Q. What is strategic philanthropy? How crucial is it, especially in the post-pandemic context?
Strategic philanthropy refers to philanthropic efforts aimed at tackling the root causes of our social problems. It goes beyond the traditional giving that often aims to solve social problems in the short run. It is philanthropy with purpose, driven by creative planning, agile execution, and diligent follow-through to maximise impact over time. Strategic philanthropists are essentially investors in social change. They embrace both risk and responsibility, aiming for positive impact measured by lives transformed rather than solely by the economic value created.
Post-pandemic, we have been pushed into a new era of philanthropy that must think about societal impact by embracing a ‘whole-of-society’ approach. The pandemic has established that we are all part of an interconnected and collectively vulnerable society, irrespective of our nationalities and boundaries. In current growth markets like the MENA region, philanthropy must have a strategic outlook because the pool of philanthropic capital is expected to grow significantly in the coming decades. We cannot afford to lose its transformative power to change lives within our lifetime.
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Q. Which geographies are witnessing the most significant changes?
I believe we are living through the most exciting period in the history of philanthropy. Over the next 15 years, close to $70 trillion is expected to be passed down to the next generation globally, making it the largest intergenerational wealth transfer in history. In the Middle East alone, over $1 trillion is expected to be transferred to the next generation within the coming years. The rapid increase in private wealth generation in the growth markets will also provide a huge boost to philanthropy from these regions.
Meanwhile, the next generation of philanthropists is rapidly rewriting the rulebook. They are eager to be on ground and demand a more hands-on approach, greater accountability, and radical transparency.
All this represents an exciting inflection point. Global growth markets, especially across Asia, are increasingly emerging as centres for large-scale strategic philanthropy and social innovation. These markets represent over 60 percent of the global GDP and include the top 30 fastest growing economies in the world. With the majority of new net wealth creation to be from these regions and by today’s youth, we are looking at endless possibilities to transform our societies in this lifetime.
Q. What’s the current state of philanthropy in India? Is there still a lot of untapped potential?
Indian philanthropy is going through a defining moment that aligns with the country’s corresponding economic rise and its growing influence on the global stage. According to Bain & Company’s India Philanthropy Report 2024, private philanthropy grew by 10 percent in fiscal year 2023, doubling the average annual growth of 5 percent seen over the previous five years. This remarkable surge is being fuelled by family and retail philanthropy, as well as increased corporate giving.
Since 2020, the number of new philanthropic collaborations established annually in India has surged fivefold, underscoring the power of collective action in addressing climate change. Reinforcing this point, a 2024 Bridgespan Group report highlighted a six-fold increase in capital invested in collaborations in India.
Q. Do you think the CSR mandate has had a major impact?
The CSR mandate in India has successfully nudged Indian corporates to rethink their approach to social impact. They have shifted from the traditional, ad-hoc charities to strategically committing to long-term projects that deeply engage the communities they aim to uplift. CSR funds have become one of the most dependable sources for long-term investments in the social sector. However, CSR funding has also faced criticism for being risk-averse, often hesitating from backing untested solutions and emerging sectors. I believe this will improve over time; especially as more empirical data becomes available around the impact of these social and environmental investments.
Q. Family businesses are the dominant stakeholders in India’s philanthropy space. Are new patterns emerging with generational shifts, particularly in the causes they choose to support?
Family businesses have long been the torchbearers of India’s private philanthropy movement since the days of the Tatas and Birlas. According to Bain & Co’s report, family philanthropy could undergo an impressive 16 percent annual growth rate until 2028. What’s more exciting is the rise of a new generation of young philanthropists from these family businesses. These are emerging leaders with a nuanced understanding of how interconnected social issues like education, climate change, and gender inequality shape our world. For example, Raj Mariwala from the Mariwala Health Initiative [MHI] is breaking barriers by making mental health services accessible to marginalised communities in India. Another example is the work done by Rati and Riah of the Forbes Marshall Foundation, who are reimagining traditional CSR by focusing on empowering women and children from historically, socially, and economically disadvantaged groups.
Q. What are the insights gained from conversations with people like Azim Premji and Nandan Nilekani?
Azim Premji echoes something I have been emphasising during COP28, that our businesses need to think and act like global citizens and must have social responsibility as part of their business plans, especially with the looming global challenges of climate change and access to health care. Nandan Nilekani has done pioneering work in using technology to provide digital identity to over a billion people and scale access to primary education. It reinforces my belief that solving problems, whether for millions or billions of people, must leverage the power of technology to connect people and deliver solutions at unprecedented speed and scale.
Q. Is a philanthropic mindset largely gender-agnostic?
I don’t think that our existing philanthropy systems are ready to be gender-agnostic; neither should they be necessarily. Gender matters in how we give and who benefits from philanthropic capital flows.
The Pearl Initiative’s research on next-generation philanthropy in the Middle East highlights a distinctive pattern of giving by female philanthropists, particularly focussed on empowering women and girls. The findings reveal that boards and teams lacking female representation are significantly less likely to invest in initiatives targeting women and girls, creating barriers to funding for this vital demographic group that represent half of all people in Asia.
Q. Private, and often anonymous, giving is deeply ingrained in Emirati and Arab culture. How can institutionalising philanthropy create impact at scale?
According to research that was commissioned by the Centre for Strategic Philanthropy at the University of Cambridge, private philanthropic giving by family offices in the Gulf region is estimated to be annually $210 billion. Yet, a significant amount of this giving remains disconnected from strategic philanthropic initiatives. Our cultural norms have traditionally kept our local knowledge around giving anonymous. But the tide is turning. The pandemic galvanised many families across the region to accelerate the transformation of the social impact sector in the region and start thinking of institutional mechanisms that can drive philanthropic giving at scale.
There is a strong need for reforming the regulatory environment for philanthropy and a growing call for collaborating to leverage our knowledge and resources. Governments now have an even more critical role to play in developing the legislative enabling frameworks for driving greater transparency and accountability in philanthropic giving, thereby maximising its impact.
Q. How have digital platforms transformed ‘giving’?
The rise of new-age digital platforms is revolutionising the philanthropic sector by flipping the ‘one-to-many’ model of philanthropy, ie wealthy donors supporting a vast number of beneficiaries, to a ‘many to one’ model, where entities seeking help can source smaller donations from an infinite pool of ‘retail’ donors. This democratisation of giving is expanding access and ushering in a new era of transparency for donors and beneficiaries. One such digital platform that I support is hasanah.org. It hopes to empower donors globally to strategically direct the hundreds of billions of dollars they donate every year to organisations with proven track records of delivering positive outcomes.
Q. You emphasise the need for a more enabling environment to leverage strategic philanthropy. What’s the kind of infrastructure needed?
My philanthropic priority is helping to build philanthropic infrastructure and the networks that are built on it. I am passionate about this because I know how powerful enabling infrastructure and networks can be. They not only link philanthropic communities of individuals, families and institutions, but they also connect them with other stakeholders, including governments, multilateral organisations, and businesses. Such infrastructure comes in three main forms. First, stronger and more active networks. Second, simpler and more efficient regulations. And third, better philanthropic governance backed by solid data and evidence. Wherever these three elements align, the potential and possibilities for positive change will be limitless.