Denise Carvalho is highlighted by Social Value International

Denise Carvalho, Senior Monitoring and Evaluation Manager at IDIS, has been featured as the “Spotlight of the Month” in december, by the international impact assessment network, Social Value International. The network is currently present in 60 countries with the participation of individuals and organizations, including IDIS.

“SDG 17 is crucial for the network, as partnerships drive collective impact. Collaboration is essential for our network, promoting diverse expertise and resources. Through our partnership, we aim to amplify social innovation, advance sustainable solutions, and collectively assess social impact for a better future,” commented Carvalho in an interview with Social Value.

Recently, the IDIS team underwent training in the Social Return on Investment (SROI) methodology, as part of a series of training sessions.

Global Research Reveals Perception on the Use of Artificial Intelligence by NGOs

A study conducted by the Charities Aid Foundation (CAF), represented in Brazil by IDIS, shows an optimistic society but still quite divided regarding the use of AI by social organizations.

Artificial Intelligence (AI) has moved beyond the realm of science fiction, with applications increasingly present in our daily lives. In 2023, the world witnessed (and experienced) the explosion of ChatGPT, the generative AI platform from OpenAI, which reached 100 million users in just three months—the fastest growth in the history of internet applications. As technology advances, so does the reflection on technical and ethical implications, as well as the opportunities and risks associated with it.

The groundbreaking research ‘What the public think of charities using AI’ conducted by the British organization Charities Aid Foundation (CAF), represented in Brazil by IDIS – Institute for the Development of Social Investment, reveals an optimistic society regarding the adoption of Artificial Intelligence, but with reservations. The study involved over six thousand individuals in 10 countries, including Brazil.

According to the research, 37% of respondents believe that the benefits of using AI outweigh the potential risks, contrasting with the 22% who state the opposite.

“The findings of this study are valuable for delving deeper into the debate on the use of AI in the third sector in Brazil, with the responsibility and ethics that the subject demands,” comments Luisa Lima, Communications and Knowledge Manager at IDIS.

 

The study further deepens the analysis by calculating net favorability, i.e., the difference between those who are in favor of AI use and those who believe the risks are greater. Globally, this value corresponds to 15%. In the country ranking, Brazil ranks second among those who believe the benefits of AI use outweigh the risks (30%), trailing only behind Kenya (44%). Among the surveyed countries, only in Australia does the majority of the population show skepticism towards AI adoption, believing that risks outweigh opportunities (-4%).

The opportunities highlighted by Brazilian respondents include the potential to assist more people (29%), the ability to respond quickly to emergencies (22%), and making more precise decisions through data analysis (16%). Daniel Assunção, founder and CEO of Atados, shared his insights on the study results, expressing optimism about the use of AI, particularly in emergency situations such as floods. He emphasized the potential benefits, including proactive risk mapping and informing the population before disasters, optimizing resource distribution during response, and evaluating response quality through data analysis.

Regarding risks for third-sector organizations, Brazilian respondents cited data security (30%), job reduction (26%), and the generation of biased information and decisions (14%) as the most prominent. To mitigate these potential issues, Rodrigo Pipponzi, President of the MOL Group Council, emphasized the importance of governance structures in analyzing how the tool should be used in organizations. He stated that organization boards can play a crucial role not only in facilitating tool adoption but also in supporting its regulation and mediating technology use within institutions.

Gradually, AI is being adopted by civil society organizations, as reported by Kiko Afonso, the executive director of Ação da Cidadania. “Today, we use AI for communication, running sponsored ads on platforms like Google or Facebook and generating images, for example. We also see significant potential for its use in fundraising, as it can help us better understand the profile of our donors and create strategies based on that knowledge”. The research reveals that the public is attentive and interested in how NGOs apply technology, with only 13% stating they would pay little or no attention to its use by the organizations they support. In developing countries, including Brazil, 73% said they would pay much attention to this point, higher than the 40% in higher-income countries.

The results indicate that the public recognizes the opportunities generated by Artificial Intelligence but expects caution and transparency to understand how and why organizations are using AI to fulfill their mission. They also acknowledge that there should be investment for AI to be adopted by all types of organizations, avoiding creating inequalities in the sector.

Complete data is available on the CAF website.

 

Leadership Perceptions of Brazilian NGOs on the Research Results:

Daniel Assunção, Founder and CEO of Atado

“I am optimistic about the use of technologies. AI can optimize our activities, and people will have more time to undertake and dedicate themselves to actions that contribute to reducing inequalities, such as volunteering”.

“The regulation of technology use is still low, and in the short term, it can intensify inequalities and biases. In the long run, the trend is that this will be overcome”.

“In the organization where I work, we connect people interested in volunteering to social organizations. We are looking at the incorporation of technologies in general, and AI in particular, to improve the experience of our users and organizations, streamline processes and content production, as well as accelerate innovation”.

“In Brazil, the technology culture among social organizations is still low. I see few organizations innovating through its use, but as they become more popular, I believe many will start adopting it in their processes”.

“AI has the potential to generate more opportunities for individual engagement and activism. On the other hand, there is a risk that recommendations still have many biases, so it is important to invest in actions that contribute to critical thinking”.

“The response to emergencies is still carried out in a less structured manner in Brazil. Donations happen, but there is a lack of processes, coordination, and articulation between actions to distribute resources, support those affected, and mitigate damages. The use of AI can contribute in numerous ways. Even before disasters, by mapping potential risks and informing the population about the imminent threat. It can also be beneficial during the response, optimizing the distribution of resources and communication among all involved, as well as afterward, evaluating the quality of the response through the cross-referencing of available data”.

 

Rodrigo Pipponzi, President of the MOL Group Council

“The third sector faces a scarcity of resources. I believe that in situations of limitation, artificial intelligence can play a complementary role. It can be used where you typically lack manpower, speed, or agility, but I still see little knowledge about its application”.

“I have an optimistic view and believe that the benefits outweigh the drawbacks. However, I think there is a considerable risk associated with society not fully understanding the use of this tool. One of the main risks, in my opinion, is the disconnection from causes. There is a danger of dehumanizing something very human, transferring the responsibility of decisions that often involve emotional and intuitive aspects to AI”.

“None of the organizations I am currently involved in incorporates Artificial Intelligence as an established tool. Our use is more focused on experimentation, lacking a structured policy”.

“Organization boards should play a very important role, not only facilitating the adoption of tools but primarily regulating their use and mediating technology use within institutions”.

 

Rodrigo “Kiko” Afonso, Executive Director of Ação da Cidadania

“The concerns presented in the research are also my concerns as a leader of a Non-Governmental Organization (NGO). Among the factors, what currently concerns me the most is the potential for biases, as this can indeed lead to wrong decisions. Currently, the algorithm can contribute to processing large volumes of data, but it can never replace people in making important decisions, as this involves cultural and social aspects that are subjective”.

“In Ação da Cidadania, we currently use AI for communication, running sponsored ads on platforms like Google or Facebook, and generating images, for example. We also see great potential for its use in fundraising, as it can help us better understand the profile of our donors and create strategies based on that knowledge”.

“Currently, NGOs in Brazil use AI very little. I believe that its use can generate positive results, but organizations must have clarity about the fundamentals of the technology. Otherwise, the risk of making biased and even disastrous decisions is high”.

“In Brazil, we are still poorly prepared to face emergencies. In the short term, I believe AI can contribute to identifying potential tragedies and warning populations that may be affected”.

 

ABOUT CAF 

The Charities Aid Foundation (CAF) is a group of three social organizations based in the United Kingdom, Canada, and the United States, specializing in secure and effective international donations. Together, they work with companies and philanthropists to support them and ensure that money reaches the core causes of their private social investment strategies. In the UK, CAF also operates CAF Bank, offering dedicated banking services to support over 14,000 social organizations based in the UK. Through the CAF International network, it is present on all continents, with IDIS representing it in Latin America.

ABOUT IDIS

IDIS – Institute for the Development of Social Investment is a civil society organization founded in 1999 and pioneer in technical support to social investors in Brazil. With the mission to inspire, support and promote strategic philanthropy and its impact, we serve individuals, families, companies, corporate and family run institutes and foundations, as well as with civil society organizations, in actions that transform realities and contribute for the reduction of social inequality in the country.

IDIS launches the second edition of the Endowment Performance Yearbook, analyzing data from 59 organizations

The publication shows an increase in donations to endowments, as well as the growth of resources allocated to socio-environmental projects

In its second edition, the Endowment Performance Yearbook, a publication by IDIS – Institute for the Development of Social Investment, and the Brazilian Endowment Coalition, had the participation of 59 endowments, constituting a sample almost 50% larger than the previous year, which had 40 respondents. The combined assets of the funds included in the survey are also substantially higher – BRL 13 billion in 2021 versus BRL 123 billion in 2022. The historical series covers data from 2019 to 2022, and the publication includes articles by experts that contribute to interpreting the findings.

The growth in the number of respondents provides an even more accurate picture of endowment in Brazil and reaffirms the Yearbook as a national reference for endowment managers.

“The first endowment legislation in Brazil dates from 2019. Since than, the topic is on the rise. As more endowments are created, the greater is the need for parameters and benchmarks. Our hope is that the Yearbook becomes an effective tool for decision-making and that the historical series contribute to an understanding of the evolution of endowment funds in Brazil”, comments Paula Fabiani, CEO of IDIS.

The sample analysis indicate that after a sharp decline in contributions to the funds in 2021, there´s been a recovery in donations received, nearly doubling the amount (R$ 174 million vs. R$ 330 million). However, donations continue to be highly concentrated in a few funds. In 2022, three funds recieved 64% of the total donation volume. In 2021, the top three attracted 53%.

Despite fluctuations in donations, the volume of redemptions made by the endowments increased over the period analyzed. It rose from R$ 158 million in 2019 to R$ 340 million in 2022, allocated to financing socio-environmental projects.

Education is the largest area of attraction for these endowments. From the perspective of the beneficiary organizations, over one-third (35%) are educational institutions. From the standpoint of the supported causes, 70% of funds with predefined causes claim to support Education in some way, with Science & Technology being the second most frequent cause. This is partly due to the large number of endowment funds associated with colleges and universities.

Brazilian endowments are still mostly executors, with 90% or more of their donations used for their own projects. More than half (51%) of the sample funds fall into this category.

The allocation of endowment funds’ investments remains heavily concentrated in fixed income assets, which have remained at around 70% (74% in 2020, 73% in 2021, and 75% in 2022). One possible interpretation is that the stable behavior of the managers is linked to the resource allocation rules contained in the investment policies.

The nominal return on endowment funds recovered in 2022 after a year of decline. This performance is common to all asset size categories. In the aggregated data, the average return in 2020 was 6.0%, followed by 3.4% in 2021 and 8.3% in 2022.

