They might be under the age of 30, but next-generation members of wealthy families in India are increasingly making big decisions about charitable giving.
That’s according to the 2012 India Philanthropy Report by Bain & Company, which said young high net worth Indians, often working in family businesses, are “particularly interested in increasing their philanthropic involvement”.
Among families engaged in giving, 76% have younger members who play an active role in choosing which charities to support, while around 70% of philanthropic organisations are headed by next-gens, said the report.
Based on a survey of 400 wealthy Indian families, with investible assets of more than $1.1 million (€830,000), the report suggested “young Indian philanthropists are playing a key – and outspoken – role in the family’s charitable activities”.
“We are encouraged by the emergence of the next generation of donors, who are even more committed to supporting this charitable culture as their wealth grows,” said Arpan Sheth, author of the report and a partner at Bain & Company’s Mumbai division.
The study also found overall giving by Indians has increased – donations rose to 3.1% of income in 2011, from 2.3% the year before. This was largely thanks to the growing number of rich people in the Asian country – the population of high net worth individuals rose by 21% between 2009 and 2010.
The total contribution from the wealthy will also likely rise in the future, said the report, due to more contributions from next-gens. Almost 60% of youngsters surveyed said they will donate more in 2012.
While education remained the most popular area to focus on, donations to food and clothing saw a rise last year.