Alumni giving and CSR funds for the privileged? The flawed logic of philanthropy in India

This leads us to question why individual philanthropists and organisations shy away from supporting these underfunded institutions. The psychology of corporate and alumni who support the big institutions provides some clues. Corporations and wealthy alumni often direct their generosity towards elite institutions — places they are personally connected to or those that enhance their brand equity. The Indian Institutes of Technology (IITs) and other elite institutions are prime examples. Recent reports highlight how IIT-Kanpur received over Rs 11.6 crore from its class of 1999, and IIT-Delhi got Rs 1 crore to its endowment fund from a 1967 batch alumnus.

While these acts of generosity are commendable, they reinforce existing inequalities. These institutions are already well-funded, equipped with world-class infrastructure, and often have substantial endowments. Alumni and corporates view their contributions here as an investment in prestige—a way to perhaps immortalise their names in the annals of highly reputed institutions. Essentially, their giving is transactional, driven by personal gratification and the tangible acknowledgement they receive, such as naming rights for buildings or public accolades.

The psychology of “giving back” to one’s alma mater can be dissected further. For alumni, the act is steeped in nostalgia and a sense of loyalty. Their contributions are a way of expressing gratitude for the role these institutions played in shaping their careers and lives. However, the deeper issue lies in the blind spots this creates. Supporting one’s alma mater — especially when it is not in financial need — offers a sense of safety and familiarity. It provides a controlled narrative of generosity while avoiding the complexities of engaging with struggling institutions where the impact might be harder to measure or acknowledge.

For corporates, the story is similar but more pragmatic. Donations to elite institutions often align with their corporate social responsibility (CSR) strategies, which prioritise visibility and alignment with their brand image. By associating with prestigious institutions, corporates gain mileage that would be absent if they supported less-known or struggling institutions. They avoid the risk of their contributions being perceived as futile or their impact being diluted in the face of systemic challenges.

The downside of this approach is painfully evident. When corporate and alumni confine their philanthropy to privileged institutions, the needy ones are left to languish. Tier two and tier three cities — where educational institutions often struggle even to maintain operational standards —receive little to no support. This perpetuates a vicious cycle where students from these areas are denied quality education, further entrenching socio-economic inequalities. Recent reports of declining student enrollment in our schools, for instance — nearly one crore fewer students in 2023-24 — highlight the growing disillusionment with the state of education in such neglected institutions.

India’s cultural ethos of “giving” has traditionally emphasised altruism, but modern philanthropy, particularly in education, appears to have lost its way. Unlike in the West, where donations often aim to level the playing field — such as the case of Johns Hopkins Medical School in the U.S. that announced tuition-free education for its students thanks to the contribution by Michael Bloomberg — India’s philanthropy remains skewed towards the already privileged. The idea of “giving back” needs to evolve into “giving forward,” where donors look beyond their personal connections and consider the broader impact of their contributions. Supporting underfunded institutions can create transformative opportunities for communities, break cycles of poverty, and drive long-term social change. But, such initiatives lack the glamour and immediate gratification that accompany donations to elite institutions.

Unfortunately, the societal cost of ignoring the less fortunate is immense. By concentrating resources in well-funded institutions, we deny countless students the chance to rise above their circumstances. Alumni and corporates must reconsider their philanthropic priorities. Beyond the moral imperative, supporting struggling institutions can yield intangible but profound rewards: the satisfaction of creating equitable opportunities and the legacy of uplifting the underserved. In the new year that has just begun, will India’s philanthropists embrace a broader vision that aligns with the nation’s aspiration for inclusive development and educational equity? One would hope so.

The writer is professor and dean, Christ university, Bengaluru