The first law that regulated endowment funds in Brazil dates back to 2019. Its sanction contributed to increasing the visibility of the mechanism and accelerated its adoption. Nevertheless, since compliance with the law is not mandatory, the number of funds that claim to follow the model established by Law 13,800/19 is still relatively low – 29% (17 out of the 59 participants) in the sample. The most frequent reason for non-compliance is that the funds were created before the law was enacted (33%). The other reasons mentioned by a larger number of managers are the high cost of maintaining two institutions (14%), lack of tax incentives for donations (12%), and complex governance (10%).

The sample analyzed showed that endowment funds tend to have well-structured governance. Almost all (90%) have a Board of Directors, with 72% of them having independent members. Seventy-one percent have Audit Committees, and 70% have Investment Committees.

Endowment fund managers still consider that the biggest challenge is fundraising, mentioned by nearly half of them (48%). Next are returns (17%) and consolidation of their own fund (14%).

Regarding the challenges faced by endowment managers, Supreme Court Justice Minister Luis Fux stated in the Yearbook’s preface: “Despite significant progress in consolidating endowment, financial difficulties cannot be disregarded in order to provide them with efficient management in the current scenario of successive economic crises. Their administrators, consequently, need reliable information to provide them with (i) the basis for making strategic decisions, (ii) risk control, (iii) attracting profitable investments, (iv) assessing the cost-benefit of new practices, (v) and establishing solid parameters for governance and transparency. In this context, the new edition of the Endowment Performance Yearbook is very timely.”

This is an initiative of IDIS – Institute for the Development of Social Investment and Brazilian Endowment Coalition. The publication is supported by 1618 Investimentos, ASA – Santo Agostinho Association, José Luiz Egydio Setúbal Foundation, Maria Cecília Souto Vidigal Foundation, Pragma Gestão de Patrimônio, Santander Bank, Umane, and Wright Capital Wealth Management.

About IDIS and Brazilian Endowment Coalition

For over a decade, IDIS has been dedicated to promoting the advance of endowment funds in Brazil, leading the Brazilian Endowment Coalition. With over 100 members from different sectors, the initiative seeks to develop this model of financial sustainability for organizations and causes through advocacy.

Among the network’s achievements is the approval, in January 2019, of the regulation of the instrument through Law 13,800/19, known as the Endowment Funds Law. The coalition remains active in seeking improvements in the legislation on more specific issues. IDIS also provides advice for the implementation of endowments, participating in projects for Unicamp, Unesp, Ibram, MAR – Museu de Arte do Rio, ASA – Santo Agostinho Association, Hospital AC Camargo, among others.

Impact Assessment for Productive Inclusion: Methodologies, Challenges, and Limitations

The practice of monitoring and evaluation can be an efficient tool for learning and decision-making in productive inclusion projects. By using evaluative methods, such as Social Return on Investment (SROI), it is possible to understand the social impact of projects and programs and make more informed decisions.

In the article titled ‘Impact Assessment for Productive Inclusion: Methodologies, Challenges, and Limitations’, Paula Fabiani, CEO of IDIS, and Denise Carvalho, Monitoring and Evaluation Manager at IDIS, explore the main benefits, challenges, and limitations faced in the social impact assessment of productive inclusion projects and programs, as well as future trends and approaches.

The content of this article was published in the Revista Brasileira de Avaliação – Special Edition on Productive Inclusion, a publication that brings together a unique set of articles, experience reports, interviews, and essays discussing the evaluation of public and private policies for productive inclusion from various perspectives.

Coordinated by the Brazilian Evaluation Network with the support of the Arymax Foundation, in partnership with the Tide Setubal Foundation, this is a scientific publication aimed at fostering the discussion of evidence-based policies on interventions designed to address socio-economic inequalities in Brazil by generating employment and income for economically excluded individuals.

Check out the full article:

Transforming Territories Seminar brings together over 30 community leaders from Brazil

The Transforming Territories Seminar, held in September at São Paulo, aimed to foster peer learning among representatives of Community Foundations (CFs) that are participants of the Transforming Territories Program, an impact project conducted by IDIS in partnership with the C.S. Mott Foundation. With visits to supported projects, lectures, and training sessions, the seminar provided an opportunity to deepen the understanding of a fundamental theme: the transformative power of these organizations in Brazil. The meeting also included the participation of the Brazilian Philanthropy Forum.

In its second edition, the event had the participation of over 60 individuals, including leaders of CFs, philanthropists, partners, and supporters committed to the cause.

“The three days were important for connections, benchmarking, and expanding perspectives, processes, and possibilities”, summarized one of the participants.

 

“The Seminar was very special, especially because it was highly interactive. I believe in this collective construction for Transforming Territories for the coming years”, commented another participant anonymously in the event evaluations.

 

Inspiration and Example: A Visit to Cacimba Institute

It is not possible to visit São Miguel Paulista, a periferic neighborhood on the east of the city of São Paulo, and don´t notice the impact of the projects supported by Cacimba Institute. The organization has been part of Transforming Territories program since 2020, and can be considered one of the pioneer CFs at São Paulo. Cacimba was established with the support of the program and built on the solid trust that community leader Hermes de Souza had in the region. Since then, Souza has been at the helm of the Institute. Emphasizing the importance of inspiring action, the visit marked the opening of the seminar.

Throughout the day, social projects supported by Cacimba in the region were showcased. Many of them received guidance from leader Hermes de Souza and are now supported by the Institute.

Learning and Training: a constant

In the afternoon, the group took part in the “Diversity and Human Rights” workshop, offered by Clara Serva, partner in the Business and Human Rights department of the law firm TozziniFreire, and Maria Paula Bonifácio Custódio, a lawyer in the same department.

Between the moments of sharing experiences and breaks, there were cultural dance performances by projects from the NUA Institute, led by local individuals.

On the second day of the Seminar, lectures and discussions highlighted the relevance and actions of CFs in their territories, and many experiences were shared. The meeting took place at the Comunitas headquarters, which provides institutional support to Transforming Territories.

Here are the highlights from the four panels that were part of the event.

Panel 1: GREAT IMPACT FROM SMALL DONATIONS: ENHANCING CHANGE WITH SIGNIFICANT CONTRIBUTIONS

This panel featured speakers Elio Raymundo (President of the Network of Good Organizations), Thais Almeida (Executive Secretary of the Espraiada Institute), Alânia Cerqueira (Leader of the M’Boi Community Fund), and moderation by Pâmela Ribeiro (Coordinator of Special Projects at GIFE).

The panel brought new perspectives on how supporting small local initiatives can generate significant social and environmental transformations, highlighting the potential of funds dedicated to micro-projects and seed capital for community strengthening, especially in regions where resources are concentrated in large organizations.

Elio Raymundo, President of the Network of Good, which operates in the metropolitan region of Rio de Janeiro, emphasized how projects that receive small financial support can achieve “unexpected results” in local development. However, he stressed that this is only possible through trust in organizations and leaders who are change makers in their territorie.

Panel 2: STRENGTHENING BONDS: BUILDING SUSTAINABLES RELATIONSHIPS WITH THE TERRITORY

This panel featured speakers Hermes de Sousa (Director of the Cacimba Institute), Ana Paolo Vieira (Council Member of FUNDAES), Flávia Mota (President of the JEQUI Community Fund), and was moderated by Lúcia Dellagnelo (Ambassador of the Transforming Territories Program).

Starting from the need to create bonds, Hermes brought the issue of trust to the discussion to strengthen partnerships and build with the community. According to him, “self-trust leads to trust in others,” and this establishes the regeneration of trust. The key to sustainable relationships, based on his experience, is “engaging and working with the community, not for the community.” To achieve this goal, it is necessary to speak the same language and adapt the language in each space, even in the construction of calls for proposals, which the Cacimba Institute has made more inclusive by allowing submissions through videos and audio in addition to written formats.

Panel 3: UNITING FORCES: COLLABORATING WITH THE PUBLIC SECTOR AND BUSINESSES FOR COMMUNITY TRANSFORMATION

This panel featured speakers Eliane Macari (President of FEAV), Jair Resende (Superintendent at the FEAC Foundation), Célia Petit (President of the Manauara Association), and was moderated by Patrícia Loyola (Director of Social Investment and Management at Comunitas).

The partnership between foundations dedicated to neighboring cities – FEAV and FEAC for Valinhos and Campinas, respectively – also demonstrated the strength of collaboration in their areas of operation. As Jair Resende of FEAC shared, with more than 60 years of history, FEAC continues its mission to stimulate the social sector and has been supporting the development of FEAV by donating a century-old property to establish FEAV’s endowment fund. Mutual support is an example to be followed and demonstrates the power of community transformation in this territory.

Panel 4: UNITING FORCES: COMMUNITY PHILANTHROPY FOR SOCIAL JUSTICE

This panel featured speakers Diane Pereira (President of the Baixada Maranhense Community Institute), Gisele Ribeiro (President of the Redes da Maré Association), Willian Narzetti (Executive Manager of ICOM), and was moderated by Mônica de Roure (Vice President and Director of Institutional Relations at BrazilFoundation).

Regarding potential, Diane emphasized the need to be within the territory so that community philanthropy can understand the possibilities, people, and the land of a region in different situations. She believes that “considering there is potential when the river is full because it’s good for watering the plants, and when it’s empty, it’s good for moving cattle to other regions. It is necessary to think that development is about seeing abundance, not scarcity.” The representative from the Baixada Institute also stated that a network of people is needed not only to understand abundance but also to materialize social change.

On the third and final day, participants had the opportunity to take part in the Brazilian Philanthropy Forum 2023. Learn more here.

Text produced by Alexandra Teles, Ana Beatriz Pedreira, and Leticia dos Santos, all from the IDIS team.

 

About Transforming Territories

The Transforming Territories Program is an initiative of IDIS – the Institute for the Development of Social Investment – in partnership with the Charles Stewart Mott Foundation, with a mission to promote the creation and strengthening of Community Foundations and Institutes in Brazil, with the engagement of donors and civil society, knowledge sharing, and technical support. BrazilFoundation and GIFE are institutional partners.

Community Foundations and Institutes have become an important institutional arrangement for social development and addressing the various demands of territories, whether they are neighborhoods, cities, or regions, with a long-term vision and seeking systemic impact for the development of the region. They play a central role in connecting social organizations and initiatives with donors, civil society, and the government, promoting transparency and engagement. These organizations act as grantmakers, financing projects and social initiatives in multiple causes to address the demands and priorities of the region, and they strengthen the third sector in the region through capacity building and technical support, invest in knowledge production, and promote a culture of giving in the territory where they operate.

Currently, the Transforming Territories Program consists of 17 community foundations and institutes from various regions of Brazil, located in 10 states.

Evolving Mindsets: Highlights from the 2023 Global Philanthropy Forum

Following the tradition, San Francisco was the set for the Global Philanthropy Forum 2023, attracting approximately 250 participants from around the world. The event  featured 86 speakers over two and a half days of intensive programming. The Brazilian delegation, led by IDIS, brought together 13 members from different organizations.

