Indian philanthropy: Tax law as a catalyst

Allowing tax-exempt NPOs to hold donations in shares beyond one year would help boost private philanthropy, resulting in multiple benefits

- SUDHIR KAPADIA

SINCE THE TURN of the 21st century and the clarion call for 'compassionate capitalism', there has been a salutary change in heart at the modern Mecca of capitalism-the US. This movement received endorsement and nudges from the likes of Bill Gates and Warren Buffett, and soon enough, the gospel of 'accelerated giving' spread worldwide.

Arguably, this ethos has manifested in Europe's 'old rich' in a markedly different way—more understated funding of public causes coupled with a relatively higher rate architecture of personal taxes and higher compliance discipline. India also has a strong and rich history of philanthropy going back to provincial kingdoms right until modern Indian industrial evolution. In tandem with the aforementioned global movement towards 'accelerated giving', many first-generation tech entrepreneurs have been similarly inspired to meaningfully contribute to a myriad of social and economic priorities in India.