Over the next five years, private funding in India’s social sector is expected to see a 10%–12% annual growth, largely driven by family philanthropy from high-net-worth individuals (HNIs), according to a new report released on Thursday (February 27).As of FY24, the total size of the country’s social sector funding – on education, healthcare, gender equality, etc. – is around Rs 25 lakh crore ($300 billion). Public spending accounted for 95% of total funding at Rs 23 lakh crore, including schemes such as MGNREGS and the Pradhan Mantri Awas Yojana.On the other hand, private spending stood at around Rs 1.3 lakh crore ($16 billion), according to the India Philanthropy Report (IPR) 2025 from venture philanthropy firm Dasra and management consultancy Bain & Co. “More strategic services and structured support for family philanthropy could unlock INR 50,000-55,000 crore ($6–$7 billion) in additional family philanthropy over the next five years,” it said.Currently, family giving accounts for approximately 40% of private philanthropy, including personal giving and corporate social responsibility (CSR) initiatives from family-owned/run businesses. Here is what to know.What does data say about HNIs and philanthropy?Generally, the share of private funds allocated towards philanthropy in India has been low compared to other major economies. The India Philanthropy Report 2022 found that “Relative contributions (giving as a percentage of wealth) among Indian UHNIs (Ultra-high-net-worth individuals) range from 0.1% to 0.15% compared with 1.2% to 2.5% in the United States, 0.5% to 1.8% in the UK, and 0.5% to 1.4% in China.”As defined in the 2025 report, UHNIs refer to ultra-high-net-worth individuals (UHNIs) with a net worth of Rs 1,000 crore and more. HNIs have a net worth of Rs 200 to 1,000 crore, while the “Affluent” category includes those ranging between Rs 7 to 200 crore. On average, the three categories of private individuals gave Rs 5 crore, Rs 0.4 to 5 crore, and less than Rs 0.4 crore to philanthropy in FY 2024, respectively.Within the UHNIs, just the top 4 family-owned/run firms (Tata, Ambani, Adani, and Birla) constituted around 20% of family-owned/run firms’ CSR spending — at around Rs 800 to 1,000 crore per family.Story continues below this adIn comparison, a tradition of private philanthropy has long existed in the US. According to a 2024 analysis from Forbes, American billionaires such as Warren Buffett, Bill Gates, Melinda French Gates, and MacKenzie Scott have donated at least 20% of their wealth. Elon Musk, the richest man in the world, has given away less than 1%.What do projections say about private philanthropy in India?One reason behind the projected rise in the share of private spending in the next five years is the high growth in HNIs and the affluent givers segment. The report says it will be “driven by increasing populations and wealth of this cohort… with addition of 100M+ upper-mid and high-income households, increasing to 168M in 2030 (vs. 61M in 2018).”A modest growth in funds from the UHNI segment is expected as well. In FY23, the rise in this group was led by businessmen Shiv Nadar and Azim Premji.CSR growth is also expected to grow by 10-12%, driven by an uptick in compliance by firms. It is mandated that any firm with a net worth of at least Rs 500 crore or annual turnover surpassing Rs 1,000 crore or net profits exceeding Rs 5 crore must spend a minimum of 2% of their average net profit of preceding three financial years on CSR activities. The report noted a more than 20% increase in CSR-compliant firms – from around 12,000 in FY22 to roughly 15,000 in FY23.Story continues below this adOpinion | Alumni giving and CSR funds for the privileged? The flawed logic of philanthropy in IndiaIn terms of the causes to which these funds were allocated, around 40% of families supported gender, equity, diversity, and inclusion (GEDI) activities, and 29% supported climate action. A majority of families (55%) have women anchoring these efforts.The report also noted the growth in family offices, which are firms that manage HNIs and their families’ assets and wealth. Their numbers grew seven-fold between 2018 and 2023, from 45 to 300. It said that tapping into family offices and developing structured services for channelling funds towards the nonprofit ecosystem can help the larger cause of Indian philanthropy.