The event’s discussions addressed topics such as the power dynamics between donors and beneficiaries, the decolonization of philanthropy, unrestricted donations, as well as issues related to diversity, humanitarian aid, and the correlation between socio-economic vulnerabilities and the impacts of climate change.

The welcome session included Philip Yun, President, and CEO of the World Affairs/Global Philanthropy Forum, and Gloria Duffy, President, and CEO of the Commonwealth Club of California, who announced the merger of the organizations. IDIS was mentioned during the speech, highlighting its long-lasting and relevant partnership in international philanthropy, with the Brazilian Philanthropy Forum being one of the largest representatives of the event outside the United States.

In the panel titled Big dollars, big impact: what makes big bets effective?, funders and CEOs discussed what was essential for their organizations to achieve the scale and impact expected from substantial and unrestricted philanthropic resources. The conversation emphasized the need to structure organizations to receive and manage these resources, addressing a theme that emerged prominently during the event: governance.

The panel Embracing accountability to amplify community voices focused on the accountability of philanthropists. It was highlighted that if the executives of organizations are more concerned with what the board thinks than with what the beneficiaries think of their decisions, there is no accountability.

The issue of the limited diversity in the profiles of board members of donor organizations was also raised. This is seen as one of the obstacles to building trust relationships with resource-receiving organizations and beneficiary communities. “For centuries, we have valued our volunteer board members without questioning whether they are truly serving our organizations and purposes. We love our volunteers, but maybe we need to reevaluate this model”, noted one of the participants.

In the session Capacity over cash (aces in their places): Using corporate strengths to rethink emergency response, it was mentioned that 60% of in-kind donations (goods, services, and non-cash transactions) in the first two weeks after a shock are inadequate and do not meet the needs of affected communities. Additionally, 70% of donated disaster resources are lost in the delivery chain, with only 30% reaching the final beneficiaries. The session that addressed these numbers was enlightening, emphasizing the importance of organizations having competent and coordinated local partners.

The theme of unrestricted resources was explored in various sessions, along with the challenge of being accountable for the unrestricted resources received, aligned with trust-based philanthropy. The use of technology for data generation, project monitoring, and scalability was also a recurring theme, with a dedicated session to explore the role of philanthropy in supporting the development of responsible, secure, and ethical Generative Artificial Intelligence tools.

Another session discussed the importance of government involvement in the effectiveness and scalability of projects. During the discussion on government partnerships, challenges were highlighted, such as the difference in pace compared to philanthropic organizations and the reputational risk associated with such collaborations.

“Participating in the Global Philanthropy Forum 2023 was an enriching experience that allowed us to connect with people from incredibly diverse backgrounds. We firmly believe that the conversations and connections established at the event have the potential to generate transformative partnerships,” commented Andrea Hanai and Guilherme Sylos, both from IDIS.

Brazil at GPF

Led by Andrea Hanai, Project Manager at IDIS, and Guilherme Sylos, Director of Prospecting and Partnerships, the GPF delegation included Carla Duprat (ICE), Caroline Almeida and Giovanni Harvey (Baobá Fund for Racial Equity), Cristiane Sultani (Beja Institute), Fernanda Quintas and Livia Magro (Liga Solidária), Marco Camargo (Vetor Brasil), Maria Amália Souza (Casa Fund), Marisa Ohashi (Alana Institute),  and Raphael Mayer (Simbi).

As event partners, IDIS annually organizes the delegation, strengthening the relationship among participants and with the global philanthropic community. Interested in participating? Contact us. The next GPF has not yet been scheduled but will be announced to our community as soon as it is.

IDIS is featured in articles from Alliance Magazine

Alliance Magazine, a media partner of IDIS and one of the world’s foremost philanthropic media outlets, showcased several recent initiatives and content from IDIS.

They spotlighted key moments from the Brazilian Philanthropy Forum 2023, a significant event for Brazilian social investors organized by IDIS in September. In an article titled ‘Territorial Community Alliances: From the Environment to Human Rights’, Kit Muirhead discussed one of the forum’s sessions: ‘Unlikely Alliances: Bold Advocacy for Causes and Territories’.

The magazine also featured two articles authored by IDIS team members, each focusing on different discussions from the event. ‘Family philanthropy: addressing invisible causes’ by Isadora Pagy and ‘More than ever, boldness is needed to fight poverty!’ by Joana Noffs, both Project Analysts at IDIS.

The Brazilian Philanthropy Forum, an annual event hosted by IDIS, brings together leaders from philanthropy, the private sector, and the government to address Brazil’s most pressing social challenges and explore innovative solutions. You can access the full event recording here:

In another article addressing the growth of individual donations in Brazil, IDIS and the recent Brazil Giving Research were referenced. The article, titled ‘New Report Details 2022 Giving Trends in Brazil,’ highlighted key findings, including the increase in the percentage of Brazilians donating (aged over 18 with family income above one minimum wage) from 66% in 2020 to 84% in 2022.

Review the main Brazil Giving Research 2022 results:

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Finally, Alliance also showcased the cover story of the WINGS Forum 2023, titled ‘The Transformation Driven by the Ubuntu Spirit’, authored by Luisa Lima, Communication and Knowledge Manager at IDIS, who was part of the Brazilian delegation at the event.

WINGS Forum 2023: The Transformation Driven by the Ubuntu Spirit

The triennial meeting of WINGS – Worldwide Initiatives for Grantmaker Support took place in Nairobi, Kenya, in October. Guided by the theme TRANSFORMATION, participants from 45 countries reflected on how to unlock the potential of philanthropy. Representing IDIS, Paula Fabiani, CEO of IDIS and member of the board of WINGS, and myself, Luisa Lima, responsible for the communication and knowledge area, and for the first time participating in the meeting. In all, the Brazilian delegation had 15 representatives.

The opening plenary set the tone for the event: ‘Existential Challenges and Shared Futures: Rediscovering the Role of Philanthropy’. The Brazilian indigenous activist Txai Suruí, shared the wisdom of her people – we are all nature and just protecting is not enough, we must give back everything we receive. He said that the future is ancestral – in our cultures there are many of the answers we seek that may have been lost or not valued – and the statement was quoted by many people throughout the event. The Englishman of Indian descent, Indy Joha, used numbers and data to show how we are not realizing the scale of our problems, or we don’t want to realize them, after all, each one of us is also responsible for them. Estonian philanthropist Jaan Tallinn highlighted the role of business in philanthropy and his personal journey – he is the founder of Skype, Kazaa and the Centre for Existential Risk Studies at the University of Cambridge. In his speech, a positive look at the use of artificial intelligence, which in his opinion can bring great benefits to society if there is investment. Rena Kawasaki, a young Japanese woman, said that at the age of sixteen she was invited to join the board of a biotechnology company. The experience changed his life and involving young people in decision-making about solving the challenges that will impact their future became his cause. The message was that it is possible and necessary to transform our development model and that the strength is when we do it together.

 

Over the course of three days, some topics stood out in the conversations and at times, the term of African origin, Ubuntu, which means ‘I am what I am, because we are all of us’, was mentioned. We are all connected, and in our philanthropic practices this understanding, this assumption, can guide everything we do. Also connected are the challenges we must face – poverty, inequalities in general, and gender and race inequalities with their specificities, education, health, climate emergencies, and many others, which together configure the polycrisis, another very present theme. Among other highlights, the importance of leadership development and youth involvement, community foundations as a model that privileges local solutions, the importance of decolonizing philanthropy, investing in the sector’s infrastructure and institutional development, and the potential of alternative financing models such as blended finance or venture philanthropy to leverage philanthropic capital.

 

In the plenary sessions, there was a debate on the role of councils, a topic on which there is relatively little reflection, even though governance is so often mentioned by organizations. The Brazilian Rodrigo Pipponzi, founder of the MOL Group, and chairman of the board of the ACP Institute, shared his vision and the importance of clarity about the role of each of the instances. In a debate with philanthropists, the Indian Vidya Shah highlighted the importance of business commitment to sustainable practices (looking inward) and the importance of investing not only in causes, but in the institutional development of organizations. The Austrian Marlene Engelhorn told of her campaign for the taxation of large fortunes, herself representing a very wealthy family. In his opinion, this is an important starting point for reducing inequalities.

Among the speakers and participants, there were many representatives from the African continent, who contributed to a better understanding of the specificities of the region. Quite dependent on international philanthropic capital, there have been debates about how they expect this support to happen, with greater independence for the creation of local solutions, and not purely the implementation of Western projects, which may be faster, but which sometimes do not involve communities, generate externalities and sometimes repeat a colonialist logic. The importance of broadening the debate and practice of trust-based philanthropy has appeared in many moments. As a Brazilian, it was particularly special, because I could see how some practices and customs are also foundational to who we are, brought hundreds of years ago by men and women who were enslaved. I was struck by how models cited by Africans resemble the models of the Black Brotherhoods, in colonial Brazil, for example.

The multicultural, diverse environment, with people from such different backgrounds, contributed to the richness of the conversations. The spaces in the program for networking and working groups allowed the exchange of experiences on specific topics. In a session on the production and use of data, for example, we shared experiences. A participant from a human rights organization drew attention to how their data that is collected to protect populations, if not stored carefully, can be demanded in times of crisis, and be used against the populations it was intended to protect. Representatives of African countries, in turn, drew attention to the difficulty of disseminating the findings, since many governments consider only the data produced by public bodies to be official. The best use and analysis of existing data was also mentioned, as well as the importance of training organizations to understand how to read data and use it to their advantage.

Transformation is the result of the action of each one of us and the feeling is that everyone came out energized and imbued with this duty. In line with the theme of the Brazilian Philanthropy Forum 2023, BOLDNESS was one of the watchwords. We must be more ambitious and take risks. It is urgent to act and for that, we will catalyze the power of this and so many other networks, which bring power in their constitution. Let’s create the future we want!

‘Change requires courage’: More than ever, boldness is needed to fight poverty!

By Joana Noffs | Project Analyst at IDIS

In 2021, Brazil surpassed the mark of 63 million people living in poverty, while 33 million people faced hunger, according to data from IBGE and a survey conducted by the Vox Populi Institute. At the same time, a portion corresponding to 50% of the Brazilian population held only 0.4% of the country’s wealth in financial and non-financial assets, according to data from the World Inequality Lab, also from 2021.

Inequality was exacerbated by the global pandemic as well. As evidenced in a report by Oxfam, between 2020 and 2022, the wealthiest 1% of the world concentrated nearly two-thirds of all wealth generated during that period, totaling approximately $42 trillion. Extreme economic inequality is also related to environmental, racial, and gender issues, highlighting the urgency of bold and creative actions to address the social and institutional vulnerabilities that afflict not only Brazil but also unfold into a concerning global reality.

