures. The Laws of Manu (first century CE) are among the earliest quoted by scholars, writing about philanthropy.

Yet, today, if you talk to people in the West of ‘Indian’ philanthropy their faces tell a story, even before they open their mouths: "Indian philanthropy… What, is there philanthropy in India?"
In the course of the last two years I have been interviewing around 30 major philanthropists India.

There is no doubt in my mind that, "There is much philanthropy in India".  Nor do I agree with those pundits who bemoan the failure of India's billionaires at philanthropy. Comparisons are odious and, frankly, comparative data simply does not exist. In fact, what is needed is more study, more constructive debate and more enthusiasm for the philanthropy of the wealthy that definitely does exist in India today. I suggest that there are four broad sources of philanthropy currently in India.

The old business families, the Tatas, Bajajas, Birlas and Godrejs, to name some, undoubtedly play an important part in India's philanthropy - as they have done for at least three generations.
Major Indian philanthropy, has emerged from Indians who have made their fortunes through the IT sector; the professional sector, notably financial services; and others, who have successfully grown businesses in emerging sectors, post 1991.

The categories of philanthropy through which these flow, in my view, can be described as institution building; risk taking; 'new’ or 'venture' philanthropy; and major gifts.

Examples of institution building are the founding of hospitals and universities. This is a practice that goes back centuries. Though it predated the British, they encouraged this by awarding titles to prominent philanthropists. To this era belongs the tradition of attaching family names to institutions such as colleges, schools and hospitals. Whilst names may not be as well known today as they were then, second and third generations of these philanthropic families of the colonial era continue to oversee family philanthropic trusts Today’s exemplars of institution building are those founding eponymous universities, such as Infosys founder's, Azim Premji University or Shiv Nadar University. Biocon Founder, Kirin Mazumdar-Shaw has her name attached to the Cancer Center her philanthropy funds.

Risk taking philanthropy is exemplified by organisations founded by individual philanthropists such as the Screwvala’s Swades Foundation, with its unique 360 degree approach; or Padmini Solami's Salaam Bombay Foundation with its creative approach to empower slum kids. These are philanthropists who are applying innovation and entrepreneurial acumen to grass roots challenges.

Venture philanthropy - sometimes irreverently referred to as ‘philanthropy for bankers’ - is philanthropy which emulates financial investment or venture capital structures. It places emphasis on measuring impact and return on investment. A notable example is Ashish Dhawan’s Central Square Foundation, in education.

Major gift donations are made to established organizations such as schools, universities and hospitals, and existing NGOs. Major gifts may support causes close to the giver’s heart, such as alma mater, arts, crafts, historic monuments, or endangered animals.

Today's younger major gift philanthropists tend to differ from earlier more traditional donors by actively overseeing and contributing time to the NGOs they support. 

The practice of any of these categories of philanthropy is not exclusive to one or other of types of philanthropist. Members of business families are involved in both traditional and risk taking philanthropy. Many who have made their wealth through financial services favor philanthropy which emulates investment or venture capital structures.  However, others follow the major gift route.

There are noteworthy differences between philanthropy in India and that of the West. First, and most significant, is that a large amount of philanthropy is dedicated to fundamental, grassroots challenges – education, health, economic uplift - often after some firsthand investigation by philanthropists themselves of the issues to be combated.

American commentators frequently point out that there, much philanthropy is directed at causes from which philanthropists and their families directly benefit. This, so-called ‘consumption philanthropy’ is given to universities, schools and arts institutions the philanthropists and their families attend. This seems true of only a small fraction of philanthropy in India.

In the West, especially in the United States, many philanthropists see themselves as offering an alternative, better solution and a substitute for government funding. They are dismissive of and reluctant to deal with government.  The rationale for enjoying a tax deduction on their donations is that they are saving the government money and doing a better job.

Indian philanthropists seem to follow a much more pragmatic path. They recognize the importance of collaborating with and enhancing government programs. Collaboration, including with other philanthropists and NGOs, is common amongst India’s major philanthropic names.

Tax, in contrast to the West and especially given the absence of estate duties in India, is of little or no incentive to donors.

Most are candid that their primary motivation is their recognition of the enormous gap that exists between their great fortune and the lot of those at the bottom of the pyramid.

