Family Wealth and Philanthropy

How business families give through trusts and foundations, the CSR law, and examples from the Tatas to Azim Premji's large donations.

Many business families engage in philanthropy.

Examples

Tata Trusts: funding hospitals, science and education for over a century.
Azim Premji, founder of Wipro, pledged a large share of his wealth, including Wipro shares worth billions of dollars, to the Azim Premji Foundation, focused on education.
Shiv Nadar Foundation: schools and universities.
Nilekani, Infosys founders and others fund research and social causes.

CSR law

The Companies Act, 2013 requires large companies to spend 2 percent of average net profits on corporate social responsibility (CSR), making India one of the first countries with mandatory CSR.

Motivations

Values and tradition.
Reputation.
Tax benefits.

Debates

Is CSR true philanthropy or a tax?
Are funds used effectively?
Does philanthropy substitute for public services?

Scale

India’s private giving has grown, but it remains small relative to the wealth of its richest families, according to reports like Bain’s India Philanthropy Report.

The foundation school

A family foundation funds teacher training in government schools across several states, aiming to improve learning for millions of children.

Thinking business families don't give back

Many run large foundations; CSR is also mandatory.

Key takeaways

Tata Trusts and Azim Premji are leading philanthropists.
The 2013 Act mandates 2 percent CSR spending.
Motivations include values, reputation and tax.
Giving is growing but small relative to wealth.