India's Social Sector Needs More Support from Govt, Corporates: Report

India maintained its position in the 'Doing Okay' cluster, unchanged since 2018, revealing areas of strength as well as opportunities for India to further nurture its social sector in 2024. The biennial study highlights the policies and incentives that can maximise philanthropic giving and foster a thriving and effective social sector. 

The Centre for Asian Philanthropy and Society (Caps), GuideStar India and the Centre for Advancement of Philanthropy (Cap) collaborated to present India's performance on the Doing Good Index 2024 report.

"There is a profound trust deficit, and it is getting more serious," said Ruth Shapiro, Chief Executive Officer (CEO) and Co-Founder of Caps “In fact, 44 per cent say they are trusted by society, which is down from 2022 when 55 per cent felt that way. Additionally, only 26 per cent say they are trusted by the government, which helps us to understand the increasingly stringent regulatory environment. We need to do more to build trust.”

Noshir Dadrawala, CEO of the Centre for Advancement of Philanthropy (CAP) highlighted, “The regulations governing India's social sector have seen several changes in the past few years, including changes to the income tax regime, which have made sub-granting increasingly difficult for grantmaking foundations. For social sector organisations in India, keeping up with the changing regulatory landscape is not easy.”

Around 69 per cent of organisations in India report that the number of beneficiaries they reach and demand for their services has increased in the past 12 months, while 76 per cent report increased demand for their services or products. 76 per cent of social sector organisations in India feel optimistic about their organisation's future, and 69 per cent feel optimistic about the social sector as a whole.

The use of digital technology by the social sector in Asia is on the rise, but some organisations need more support. Social sector organisations in India are increasingly utilising digital technology. 81 per cent use digital technology to carry out their work, with 99 per cent intending to increase their use of digital technology in the next two years.

Pushpa Aman Singh, Founder of GuideStar India stated, “Wealth in India is growing, and encouragingly, we are seeing private philanthropy - especially family philanthropy, retail giving and CSR - growing alongside it. Domestic philanthropy has a real potential to help tackle social problems in India, and the social sector wants to see continued support from the government through enabling regulations.”

While 89 per cent of organisations in India have sufficient access to the Internet (above the Asian average of 84 per cent), just 52 per cent report having sufficient access to computers and tablets for their staff. Social sector organisations are insufficiently protected against digital threats. Just 23 per cent of surveyed organisations in India have a cyber-security plan, and only 21 per cent have undertaken staff training to help prevent cyber-attacks.

On a positive note, 72 per cent of social sector organisations in India believe that social sector laws are generally enforced, above the Asian average of 63 per cent. Funding to the social sector has remained mostly unchanged. Funding from domestic sources--individuals, foundations, and companies--remains the most important source of funding, making up 48 per cent, by proportion, of an Indian organisation's budget, compared to the Asia average of 42 per cent.

Nevertheless, most social sector organisations in India (80 per cent) believe domestic funding is low. India's Foreign Contribution (Regulation) Act (FCRA) continues to place significant pressure on social sector organisations that receive foreign funding. Obtaining the necessary approvals to receive foreign funding takes an average of two years, with increased scrutiny making it more difficult for applications to be approved. (ANI)