It is commonly assumed that much giving in India is religiously motivated. While some whom I interviewed follow religious practices, others claim to be spiritual rather than religious. Few make significant donations to church, mosque or temple.

Added to all the above, there is the philanthropy of the middle class and the poor - pointing to a wider-spread story of charity and philanthropy. The Charities Aid Foundation (CAF India) 2012 India Giving report told of a clear majority (84%)of Indians who had given money to a good cause in the previous year.

Indian philanthropy is significant, different and worth celebrating. It is not without its faults and challenges, though not dwelt on here. Ways need to be found to give it more oxygen and light. The media and academia have an important role to play in this endeavour.

[An edited version of this piece was published as 'The art of giving, the Indian way'  in Live Mint on 2 October 2015]





 

Indian Giving Circles: Qual vs. Quant

Schools, universities, leading cultural organisations and a handful of medical charities aside, nonprofits are rarely successful at attracting support from the very wealthy.

Small and medium-sized nonprofits generally are even less likely to engage with high net worth supporters. One of the reasons may be that, the rich support organisations with which they are connected through their own networks. One solution to this that is beginning to achieve positive results has been the formation of giving circles.

It has been my privilege to have met the founders of two such groups in Mumbai, India where I have been this month. Both are successful. What is interesting is their quite different approach. The difference is one that fascinates me and has wider significance in the discourse around evaluating nonprofits (For examples,  here or here) . The difference can be summarised in my view by that hardy perennial phrase 'qualitative vs. quantitative'.

In the quantitative corner is the better known of the two, Dasra. It was founded 15 years ago by husband-and-wife Deval and Neera. It is Deval whom I have met more than once. He is an engaging, articulate and urbane late thirty something. Both he and Neera are US educated and both former Wall Street analysts. They came to India determined to make a difference using their financial-analytic skills (though of Indian origin, neither are Indian by birth). Over the 15 years, they have developed a formidably successful organisation. It now employs some 40 plus staff, crammed into a ramshackle two-storey building in a downmarket part of West Mumbai. Nowadays, too, it boasts two small outposts (most likely working from home offices) in New York and London.

Dasra says it has assisted inject some US$37 million into nonprofits and social enterprises. It also runs a very successful Indian Philanthropy Forum, which brings together some of India's most active philanthropists and successful nonprofits. A version of the Forum was recently staged in New York for the first time.

Dasra identifies and thoroughly researches both key areas for intervention and potential partner organisations working in those fields. As well as working to thoroughly understand the problem, it investigates which nonprofits and social enterprises may have the skills and capacity to solve it. More often than not it works closely with these organisations to encourage and train them to think and act more analytically. The mechanism it advocates is 'the theory of change'. Their goal is to create solutions that can be 'scaled up' and achieve as big an impact as possible for the resources invested. I once, tongue-in-cheek described this style of approach in an earlier blog as ‘philanthropy for bankers’: I  had Deval partly in mind!

Once, Dasra is satisfied that it has a grasp of the problem and suitable partners it will begin to recruit donors to a 'giving circle'. Members of a giving circle agree to provide a fixed amount over three years to achieve a significant change in the problem area.

The second organisation I have just met on my current trip. It is a semi-formal organisation called Caring Friends. I met its founder, Ramesh in the tiny two room office, up a narrow staircase, that he shares with a former business partner. His support staff comprises a team of two administrators and a driver. Ramesh was a senior manager of a well-known Indian corporation. His travels through India had brought him into contact with the notable activist, Baba Amte and his centre for leprosy patients and the disabled called Anandwan.

Moved by his initial experience he sent an article together with a letter to around 50 of his friends and acquaintances inviting them to support the work of Baba Amte. He became a regular visitor and supporter and his subsequent outlook has been much influenced by the friendship that developed between him and Baba Amte.

Ramesh then began to take an interest in other nonprofits and became aware of their challenges and limitations. These in particular he described to me as the lack of financial resources; their limited vision; and deficiencies in human resources and training. He began to apply his own skills as a business executive to assist nonprofits.

He later found an ally, Nimesh, and together they created Caring Friends. The name is taken from the quote usually attributed to anthropologist,  Margaret Mead: “Never believe that a few caring people can't change the world. For indeed that's all who ever have”.

