Even as Wipro’s Azim Premji just raised his pledge for philanthropy by a massive over Rs 52,000 crore, donations by India’s rich have decreased in the last five years, painting a dismal picture when it comes to charity. The donations of Rs 10 crore or above made by the ultra high net worth individuals (UHNI) have fallen 4 per cent since 2014 even as the proportion of the ultra-rich rose in the country rose, the Bain report said.
PremJi, Chairman of IT major Wipro on Thursday announced that the earnings from nearly 34 per cent company’s shares worth about Rs 52,750 crore would be transferred to the endowment that supports the Azim Premji Foundation.
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Barring philanthropic contributions by Azim Premji, the ultra rich with net worth of more than $50 million have failed to do much about the same. Interestingly, the billionaires club grew by 12 per cent during the period, the report added.
“A breakdown of contributions reveals that while large donations (INR 10 crore or more) by UHNIs compose 55% of individual philanthropist funding, about 80% of this figure results from Azim Premji’s donations to his philanthropic organisation, APPI. Take out that contribution across the years, and the segment has seen a 4% decrease (see Figure 10),” the Bain report said.
“This is particularly problematic, given that UHNI households have grown at a rate of 12% over the past five years and are expected to double in both volume and wealth from 1,60,600 households with INR 1,53,000 crore combined net worth in 2017 to 3,30,400 households with INR 3,52,000 crore combined net worth in 2022,” it added.
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Source: Financial Express