Let Billionaires Pledge More Charity
Let Billionaires Pledge More Charity
By Dr Arvind Kumar
Interestingly, in July this year Microsoft founder Bill Gates and investor Warren Buffett – two of the wealthiest individuals in the world — made a pledge that has since been replicated by 38 other American billionaires: to part with at least half of their net worth to charity. The pledge is likely to raise $600 billion collectively.
According to Forbes Magazine, India is home to two of the richest five people in the world. However, the Indian billionaires have yet to make a similar commitment. According to a study published by Bain & Company, Indians collectively donate 0.6% of their country’s GDP to charity, yet this amount of collective donation still pales in comparison to Western nations like Canada (1.3%) and the U.S. (2.2%). Just 10% of charitable giving in India comes from individuals or companies, compared to 75% in the United States. India’s biggest donor is the government.
But the giving gap doesn’t necessarily mean American billionaires have softer hearts than those of Indians.
The lndian billionaires donate less because:
• They want to establish charitable foundations of their own;
• The channels for giving are fewer and, more often than not, riddled with corruption.
• They just don’t trust the organizations that want money or that they could give to.
• Often they find themselves in the position that even if they want to give, there is no mechanism available to them by which they could give.
• They offer charity to local or homegrown institutions they know or trust;
• They trust their local temples or churches more worthy of charity.
Interestingly, in July this year Microsoft founder Bill Gates and investor Warren Buffett – two of the wealthiest individuals in the world — made a pledge that has since been replicated by 38 other American billionaires: to part with at least half of their net worth to charity. The pledge is likely to raise $600 billion collectively.
According to Forbes Magazine, India is home to two of the richest five people in the world. However, the Indian billionaires have yet to make a similar commitment. According to a study published by Bain & Company, Indians collectively donate 0.6% of their country’s GDP to charity, yet this amount of collective donation still pales in comparison to Western nations like Canada (1.3%) and the U.S. (2.2%). Just 10% of charitable giving in India comes from individuals or companies, compared to 75% in the United States. India’s biggest donor is the government.
But the giving gap doesn’t necessarily mean American billionaires have softer hearts than those of Indians.
The lndian billionaires donate less because:
• They want to establish charitable foundations of their own;
• The channels for giving are fewer and, more often than not, riddled with corruption.
• They just don’t trust the organizations that want money or that they could give to.
• Often they find themselves in the position that even if they want to give, there is no mechanism available to them by which they could give.
• They offer charity to local or homegrown institutions they know or trust;
• They trust their local temples or churches more worthy of charity.
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