Caring Friends is not a legal entity and does not fundraise. Its website makes the point, "In fact, Caring Friends does not have a Bank Account.  We do not accept cheques in our name. Cheques are made directly to the NGOs, hence 100% of the funds go to the NGOs." It adds that “we have zero overheads.”

The group has grown into a network of around 200 wealthy (some very wealthy) individuals who support the nonprofits that Ramesh and Nimesh identify and on which they have undertaken 'due diligence'. These supporters meet every 2-3 months and invites a nonprofit to present their work.

Ramesh describes the due diligence as based on visits to the nonprofits and the areas where they work. These visits are undertaken by Ramesh and Nimesh. Above all, they are looking for integrity. They focus on whether the nonprofit is well ordered, and maintenance aspects such as record-keeping and cleanliness of the premises. Often, he says, they will support the nonprofits out of their personal resources before recommending them to others of the Caring Friends.

Ramesh, who is now in his 70s has retired from his corporate role to become a partner in the small business whose office he still occupies.  This allowed him the flexibility to continue and fund his philanthropic work . Nimesh too, runs a  business.

The support  nonprofits receive through Caring Friends may vary from between 25 to 80% of their total financial resources. Projects featured oin Caring Friends' brochure are making a difference to hundreds of thousands of individuals spread across India.

Both Dasra and Caring Friends are exceptional organisations that - though, very different in approach- are making a major difference. Which, I wonder would be the approach you find most attractive: the very quantitative, methodical approach of Dasra; or the more subjective, qualitative approach of Caring Friends?

And which, are likely to work best to attract wealthy donors where you are? I would be fascinated to hear your answer.

One must travel, to learn (Mark Twain)

 "If the passenger visits better countries, he may learn to improve his own", wrote Samuel Johnson,  in 1755.

As I have spent the past two weeks in India a thing that has struck me as I read my morning news has been the number of stories about local nonprofits. 

It has led me to think afresh about the importance of nonprofits (NGOs) and social enterprise in the space between what government and the for profit sector can do. It is in this space where change can happen, a difference can be made and humanity can be found. What would the world be like without all the various organisations in that space where you live?

There are said to be around 200,000 nonprofits in India more than one for every 600 of its 1.2 billion people. In India, as in much of the developing world, the ability of governments and the for profit sector to deal with the huge demands of extreme poverty and a fast growing population has limits. Here are some examples of how Indian nonprofits are stepping up to the challenges. 

Keshav Srushti in a bid to spread awareness on solar cooking, will be recruiting students from 500 schools across Mumbai to cook solar-powered dishes. This solar cooker is a rudimentary piece of plastic foam that can reach a maximum temperature of 120ºC and can save up to 10,000 units of electricity on a daily basis and is functional for a year.

Salaam Balak  is trialing solar powered school bags for the poor. This idea came to its designer when she was talking to her domestic help, “She told me about the problems her children faced while studying at night. There are frequent power outages in her slum". The backpacks look like regular schoolbags but turn into a lamp when their front pockets are unzipped.

GOONJ  responded to the problem that 68% of rural women cannot afford sanitary napkins. When women cannot afford sanitary pads they resort to using cloth pieces or nothing. This causes infections and can lead to cervical cancer. GOONJ decided to act on this issue and started a movement of making sanitary pads out of waste cloth for rural women.

Sewa Trust  provides free meals to city slum and street dwellers admitted to hospitals who are unable to afford their own. Many of the beneficiaries are migrant workers drawn to the cities from rural India by the opportunity of work and separated from family support during their time of need. Says one beneficiary, “I regularly come to this organisation and am offered free food by the members. I live on a footpath and do not have enough money to buy food for myself". 

Sangama, an NGO for sexual minorities, sex workers and people living HIV has been asked by the Kerala Government  to conduct a socio-economic and situational survey of transgenders in the state through an NGO with a view of formulating welfare measures for them.

