Indian philanthropy is expanding rapidly, but if it is to truly advance the Sustainable Development Goals, it must evolve beyond charity. The next stage demands long-term systems change, collaboration with local governments, and deeper engagement with communities. When the United Nations adopted the SDGs in 2015 — 17 goals to end poverty, reduce inequality, and combat climate change by 2030 — India’s role was destined to be pivotal. With nearly one fifth of the world’s population, its success would determine the world’s progress.
While the state remains the primary driver of social development, domestic philanthropy has become a strong complementary force. The CSR law of 2013 gave corporate giving a formal structure, while billion-dollar commitments from leaders such as Azim Premji and Rohini Nilekani redefined the scale of personal philanthropy. India’s traditional culture of giving — daan, zakat, langar, seva — continues to sustain countless community efforts. Yet a critical question persists: Is Indian philanthropy transforming the SDGs or merely funding short-term, visible projects?
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India’s growing philanthropy sector
India’s philanthropic sector is expanding steadily. According to the India Philanthropy Report 2024 by Bain & Company and Dasra, private giving reached ₹1.2 lakh crore ($15 billion) in FY 2022–23, outpacing CSR growth. Individual and family philanthropy now account for a large share, even as CSR remains the most regulated channel.
Leading examples include the Azim Premji Foundation, which has committed $21 billion to improve public education, and Tata Trusts, whose long-term investments span healthcare, nutrition, and rural development. Newer platforms like ACT Grants and the India Climate Collaborative are directing funds to innovation and sustainability. However, the alignment between philanthropy and SDG priorities remains weak. The scale of giving has grown, but its impact on inclusive and sustainable development is still uneven.
What gets funded — and what doesn’t
Most philanthropic spending in India gravitates toward education and healthcare. These sectors offer measurable outcomes — schools built, lives saved, or students trained. The COVID-19 pandemic reinforced this pattern, with donors funding oxygen plants, online education, and food distribution.
But key SDG goals remain neglected. Gender equality receives less than 2% of total CSR spending, according to the India CSR Outlook Report 2022 by NGOBOX. Climate action, despite India’s growing vulnerability to heatwaves and extreme weather, attracts far less than required.
This imbalance is not accidental. Issues like climate resilience, gender justice, and institutional reform require patient capital, long timeframes, and tolerance for political complexity — traits that many risk-averse donors shy away from.
Alignment gap between philanthropy and SDGs
Why does Indian philanthropy, despite its impressive growth, still fall short of systemic alignment with the SDGs? A key reason is the bias for short-term visibility over long-term change. Donors often prefer interventions that deliver quantifiable results — a school built, a training programme completed — over those that strengthen institutions or shift systems.
Geographical inequities compound the problem. The India Philanthropy Report 2023 notes that most giving is concentrated in urban or economically advanced states, leaving rural, tribal, and conflict-affected regions underfunded. Another challenge is design. Many philanthropic programmes are top-down, designed without the participation of communities they serve. This contradicts the SDG principle of local ownership.
Lastly, coordination with government remains minimal. State and local governments lead SDG implementation, but philanthropic efforts often operate in silos. A collaborative framework between philanthropy and governance — especially at the district and panchayat levels — could amplify results.
Next-gen philanthropy and family offices
A quiet transformation is underway as India’s wealth passes into younger hands. Family offices and next-generation philanthropists are reshaping the sector with a more strategic and data-driven mindset. They blend venture philanthropy and impact investing, focusing on measurable, systemic outcomes rather than token donations.
This shift is crucial: it introduces professional governance and risk appetite into a domain long dominated by ad hoc giving. However, this new generation’s potential will be realised only if it coordinates with public systems and avoids duplication.
Global foundations and the regulatory roadblock
India has also benefited from global philanthropy — foundations like Gates, Ford, and Bloomberg have long supported health, education, and climate initiatives. But the tightening of the Foreign Contribution (Regulation) Act (FCRA) has constrained international collaborations.
Many credible non-profits now struggle with compliance hurdles, affecting their ability to access foreign funds or co-design projects with global partners. The result is a fragmented ecosystem where regulation outpaces reform. A more transparent, facilitative framework could unlock cross-border learning and capital.
The case for data infrastructure and transparency
Philanthropy thrives when guided by data, transparency, and coordination. Yet India’s sector suffers from limited access to reliable information on where money flows and what works.
Platforms such as GuideStar India, India Development Review, and Samhita Social Ventures are helping close this gap by building databases, toolkits, and impact dashboards. But data sharing remains voluntary and uneven.
Stronger reporting standards and open-data norms, akin to those in corporate finance, would improve accountability and ensure that every rupee of giving aligns with measurable SDG outcomes.
Stretching every rupee of impact
Modern philanthropy increasingly intersects with finance and markets. Instruments like social impact bonds, development impact funds, and India’s Social Stock Exchange (SSE) enable donors and investors to share risk and scale solutions.
By combining grants with investment capital, blended finance can multiply the reach of philanthropic capital and attract institutional players to social causes. For example, blended finance models in clean energy and healthcare are already helping bridge public and private gaps in funding.
This approach redefines philanthropy — from standalone giving to capital architecture for systemic change.
Building state capacity and policy synergy
Philanthropy’s potential depends on the strength of public institutions. Without capable local governments, even large-scale philanthropic efforts lose traction.
Donors must therefore engage in capacity building — funding municipal data systems, training panchayat officials, and improving service delivery frameworks. This not only supports SDG implementation but ensures sustainability once donor programmes end.
The future of Indian philanthropy will depend on its ability to strengthen governance capacity, not bypass it.
Encouraging models of philanthropy
There are promising shifts toward systems-focused philanthropy. The Selco Foundation offers a compelling model by integrating renewable energy with rural development.
It deploys decentralised solar solutions — solar-powered sewing machines, irrigation pumps, and health clinics — in underserved regions such as Karnataka, Odisha, and the Northeast. This approach has boosted rural incomes, enhanced healthcare access, and reduced emissions. Women entrepreneurs using Selco’s solar-powered tools reported up to 30% higher earnings. As of 2023, the foundation had reached over two million people across 28 states.
Similarly, the India Climate Collaborative has united philanthropists, corporates, and experts to co-fund climate action — one of India’s most underfunded SDG areas.
At the grassroots, community-led initiatives are showing similar promise. In Rajasthan, women’s collectives are reviving traditional water bodies, improving water security, and conserving local ecosystems. Such examples show how local knowledge and ownership can drive sustainable impact.
Road ahead for Indian philanthropy
If India’s philanthropy is to truly accelerate SDG progress, it must shift from charity to systems change. It must invest in capacity-building, support data-driven policymaking, and empower community-led institutions. Donors need to venture beyond service delivery and fund the enabling ecosystem — local governance, public health systems, and climate adaptation infrastructure.
Philanthropy cannot replace the state, but it can complement it by taking risks, incubating innovation, and building cross-sector coalitions. With only five years left to achieve the SDGs, the role of Indian philanthropy is crucial — not merely in how much it gives, but in how strategically and collaboratively it gives.
The future of giving lies in bridging the gap between local action and global ambition. That will be the true measure of success for Indian philanthropy in the SDG decade.
Amrat Singh is Director and Pritika Nayak Research Associate at CUTS International.