Charity during Covid-19 in India

India's private philanthropy draws funding from four sources, including foreign contributions, corporate funding, individual donors, and high-net-worth individuals. During the COVID-19 pandemic, family philanthropy tripled in FY2020 compared to FY2019. However, despite the rise in funding, philanthropy still faces hurdles to achieving its potential and meeting the growing needs of nonprofit organizations in India.

We spoke with Ingrid Srinath, the founder and director of the Centre for Social Impact and Philanthropy (CSIP) at Ashoka University, to learn about the impact of COVID-19 on India's social sector, the role philanthropy and nonprofits played in disaster relief and her hopes for the future.

Srinath noted that economic and development indicators were already declining before the pandemic, and COVID-19 exacerbated them. Human rights abuses, such as child labour and violence against women, increased, especially among marginalized societies, including lower castes, LGBTQIA+ communities, people with disabilities, artisans, and others.

Throughout the pandemic, the nonprofit sector played a critical role in mitigating health, economic, and social crises in their communities. According to a CSIP study, 63% of surveyed organizations across the country experienced a rise in demand for their services between February 2020 and February 2021. However, financial insecurity has been one of the biggest challenges for nonprofits during the pandemic.

Indian nonprofits are already operating close to the margins, often with no endowment or large reserves. India's civil society stepped up to take on vital work in the face of the crisis, but the enabling environment has worsened. Civil society organizations found themselves competing for funding with the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund), which garnered US$1.88 billion of India's COVID-19 relief philanthropy.

On the bright side, foundations and individuals in India and the diaspora gave generously during the pandemic, providing support in cash, kind, and advocacy. Family foundations, having stronger connections with the organizations they support, remained loyal to their existing grantees. Corporations increased support for cash transfers, shifting from funding ongoing programs to supporting direct relief, medical hardware, and livelihoods.

The pandemic was an eye-opener for donors of all kinds, who got a behind-the-scenes look at what organizations they support, do, and under what circumstances they operate. For example, donors became more aware of the gaps in access to technology and transportation for nonprofit staff. In some cases, this led to more investment in building organizational capacity, rather than focusing solely on program expenses.

Optimistically, philanthropy and civil society have responded with creativity and flexibility. Funders have learned that they can reduce the bureaucracy involved in grantmaking and that they can trust their nonprofit partners to know what the best solutions for their communities are. New philanthropists emerged during this time, providing civil society organizations with hope for a wider diversity of financial support and sustainability.

Overall, Srinath hopes that the growing appreciation for a support ecosystem builds the foundation for a stronger, more connected civil society in India. However, several challenges remain for philanthropy to achieve its potential and meet the growing needs of nonprofit organizations across India.

Source: Philanthropy and COVID-19: Examining two years of giving

©2022 Candid and the Center for Disaster Philanthropy