To celebrate Indian National Day on 15 August, the Times of India ran a feature that highlighted several more NGOs and social enterprises:

Basic school skills

The focus of in-school programs has always been on children achieving basic skills. The depressing fact is that of children enrolled in class 1, about 40% drop out before class 8 and a total of 70% drop out before class 10, makes basic literacy and numeracy an urgent social goal. Akshara’s effort began in Bangalore when remedial programs were implemented with volunteers, trained to identify children with learning deficits and give them specialized inputs. 

Microcredit and crowdfunding

Rang De combines microcredit and crowd funding to help people achieve freedom from poverty. It acts as a bridge between people who want to help the under privileged and those who need money to invest in small businesses. People living in cities can choose from a huge database of borrowers on rang these websites invest as little as Rs.100 into their business.

Out on the streets

Started in 2010 by an anonymous group of volunteers Ugly Indians are out on the streets fixing pavements, fearing a garbage, removing unauthorised posters, painting walls and planting saplings all over India. The regional initiative in Mumbai has been to document all the filthy and rundown parks and playgrounds and lobby the city council to remedy these.

Femininity and Fearlessness

The Fearless Collective are artists, activists, photographers and filmmakers who use art to speak out against gender violence. It was formed in response to the Nirbhaya rape and murder. The collective aims to redefine fear, femininity and what it means to be fearless.

Pay from your heart

Seva Cafe is a pop-up restaurant run entirely by volunteers. At the end of the meal  diners don't get a bill, just a little note which says "Pay from your heart!".  A hundred percent of the restaurant profits is used to support social service projects.

See also https://www.youtube.com/watch?v=b0V1XVzD7ik

"You mean, there is philanthropy in India?"

I am just back from a trip interviewing philanthropists in India.  You may wonder what I am interested in Indian philanthropy for. 

One reason is the depressingly frequent and blunt question I often get asked: "You mean, there is philanthropy in India?".*
I have commented before, (Is US Philanthropy exceptional?)that I think it is a mistake always to think of United States as the model of philanthropy. Philanthropy is a comparative infant United States compared with the rest of the world (India's philanthropy long preceded America).  To counter these misapprehensions here are some examples of Indian philanthropists I have met.

Example one, is a husband-and-wife team who started their own foundation after building a successful investment advisory service. Through the foundation, they apply their investment skills to advising,  investing, and fundraising for a range of social activities. Three of the social initiatives that they were actively involved in when we spoke were, firstly, an orphanage for children of sex workers in Mumbai. Second, an organisation managing rural ashrams for treatment and rehabilitation of leprosy patients, and other disabled or marginalised people. And, third, an initiative that ran education programs for children Mumbai’s slums. All of these three were initially started and run by local social entrepreneurs.

My second example, is the second generation family owner of a mining company.  His family foundation has focused on implementing  a social model enabling the families of the company’s workers themselves to manage all aspects -  health, education, sanitation and sustainability -  of  their own  village communities. This, self-sufficient management model is being extended to 300 or more similar industrial villages across India. From, this initial focus on village management has grown a larger commitment to the management of wider regional ecosystems. As part of this wider initiative, the foundation is now also building a university, which will provide research and training specific to the region’s challenges. The region is the poorest in India.

A third philanthropist whom I interviewed is the founder of one of India's most successful IT companies.  We spoke initially about the philanthropic foundation arm of the international business he founded, which supports health, education, culture, and the destitute. As well, it invests in rural development of some of India’s poorest and hardest to reach areas.  Later, more reluctantly, he was encouraged to talk about the substantial gifts he and his wife personally make to universities in India and abroad. And, also their quiet giving to India wide projects in education and sanitation.

Of others I have spoken to, one was the representative of a third-generation philanthropic family. Noteworthy, was her commitment to her personal philanthropic giving to arts and education quite separate from the family's traditional corporate philanthropic support of health, education and the environment.

Two other individuals I met had made fortunes from international careers in finance.  Both, with their wives, had made their personal  commitment to give away at least 50% of their wealth.

It's way too early to draw any specific conclusions from this small sample. I intend to interview 20 or more others. However, they and other conversations that I continue to have confirm my view that philanthropy is vibrant and strong in India.  The fact is that philanthropists in India have for centuries founded universities, schools and education programs, hospitals and healthcare and provided housing and facilities, not just for workers but entire communities.

It is, I suggest, in societies closer to home, with isolated and commendable exceptions, that a culture of philanthropy has yet to take deeper root.