The panel that concluded the Brazilian Philanthropy Forum 2023, titled “More than ever, boldness is needed to fight poverty!”, precisely addressed and discussed this challenging scenario. The lecture was moderated by IDIS CEO Paula Fabiani and featured guests Gilson Rodrigues, president of the G10 Favelas, Jean Jereissati, CEO of Ambev, and Nivedita Narain, CEO of the Charities Aid Foundation (CAF) India. The speakers presented possible paths and experiences that, driven by audacity, have proven to be significant in shaping a less unequal future.

Gilson Rodrigues began his participation in the panel by emphasizing the theme of audacity that guided the 2023 Forum. He highlighted that despite the recent increase in income inequality and deepening social disparities in the country, Brazilian favelas and peripheral areas should not be defined through a lens of scarcity, as this only exacerbates their marginalization.

To combat the stigma and foster a positive view of Brazilian favelas, Gilson is one of the voices that bring inspiring stories from contexts of adversity, demonstrating that favelas are also places of great knowledge. The G10 das favelas has underscored the importance of innovation and entrepreneurship to achieve necessary changes. He argues that for social investment to be effective in combating poverty, it must ensure the generation of opportunities while addressing issues such as hunger and lack of access to basic services.

“We genuinely believe that we need to create solutions based on this reality so that the favela can thrive and not solely depend on these [donations]. (…) We have been striving to create solutions that positively impact society and enable people to have work and income for their development, but also the choice of what they want to eat,” pointed out Gilson.

To achieve this, according to his leadership, social investment in favelas should always start with an approach that strengthens the autonomy of residents and their territories, thereby ensuring the financial sustainability of projects with the potential to transform structural inequalities.

Drawing from his experience in the private sector, Jean Jereissati, CEO of Ambev, highlighted in his speech the successful initiatives that the company has also been developing with the aim of contributing to these same challenges. Faced with the increasingly severe challenges posed by climate change, which also accelerate key factors in maintaining inequality, such as food scarcity, population displacement, and pollution, Ambev aims to make its production chain ‘carbon-neutral’ in the coming years and emphasizes the importance of consistency in mitigating negative environmental impacts. As Jereissati reminds us about the prospects for private social investment in the country, taking risks and daring is necessary for us to achieve urgently needed results.

“If you want to maintain the status quo, you can take fewer risks, but if you want to bring about change, you need to dare. In Brazil, we need to dare to achieve sustainable philanthropy,” emphasized the CEO of the company.

Beyond its commitment to sustainability, which, in the speaker’s view, should now be seen as an obligation, the beverage industry giant has sought to utilize a key characteristic of its activities to generate social transformation: its reach. Being present from ‘corn harvesting to the bartender at the bar,’ this characteristic allows Ambev to operate consistently in various fronts. With Bora, for example, the company has aimed to train entrepreneurs and connect them through its network, fostering productive inclusion. On the other hand, VOA is a volunteer program by the company that seeks to disseminate the knowledge and management expertise its employees possess for third-sector initiatives, promoting a more mature ecosystem of social impact. Finally, among the initiatives mentioned during the event, we also highlight AMA water, a social product of Ambev whose profits are reinvested to ensure access to clean drinking water for Brazilians in water-scarce regions.

Lastly, Nivedita Narain, CEO of CAF India, reminded us of the courage required to take strategic and planned actions in the pursuit of a more equitable society.

“When you talk about audacity, I think of courage,” shared Nivedita Narain.

She has been at the forefront of initiatives in her country that have placed organized civil society as a key player in addressing poverty and gender violence. Reflecting recent trends in philanthropy around the world, Narain explains that in the 21st century, there has been a shift in the course of private donations, which have become more directed towards governments, resulting in a decrease in the involvement of civil society organizations in this process. Echoing what Gilson mentioned, she emphasizes the importance of community organizations being heard and playing active roles in building coordinated policies between government, the third sector, and private investment.

During her presentation, the Indian leader provided a solid example of how such coordinated action can have its initial spark from local movements and scale up to successful public policy, based on an initiative in India that began by providing banking credit to economically vulnerable women in the 1990s, which led to the increased political representation of female leaders and a decrease in domestic violence. Importantly, Nivedita pointed out that when discussing the role of philanthropy in combating poverty in a broader framework, especially when addressing the Global South, we cannot forget to look at the issue through the lens of gender.

“We need a lot of courage for women; change requires courage, it doesn’t happen easily. The way change happens is when, in the community, women seek out and conquer that space, as it’s not given to us.”

Thus, Narain leaves us with the lesson of the need to consider factors like community participation and gender when reflecting on local development and in order to achieve the goals of the 2030 agenda.

Closing the panel, Paula Fabiani, CEO of IDIS, thanked the attendees and supporters of the event, reminding us of the importance of coordinated actions among government, the third sector, and businesses to combat inequalities. Celebrating the audacity of the initiatives presented during the discussion,

“First, we need to convince others that it’s possible,” Fabiani stated.

She emphasized that dreaming is a necessary act for us to be capable of achieving social change.

— The IDIS team thanks everyone for their participation!

Want to learn more? Watch the full session:

The role of family philanthropy in addressing invisible causes

By Isadora Pagy, Project Analyst at IDIS

When we talk about philanthropy, it is common to think of donations made for causes like education, healthcare, and hunger relief. The first image that often comes to mind is that of vulnerable children in need of help. It’s no wonder that children’s causes received the most donations in 2022, representing 46% of donations made in the past year, according to Brazil Giving Research 2022 coordinated by IDIS.

Despite the great importance and urgency of such issues, others end up receiving less attention, becoming overlooked causes. This underscores the need for us to be bold in bringing visibility to and prioritizing these topics, regions, and organizations. This is especially true when it comes to family philanthropy, which has become increasingly strategic, going beyond isolated or charitable actions, and holding great potential for transformation.

Such boldness was the overarching theme of the Brazilian Philanthropy Forum 2023, which took place on September 14th. During the event, a session was held to discuss precisely Family Philanthropy and addressing invisible causes, featuring the presence of Ilana Minev, Chairwoman of the Board of Directors of Bemol, Luciana Temer, CEO of Instituto Liberta and a board member of the Movimento Bem Maior, Philippine Vernes, Senior Manager of International Partnerships at CAF, and as the moderator, Luciano Cerqueira, Project Coordinator at Samambaia Filantropias.

During the conversation, Luciana Temer, who works to raise awareness about combating child sexual abuse as the director at Instituto Liberta, commented on how many investors and companies lack interest in investing in this cause because they consider it “an ugly issue.” In other words, they do not want to associate their brand with the cause. This raises a discussion about social washing and the tendency to invest only in issues that are “trendy” in order to enhance brand value in the eyes of consumers and potential investors.

Temer compares the issue to the fight against violence against women, which was also not discussed because it was considered a matter to be dealt with privately, as the saying goes, “you shouldn’t meddle in a husband and wife’s quarrel.” She emphasizes that this mindset should be challenged and that child sexual abuse, like violence against women, “occurs within families, is silenced, and exists in all social classes.”

Despite their importance, these overlooked causes are often considered residual and non-structural, which is once again used as a justification for not taking these issues seriously and strategically. This creates a greater difficulty in engaging partners, requiring boldness to address such socio-environmental issues.

In addition to Luciana Temer’s cause, there are other equally overlooked ones. Ilana Minev works on socio-environmental issues in the Amazon region and discusses the challenges and unique aspects of working in this region. She mentions that “when you work alone, you have limitations in terms of resources, time, and engagement,” emphasizing the importance of collaborative work, one of the pillars of her approach, by cooperating with other organizations also operating in the region.

Minev emphasizes another specific characteristic of the territory, stating that “most people have a helicopter view of the Amazon. They look through the treetops and see everything as green and rivers. But it’s necessary to descend and delve into the roots and look at the 25 million people who live there and seek prosperity”. She speaks of the potential that the region holds and the importance of working in-depth, once again combatting social washing.

When it comes to territory, Luciano Cerqueira highlights another obstacle that the country faced in the past, which was the perception of funders and international organizations towards Brazil as a whole, not just the Amazon. He comments on how Brazil was seen as a rich yet unequal country, with the means to finance social causes, which led to the departure of major international funders in 2004. Luciano discusses how this perception has changed and how international organizations have started to see new partnership possibilities with Brazil, bringing a positive outlook for Brazilian organizations.

Despite the challenges raised, there are opportunities for family philanthropy to become increasingly strategic. Philippine Vernes, representing CAF, a century-old British philanthropy organization, discusses the intergenerational aspect and the transfer of wealth to future generations, which opens doors to new themes, ways of giving, and strengthening the third sector.

Therefore, there is a need to focus on institutional strengthening of organizations, looking at governance and resource mobilization. This way, private social investment can be powerful, long-lasting, collaborative, and contribute to various social causes and territories across the country, bringing visibility to all.

Check out the full session.

“Onè”, Philanthropists, “Respè”, boldly, was the call of the opening session of the Brazilian Philanthropy Forum 2023

On Thursday, September 14th, IDIS hosted another edition of the Brazilian Philanthropy Forum. Highlighting the theme of ‘boldness’, the event took place in São Paulo and saw the participation of representatives from various sectors in Brazil and around the world, focused on discussing how we can advance Brazilian Private Social Investment. In addition to the in-person event, the program was livestreamed, reaching approximately 1,900 people across the country throughout the day.

The first panel heated up the discussions by addressing the overall theme of the event, ‘Boldness: a cross-cutting element for transformative, diverse, and inclusive impact’, and featured prominent members: Eduardo Saron, President of the Itaú Foundation, Geyze Diniz, Co-Founder of the Pact Against Hunger, Guerda Nicolas, Co-Founder of the Ayiti Community Trust, and Rodrigo Pipponzi, President of the Board of the MOL Group, who also served as the panel moderator.

It is evident that the social sector, especially after the COVID-19 pandemic, is vibrant and more active than ever. However, even though there are already numerous successful social interventions, do the magnitude and seriousness of current problems demand more boldness in our actions?

Seeking to initiate discussions around these questions, the opening panel of the Forum presented provocations from those who are not in their comfort zone and have dared in philanthropy.

What is boldness, after all? In his opening remarks, the moderator, Rodrigo Pipponzi, highlighted that:

“Perhaps boldness lies in a place where we do more and think a little less, responsibly, of course, but prioritize practice and experience to seek the innovation we need in the field”.

And that’s what the speakers brought with their examples.

On the other hand, Geyze Diniz presented the Pact Against Hunger, launched last year and co-created by her and 40 other individuals.

“It was due to the discontent of being a rich country, producing food, exporting food, having the resources, but at the same time, we have 33 million Brazilians who go hungry every day, and on top of that, we waste eight times what would be enough to feed this population”.

