“ WE MUST BE THE CHANGE WE WISH TO SEE THE WORLD” -MAHATMA GANDHI
The adage "give a man a fish, you feed him for a day; teach a man to fish, you feed him for a lifetime" is at the heart of the difference between charity and philanthropy. Philanthropy derives from the Greek term Philanthropos, which means the "love of humanity" (PPhilos-llove and Anthropos-humanity or mankind).
A quick glance at the current Indian philanthropic scenario would show a number of interesting trends. Broadly, one can see the emergence of three models of philonthropy.
Corporate Social Responsibility (CC is the mostprevalent form of philanthropy worldwide, thoughthe levels of activity and organisational involvement vary widely. Most large organisations have a socialresponsibility arm, with budgeted resources and dedicated staff, which works towards improving the quality of life of the workforce and their families, as well as for the local community at large. Most philanthropic initiativness are undertaken in thebusiness neighborhood, mainly because of the immediate impact on local stakeholders. Organisations with multiple locations tend to undertake community building activities in as many business locations as possible. Such ‘pure’ corporate initiatives do not have much participation from the business promoter ’s families. This is particularly the case if the promoter family s not very closely involved n the business.
With the transformation of the economy in the 1990s,a new generation of corporate leaders, such as those of Infosys and Wipro, have shown tremendous interest in investing their wealth for social development. They have demonstrated how several strategic approaches used by professional organizations can be applied for formulating policies and programmes for inclusive growth. Several such individuals and their families have set up their own private foundations for philanthropy. Most are either first or second generation entrepreneurs such as
Azim Premji or multi- generational family businesses. A family foundation is broadly defined as a charitable organisation managed by individuals with family ties and supported by donations from those individuals, their businesses and other investment income. In such individual or family foundations, promoters play an active role in formulating strategy and often in micro level activities, again depending on the interest and availability of time.
What we call family-corporate jugalbandi is the most common model of philanthropy in India. Since most Indian business organisations are family businesses, a separate philanthropic organisation is created, in the form of a foundation or trust. This is largely funded by the business, but often run under the leadership of the business family. One such example is the
KrishiGram Vikas Kendra (KKGVK),, an NGO set up by Usha
Martin Limited, which receives a fixed annual grant
from the company.
GMR Varalakshmi Foundation,
GMR group’s family foundation, is another example
of family-ccorporate jugalbandi where the family
business contributes a fixed percentage of its surplus
to he oundation annually.
This is the fact that some 42% of Indians, or 455 millions people, live on less than 1.25 dollars a day, according to World Bank India’s statistics on health, infant mortality and malnutrition are worse than those for sub- Saharan Africa. The potential of individual giving by high net-worth individual (HNIs) can be the immense. Even in the US, of the dollars 303 Billion is annual giving over 2% of GDP, 75% come from individuals. Charitable giving in India probably totalled about $ 7.5 billion(Rs.3,487.12 crore at an exchange rate of Rs.46.49 Per dollar) in 2009, according to the study by Bain & Co.
As India’s economy grows at a fast clip, so as to do the number of wealthy individuals. Bain & co. research shows that there are over 115,000 high net worth individuals in India today. The year 2010 was remarkable in terms of charity by corporate leaders. Education is favourite field of CEOs. Recent major donors for the year 2010 include Anand Mahindra, Ajay Piramal, Azim Premji, Kalpana Morparia, Naveen Jindal, Ratan Tata, Shiv Nadar, Vineet Nayyar, Vineet Nayar.
AZIM PREMJI CHAIRMAN OF WIPRO TEHNOLOGIES MONTH- DECEMBER 2010 CHARITY WEALTH: Rs. 8846 Crore (USD 2 BILLION) AREA: EDUCATION
ANAND MAHINDRA VICE- CHAIRMAN AND MANAGING DIRECTOR OF MAHINDRA AND MAHINDRA MONTH: OCTOBER 2010 CHARITY WEALTH: Rs. 44 Crore (USD 10 MILLION) AREA: EDUCATION
AJAY PIRAMAL CHAIRMAN OF PIRAMAL HEALTHCARE MONTH: DECEMBER 2010 CHARITH WEALTH: Rs. 200 Crore AREA: EDUCATION
KALPANA MORPARIA CEO, JP MORGAN MONTH: DECEMBER 2010 CHARITY WEALTH: Rs. 1 Crore AREA: EDUCATION
NAVEEN JINDAL MEMBER OF PARLIAMENT AND EVC & MD OF JINDAL STEEL & Power ltd MONTH: July 2010 CHARITH WEALTH: Rs. 5 lakh AREA: EDUCATION
Ratan Tata CHAIRMAN OF Tata group MONTH: October 2010 CHARITY WEALTH: Rs. 220 Crore (USD 50 MILLION) AREA: EDUCATION
SHIV NADAR CHAIRMAN OF HCL TECHNOLOGIES MONTH: JUNE 2010 CHARITY WEALTH: Rs. 580 Crore AREA: EDUCATION
Vineet Nayyar Managing director of tech Mahindra MONTH: march 2010 Charity WEALTH: Rs. 30 Crore AREA: EDUCATION
VINEET NAYAR CEO & VICE CHAIRMAN OF HCL TECHNOLOGIES Charity WEALTH: Rs. 43 Crore AREA: EDUCATION