*The research will also contribute to a PhD in philanthropy at the Asia Pacific Centre for Social Investment & Philanthropy at Swinburne University)

Philanthropy repackaged for bankers

I have just attended the Asia Venture Philanthropy Network 2014 Conference (AVPN2014).  AVPN began in 2012 as an extension to the European Venture Philanthropy Association.  I blogged on the inaugural conference last year and pronounced myself an enthusiast.


What has happened since then and how is my enthusiasm faring? Without wanting to seem a Pollyanna-ish, I confess my enthusiasm remains. Who could not fail to be enthused by a forum where speakers made comments such as these:

• "The word can't means we haven't thought hard enough"
• "Can't means opportunity"
• "Philanthropy is about good people who won't take no for an answer"

The energy and commitment of 380+ attendees from 30 countries (the official count said 29 but I had been counted as from Australia which I'm not! I attended from New Zealand) was palpable.

Last year, I reported a comment that venture philanthropy has been around for aeons. I reckon that still is an accurate statement. A friend who was also attending made the apt comment that "venture philanthropy is philanthropy repackaged for bankers". I don't want to suggest that's a negative. Far from it. But I think that it is a reminder that philanthropy has existed for millennium and in all cultures of the world. The keynote speaker, an Indian banker, spoke of the influence on his personal philanthropy of America, of Islam, of Buddhist meditation. Through these influences he reached a final conclusion, "the only thing enduring we can do in the world of business is the impact that we make on society". Another banker there noted wryly, "I never read a book called "The Great Businessmen of the 18th Century". He added that "the only way to leave a mark is through things that create social change".

My guess is that around two thirds of the delegates present had come from the world of banking and finance. So therefore, yes – it does seem as though venture philanthropy is philanthropy repackaged for bankers. Now is that a bad thing? No, far from it. First of all,  the world of bankers is a world of money and finance. What is its that nonprofits and charities around the world most are mostly seeking?

It is precisely that money and finance which bankers are trained and skilled at accessing. The skills that they bring to philanthropy include assessing, analyzing and measuring risk and impact. The world from which they come requires them to ask questions and draw conclusions which inform hard decisions. Are these not people whom you would want on your team? So what if they re-frame the language of gift and good as investment and impact. Any good fundraiser (or banker) will tell you that the way to successfully negotiate a deal is to see through the eyes, to walk in the shoes, to talk in the language of the other party. So learning the language of finance - or learning the language of venture philanthropy - is important for nonprofits who plan to tap into this new opportunity.

But for those of you that are nervous of a language that seems to be based on numbers, ratios and percentages I can pass on other heartening news. A meme of the conference was that, at the end of the day, most investment (read 'donation') decisions are judgements made on the basis of people. People give to people, the old saying goes among fundraisers, and people invest in people.

Another heartening meme was that stories, especially stories told by video or film  are as - if not more - effective and valuable as statistics, percentages and ratios to demonstrate convincing success and impact.

You will hear more of Asian Venture Philanthropy and I would encourage you to embrace it. On the basis of the energy and commitment that I again experienced at AVPN2014 I am convinced it has the potential to achieve significant social change. Even if it is philanthropy repackaged for bankers it is your job to open the package.

India's philanthropy long preceded America

Jamsetji Tata established his philanthropic foundation in India before even that of Carnegie.

This is a discovery made while exploring High Net Worth Philanthropy in India. In this blog interview first published in The Clockwork Muse, I explain how I got interested by philanthropy in India, its dimensions – social, cultural and religious and whether there are differences from Western notions of giving.

1. Please tell us a bit about how you got interested in High-net worth giving in India?

 Like many Protestants I knew very little about traditions of giving other than the one in which I grew up – church collections on Sundays, occasional street day appeals and organized charity appeals for the likes of Oxfam, Red Cross and Save the Children.  Somehow I formed the impression that it was the West alone that provided relief and succour to the developing world.  I never read or heard discussions about indigenous traditions of charity or philanthropy other than my own – even in my early days as a professional fundraiser.

