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.
Very well said, I totally agree with it. Additionally, I always feel the second bullet is what is the root cause of all problems in our nation i.e. "corruption". For instance, if I donate 100 I am not sure what %age of it will be used for the actual cause. And it is this doubt which at times acts as a big hurdle. I would also like to share something which happened here in US. They circulated a letter all over US mentioning that a USPS (America's postal service) truck will collect food items from each home to help people who need food and this program was called "stamp out hunger" . All those who were interested to help were requested to put food(raw or canned goods) beneath their postbox. And when the final day arrived I went down to keep the bag for donation and I saw that each and every household has kept something. I was so happy to see that, all the more because the area I stay in is not a posh one at all and still everyone helped. That very day I felt that if we repeat the same in India people will help for sure but how much will reach the real needy??
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