India’s ultra-high-net-worth individuals (UHNIs) are uniquely positioned to drive transformative social change. The Wealth with Purpose report by AIP and BCG reveals that if Indian UHNIs allocate just 5% of their annual incremental wealth, their philanthropic contributions could exceed Rs 75,500 crore annually.
With 90% of respondents expressing a willingness to increase their giving, the momentum is palpable. Yet, moving from intent to impact presents challenges.
Philanthropy in India has evolved from sporadic cheque-writing to more strategic and sustained efforts. However, personal, structural, and cultural barriers often hinder UHNIs from realizing their full potential as changemakers. Here’s a closer look at these barriers and actionable insights for overcoming them.
Personal Roadblocks: The Inner Struggle to Give
Too Busy to Give Back: For many UHNIs, professional commitments dominate their lives, leaving little room for philanthropy. Their intent to give is often overshadowed by demanding schedules, creating a conflict between ambition and altruism. According to the report, over 30% of UHNIs admitted that their business commitments limit their ability to engage deeply with philanthropy. Successful philanthropists overcome this by integrating giving into their professional lives. As Ajit Isaac (Founder and Chairman Quess Corp) observed, “Kickstart your philanthropy by giving consistently from your first liquidity or bonus event in your life. This early start helps in building a culture of giving and allows you to learn how to effectively utilize resources for philanthropy, which is a valuable skill.”
The “Later Syndrome”: Some UHNIs delay their philanthropic journey, prioritizing financial milestones like securing generational wealth. Even when financially secure, hesitation to start early often postpones impactful giving. Aakash Chaudhry (Co-Founder, Aakash Educational Services; AIP Founder) exemplifies the value of early action, “Younger people should also start getting involved in philanthropy and social causes since sooner is better. Much like financial investments where compounding helps early investors, the earlier you contribute the better it is.”
Finding the Right Cause: Selecting a cause that resonates deeply is another common hurdle. Without a clear connection to an issue, giving often becomes reactive—like donating during crises—rather than a strategic investment in systemic change. It’s akin to navigating a vast supermarket without a shopping list; you end up with what catches your eye but miss what truly matters. Learning through exploration is key. One philanthropist remarked, “Experimenting with different causes helped me discover my passion and build a focused giving strategy.”
Structural Barriers: The Ecosystem’s Bottlenecks
Lack of Credibility and Transparency: Over 60% of UHNIs struggle to find trustworthy non-profits due to concerns about fund mismanagement and unclear impact metrics. Building trust through rigorous due diligence and personal involvement is essential. Rimy Oberoi, Director at the Centre for Advancement of Employability and Founder & Trustee of Plaksha University, shared, “We evaluate giving opportunities as being akin to an entrepreneur looking at a variety of factors: Ability to scale, resource application to purpose, benefit to end users, quality of team, models that have been successful and impact.”
Navigating Regulatory Challenges: India’s philanthropy landscape includes complex tax regulations, FCRA restrictions, and compliance hurdles that can overwhelm even seasoned givers. Seeking expert guidance helps navigate these challenges. Dr. Jahnavi Nilekani shared, "Establishing a grantmaking foundation can be highly beneficial when managing substantial volumes of philanthropic activity and funding support. At the same time it requires budgeting adequate resources and instituting robust systems, processes to ensure requisite regulatory compliances for the legal entity.”
Sustainability Concerns: Philanthropists worry about fostering dependency rather than empowerment. The challenge lies in ensuring their contributions build capacity rather than perpetuating short-term fixes. Anupa Sahney (Founder and Director, Origami Consultants; AIP Founder) recommends, “I focus on preparing the supported organisation for sustainable operations through capacity-building efforts.”
Cultural Nuances: The Silent Challenges
The Culture of Privacy: In India, wealth and philanthropy are often discreet subjects. Publicly sharing giving journeys can invite scrutiny, yet keeping philanthropy private misses opportunities to inspire others.
As Ramesh Mangaleswaran (Senior Partner Emeritus, McKinsey & Co.) shared, “Earlier, I kept my philanthropy private. However, during a conversation with a friend, I realized the importance of sharing my giving journey to inspire others.”
Family Dynamics: Family plays a pivotal role in wealth decisions in India. Convincing family members to allocate significant resources to philanthropy can be challenging, especially when wealth preservation is a shared priority.
Engaging the family early fosters alignment. One philanthropist shared, “Including my children in philanthropic decisions ensured they shared my vision and felt invested in our giving journey.”
Preservation of Wealth: There is a deep-seated cultural tendency to save wealth for future generations, often viewed as an obligation to preserve family legacy. This mindset can become a barrier to impactful giving, restricting opportunities to address urgent societal needs.
One of AIP founders, Diwakar Nigam and Priya Nigam shared, “Our children have had an excellent education. They are self-sufficient and don’t need more money. We intend to give at least 50-60 per cent of what we have and what the company (Newgen) generates to philanthropy.”
Breaking Through: Lessons from the Bold
Despite these barriers, bold philanthropists have paved the way by embracing innovation and collaboration. Zarina Screwvala (Co-Founder of the Swades Foundation), stresses the importance of experimentation, “It is essential that we experiment and do things that could lead to failure. Because if we don’t do it, who will?”
Many successful philanthropists begin their efforts by trusting credible non-profits and supporting them with capacity-building initiatives. "Starting from a place of trust in the organisations we collaborate with has amplified the impact of our efforts," shared one respondent.
Stories of peers and exemplars, who have set benchmarks by integrating personal involvement and advocacy into their giving, often inspire UHNIs to scale their giving. One respondent reflected, "Hearing about how others have overcome similar hurdles inspired me to think bigger and act sooner."
Pooling resources, sharing knowledge, and building capacity are proven approaches. Amit Chandra, Co-Founder of the A.T.E. Chandra Foundation, noted, “Enhancing outcomes requires collective action, capacity-building, and peer learning.”
Redefining the Philanthropy Roadmap
India’s philanthropy landscape is at a transformative juncture. UHNIs have a unique opportunity to transition from transactional giving to systemic impact. This journey involves overcoming personal hesitations, navigating structural complexities, and challenging cultural norms.
By adopting innovative models, collaborating within ecosystems, and sharing their stories, UHNIs can inspire a broader culture of giving in India. As the Wealth with Purpose report succinctly puts it, “Philanthropy is deeply personal, yet its impact is profoundly communal.” Through intentional efforts, Indian UHNIs can rewrite the narrative of giving—paving the way for a more equitable and sustainable future. Furthermore, philanthropy should be celebrated, with the government and media playing a key role in promoting and amplifying its transformative impact.
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