Around 2005 I was working for a firm of international fundraising consultants and through them met Major General Surat Sandhu, who had recently retired from Help Age India to become a fundraising consultant. Sometime later, knowing that I was visiting India, he invited me to give a workshop to some Indian fundraisers. For the first time I began to understand a little bit about NGOs and philanthropy in India. As time went on I became more a more struck by the scale and prevalence of philanthropy in India.

More recently when I was considering the focus of my research for the Ph.D. I wanted to do.  I was reading the extensive press coverage generated by Bill Gates and Warren Buffett’s first visit to India to promote the Giving Pledge. There was a great deal of discussion by Indian HNWIs themselves about their practice of philanthropy. I had never seen that in the West!  It seemed to me here was a fruitful area for further research.  Especially, of course,  because Ph.D. research is supposed to cover topics that haven’t been researched before. The sad fact is there has been almost no academic research on any aspect of Indian philanthropy.

 2. What is your background and experience ?

 As I mentioned briefly above, I am a fundraising consultant. I also train fundraisers. I began my career as an actor, then an arts administrator, then I became a fundraiser first in the arts and then in higher education – universities.

3. What have you uncovered so far about giving behaviors in the subcontinent?

 It’s hard to give a simple answer. The subcontinent is a complex mix of religions, castes, ethnic traditions, geographies, histories, politics and social class. All of these are reflected in one way or another in giving behaviors. However once again I would like to reiterate that there is, or are, strong traditions of giving.

4. Any surprises?

 No surprises other than the initial surprise that philanthropy and giving are so much a part of Indian culture.

 5. What is unique about Indian philanthropy, as compared to western notions of giving?

 I wouldn’t necessary claim that there is anything unique about Indian philanthropy, in comparison to Western philanthropy. One thing to remember is that Western philanthropy grew from traditions that were introduced from the East. The first endowed universities and hospitals in Europe were the result of Medieval Knights returning from the Islamic territories of the Middle East where they had been introduced to the tradition of Islamic philanthropy and waqf.

US philanthropy is an infant in comparison to the traditions of the Middle East and Asia having been imported from Europe in the 19th century.

6. Noam Chomsky said recently in an interview that most Indians are indifferent to others’ suffering? Do you agree with this, purely from a philanthropic perspective

I have great respect for Noam Chomsky as an intellectual and a great liberal. I don’t think the reported comment was particularly profound. He made an interesting observation about the reaction of someone else – Aruna Roy. And he tried to generalize it through his own sensibilities. I think he missed the mark and I hope that it isn’t held against him.

 7. What is the role of philanthropy in a society such as India? How does this intersect with the state’s responsibility?

 There is much debate about the role of philanthropy in societies around the world. The philanthropic sector is sometimes called the third sector to distinguish it from the state sector and the business sector. There are some things that can be achieved by philanthropy which cannot be achieved either through the state or by business. There are also some things that can be done in partnerships of all three – the state, business and philanthropy. Of these, I suppose it would be fair to say, philanthropy has the most freedom to innovate and take risks. Certainly this appears to be a growing trend both in the West and in India.


8. How do you foresee the understanding of philanthropy growing in India, going beyond Corporate Social Responsibility? The field is pretty nascent in India, is that right?

 As I have said already philanthropy is far from nascent in India. In fact, in comparison, it is American philanthropy that is nascent! There is much confusion about corporate social responsibility not just in India but all over the world. Corporate social responsibility and corporate philanthropy are not synonymous. In India the debate about corporate social responsibility has been renewed as a result of the government making it mandatory for some companies. However the definition of corporate social responsibility is still far from determined.

You may be alluding to the fact that there is a strong tradition of philanthropy within the business classes and industrial dynasties of India. There is in the public mind some confusion between corporate philanthropy, family philanthropy and CSR because of this. Similar confusion may even exist amongst those business families themselves.


9. Any concluding thoughts.

 A strong motivation for my undertaking this research into philanthropy in India is a belief that the world should recognize that there is much more to philanthropy than there is contained in Western philanthropy. Until now, 90% if not more, of the research that has been published has been published either by American or British scholars about American, British and Western European philanthropy. I was lucky enough to spend some time in the Middle East and was introduced to Islamic philanthropy. That began my curiosity and interest into other traditions of philanthropy.

India is remarkable because within one country there are so many different traditions. I think the world has a lot to learn from India.