India's Top Philanthropists Shift Focus to Personal Wealth Amidst Rising Unspent CSR Funds

Philanthropy in India is undergoing a significant transformation, with top philanthropists increasingly channeling their personal wealth into social causes rather than solely relying on corporate social responsibility (CSR) frameworks. According to the EdelGive Hurun India Philanthropy List 2025, many of the country's largest donors are entrepreneurs and second-generation wealth creators who prefer to give through their own foundations and family trusts.

However, a persistent concern is the rising pool of unspent CSR funds. BSE 200 companies collectively had ₹1,920 crore in unspent CSR allocations in FY25. Naghma Mulla, CEO of EdelGive Foundation, highlighted that rigid timelines, particularly the rush to deploy funds before March 31st, can create implementation challenges, especially for rural organizations whose needs often peak later in the year. This indicates a systemic gap between the intention to give and effective deployment.

Despite the unspent funds issue, overall CSR spending has seen a robust increase of nearly 30% year-on-year, reaching ₹18,963 crore in FY25. Notably, the number of companies spending *in excess* of their mandatory CSR obligations has also grown substantially. The financial services sector led in CSR contributions, followed by the FMCG sector.

Individual philanthropy is also gaining momentum, with business leaders contributing over ₹800 crore to diverse causes like research, water conservation, and urban governance. Entrepreneurs who have exited successful ventures are also becoming prominent donors, adopting a "give back" culture. Top philanthropists include Shiv Nadar & family (₹2,708 crore) and Mukesh Ambani & family (₹626 crore). Donors linked to Infosys, such as Nandan and Rohini Nilekani, also significantly increased their contributions.

A crucial point raised is the underdeveloped ecosystem supporting long-term, systematic giving. Mulla emphasized the need for funding "boring, repetitive systems" to ensure efficiency and maximize the impact of philanthropic contributions.

**Impact** This trend has a moderate impact on the Indian stock market and business environment. It highlights a growing focus on corporate social responsibility and Environmental, Social, and Governance (ESG) principles, which can influence investor sentiment and corporate reputation. Companies and leaders demonstrating strong philanthropic commitment may attract more favorable investor attention. Rating: 7/10

**Difficult Terms** * **Philanthropists:** Individuals who are dedicated to promoting the welfare of others, especially by the generous donation of money to good causes. * **Corporate Social Responsibility (CSR):** A business model that helps a company be socially accountable to itself, its stakeholders, and the public. By practicing CSR, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental. * **Foundations:** Non-profit organizations that are established to provide financial support to charitable institutions or to fund projects in areas such as education, health, and research. * **Family Trusts:** Legal arrangements where assets are held by a trustee for the benefit of beneficiaries, often managed by families for long-term wealth preservation and distribution, including for philanthropic purposes. * **BSE 200:** An index compiled by the Bombay Stock Exchange (BSE) that represents the top 200 publicly traded companies in India based on market capitalization. * **FY (Financial Year):** A period of 12 months used for accounting and tax purposes. In India, it typically runs from April 1st to March 31st. * **YoY (Year-on-Year):** A comparison of financial data from one period to the same period in the previous year. * **FMCG (Fast-Moving Consumer Goods):** Products that are sold quickly and at a relatively low cost. Examples include soft drinks, toiletries, and over-the-counter drugs. * **ESG (Environmental, Social, and Governance):** A set of standards for a company's operations that socially conscious investors use to screen potential investments.