Professional advisors: Influencing people for philanthropy

Authored by - Pushpa Sundar, writer on development issues and philanthropy and author of Giving With A Thousand Hands: The Changing Face of Indian Philanthropy.

Increasing the flow of private contributions to create an alternate source of resources for social action organisations has become inevitable, not only because of an ever-growing demand for resources from the non-profit sector which cannot all be met by government, but also because political pressures on non-profit organisations are growing.

Philanthropy

Fortunately, the scenario for tapping private charity has never been better. The dynamism shown by an economy growing at an average of 6.5% p.a. in recent years has meant more wealth creation in the system. According to the Knight Frank Wealth Report 2026, global wealth is booming, with 89 new ultra-high-net-worth individuals (UHNWIs, over $30m net worth) added daily, rising to 713,626 total by 2026. The US leads (35% of global wealth), while India ranks 6th with 19,877 UHNWIs, marking a 63.4% increase, driven by digitisation expanding capital markets and startup ecosystems. Add to this the approximately 200,000-odd NRI millionaires in the US, at least some of whom want to give back to their homeland. Moreover, we will be witnessing a great wealth transfer, with trillions shifting to the next generation over the coming 25 years.

The challenge before social purpose organisations is to convert at least a percentage of this wealth into social investment, and here is where a recent news report offers cheering news. According to it, wealthy clans are now drawing up “family constitutions codifying the principles not only for wealth creation , but also philanthropy , succession planning, and the family’s larger sense of purpose, or in short, its value system.” In such families, youngsters in particular, who have been exposed to philanthropy in the West, are taking a lead in formulating the ideas for their families, especially the form it should take.

In this scenario, professional advisors to the wealthy have an important part to play. They can ensure that some of the intergenerational transfer of wealth, as well as newly created wealth, goes into philanthropic ventures. Unfortunately, their potential for winning friends and influencing people for philanthropic causes has not even been realised in India, let alone tapped by those interested in increasing philanthropic resources in society. It is time therefore that fundraisers for social purpose organisations link up with such advisors.

Who exactly are professional advisors? Lawyers, tax planners, investment and estate planners, and private bankers, and the newest of the species, family wealth offices. The exponential rise of the ultra-rich individuals has been accompanied by a significant rise of family offices which specifically manage the wealth of affluent families. Driven by millennials and women with wealth, the growing demand for philanthropy and social impact investment advice and support provides increased opportunities for professional advisory firms. Specialised family offices which are yet to achieve significant numbers in India, or separate professional advisors’ firms, all of them can play a part in pointing their clients in the right direction.

As was pointed out in the article mentioned, for many, if not most clients, their hesitations are not about whether to give, but about how to give effectively, how to make a difference, and how to find great partners to support. Unfortunately, India does not have a developed philanthropy infrastructure as obtains in the West where intermediary organisations help both donors and recipients with information and other services. Professional advisors can fill this gap.

To achieve their goals, such advisors tap into a variety of resources to help explore basic philanthropic goals, practices, and concerns, such as how to develop a meaningful giving plan and how to manage incoming requests without getting overwhelmed.

Optimising the benefits of philanthropy depends on taking care of five points--people, places, problems, pathways, and philosophies. A good wealth advisor will help the client to make good decisions about these, and guide them along the way.

For example, the advisor can help clients find a focus, clarify goals, engage the next generation, develop philanthropic strategies or initiatives, identify funding opportunities that fit their goals, and assess their impact. Along the way, a professional advisor can help establish philanthropic vehicles, navigate tax and estate planning questions, and help manage key transitions and shifts in scale.

Traditionally, professional advisors such as attorneys, accountants, financial professionals, and planned giving officers work apart from one another in helping accomplish a client's estate and charitable planning goals and objectives. But todays wealth managers see their role as more integrated as far as philanthropy is concerned. Today’s wealthy want more comprehensive and personalised support from their professional advisors to address their values-based economic and social goals. And so, the wealth mangers work with other philanthropists, charities and governments to develop greater expertise, awareness and impact in philanthropic action.

The Companies Act of 2013 mandating compulsory corporate social responsibility (CSR) spending on the part of companies has increased the need for advisors specialised in philanthropic work. Companies, unfamiliar with social action also need a guiding hand.

The conclusion is, therefore, inevitable that till a better philanthropy infrastructure gets developed, both social purpose organisations, CSR arms of companies, and professional advisors would do well to network with each other, both for fund raising and to achieve their philanthropic goals.

(The views expressed are personal)

This article is authored by Pushpa Sundar, writer on development issues and philanthropy and author of Giving With A Thousand Hands: The Changing Face of Indian Philanthropy.