 

Undoubtedly, it is a bold initiative by Geyze and her colleagues, who have the goal of eliminating hunger in the country by 2030 and ensuring good nutrition for everyone by 2040. The Pact Against Hunger sought to differentiate itself from other organizations by promoting synergies among initiatives from the third sector, the private sector, and the public sector. Today, in partnership with UNESCO and the Food and Agriculture Organization of the United Nations (FAO), the Pact Against Hunger awards initiatives to bring visibility to ongoing projects.

Eduardo Saron from the Itaú Foundation emphasized the need to look at our reality and our data.

“For example, every day, a ‘Canada’ worth of students goes to Brazilian public schools. There are 35 million children from preschool to high school attending public schools. ‘A Mato Grosso’ (Brazilian state with approximately 3 million inhabitants) worth of teachers receives these students. These numbers are fantastic and very powerful”.

However, Brazil has low levels of educational quality and is progressing slowly to reverse this situation. It is urgent, then, that we adopt differentiated and transformative measures. That’s why boldness is crucial.

Coming directly from Haiti, Guerda Nicolas captivated the audience by explaining that when people meet in Haiti, it is customary for one person to say “Onè,” and the other responds with “Respè”; this is a greeting that signifies honor and respect. It is precisely with honor and respect that the Ayiti Community Trust (ACT) has been a force for transformation and is a pioneer in leveraging and empowering local people. ACT promotes a model of sustainable funding, enabling long-term planning and thus setting itself apart from traditional organizations in the country. Most importantly, ACT seeks to promote the potential of Haitian communities, giving voice to the locals and fostering a culture of ownership and pride, allowing them to chart their own paths and take control of their narratives:

“ACT believes that we can create our own ideas, and isn’t that bold? (…) We are building trust within communities. It’s a trust that black nations can lead, and that individuals can trust a black individual with millions of dollars and believe that we can truly deliver something”.

In common, the three panelists emphasized the importance of listening to everyone, considering and respecting various forms of knowledge, and looking at the potential of local communities. It is crucial to promote a participatory management model, prioritizing synergy among various individuals and sectors. Being bold means addressing critical issues related to education and hunger, for example, as everyone’s problem, never losing hope that they can be solved, and above all, daring to trust local strengths by bringing them to the center of their own decisions.

 

Want to learn more? Watch the full session:

With solidarity on the rise, individual donations to Brazilian NGOs total BRL 12.8 billion ($2.6 billion) in 2022

Promoted by IDIS –Institute for the Development of Social Investment, the Brazil Giving Research is the broadest study on individual donation in the country. In its third edition, it features a special chapter on the Generation Z

Donating is becoming increasingly popular in Brazil. In 2022, 84% of Brazilians over the age of 18 and with a family income above one minimum wage (approximately $270), made at least one type of donation, be it money, goods, or time, in the form of volunteering. Two years earlier, the average was 66%. Donating directly to NGOs and socio-environmental projects was practiced by 36% of respondents, remaining stable despite the socio-economic crisis faced by the country. These findings are part of the third edition of the Brazil Giving Research, an initiative of IDIS – Institute for the Development of Social Investment and carried out by the Ipsos research institute.

The Research also explores the volume of resources. The median of donations reached BRL 300. It was BRL 240 in 2015 and BRL 200 in 2020. The growth was driven by higher donations over the last year. For comparison, in 2021, according to the Brazilian Benchmarking of Corporate Social Investment (BISC), the amount allocated to organizations and causes of public interest by the 324 participating companies and 17 institutes was BRL 4.1 billion ($833 billion).“Brazil is a country with many inequalities and the practice of donation is a fundamental aspect of our society. In the Brazil Giving Research, we set out to understand who the donors are, what are their motivations, what is their perception of NGOs, and what are the barriers presented by non-donors. This year, we also looked at Generation Z, the donors of the future. This is important data that helps us to strengthen the giving culture,” says Paula Fabiani, CEO of IDIS.

 

Download and get to know the main results:

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WHAT IS THE DESTINATION OF MONETARY DONATIONS?

Among the respondents, 48% said they would make some kind of monetary donation in 2022. The figure is 7 points higher than that found in 2020 and equivalent to the 2015 level (52%). Part of these funds went to NGOs, socio-environmental projects, or social campaigns, with 36% of the population making what we call institutional donations. Interestingly, however, there was a significant increase in the percentage of people who reported donating alms, rising from 6% in 2020 to 16% in 2022. This growth is in line with the increase (from 1% in 2020 to 10%) in institutional donations to organizations and projects that serve homeless people, showing the heightened sensitivity to the cause.

The Research’s figures are also a social portrait of Brazil, whose homeless population exceeded 281,000 in 2022. This means an increase of 38% over the previous three years and most of this is due to the impoverishment of the population, a consequence of the economic crisis that is plaguing the country.

 

PERCEPTION ABOUT NGOs

In 2020, with NGOs playing a leading role during the pandemic, there was a significant improvement in public opinion about civil society organizations. Two years later, the data shows a considerable downturn, but even more positive than the picture in 2015.

The biggest setbacks appear in questions relating to trust in third-sector organizations. For the statement “NGOs make it clear what they do with the resources they invest”, there was a 14-percentage point drop in agreement (from 45% to 31%); and for “Most NGOs are trustworthy”, there was a 10 percent point drop (from 41% to 31%).

“The findings begin to make it clearer which effects of the pandemic are short-lived, and which are here to stay. The image of the work carried out by the Third Sector is still quite volatile and prone to following the social context. It’s important that the sectors collaborate to strengthen the perception and engagement of society in general,” says Luisa Lima, Communications and Knowledge Manager at IDIS.

On the other hand, Generation Z, youth aged between 18 and 27 years old, are much more optimistic and positive about NGOs in all respects. The difference with the general population is especially large when it comes to the statement that ‘NGOs bring benefits to those who really need them’ (74% among Generation Z against 58% of the general population). In statements such as ‘NGOs make it clear what they do with the resources’ and ‘Most NGOs are trustworthy’, Generation Z’s agreement is around 39%, which, even though it is higher than in the general population, is still a point of attention.

 

SOCIAL CIRCLE OR DIGITAL MEDIA: WHICH ONE INFLUENCES THE DONATION THE MOST?

This edition includes a question about the main drivers of donation practices. We asked the institutional donors to choose the three most important to them from a list of possibilities. The responses showed that social interaction in religious settings and communities has the greatest power to influence a donor, followed by family, neighbors, and friends. Meanwhile, social media and digital influencers came fourth with 17%. Among Generation Z, the value of the reach of digital media and influencers grows to 25% of donors.

When asked which social media influences them to donate, both among institutional donors from the general population and from Generation Z, the most common mention was Instagram (85% and 89% respectively), followed by Facebook (33% and 37% respectively),. After the top two, we have the most significant changes: while the general population considers YouTube and WhatsApp (both with 13%) to be among their other biggest influences, Generation Z, third and fourth place goes to TikTok and YouTube. In this group, WhatsApp appears with only 4% of responses, behind Twitter. In both cases, LinkedIn was the least mentioned network.

 

CITIZENSHIP ACTION BY BRANDS AND COMPANIES

We sought to understand how the perception of the reputation of brands and companies influences consumer decisions. The result shows that people punish companies and brands that behave inappropriately (77%) much more than they reward those that adopt good social investment practices (44%). This impact is even greater among institutional donors – 85% and 49% respectively.

 

GENERATION Z: HOW DO YOUNG PEOPLE BETWEEN 18 AND 27 DONATE?

As with the general population, the data on Generation Z shows that they are also donating more. Meanwhile, in 2020, 63% of them said they had made some kind of donation, and in 2022 the figure reached 84%, matching the national average. The highlights of donations in this section are mainly donors of goods (76%) and voluntary work (30%). When it comes to donating money to NGOs and socio-environmental projects, young people are 9 points below the general average, at 27% compared to 36% – a natural phenomenon, since the availability of money at these ages is sometimes lower than when compared to older people. On the other hand, they also tend to have a more positive view of donations and NGOs.

The Research also shows that young people who donate also tend to promote or contribute in some way to fundraising or mobilization campaigns to help other people. This was confirmed by 7 out of 10 young donors in 2022, and 20% of them say they have done it more than once.

When it comes to causes, actions related to children, health, and the fight against hunger are the most popular among Brazilians, and this is also true among young people. However, the ranking still shows a difference between Generation Z donors and the general population. Young people are more sensitive to homeless people, showing a willingness to take on more visible issues with more immediate impacts. The animal cause also has more supporters among Generation Z than in the population as a whole.

 

OUTLOOK 2023

In general, there is an optimistic outlook regarding the growth in donation practices. Among institutional donors, 45% say they will donate more the following year. In the previous edition, this percentage was 36%. The same movement appears among Generation Z donors: 52% say they are willing to donate more. It is also positive that 93% of non-donors said they could start donating, a big change from 2020 when only 57% were willing to do so. The trigger for the change in attitude, however, was mixed. 28% said they would donate if they had more money, 13% said they would like to know how the money is being used and 12% wanted to meet an NGO they trust.

 

METHODOLOGY

The 2022 Brazil Giving Research was carried out between May 3 and June 13, 2023, using a quantitative approach, with 1,508 telephone interviews. The sample is representative of the national scenario and the margin of error is 2.5 percentage points up or down.

Participants’ profile

– Men and women

– Class: ABC

– Age: over 18 years old

– Family income greater than 1 minimum wage

 

ORGANIZATION AND SUPPORTERS

The 2022 Brazil Giving Research is an initiative of IDIS Institute for the Development of Social Investment and CAF – Charities Aid Foundation. Ipsos was responsible for carrying out the research and Instituto Beja, Movimento Bem Maior, Raízen, Instituto ACP, Instituto Galo da Manhã, Instituto MOL, Doare, and Instituto Phi, were the financial supporters. Philanthropists Luis Stuhlberger and Teresa Bracher also contributed.

 

Download and get to know the main results:

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Brazilian Philanthropy Forum 2023: the importance of boldness for the evolution of philanthropy

On September 14th, the 12th edition of the Brazilian Philanthropy Forum took place in São Paulo. Organized by IDIS – the Institute for the Development of Social Investment, the event aims to accelerate solutions through connections and promote philanthropy in the country.

With the theme of BOLDNESS, the sessions covered topics such as ESG, territorial transformation, impact assessment, endowment funds, and much more. Throughout the day, more than 40 speakers from Brazil and abroad participated. There were 265 guests in attendance, and the live broadcast received over 1,800 views.

