New architecture of corporate philanthropy

This article is authored by Srikrishna Sridhar Murthy, co-founder and CEO, Sattva Consulting.

A decade after corporate social responsibility (CSR) became a legal mandate, the country’s impact ecosystem is beginning to resemble something far more mature, characterised by intent-led giving, distributed geography, and an expanding range of institutional actors. The latest analysis of the State of CSR 2025 report reveals that the corporate philanthropy landscape is no longer monolithic. It reflects the DNA of the companies within it, defined by their origins, industries, philosophies of growth, and the social needs they are best positioned to address.

Philanthropy

The most defining trend of the past year is the rise of voluntary giving. In financial year (FY) 2023–24, 765 companies spent more than twice their mandated CSR budgets. An additional 380 companies, with no legal obligation to do so, voluntarily contributed over ₹800 crore. This trend is led not by corporate giants, but by firms with less than ₹1 crore in annual CSR outlay. Their efforts, often hyper-local, support village schools, primary health centres, and livelihood programmes in the very communities where they operate. In parallel, larger corporations are demonstrating maturity of a different kind: Nearly 40% of their CSR budgets are now committed to ongoing, multi-year programmes, signalling a move away from transactional giving to long-term social capital formation.

For much of the past decade, India’s CSR map was metro-centric. Major urban districts and their neighbouring clusters absorbed nearly one-third of total inflows. However, over the last three years, CSR spending in Tier-2 city clusters has grown by 55%, while industrial hubs have witnessed growth rates exceeding 120%. Cities like Madurai, Mysuru, Varanasi, and Vadodara illustrate the fundamental shift, where economic decentralisation is mirrored by social investment. Industrial districts such as Jharsuguda, Raigarh, Jamnagar, and Ballari now receive nearly one-fifth of district-level CSR allocations, making them emerging epicentres of corporate-driven development.

Equally encouraging is the rise in funding to Aspirational Districts, among India’s most underserved regions. This has tripled over the past decade, from 1.3% to 4.5% of total CSR inflows. Much of this comes from sectors like Banking, financial services and insurance (BFSI) and Energy, which are discovering an intrinsic value in linking rural development with business sustainability. Yet, three-fourths of CSR spending remains concentrated in just 193 districts, many of which have relatively lower development needs. The challenge, then, is not just to grow the CSR pie, but to distribute it more equitably.

If geography and intent define where CSR happens, the question of who drives it reveals how the architecture of giving is being shaped. Across India’s top 20 industries, which together account for 90% of CSR spending, alignment between CSR strategy and core business objectives is becoming the norm. Over half of all CSR funding in FY 2023–24 was allocated to industry-linked needs. IT/ITES and automotive players illustrate this convergence powerfully. Over three-fourths of their CSR budgets are directed towards education and skilling, areas that both strengthen talent pipelines and address critical national priorities. In this case, CSR is not just a social good. It’s a strategic investment in India’s future workforce.

For years, NGOs were the default partners of corporate giving. However, recent data suggest a diversification of actors, with specialised institutions, such as universities, hospitals, incubators, and even religious trusts, now accounting for nearly one-fifth of CSR implementation funding. From funding university research centres to supporting healthcare infrastructure and social innovation labs, CSR is finding new catalytic partners to plug critical gaps in India’s development finance architecture.

Equally significant is the rise of corporate foundations. Among firms with CSR budgets above ₹10 crore, over 60% now channel funds through their own foundations. For the largest spenders, those investing upwards of ₹100 crore annually, projects implemented via foundations are nearly three times larger than those executed through external partners. This model gives companies greater control, stronger governance, and the ability to pursue flagship, multi-year programmes aligned to long-term goals.

For corporate India, the real opportunity now lies beyond traditional CSR. The next decade will belong to those who see social value not as an outcome, but as an input. Imagine research and development pipelines designed for low-resource environments, business roadmaps that take necessary interventions to underserved regions or open platforms that connect institutions, innovators, and ideas: CSR will become an endeavour of inclusion – at scale. As CSR funding becomes more strategic and geographically diverse, its role in nation-building will only deepen. The challenge for corporate India is to ensure that this momentum does not plateau into predictability.

This article is authored by Srikrishna Sridhar Murthy, co-founder and CEO, Sattva Consulting.