NGO – The unfinshed agenda
Source – The Economics Times – Pushpa Sundar
The unfinished agenda
While NGOs have learnt to value collaboration and partnerships, organised Indian donors still don’t see themselves as belonging to a larger donor
sector with common concerns, says Pushpa Sundar
BILL Gates’ decision to retire and devote himself entirely to philanthropy, followed by Warren Buffet’s stupendous donation of $38 billion
or 85% of his personal wealth to the Gates Foundation, has created an unprecedented interest in philanthropy in India.
Though charity has a long past in India, and there is great need and opportunity for philanthropy today, there is little public awareness about
the role and potential of Indian philanthropy in national life. Philanthropic resources can never match state budgets for development but
they are like leaven in bread or salt in food. Properly used, they can stimulate creativity and innovation and ensure independence which
red-tape-ridden or politically guided state funding and profit-oriented markets can never do. Unfortunately, philanthropy is still to move from a
footnote to the main text in India.
Interestingly, the lack of contemporary Indian debate on philanthropy contrasts sharply with the early 20th century, when social reformers
reflected seriously on how to transform existing charitable practices to a more development-oriented and less sectarian ethic. Few know that the
Benaras Hindu University owes its existence to a massive mobilisation of private charity, ranging from a few rupees from the aam adm to several
millions from wealthy industrialists.
Before Independence private support was paramount for institutional development, for experimental activity of all kinds, and for social action
outside the governmental arena. For instance, long before Sir C V Raman became a Nobel Laureate, he was helped by G D Birla to acquire instruments
from England for his experiments. After Independence, however, despite the phenomenal growth of civil society, the major source of funding has been
government or foreign donors.
It is to the culture of giving that we must now turn our attention – who gives, why, how and to whom? The time is now right for Indian philanthropy
to play a greater role than before. One, there is more money in the economy to give away. We are witness to a second wave of wealth creation, with many
globally ranked billionaires and millionaires of Indian origin. The middle class has also expanded considerably and thanks to a booming economy, is
more charitably inclined. A growing number of the affluent elderly whose children are settled abroad may consider bequests to society instead.
Finally, the numbers of rich NRIs who are both interested in, and able to contribute to India’s development is growing. There is thus an increased
potential for, and interest in, engaging in philanthropy which needs to be nurtured if the new wealth is not to be unproductively frittered.
Two, there is a greater awareness of corporate social responsibility. While this is not synonymous with philanthropy, it can be turned to good
account. Three, technological developments, especially in IT have provided powerful tools to bridge time and space so that potential donors can learn
of developments across the world and contribute in new ways, through the internet or credit card giving. Finally, as we saw during the tsunami and
other calamities, the media has demonstrated an undreamt of power to motivate people and to mobilise resources for charity.
LET’S look at where the field is now. Indian philanthropy is larger in scope and size, more organised and more diverse than before. There are many
new foundations and companies engaged in philanthropy; more intermediary bodies to service donors; there is a new class of professionals engaged in
the business of giving for development, and a new profession of fund raisers for charitable causes. New types of philanthropic bodies too have emerged,
such as DOS clubs (donating dal, oil and sugar to charitable organisations) community foundations, online portals and foundation- like intermediaries
both collecting and disbursing funds. The influence of the market is visible in the use of management language like strategic philanthropy, social
investment and venture philanthropy.
But there is still a huge unfinished agenda for philanthropy to become a potent force for change. Surveys show that a majority of Indians give
something away, but it is ad hoc, small, informal, and relief-driven, or given for religious and local community projects. Thus, much of the giving
in India is still charity and it does not lead to social change.
Philanthropy requires the donor to have a certain vision of society and then devote resources to making that vision a reality without expecting a
personal quid pro quo; it requires the donor to choose the best instruments and people to realise the vision. What is noteworthy about the Gates-Buffet
gestures is that they came out of personal and not company wealth, and that Buffet chose the Gates Foundation as the best instrument rather than seeking
to control his gift himself.
Philanthropy also means that a donor is willing to take risks in backing potentially winning but untried ideas. Though there are commendable
exceptions today, what goes by the name of philanthropy is often just the short-term funding of “projects”. Few want to support “processes” which
involve social science research to back up policy or advocacy of a cause, reform and protest movements, or protection of human rights. Moreover, while
philanthropists expect accountability and transparency from their recipients, they do not play by the same rules. Very few foundations
themselves publish annual reports containing the details of their assets, activities or grants.
While public private partnership has become a buzz word, private-private partnership between two or more big donors is still a rare exception. While
NGOs have learnt to value collaboration and partnerships, organised Indian donors still don’t see themselves as belonging to a larger donor sector with
common concerns. What we need is more debate on philanthropy, more exact knowledge about it, a more favourable policy environment, and openness to
practices in other sectors and in other countries. If the Gates-Buffet gestures succeed in sparking this interest, the value of their actions will far exceed the money itself.
Publication: Economics Times Mumbai; Date:Jul 29, 2006;Section:Editorial; Page Number:12