Transforming philanthropic practices in India

Philanthropy in Asia is a dynamic and evolving force, rooted in a rich tapestry of cultural Ashwajit Singh is the Founder and Managing Director of IPE Global) and historical traditions. From ancient practices of charitable giving to modern-day philanthropic foundations, Asia’s giving landscape is diverse and impactful. While traditional needs-driven giving continues to play a significant role, a new generation of philanthropists is emerging, driven by a desire to address the root causes of pressing social and environmental issues. These individuals and institutions are increasingly adopting more strategic and innovative approaches to address systemic barriers and maximise their philanthropic impact. This is particularly evident in India where, according to the India Philanthropy Report 2024, private philanthropy, spurred by family philanthropy, grew by 10% to $ 15 billion in 2023, addressing issues such as limited access to health care, education, and livelihoods in order to transform the lives of millions. As India’s economy continues to grow and its wealth accumulates, the role of philanthropy in the country is poised to expand, shaping the future of social and economic development.
Non-profit organisations (NPOs) represent a core segment of the philanthropic ecosystem. They provide the operational infrastructure, community relationships, and implementation expertise necessary to transform ambitious social change theories into tangible impact. However, despite their critical contributions, they frequently encounter substantial barriers to securing funding. Traditional funding models often limit non-profit flexibility and stifle innovation. Trust-based philanthropy emerges as a powerful solution, reshaping funder-grantee dynamics and fostering a more effective and equitable social sector.
Trust-based philanthropy is built on several core principles, such as, flexibility, transparency, and mutual support, that transform the traditional funder-grantee relationship into a partnership, advancing philanthropic goals without compromising on strategic focus. Some key components include, flexible and multi-year funding, streamlined reporting requirements, shared accountability and capacity-building, for both grantee organisations and funders.
Flexible funding empowers NPOs for flexible resource allocation, and swift responses to emerging needs. EdelGive Foundation’s GROW Fund is a successful example of this in action. The fund offered unrestricted funding of ₹100 crores (approx $ 11.8 million) to support 100 diverse grassroots NGOs across 20 states in India for two years. The approach allowed organisations to allocate resources flexibly, enabling them to focus on their missions.
Another example is the Blue Dragon Children’s Foundation in Vietnam’s use of unrestricted funding from the KKR Covid-Relief Fund to combat human trafficking. The funding flexibility allowed them to cover crucial operational costs like staff travel to remote villages to work with local community members. Thus, enabling them to identify the families most at risk of severe poverty and school dropouts, and address human trafficking. This approach allowed the organisation to offer long-term assistance beyond emergency support and was particularly helpful in adapting to the increased needs of hard to reach communities during the pandemic.
Shared accountability is central to trust-based philanthropy, wherein both funders and grantees take responsibility for due diligence and transparency, creating a two-way communication channel for decision-making and aligning expectations. This shared approach not only fosters mutual understanding but also allows non-profits to gain insights into funders’ priorities, strengthening collaboration. The KKR Covid-Relief Fund also exemplified shared accountability through its partnership with Ecosystems Work for Essential Benefits (ECOWEB) in the Philippines. ECOWEB employed a survivor and community-led response approach, giving local communities the power to shape the change they needed. With the fund’s support, the organisation designed and implemented an interest-free revolving loan scheme that enabled micro-entrepreneurs to rebuild their businesses. This collaborative model allowed ECOWEB and the community to pilot a sustainable solution, demonstrating its success to other funders.
Finally, capacity-building support ensures that funding can also contribute to organisational growth, enabling NPOs to improve effectiveness and prioritise the wellbeing of their employees. For example, The Wellbeing Project, a network of over 400 social sector organisations, demonstrates how trust-based philanthropy enables non-profit capacity building. Its members provide unrestricted funding, reducing reporting burdens and empowering grantees to invest in staff and workplaces as needed. This focus on organisational wellbeing complements the trust-based approach, helping to strengthen the social sector’s capacity and resilience.

The central challenge in implementing a trust-based model lies in rebalancing power dynamics between funders and grantees. Many organisations face a significant mindset shift when first granted the autonomy to determine their own path to impact, whether through geographic expansion, increased beneficiary reach, or innovative programme design. This represents a departure from traditional funding models where success metrics are predominantly funder-driven. Whilst this transition towards grantee-led decision-making can initially prove daunting, it is essential for fostering genuine partnership and sustainable impact.
Mackenzie Scott made waves and demonstrated what trust-based philanthropy could achieve when she deployed $13 billion in unrestricted funds to organisations supporting underrepresented communities. Nearly half of these grantees were direct service organisations and about a quarter were advocacy organisations. A study by The Center of Effective Philanthropy specifically designed to understand the impact of her funding finds that Scott’s grants strengthened the organisational capacity of recipients and enabled better support in terms of services provided for the communities they worked with. An overwhelming 80% of non-profit respondents reported no unintended consequences or challenges from this unrestricted funding. Many non-profits also changed their approach to funding – using the grant to establish their credibility, diversify funding sources and ask for more unrestricted grants. These parameters point to better organisational strength required for long-term growth.
Trust-based philanthropy represents a significant step towards creating more equitable pathways for impact. With more funders and non-profits advocating for these practices, a more resilient ecosystem can be fostered to collaboratively work on addressing the complex socioeconomic and environmental crises that the world today faces.
This article is authored by Moutushi Sengupta, chief, Capital Mobilisation, AVPN.