How Asian philanthropies achieve high impact

Bridgespan research report finds they put impact first, set ambitious goals, appropriately resource giving, embed data-driven learning, and engage other actors effectively

By Pritha Venkatachalam , Jeff Bradach

Published: Nov 29, 2024 11:22:13 AM IST

Updated: Nov 29, 2024 11:30:31 AM IST

Shiv Nadar with primary school students supported by the Shiv Nadar foundation. Image: Udit Kulshrestha for Forbes India

Three Indian philanthropies are among the 20 largest philanthropic institutions in Asia, a region of soaring wealth and daunting social and economic need, concludes a new report from The Bridgespan Group.

The Shiv Nadar Foundation has spent the past three decades investing more than US$1.2 billion to build primary, secondary, and higher education institutions across India to ensure that quality education bridges the country’s socio-economic divide. “We invest deep rather than wide to change the trajectory of individuals’ lives,” says Roshni Nadar Malhotra, a foundation trustee.

The Tata Trusts, which support a wide range of programmes from education to water and sanitation; and the Reliance Foundation; which supports health, education, and rural development initiatives, also appear on this list. Over a five-year period between 2018 and 2022, average annual giving for Tata Trusts totaled US$168 million, Reliance Foundation US$98 million, and Shiv Nadar Foundation US$85 million. All three organisations reflect the rapid rise in regional wealth.

Today, Asia is home to more billionaires – 896 – than any other part of the world, declares The Economist. But it is also home to 233 million people who live on less than Rs 160 (US$1.90) a day, 370.7 million people who are undernourished, and 2.1 billion people who lack access to safe drinking water. Whilst Asian societies have a long history of charitable giving, today’s wealth holders have begun to give in a more formal way. To date, however, much potential remains untapped. By one estimate, as much as US$702 billion in philanthropic capital per year could be unlocked if Asian countries were to match the United States in terms of philanthropic spending.

Against this backdrop of accelerating wealth and unmet needs, Bridgespan embarked on a research project to identify the 20 largest philanthropic institutions in Asia and globally and to highlight good philanthropic practices that produce enduring change. To compile the list, we looked at the institutions’ average annual giving over five years from 2018 to 2022, relying on publicly available information like annual reports or reports submitted to the government for compliance purposes.

We found that that regardless of location or source of wealth, high-impact philanthropies pursue five practices that achieve meaningful results over time. They put impact first, set ambitious goals, appropriately resource giving, embed data-driven learning, and engage other actors effectively.

These practices may appear simple and obvious, but we have found that embodying them over time is an uncommon discipline. The problems funders strive to address are always complicated and solving them requires patient progress and willingness to correct course over long periods.

Take for example the Shiv Nadar Foundation’s focus on bridging the gap in access to quality education. Through initiatives like Shiv Nadar University, VidyaGyan, and Shiv Nadar School, the foundation has strived to build institutions that not only provide academic excellence but also nurture leadership, critical thinking, and social responsibility. These institutions have been designed to bridge the gap in access to quality education, particularly for students from rural and economically disadvantaged backgrounds.

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One of its flagship initiatives, VidyaGyan, is a residential school established in 2009 to provide free, quality secondary school education to selected students from households with an income of less than approximately US$2,400 per year and living in rural areas or urban slums. The programme began with a commitment to gender equity, initially reserving 30 percent of its spots for girls. Today, VidyaGyan says the percentage of girl students exceeds that of boys. Ninety-eight percent of VidyaGyan graduates have completed higher education, with many admitted to leading universities in India and abroad. This is indicative of the programme’s success given that more than 50 percent of youths in rural India are unable to do basic arithmetic taught in primary school, and only around 30 percent of 18-year-olds pursue higher education.

The long-term impact of Shiv Nadar’s efforts extends far beyond the classroom as students return to uplift their communities, creating a powerful multiplier effect. Foundation trustee Malhotra believes that a patient, holistic approach, even if it takes 10 years, is what makes education a lasting force to social and economic transformation.

The foundation fully funds its educational institutions and strives for depth rather than breadth of impact. It invests around Rs 34 lakh per student enrolled in VidyaGyan, an amount far higher than the average cost of private schooling in India. VidyaGyan also covers travel costs for all applicants to its test centres and facilitates campus visits for selected students and their families. It invests in its 181 teachers by providing tailored, ongoing professional development to enhance students’ learning outcomes.

Shiv Nadar Foundation is just one of the Asian institutional philanthropies we cite as examples of those guided by the five high-impact practices. In Asia, these practices are helping to shape a new, still emerging chapter in philanthropy, as wealth has soared and philanthropies look to expand on traditional approaches to giving, such as through religious groups, clan associations, and corporates programmes. A growing number of Asian philanthropies are now adopting strategies that align their giving with clearly defined goals and are pursuing collaborative initiatives that pool capital and expertise to advance solutions. For instance, the India Climate Collaborative (ICC)—incubated and hosted by Tata Trusts, and supported by philanthropic leaders like Rohini Nilekani, Anand Mahindra and Zarina Screwvala—is a collaborative platform aimed at solving critical gaps in the climate-linked ecosystem in India. This transition to a more structured way of giving coincides with a desire amongst many philanthropies to understand how to use their new wealth to achieve big, ambitious impact goals.

Philanthropic organisations have an opportunity to learn by doing as they shape the five practices to fit their unique values and priorities. Wherever it is pursued, an impact-focused approach to giving has demonstrated its value in helping to create sustainable results. By giving better, faster, and more, Asian institutional philanthropies can help foster more equitable societies and ensure that the remarkable economic growth seen across Asia translates into inclusive and sustainable development for all.

(Pritha Venkatachalam is a partner at Bridgespan who heads the India office and is co-head, Asia and Africa. Jeff Bradach is a Bridgespan partner and co-founder based in San Francisco)