How and Why to Achieve a Breakthrough in American Philanthropy to India
New Study Builds on Earlier Ones by the John D. and Catherine T. MacArthur Foundation and Gates Foundation
India Giving Day is a signature event of the India Philanthropy Alliance and was inspired, in part, by a study led by the MacArthur Foundation
By Alex Counts, Executive Director of the India Philanthropy Alliance
At the India Philanthropy Alliance, we sometimes refer to Indian Americans collectively as the “sleeping giant” of American philanthropy. It is an inexact phrase, since the Indian diaspora in the United States is already quite active in philanthropy, donating an estimated $1-$2 billion annually, including about $200 million to India. But their potential to do much more, suggested by both their growing wealth and their tendency to volunteer almost double the number of hours that Americans typically contribute to nonprofits, is immense.
Sensing this opportunity, leading philanthropic organizations have been studying the current state of Indian diaspora philanthropy as well as noteworthy trends, barriers, and opportunities. In this context, we include what is sometimes called the “affinity diaspora”—people like me who are not from India but care deeply about India, as well as cultural and commercial organizations that are active in both the U.S. and India.
New Study Released by Indiaspora and Give
Very recently, there has been an important new contribution to scholarship on Indian diaspora giving and its potential, which was recently published by IPA members Indiaspora and Give. But before we summarize these exciting new findings, let’s briefly review the stakes involved and the most important findings of the earlier studies.
As most every literate person in the world knows, over the last 30 years India has achieved impressive, and in many ways unprecedented, progress in social and economic development. Yet, as our vice-chairman Nishant Pandey of the American India Foundation notes in this important article, it still is home to the greatest number of people living in poverty of any nation on earth.
Furthermore, despite all the positive momentum, there are also some disturbing trends, such as the declining labor force participation of women and the fact that nearly one-third of Indian youth ages 15-29 are not in school, employed, or in any form of training. Clearly, there is a lot of work left to be done, especially in the so-called backward states that tend to benefit the least from Corporate Social Responsibility funding.
Formative Studies That Set the Groundwork
In terms of the past studies, one of the most important was “Putting our money where our hearts are,” published in 2018 by Dalberg and Indiaspora with the support of many civil society organizations. It estimated, based on more than 1,000 survey responses nationwide, that people of Indian origin in the United States volunteer at double the rate of the U.S. population. It also found that as of 2018, they donated roughly one-third as much money per capita to all causes (including to India) as typical Americans do.
Three other reports were published around the same time: “Giving Back to India” by Bridgespan, Stanford Social Innovation Review and Dasra in 2015, “Stimulating Philanthropic Giving and Impact Investing for Development in India,” by the John D. and Catherine T. MacArthur Foundation in 2016, and “Diaspora Giving to India” by Dalberg (with support from the Bill and Melinda Gates Foundation) in 2017. The main findings and recommendations of these three earlier reports were:
Indians, Indian-Americans, and other Indian Diaspora populations were, as of ten years ago, giving financially to nonprofits below their potential.
Donor skepticism of philanthropic organizations, lack of information, lack of connection to India among second-generation Indian Americans and millennials, regulatory and tax constraints that disincentivize giving, and lack of a giving culture were the most important barriers to more giving. It was noted that there are distinct archetypes of givers and non-givers who may require customized engagement strategies.
Possible ways to increase giving were identified. These included identifying or creating manuals, trainings and role models for emerging philanthropists; policy reform in India; new certifications and ratings for Indian nonprofits; journalism and research fellowships for writing on philanthropy; national campaigns for giving; building the capacity for recipient organizations; improved impact measurement and reporting; and focus on U.S. markets that have been neglected to date, such as Florida, the Carolinas, and the Midwest.
We take particular note of the MacArthur Foundation study, as it was the most comprehensive. Their call for national campaigns for giving, developing and strengthening channels for giving, and organizing online and social media initiatives, were all highly catalytic in spurring the India Philanthropy Alliance to launch India Giving Day in 2023. It is therefore with special pride and joy that we announce that the MacArthur Foundation has just joined India Giving Day as a major sponsor of our 2024 campaign.
Bridging the Gap to reach India’s Sustainable Development Goals
Now let us turn to the most recent of these studies, which was released on February 1, 2024. It used as a point of departure the role of philanthropy in helping India reach its Sustainable Development Goals (SDGs). Titled “Bridging India’s SDG Gap: The Role of US Diaspora Philanthropy,” it draws from more than 40 in-depth interviews with philanthropic role models whose aggregate net worth exceeds $15 billion.
Its focus is entirely on diaspora giving to India, not Indian philanthropy in general, and it includes an important analysis of trends and possibilities in second and third-generation diaspora philanthropy.
The report, impressively researched and written by Bridgespan, estimates that Indian-American giving to India amounted to around $200 million in 2023, based on a collective net worth of $438 billion. They project that with thoughtful and intentional cultivation, giving could increase to $1.5 billion by 2030, while the community’s net worth grows to roughly $1 trillion.
Furthermore, the study posits that this incremental increase of $1.2 billion could fill small but still critical resource gaps in the drive to have India reach its SDGs in areas such as poverty reduction, food security, education, health, gender equity, and climate.
Measurable Steps to Success
To achieve this 12x growth in American giving to India, they call for a more supportive ecosystem and collaborative efforts to address four remaining challenges: lack of awareness, lack of time, regulatory challenges, and lack of knowledge and experience with intermediaries. They identify three reinforcing priorities: curation, curiosity, and connection.
We at the India Philanthropy Alliance are proud to be making our contribution to realizing these bold goals for social and ecological impact by sponsoring India Giving Day, which culminates on March 1, 2024 and will be held annually hereafter. Please join us and our sponsors, including the Rural India Supporting Trust (RIST) and the MacArthur Foundation, in making this year’s campaign even more successful than last year’s inaugural effort.
We encourage everyone, whether first, second or third generation, or simply a member (like me) of the affinity diaspora, to take part in India Giving Day, a national celebration of what philanthropy to India makes possible.