Did you know that according to studies, women tend to give more to social causes? Historically, due to social inequalities, women have had a smaller share of wealth. This resulted in a lack of participation in philanthropy. However, according to the ‘How India Gives’ report, today as their income rises, women are not only giving their time and money to social causes but leading family philanthropy (giving as a family) in India. The report also indicates how women philanthropists have more inclination toward the Gender Equality Diversity and Inclusion (GEDI) lens of philanthropic giving as compared to male philanthropists.
However, according to the ‘How India Gives’ report, today as their income rises, women are not only giving their time and money to social causes but leading family philanthropy (giving as a family) in India.
This depicts the significance of women philanthropists as heralds for donating to some of the most underrepresented causes in the country. ‘This emphasis on GEDI could be correlated to women’s own lived experiences in the Indian landscape,‘ the report mentions. This may also be an indirect method of contributing towards shifting power dynamics by addressing complex social issues (social justice, caste discrimination, intersectional mental health) which may uplift the position of women in the society.
Women also show greater accountability towards the initiatives and causes they fund. About 65 percent of women, as compared to 43 percent men, prefer to ‘own and operate‘ initiatives to directly impact outcomes, as mentioned in the report.
However, while women tend to be very generous by devoting time and money to the upliftment of society, there needs to be more trust in charitable and other social enterprises. And therefore, it is important to create the right environment for giving in India. Hon. Fin. Minister Nirmala Sitaraman introduced the Social Stock Exchange (SSE) as a potential solution to address this lack of trust.
This national platform, operational since December 2023 enables not-for-profit and for-profit social enterprises to raise funds from the masses. With rigorous documentation and due diligence required, SSE addresses the problem of lack of transparency and builds trust. Housed under the National Stock Exchange (NSE) & Bombay Stock Exchange (BSE), India’s major stock exchange platforms, SSE offers a credible space for philanthropic giving.
What are social stock exchanges?
As a national platform, SSEs allow social organisations to register and list themselves on the platform. This helps them reach a wider audience. By streamlining reporting via a common channel, the process of raising funds becomes easier. Listing on an SSE gives social enterprises a platform to connect with millions of users who could be their potential donors-given that currently, there are 10 crore demat account holders in India. This implies that the platform allows them to reach out to 10 crore potential donors to raise funds. Plus, donating to raise funds for social good makes SSE, a marketplace where social impact is valued the most.
Listing on an SSE gives social enterprises a platform to connect with millions of users who could be their potential donors-given that currently, there are 10 crore demat account holders in India.
In August, the Swades Foundation, a Maharasthra-based social enterprise that has listed itself in SSE, raised around 10 Crore from the platform. The organisation reaches out to more than 2700 hamlets/villages across Raigad and Nashik districts in Maharashtra to provide quality healthcare, education, clean water, and sustainable economic growth. This implies that donations made to social enterprises through SSEs can be utilised to impact the lives of many directly.
In a conversation with FII, Ms. Poonam Choksi, vertical head for capacity building at the A.T.E Chandra Foundation, one of India’s leading philanthropic foundations by scale revealed that ‘if you ask any layperson what would you give to an NGO, they are generally very skeptical about it. They’ll have many questions. From thinking about which NGO to give to, what they will do, how my funds will be utilised, to whether it will go for the right cause or not, all of that skepticism comes to mind.‘
However, she added how Social Stock Exchanges are more credible and transparent and prevent this skepticism. ‘The institutionalisation of stock exchanges for the social sector through government regulatory bodies makes it more credible. A step that India learned and studied from its other counterparts across the globe‘.
Women can transform philanthropy in India through SSEs
By now, 65 non-profit organisations have registered on the Social Stock Exchange and eight have been listed. As Ms. Poonam mentions, the Social Stock Exchange is a game-changer, ‘India, with its 1.35 billion people, holds immense potential. The scale is extraordinary. Imagine harnessing even small contributions from a large number of people—together, that creates massive funding. The key is knowing how to mobilise this reach effectively. With the Social Stock Exchange, social enterprises can tap into these networks, leveraging them for greater impact and multiplying their reach. This platform could truly unlock the resources needed for long-lasting social change.‘
Indeed, capitalising on India’s philanthropic sentiment by showing the impact of social good done by the social sector is the need of the hour. Women are great philanthropists, especially in family philanthropy; the data supports this claim. Thus, women donating to social enterprises through Social Stock Exchanges could be a good step in creating a social impact.
Social enterprises promote the development of the vulnerable sections. They aim to bring about a positive change in society. However, their efforts to convert intent into impactful output are often constrained by a lack of capital or lack of sustained access to this capital. Hence, could a social stock exchange (SSE) be the answer for the same?
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This is the first article in a 4-part series supported by the ATE Chandra Foundation.
