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MUMBAI, INDIA, May 24, 2003: Two out of three nonresident Indians in the Silicon Valley have been significantly affected by the dot-com bust and the impact has reflected in the community’s philanthropy. Two surveys, one conducted last month and the other two years ago, show how NRI attitudes in the Valley towards philanthropy have changed with the economic cycle of boom and bust. A survey conducted last month, among 46 charter members of The IndUS Entrepreneurs (TiE) on the impact of the dot-com bust says that NRIs are now giving lesser amounts to fewer charities. “The nature of the impact has been predominantly to ‘give less.’ There is a 3-to-1 decrease in giving over increase. Of those giving less, two-thirds have reduced their giving by 50 percent or more,” says Shahnaz Taplin of Shahnaz Taplin & Associates who has conducted the study.



At the peak of the boom, Professor Tyzoon Tyebjee of Santa Clara University and Shahnaz Taplin and Associates had conducted a qualitative study, “NRIs: Care, Commit, and Contribute.” The study focused on Silicon Valley NRIs, specifically, social entrepreneurs and IT professionals and showed record giving at the peak of the economic boom by Silicon Valley. The study highlighted patterns and profiles of giving and factors like childhood imprints, family traditions, religious teachings and socioeconomic reasons that influence the Diaspora generosity. It focused on attitudes, motivations and deterrents to philanthropic giving among ‘Midnight’s children’ (born around the time of India’s Independence), Generation X and women. At the peak of the economic boom, many NRIs were contributing increasingly generously to Bay Area nonprofits believing, that “charity starts at home in their own backyards.” The bust reversed this trend, as NRIs now prefer to then send contributions to charities or nongovernmental organizations in India. The lack of accountable, trustworthy and credible institutions through which NRIs can transmit funds to Indian NGOs has been cited as a reason that acts as a significant barrier towards charity.

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