Amit Chandra, partner and India chairman of private equity (PE) firm Bain Capital, began thinking about philanthropy in his 30s. At the time, he was leading investment bank DSP Merrill Lynch in Mumbai.
One of his goals then was to lead a large bank by the age of 40, something he achieved at 33. Chandra had an engineering degree from Mumbai’s VJTI and had received an MBA from Boston College in the US. But early success still left Chandra unfulfilled.
‘Something was missing... I felt quite lost at that point in time,” he said of his time in his 30s.
He began paying attention to the social sector and was soon on the boards of several non-profit organizations alongside other like-minded people like the former Thermax chief Anu Aga, who was running the Akanksha Foundation, and the late ICICI Bank chairman N. Vaghul, who was the head of the Give India Foundation.
That exposure was useful, because he felt, the act of “giving” was not about money alone, it was also about time. Chandra started going into municipal schools, trying to understand how teaching, or the lack of it, happens and engaging more with the students from the slums. After his wife joined a non-profit, the conversation at home also began changing.
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In 2008, Chandra moved to set up the Mumbai office of Bain Capital, assuming the role of partner and chairperson of the firm in India. But in the meanwhile, he also got influenced by J.R.D. Tata’s thinking and Chuck Feeny’s “Giving while Living” philosophy. Feeny, the founder of PE firm General Atlantic, gave away more than 99% of his $8 billion fortune during his lifetime. Chandra met Feeny, who passed away in October 2023 at the age of 92, several times.
“Around the time I started Bain Capital (India), my wife (Archana Chandra) and I decided that we wanted to give away most of our wealth during our lifetime,” Chandra said. Archana Chandra is the chief executive of Jai Vakeel Foundation. The duo gives away 90% of their annual net income and plans to give over 90% of their wealth during their lifetime.
“Once we decided that, it became really interesting because we realised that we also needed to create an organisation that had the ability to give money away in a responsible way,” he said.
Since then, the husband-wife duo has set up the ATE Chandra Foundation, alongside the textile and manufacturing focussed ATE Group. The foundation funds several social welfare projects in water security, farming and education.
Now, Chandra pretty much spends half his time on philanthropic efforts, with the other half devoted to his PE business.
“Building both has been a privilege for me. The second (philanthropy) gives me a sense of purpose, the first (leading Bain Capital) gives me the ability to pay for it,” Chandra said.
Formalising philanthrophy
Chandra and some others, like PE firm Chrys Capital's co-founder Ashish Dhawan and Nilekani Philanthropies' chairperson Rohini Nilekani, have come together to set up Accelerate Indian Philanthropy (AIP), which is working towards frameworks that can help ultra-high-net-worth families be more efficient with their philanthropy.
The next few years are likely to be crucial. With rising inequality, the wealthy need to think more about giving, he said.
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“It (giving rate) is right now less than one per cent. I'm an optimist, because I feel that the number is so much below potential. If we just get to 3-4% with wealth growing at 10-15%, the amount of giving will basically triple,” said Chandra, speaking to Mint on the sidelines of the AIP-Boston Consulting Group (AIP-BCG) report launch on private Indian philanthrophy in Mumbai on 18 July.
Titled Wealth with Purpose, the report says that about 90% of the 100 ultra-high-net-worth individuals (UHNIs) interviewed, especially those with a net worth of over ₹500 crore, expressed a desire to give more. In addition, respondents with a net worth of over ₹2,000 crore already engage in or expressed a desire to engage in strategic philanthropy.
"Today, roughly ₹25,000 crore are donated every year in India for philanthropic purposes. This can grow 3X," said Amitabh Jaipuria, the chief executive of Accelerate Indian Philanthropy, presently working with 40 HNI families to set up their philanthropic initiatives.
The Indian society does not celebrate philanthropy enough, he said, adding that this inhibits more people from donating to charitable causes.
"We are not prescriptive in nature. We don't say whom to give, how much to give, when to give. We help them see a complete picture of the sector they are passionate about," Jaipuria said.
In 2022-23, Indian companies spent about ₹15,000 crore on corporate social responsibility initiatives, according to the report.
Young first-generation wealth creators
The AIP-BCG report says that philanthropy in India is transitioning from traditional, informal giving to more strategic and impactful engagement led by young first-generation wealth creators. The mega trend is that younger people are turning philanthropists who are “giving” away wealth at a much younger rate.
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According to the report's findings, 80% of respondents who emphasize on starting philanthropy early belong to the new generation, including first-generation founders, self-made professionals and the wealthy next generation.
“Many initiatives today are taken by younger folks, first-generation entrepreneurs. The next generation and families, are giving at a much younger age than they used to,” Chandra said.
The reason could be that today’s youth are more socially aware and responsible.
He added that there is also an increase in the pace of growth of retail giving as the young generation, who are more asset light, are thinking differently about their engagement with society. “They're more socially conscious. They don't think about needing to buy so many clothes, to buy this house and that car. They are used to travelling by Uber, and find staying in rental apartments better,” said Chandra.
Rising retail philanthropists
In addition to CSR funds and HNI family philanthropy, the average Indian has also started giving more.
“Retail giving is also growing at a steady clip. Most of the money is going towards religious giving towards, you know, within your own ecosystem, to your driver or cook. But organised ‘giving’ is also growing at a sharper pace,” he said.
Philanthropy can help civil society compliment the government efforts, Chandra said. In education, for instance, civil philanthropy could help the government improve teaching outcomes. Instead of solving privately at a smaller unit, philanthropy could collectively help solve for the public. A higher tax slab could drive wealth away from the country, but formalised philanthropy could see more capital inflows into the social sector, he said.
“The biggest problem philanthropy can solve is making Indians care more about India. It is not a sector, it just making each one of us feel more engaged and more connected to people around us and then make sure that we can engage more with governments. Just that, in my mind is the most important thing,” Chandra said.