Building an Atmanirbhar philanthropy ecosystem, Pg8

Key Highlights:

• India's domestic private philanthropy, including family giving, Corporate Social Responsibility (CSR), and individual donations, has grown significantly, now exceeding ₹1.18 lakh crore annually.
• This domestic giving is more than five times the foreign philanthropic inflows, which have doubled over the decade to around ₹22,000 crore.
• The article highlights a shift towards an Atmanirbhar (self-reliant) philanthropy ecosystem, reducing reliance on foreign funding.
• The Foreign Contribution (Regulation) Act (FCRA) is discussed in the context of regulating foreign capital, with calls for better, proportionate, and predictable administration.
• Policy recommendations include raising the Section 80G deduction for philanthropic donations and allowing donations of appreciated listed shares.

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Detailed Insights:

• The growth in domestic giving is driven by a new generation of entrepreneurs and wealth creators who view giving as part of wealth stewardship.
• While FCRA regulations have caused disruption for some organizations, the overall foreign contributions to India have increased.
• The NITI Aayog's NGO Darpan portal lists approximately six lakh voluntary organizations, with only about 14,500 holding active FCRA registration.
• The article suggests that improved governance in the social sector, similar to corporate sector reforms, can build trust and attract more capital.
• CSR currently channels over ₹40,000 crore annually into development, marking a significant phase in India's philanthropic evolution.
• The third phase of India's giving is envisioned to be powered by Indian families, entrepreneurs, and citizens, especially high-net-worth individuals.
• Expanding the donor base through digital platforms like UPI and potentially a Social Stock Exchange is seen as the next frontier for mass participation.
• Domestic philanthropy fosters greater ownership, governance, and accountability, strengthening the social contract within the country.

Key Concepts Involved:

• Atmanirbhar: A policy vision promoting self-reliance and self-sufficiency, applied here to India's philanthropic ecosystem.
• Foreign Contribution (Regulation) Act (FCRA): An Indian law regulating the acceptance and utilization of foreign contributions by individuals, associations, or companies.
• Corporate Social Responsibility (CSR): A business approach contributing to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.
• Section 80G: A provision in the Indian Income Tax Act that allows taxpayers to claim deductions for donations made to certain charitable institutions.