There were 13 sessions in 10 hours of programming, featuring 43 speakers. Notable names included Armínio Fraga (Philanthropist and former President of the Central Bank), Braulina Baniwa (Director of the National Articulation of Indigenous Women Warriors of Ancestry), Eduardo Saron (President of the Itaú Foundation), Gelson Henrique (Executive Coordinator of the PIPA Initiative), Geyze Diniz (Co-founder of the Pact Against Hunger), Gilson Rodrigues (President of G10 Favelas), Jean Jereissati (CEO of AMBEV), Luciana Temer (CEO of the Liberta Institute), Priscila Cruz (Executive President of Todos pela Educação), Roberto Sallouti (CEO and board member of BTG Pactual), Rodrigo Mendes (Founder of the Rodrigo Mendes Institute), as well as international guests such as Guerda Nicolas (Co-founder of Ayiti Community Trust) and Nivedita Narain (CEO of CAF India).

After an exciting opening featuring Favela Music artists, the opening panel ‘Boldness: a cross-cutting element for transformative, diverse, and inclusive impact’ set the tone for the event right away, which throughout the program brought different perspectives to the need for bold actions in Private Social Investment to address our socio-environmental challenges.

Next, in the plenary session ‘Family philanthropy: addressing invisible causes’, examples of individuals who dare to invest their resources in neglected causes, territories, and organizations, sometimes controversial in the eyes of the general public, were discussed, and how this contributes to fostering a culture of giving.

Another panel brought a discussion about a less explored topic: mistakes. It is common for us to seek inspiration only from successful cases, but the panel ‘Learning from mistakes: stories of those who took risks and didn’t succeed on the first try’ showed how looking at what didn’t go as expected can be equally inspiring.

The program also featured the participation of the 2022 winners of the ‘Social Entrepreneurship Award’ from Folha de S. Paulo and the Schwab Foundation, who were able to present their initiatives and purposes of action. The panel was moderated by Eliane Trindade, editor of the Award.

Next, Sir Ronald Cohen, considered one of the gurus of Impact Investing, participated via video, delivering an inspiring and powerful message about what he calls the Impact Revolution, encouraging everyone to do things differently and take risks to generate effective transformations. Check it out.

Fueled by the call, the next panel, ‘The boldness of philanthropy in the ESG Agenda’, brought the corporate perspective on the topic. In a scenario where the ESG agenda is advancing rapidly, it is important for companies to engage in Private Social Investment with a long-term vision and a clear understanding of the contributions of ISP to their sustainability strategy.

After the morning program concluded, the guests participated in a cocktail followed by a thematic lunch: each table had a host who proposed a conversation topic. Participants could choose from 18 options and delve into reflections on various issues.

Upon returning from lunch, Carla Reis, Head of the Department of the Industrial and Service Complex of Health in the area of Productive Development, Innovation, and Foreign Trade at BNDES, presented the ‘Together for Health’ program and showed how, through a matchfunding model, the bank is combining public and philanthropic capital to strengthen public health in the North and Northeast of Brazil.

The interview in the traditional ‘In Conversation with…’ session was with Armínio Fraga, a philanthropist, founder of Gávea Investimentos, and former president of the Central Bank. He explained the reasons that led him to Private Social Investment and talked about the projects he is currently involved in.

Next, Rhodris Davies, in a video appearance as well, offered reflections on Artificial Intelligence. As the world and organizations discover how AI can be useful (or not) to society, how can NGOs and funders, instead of adopting it passively, take the lead in demonstrating how AI can be used to promote positive changes in society? Watch the video.

Another topic of discussion at the Brazilian Philanthropy Forum 2023 was the need for a careful look at territories, their uniqueness and knowledge, and how this enhances actions in various themes, amplifying silenced voices and building a more promising future for all. This theme was explored in depth in the session ‘Unlikely Alliances: Boldness in the Defense of Causes and Territories’.

The panel ‘Shifting perspectives: from reporting to evidence-based management’, in turn, discussed how the growing demand for effective results and performance improvement has driven organizations to abandon traditional data collection and presentation practices in favor of more dynamic and evidence-based impact assessment approaches. Guests shared the experiences of organizations that have successfully made this transition.

In the panel ‘Funding models: calculated risks for transformative return’ the debate revolved around increasingly innovative financing alternatives, aiming for socio-environmental impact.

Closing the day’s program, in the concluding plenary ‘More than ever, boldness is needed to fight poverty!’, our guests, leaders in their sectors and countries, reinforced how bold and creative actions can indeed reduce social and institutional vulnerabilities in Brazil and around the world.

“When we began planning this gathering, we had doubts if we would have enough cases of boldness. As we designed the agenda, we discovered surprising stories, and seeing them together was very powerful,” commented Paula Fabiani, CEO of IDIS, at the event’s conclusion.

Watch the full event recording here:

ORGANIZATION AND SUPPORT

The event was organized by IDIS – Institute for Social Development, in partnership with the Global Philanthropy Forum and the Charities Aid Foundation, with silver support from the Charles Stewart Mott Foundation, and bronze support from Ambev, B3 Social, BNP Paribas Asset Management, BTG Pactual, Itaú Foundation, José Luiz Egydio Setúbal Foundation, Sicoob Institute, Movimento Bem Maior, RaiaDrogasil S.A and Vale.

This year, the forum had again Alliance Magazine as a media partner. Based in England, the world’s largest philanthropy magazine covered the event and livestreamed it in English on its YouTube channel.

BRAZILIAN PHILANTHROPY FORUM

The Brazilian Philanthropy Forum provides a space for the philanthropic community to gather, exchange experiences, and learn from their peers, strengthening strategic philanthropy for the development of Brazilian society. The event has already brought together over 1,500 participants, including philanthropists, leaders, and national and international experts. Recordings of all editions are available on our YouTube channel. Check it out!

Global crises and the power of youth: highlights from the Philea Forum 2023

The Philea Forum 2023, one of the most important events in the European philanthropic ecosystem, took place between May 22nd and 25th in the city of Šibenik, Croatia. IDIS was present, represented by Guilherme Sylos, Director of Prospecting and Partnerships.

Under the theme “A new compass for Europe: Forged in crisis, Forward in hope”, the lectures addressed the various crises that have accumulated in recent years, both in Europe and worldwide. The discussions covered significant challenges stemming from the Covid-19 pandemic, as well as a keen focus on climate change, socioeconomic inequality, and growing tensions between countries.

In the midst of this context, the Philea Forum 2023 brought together over 700 people at the heart of the Euro-Mediterranean region to discuss what they call “European values” and how philanthropy can use them as a compass to face current challenges.

The opening plenary of the event addressed the landscape of European philanthropy and the importance of collaboration within the sector itself. Among the speakers was Nada Al-Nashif from the Office of the United Nations High Commissioner for Human Rights. She emphasized the importance of partnerships and collaboration to promote change:

“Equality, dignity, and justice are what unite us. We are calling on the philanthropic community to commit and, through vibrant partnerships, promote human rights”, she declared.

A research study was also presented, conducted with the participants of the event, about their perceptions regarding the performance of civil society organizations, donors, and the European philanthropic sector. The majority of respondents indicated that EU organizations should prioritize tackling climate change, followed by inequality.

Another highly debated topic during the meeting was the role of youth, their contributions, and obstacles in the fight against climate change, with a focus on the session ‘Building infrastructure to support resilient youth movements on climate: lessons from all over Europe’.

Katie Hodgetts shared her story as a climate activist, a process that earned her admiration from her peers and a sense of personal fulfillment, but also led her to face a difficult phase of burnout and emotional exhaustion. Inspired by her own story and that of thousands of other activists who also deal with the mental strain of their work, she created ‘The Resilience Project‘, an initiative that offers emotional support to climate activists.

The session also highlighted the current role of young people, who, through risky and disruptive ideas, can be some of the most powerful voices and agents in the fight against climate change. “Why are young climate activists effective? They are agile and outraged”, says Christian Vanizette, co-founder of makesense.

Several conversations focused on philanthropy, including reflections on its real impacts amid so many demands and its ultimate goals, which tend to be forgotten along the way.

In the debate session ‘Lessons learned over more than 30 years of philanthropy by a closing foundation’, Lynda Mansson from the MAVA Foundation shared the story of her organization’s closure, which, after 12 years of operation with a focus on biodiversity conservation, concluded that its goal had been achieved, and there was no longer a need to exist.

The closing session summarized the themes highlighted throughout the three days, with an even greater emphasis on youth and the potential for change that exists in movements formed and led by this group. The stage was reserved for representatives of the ‘new generation’ of young people who dedicate their days to seeking changes and positive impacts in the world.

“You wake up every day with anxiety, expecting bad news, and yet you brush your teeth and start your day. You maintain resilience. Young people are resilient and don’t realize that, often, what they are doing is democracy”, declares Anna Bondarenko, founder and director of the Ukrainian Volunteer Service.

The participants concluded with a simple but powerful message: ‘do good’. They also emphasized the importance of starting by looking at what is around us before any large-scale movement:

“How can we change the world, how can we change Europe, if we cannot change our local community, our family, our friends, our neighborhood? It’s simply impossible”, says 16-year-old Aleksej Leon Gajica, Junior Ambassador for the EU and for Children’s and Youth Rights at UNICEF.

The event highlighted the global similarities of problems and needs to be discussed and worked on by the private social investment sector, regardless of the region you are in.

“The issues are quite similar to ours in Brazil: trust, democracy, and freedom of expression. Furthermore, it is clear that combating climate change is a priority in Europe, another recurring and extremely important cause for the Brazilian and Latin American context,” comments Guilherme Sylos, Director of Prospecting and Partnerships at IDIS.

International ranking recognizes IDIS as one of the best Brazilian NGOs

Dot Good has announced the top 50 social organizations in Brazil

On June 12, the Swiss organization The Dot Good, responsible for ranking the leading social organizations at the international level, released a ranking highlighting the 50 most prominent Third Sector institutions in Brazil. The evaluation criteria were based on transparency, maturity of governance levels, management, and strategic planning developed by the listed NGOs.

IDIS secured the 19th position in the ranking, proving our commitment to the socioeconomic development of the country and the advancement of the Brazilian Third Sector ecosystem.

Accounting for 4.27% of Brazil’s GDP, Third Sector organizations employ approximately 6 million people and have a significant impact on the social and economic landscape of the country, as demonstrated by the recent study “The Importance of the Third Sector for Brazil’s GDP,” conducted by the Institute of Economic Research Foundation (Fipe), Sitawi Finanças do Bem, and the Movimento Por Uma Cultura de Doação (Movement for a Culture of Donation).

The achieved social and economic outcomes are amplified due to the collaborative nature and networked approach in which projects of excellence and significant social impact are developed. The sector has been growing in recent years, and the effects of social actions are visible in the country’s sustainable development. The contributions of this work represent achievements in the realization of rights, and the transparency in the use of mobilized resources aligns with the highest compliance standards.

This trend of growth and qualification of the Third Sector in Brazil is a reflection of several factors, such as the commitment and dedication of organizations to improve their practices, the adoption of more efficient management models, and the constant pursuit of innovation.

