The CSR Ceiling: India’s new-age wealth flowing outside corporate books

India’s top philanthropists are increasingly moving beyond corporate social responsibility (CSR) frameworks to channel personal wealth into social causes.

According to the EdelGive Hurun India Philanthropy List 2025, several of the country’s largest donors represent second-generation wealth creators and first-generation entrepreneurs who are giving through their own foundations and family trusts rather than corporate entities.

Unspent CSR remains unresolved

While overall philanthropy levels have yet to return to their 2021-22 peak, a rising pool of unspent CSR funds among BSE 200 companies continues to be a concern. Since FY15, FY21 remains the only year in which excess CSR spending overtook unspent allocations. That trend has since reversed, with unspent CSR steadily climbing to ₹1,920 crore in FY25, according to the report.

“CSR has to be considered and looked at differently, because CSR is not simply about the intention of a company to pay, but also following the regulatory requirements,” said Naghma Mulla, CEO of EdelGive Foundation, in conversation with CNBC-TV18. She highlighted how rigid timelines often create friction between intention and implementation.

“There are some things that create a bit of chaos. For example, before March 31, we have to exhaust all the deployment, and the organisation that receives it also has to spend it completely. But the fact is, for a lot of rural organisations, the distress starts in the month of April, because it’s summer. I don’t think it means that people are not generous or companies don’t want to give, but there is a gap in the system,” Mulla explained.

Data from the report also shows that while unspent CSR has been on the rise, companies spending in excess has also increased — by 60% from FY23 to FY24 and a further 40% from FY24 to FY25. This indicates that even as some firms lag behind on their mandatory CSR, others are making substantial voluntary contributions.

Overall, total CSR spending has risen nearly 30% year-on-year, reaching ₹18,963 crore in FY25. The financial services sector, with 51 companies, contributed about 22% of total CSR spending, while the FMCG sector, with just 22 companies, accounted for 18%.

Philanthropy in personal capacity gains ground

Beyond corporate giving, India’s philanthropic landscape is witnessing a steady rise in personal and individual donations. Business leaders such as AM Naik, Amit Chandra, and venture capitalist Prashanth Prakash continued to feature among the country’s top 100 donors. Together, these individual philanthropists contributed more than ₹800 crore to causes such as research, water conservation, and urban governance — moving away from the traditional focus on education and healthcare.

FY25 also saw several entrepreneurs who exited successful ventures increase their giving, reflecting a Silicon Valley-style culture of giving back. According to Anas Rahman Junaid, Founder and Chief Researcher at Hurun India, this trend is expected to grow.

“It is consistent — take the case of Binny Bansal, who exited Flipkart a few years ago. He’s been consistently in the philanthropy list for the last four to five years. Every year he donates almost ₹15-16 crore. Or be it Ranjan Pai, who donated ₹160 crore this year after an exit with Temasek. And every year, the donations have been increasing as well. So they are excellent role models, demonstrating an understanding of giving back to the country,” Junaid said.

At the top of the 2025 list, Shiv Nadar & family retained the No.1 spot with donations of ₹2,708 crore, while Mukesh Ambani & family were second with ₹626 crore.

Donors linked to Infosys also continued to play a visible role in India’s philanthropy landscape, together accounting for nearly 8% of total contributions in FY25. Nandan and Rohini Nilekani increased their giving by 19% and 33% respectively, while co-founders K. Dinesh and Kris Gopalakrishnan donated ₹70 crore and ₹124 crore in personal capacity — underscoring an enduring culture of giving rooted in the Infosys network.

The missing systems

Despite the growing momentum in Indian philanthropy, Mulla cautioned that the ecosystem supporting long-term giving remains underdeveloped.

“Any industry that needs to be working like a well-oiled machine needs to be built on very robust systems. Where is the funding for systems? Nobody really funds that,” she said.

“That one message I would love to give is that every philanthropist has to put some money for the boring, repetitive systems, because that will reduce cost, ensure our money goes a long way, and result in more philanthropy in the long term,” Mulla added.Read about our editorial guidelines and ethics policy