“Initiatives like Dot Good contribute to bringing visibility to the great work carried out by our social organizations, with commitment, seriousness, creativity, and impact. It is another tool available to enhance trust among local and international social investors. We are happy to be included in the ranking; however, we also congratulate others who were not highlighted. Our sector is vibrant, strong, and diverse, and the contribution comes from everyone!” declares Paula Fabiani, CEO of IDIS.

 

About IDIS

We are IDIS – Institute for the Development of Social Investment, a civil society organization founded in 1999 and pioneer in technical support to social investors in Brazil. With the mission to inspire, support and promote strategic philanthropy and its impact, we serve individuals, families, companies, corporate and family-run institutes, and foundations, as well as civil society organizations, in actions that transform realities and contribute to reducing social inequality in the country.

IDIS’s actions are based on generating knowledge, offering advisory, and developing social impact projects that contribute to strengthening the ecosystem of strategic philanthropy and giving culture. We value partnerships and co-creating and believe in the power of connection, joint learning, diversity, and plurality of points of view.

 

Global CAF conference promotes network integration and discusses global philanthropy trends

Charities Aid Foundation (CAF) Global Leadership Conference brought together representatives from partner organizations in the first week of June. The event took place in London, where the organization’s headquarters are located.

Since 2005, IDIS has been the representative of CAF in Brazil, a British organization dedicated to philanthropy with 100 years of experience, supporting donors – individuals, major donors, and companies – in achieving the greatest possible impact from their initiatives. Starting this year, new members will join the network, which currently includes representatives from South Africa, Bulgaria, Canada, the United States, India, New Zealand, and Turkey.

The event is a celebration of partnerships and international collaboration in the field of philanthropy, reaffirming the institution’s commitment to the continuous growth of international giving practices.

Paula Fabiani, CEO of IDIS, was one of the guests at the event. She was able to share some perspectives on philanthropy in Brazil and highlight the importance of collaboration in increasing international donations to our country.

Paula was one of the speakers at the parallel event, open to external guests, called ‘Powering World Giving Reception,’ where she emphasized Brazil’s position at 18th place in the World Giving Index, our challenges, and advancements in the philanthropic field. She shared the stage with Grace Maingi, Executive Director of the Kenya Community Development Foundation, who shared insights on philanthropy in Kenya, and Emma Cherniavsky, CEO of the UK for UNHCR, who contributed with a speech on the role of networks in encouraging international donations.

“I was truly inspired to hear from incredible people from around the world! I would like to thank the entire CAF team for their impeccable organization and the wonderful reception,” says Paula Fabiani.

IDIS achieves Great Place To Work® certification

IDIS – Institute for Social Investment Development – has achieved the Great Place to Work (GPTW) seal. This certification recognizes IDIS’ ongoing commitment to creating a positive, inclusive, transparent, and ethical work environment that promotes employee well-being.

This is the result of a rigorous evaluation conducted by the consulting company Great Place To Work. The survey, which is 100% confidential, covered aspects such as employee trust in leadership, quality of work relationships, organizational culture, people management, growth and development opportunities, compensation and benefits, and employee’s perception of the company as a whole.

“This is an incredible recognition for IDIS. It reinforces our institutional values: Excellence, Learning, Collaboration, Respect, Transparency, and Sustainability, as well as our commitment to maintaining a work environment with these characteristics. An organization is made up of people, and there is no success without them,” says Paula Fabiani, CEO of IDIS.

IDIS is proud to have achieved this certification, which reflects the organization’s commitment to promoting a healthy and collaborative work environment. The Institute believes that investing in the well-being and professional development of its employees is essential to achieve positive results and driving social impact.

“Having accompanied the development of the IDIS team for over 3 years is extremely gratifying. This achievement is just a validation of the sentiment that is already felt among the people at IDIS. And, of course, the survey is a way to always listen to each other and further improve our work space,” comments Mariana Côrrea, HR consultant.

The GPTW certification not only strengthens IDIS’ reputation as an excellent employer but also reinforces its ability to attract and retain talent, enhancing its capacity to generate positive social impact. IDIS will continue to cultivate an inclusive, transparent, and stimulating work environment, valuing and supporting its team of employees in their professional journey!

ABOUT GPTW

Great Place To Work is a renowned global consulting company that helps organizations create and maintain an exceptional work environment. The GPTW certification recognizes companies that excel in promoting trust, collaboration, and employee well-being, contributing to the success and sustainability of the business.

Operating Archetypes’ launch brings together philanthropists and social investors in Brazil

On a June morning, IDIS – Instituto para o Desenvolvimento do Investimento Social (Institute for the Development of Social Investment) and RPA – Rockefeller Philanthropy Advisors brought together philanthropists, members of business and family organizations, and civil society organizations for the launch of the brazilian version of ‘Operating Archetypes: Philanthropy’s New Analytical Tool for Strategic Clarity‘. The publication addresses and analyzes the main profiles of philanthropists and social investors, providing guidelines to maximize impact for each type of organization.

The study is an extension of the ‘The Philanthropic Framework’ project, promoted by Rockefeller Philanthropy Advisors in 2019 through interviews with 75 foundations, as well as dozens of working sessions with over 200 funders, experts, and research partners in the United States, Europe, Asia, Africa, and Latin America. The Brazilian version was published in partnership with IDIS, an RPA partner for over 10 years, in order to expand private social investment.

Learn more and download the publication:

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Aligning resources with objectives for more effective philanthropy

Melissa Berman, CEO of Rockefeller Philanthropy Advisors and one of the authors of the publication, opened the event by presenting the goals and findings of the study. Melissa explained that the idea arose from the recognition of the need to systematize and renew existing philanthropic models in the face of emerging and growing global challenges. It was necessary for private social investment worldwide to also update itself in order to address such significant issues.

“It is not possible to solve 21st-century problems with a 19th-century philanthropy model”

The CEO of Rockefeller explained that the 8 archetypes were created with the aim of providing a strategic planning guide for organizations, bridging the gap between their ultimate goals, purposes, and available resources.

Melissa Berman, CEO of Rockefeller Philanthropy Advisors, presenting the publication

After the initial presentation, a panel discussion took place on the findings and their implications for the Brazilian philanthropic sector. Moderated by Paula Fabiani (CEO of IDIS), the panel included the participation of Cassio França (Secretary-General of GIFE), Thiago Piazzetta (Project Manager at Boticário Group Foundation), and Patricia Loyola (Director of Social Management and Investment at Comunitas).

Paula Fabiani (IDIS), Thiago Piazzetta (Fundação Grupo Boticário), Cassio França (GIFE), and Melissa Berman (RPA) discussing the publication in the context of Brazilian philanthropy

Piazzetta highlighted the work of Boticário Group Foundation, which supports organizations promoting biodiversity conservation in Brazil. The group was one of the featured cases in the publication and serves as an example of the so-called ‘Venture Catalyst’ archetype, a profile characterized by providing initial funding, often unrestricted, to new or less-established organizations. “We avoid funding large organizations and choose to support smaller and more innovative groups and companies”, says Thiago.

Boticário Group Foundation has already financed 1,600 non-established and innovative environmental conservation initiatives through donations and other financial instruments, including an environmental impact acceleration program to strengthen the investment capacity of the business community.

Cassio França added to the discussion the importance of organizations that apply the Venture Catalyst archetype in their actions to combat inequalities in the brazilian context. According to the Secretary-General of GIFE, this model ensures power to truly innovative and impactful organizations addressing brazilian challenges. “It is one of the most revolutionary aspects that can exist in Brazilian philanthropy”, he indicates.

França also emphasized the importance of understanding the archetypes in the process of decolonizing philanthropy. The concept is based on the understanding of the need to overcome power imbalances within the philanthropic field, so that the mechanism does not perpetuate inequalities but effectively contributes to their eradication.

In this context, Cassio pointed out the archetypes as an excellent tool for philanthropists and social investors to recognize their modes of operation, understand their potential, and contribute effectively to the mitigation of social inequality. “I see this material as a great benefit for the field because it helps organizations understand themselves”, he highlights.

Patricia Loyola enriched the discussion by highlighting the importance of collaboration with the government in enhancing philanthropic actions. She exemplified the strength of the collaboration model through the Together for Health program, an initiative by BNDES managed by IDIS, which combines private sector donations with contributions from BNDES itself for public health projects in the North and Northeast regions of Brazil.

She related this movement to the Campaign Manager archetype, a profile that seeks to bring together experts from different fields, including the public sector, in order to produce more innovative philanthropic initiatives. “The government is familiar with the field and the needs that need to be addressed. It is not possible to partner with the government without recognizing its legitimacy”, she states.

At the end of the panel, Melissa pointed out the need for a review of philanthropic practices and indicated the content of the publication as a path to achieve this transformation. “I don’t think we have a choice but to react to the changes in the world, becoming more diverse, inclusive, and transparent organizations”, she believes.

To conclude the morning of reflections, the team from Rockefeller Philanthropy Advisors (RPA) conducted an interactive workshop on the 8 archetypes with the event participants. They had the opportunity to reflect on which profile best represented their institute’s investment model, with the assistance of the RPA team for identification, and shared their findings with everyone present.

Interactive workshop with Melissa Berman during the event

The moment sparked deep reflections among the participants and revealed members who identified their organizations within various archetypes, including the Talent Agency, which identifies and amplifies the voices of individuals and groups who experience the issues more directly and closely; the Field Builder, who strengthens institutions responsible for generating and disseminating scientific perspectives; and the Sower, a model that provides support through diverse sources for the same cause.

Get to know the 8 archetypes and also take the opportunity to understand which model best characterizes your philanthropy. Download the publication here.

 

About Rockefeller Philanthropy Advisors

Rockefeller Philanthropy Advisors (RPA) is a nonprofit organization that advises and manages over $400 million in annual donations from individuals, families, corporations, and foundations. Founded in 2002, with the aim of continuing the Rockefeller family’s philanthropic legacy, RPA has become one of the largest philanthropic service organizations in the world and has facilitated the distribution of over $3 billion to more than 70 countries. RPA also acts as a fiscal sponsor for over 100 projects.

For more information, please visit www.rockpa.org.

Endowment funds: New country for an old form

Originally published in Alliance Magazine on 06/06/2023

by Paulo Fabiani, CEO at IDIS, and Andrea Hanai, project manager at IDIS

A relatively new phenomenon on the Brazilian scene, endowment funds are strengthening social causes and organizations

With a long history behind them, endowment funds have become an effective mechanism for the sustainability of causes and organisations around the world. The first known example dates from the first century BCE, when Plato left his farm to support the Academy he had founded. Since then, many institutions have been establishing significant endowments, such as Harvard University, the University of Cambridge, and the Metropolitan Museum of Art. Wealthy families and individuals have also created endowments, such as Gates, Rockefeller, Mott, and others. In Brazil, the adoption of the mechanism is more recent, however, it has been expanding rapidly in this century, following the strengthening and maturity of the philanthropic environment.

The first endowments in Brazil emerged in the 1950s, as a way for families and businesses to build lasting legacies. In the absence of a specific regulation on the subject, they used the international experience as a reference to create their own governance, policies and rules to manage the endowment structures. Nevertheless, at first very few took this step, and by 2000, there were only six known endowments in the country.

In Brazil, the adoption of the mechanism is more recent, however, it has been expanding rapidly in this century, following the strengthening and maturity of the philanthropic environment.

A leap forward

However, in the following years, civil society organisations and families began to recognise the importance of endowment structures for the financial sustainability and perpetuity of their philanthropic activities, a trend which was accelerated by the work of IDIS (Institute for the Development of Social Investment) and other civil society actors to promote a better regulatory environment for endowments. A turning point was the disastrous fire at the National Museum in Rio de Janeiro in 2018, which led politicians to seek solutions to the lack of long-term financing for museums and other cultural institutions. In 2019, the endowment fund boom gained traction with the enactment of the first relevant law (Law 13.800/19), aimed at setting a regulatory baseline for the development of the endowment industry.

In the following years, civil society organisations and families began to recognise the importance of endowment structures for the financial sustainability and perpetuity of their philanthropic activities.

The legislation has contributed significantly to a more favourable environment, by ensuring visibility to the mechanism, and bringing attention to long-term strategies and sustainability. It has also established a framework, both legal and institutional, that engenders confidence in donors.

Moreover, the Law 13.800/19 has also ensured that public institutions of education, health and culture, among others, also benefit from these structures, regulating a mechanism that facilitates private donations and reduces dependence on already scarce public funds. In this context, the creation of endowments by public institutions that seek financial sustainability through an instrument that diversifies their sources of funds and increases their budgets is on the increase.

The Brazilian Endowments Outlook, published by IDIS in 2022, revealed for the first time the size and characteristics of the industry in the country. The study mapped 52 active endowment funds, 23 per cent of which were constituted after the enactment of the Law 13.800/19. Together, their patrimony totalled BRL 78.8 billion (approximately $14.3 billion). The most significant one is the endowment from Bradesco Foundation with assets equivalent to $11 billion, which puts it among the leading endowments not only in Brazil, but worldwide. Education is the chief beneficiary of this growing trend, supported by 24 Brazilian endowments, followed by culture (nine) and health (eight). Another sign of their growing popularity is that, according to the GIFE Census 2020, a survey among 131 corporate, family, and independent philanthropic Brazilian institutions, endowments were the source of 26 per cent of their budgets that year, corresponding to almost BRL 1.4 billion (approximately $300 million) in funds destined to causes and institutions, an amount which indicates the impact of endowments for the development of socio-environmental causes in the country.

The creation of endowments by public institutions that seek financial sustainability through an instrument that diversifies their sources of funds and increases their budgets is on the increase.

The challenges remaining

To explore endowments’ full potential, though, the philanthropic sector faces significant challenges: governance implementation, investment returns and fundraising capability are the main concerns. An emerging range of specialised consulting, legal and fundraising services, along with financial institutions and academic researchers, is now dedicated to supporting philanthropists, businesses, civil society organisations and public institutions in structuring their endowments. In another study, IDIS sheds light on the endowment financial performance and portfolio of investments to provide the sector with relevant benchmarking information.

Further advances in the regulatory environment for endowments are also needed. For example, despite being positive and innovative, the Brazilian endowment law does not foresee tax incentives for donors. The experience in countries like the US and the UK demonstrate that tax incentives create a fertile environment for the donations to such funds, resulting in large and long-standing endowments. In addition, the exemption from income tax on investment returns is not guaranteed by the Brazilian legislation, which cuts down endowments’ spending capability and the volume of resources destined for the causes and institutions supported by these funds.

In order to influence this environment, the Brazilian Endowment Coalition has been set up, a network that brings together 102 signatories and which urges tax incentives for donations and tax exemption of endowment funds as a way of accelerating the adoption of this mechanism and strengthening the philanthropic sector. Heading the coalition and supported by Brazilian donors and international organisations such as WINGS (with resources from the EU), IDIS reinforces its advocacy strategy by having regular communication with members of congress, monitoring bills, conducting studies and publishing case studies.

Notwithstanding the challenges, there is great potential and opportunity for endowments to flourish in Brazil. For the fourth consecutive year, Brazil rose in the overall ranking of the World Giving Index, jumping from 54th to 18th position, despite the difficulties arising from the socio-economic context and political turmoil of recent years. A giving culture is on the rise. As they become more popular, contributing to endowments provides another option for the exercise of citizenship and the promotion of socio-environmental equity and justice.

Umbrellas, Lightning Rods, and Cisterns for a More Transformative Philanthropy

by Felipe Groba, Project Manager at IDIS

Still not very popular in Brazil, CFs stand out to support independent intermediation between investors and social organizations.

Imagine if there was a mechanism in Brazil that allows companies and individuals to allocate resources for emergencies and address highly complex socio-environmental issues in a specific territory, without compliance risks, and that also served as a legitimate instrument to advocate for causes and public policies without partisanship. Imagine if this mechanism could foster a culture of local giving and strengthen social organizations and local collectives.

These mechanisms exist. There are about 20 in Mexico, 201 in Canada, and over 900 in the United States — some with over 100 years of history — and they are commonly referred to as Community Foundations – CFs. CFs are independent civil society organizations that strengthen local philanthropy by raising resources from companies and individuals and strategically allocating them to generate impact in a specific territory, at the same time that supports the growth of formal and informal social organizations. They generate impact in a specific territory.

Visit of the IDIS team to ‘Tabôa’, Serra Grande, in Bahia.

Brazil currently has 14 organizations operating under this model in 10 states. Among this group, there are well-established organizations such as the FEAC Foundation of Campinas, the Baixada Maranhense Institute, and the ICOM – Community Institute of Greater Florianópolis, as well as younger organizations such as FEAV, operating in Valinhos, the Cacimba Institute in the São Miguel Paulista region (outskirts of São Paulo), the Manauara Community Association, and the recently formed ICOSE – Community Institute of Sergipe. All of them are part of the Transforming Territories Program, launched in 2021 by IDIS – Institute for the Development of Social Investment, financed by the Charles Stewart Mott Foundation and with institutional support from the Brazil Foundation, Comunitas and GIFE.

Visit of the IDIS team to Redes do Bem, a community organization in Rio de Janeiro

Most Brazilian CFs already have philanthropic funds established to raise and distribute resources to organizations and initiatives within their territories. In addition, they promote campaigns such as ‘Giving Day’, initiatives to engage volunteers and offer courses and training for local social leaders and organizations. Some of them also act as spokespersons for other Civil Society Organizations (CSOs) in the territory, advocating for the strengthening and regulation of philanthropic funds, unlocking resources, and advocating for legislative changes. The legitimacy to activate philanthropy and represent the social sector of the territory comes from the fact that CFs are not oriented towards implementing projects, but to channeling resources to local organizations that works directly with beneficiaries. Therefore, CFs become allies of local CSOs rather than competitors.

Successful experiences have brought some changes in the sector. According to the BISC – Corporate Social Investment Benchmarking research, published annually by Comunitas, 38% of the surveyed companies indicated some degree of priority to  support CFs in the 2022/2023 biennium, while 86% of Foundations and Corporate Institutes assigned medium or high priority to them. Within the industrial sector, 75% of respondents stated that they have introduced or strengthened CFs in their social investment strategy (compared to 20% in the service sector), confirming the trend of the extractive and manufacturing industry to seek local socio-environmental solutions to mitigate their negative externalities and enhance their positive ones, in line with ESG practices (environmental, social, and governance).

The potential of CFs as channels for local social investments primarily stems from establishing robust, diverse, and enduring governance, as well as a systemic approach based on the diagnosis of local potential and needs. This is achieved through listening to different voices within local civil society and engaging in constant dialogue with organizations working for the territory. These characteristics align with what companies expect to strengthen their engagement with non-profit organizations. According to BISC, 90% of companies consider “greater evidence of impact in partnerships” as a determining factor for strengthening the relationship. In comparison, 80% indicate the “need for the company to operate within a network”. These are precisely some of the main characteristics of CFs.

It is important to note that CFs are primarily important intermediaries between donors and local organizations, aiming to meet donors’ philanthropic interests while always considering the demands of the territory. An example of this is Donor Advised Funds (DAFs), which are still relatively recent in Brazil. DAFs function as “philanthropy current accounts” for individuals and companies, managed by CFs, which are responsible for investing these resources in the capital market and distributing them to social organizations according to the donors’ preferences. This ability to accumulate resources for future allocation is analogous to cisterns that store water for strategic or high-need moments.

By consolidating and managing third-party donations, CFs are responsible for due diligence, monitoring, and accountability regarding the use of these resources. This allows large companies to fund projects and smaller organizations, as well as informal movements and collectives, as CFs act as a compliance lightning rod, mitigating risks for donors by being the direct receiver of these companies’ donations. Once the due diligence for receiving the resources is completed, it is up to the CF to mentor donors on the strategic use of these resources based on their broad knowledge of the territory, its demands and potential, and its organizations and leaders.

Last but not least, this privileged and democratically  territorial perspective allows CFs to serve as spokespersons for the local social sector, advocating for rights and visibility, conducting social campaigns, or even advocating for changes in public policies without being directly exposed to authorities. CFs act as an umbrella, protecting social leaders from unnecessary exposure to political and power games.

Get to know the 8 principles that guide the SROI Protocol

Get to know the 8 principles that guide impact assesment based on Social Return on Investment (SROI) protocol:

PRINCIPLE 1: involve STAKEHOLDERS

Individuals and organizations involved in the project should be identified and consulted in the evaluation process. After all, they are the ones who will experience the impacts from the interventions.

PRINCIPLE 2: UNDERSTAND WHAT CHANGes

The evaluation should identify how the project generates social changes through data collected for this purpose. These changes can be positive or negative, intentional or unintentional. This process generates what we call Theory of Change (ToC), which establishes the causal relationship between the intervention and the impacts generated. The ToC serves as a map of the intervention that guides the entire evaluation process.

PRINCIPLE 3: VALUing the things that matter

The valuation process, one of the key stages of SROI evaluation, should consider the preferences of beneficiaries regarding the degree of importance among the different changes they experience.

PRINCIPLE 4: only include WHAT IS MATERIAL

Materiality here carries a financial sense, referring to considering things that are substantial and supported by evidence.

PRINCIPLE 5: DO not overclaim

The evaluator should be conservative and assign value only to the impacts that are actually caused by the intervention carried out. By doing so, they avoid overestimating the impact of a project.

PRINCIPLE 6: BE TRANSPARENT

The evaluator should ensure that the sources, foundations, and methodological procedures are clear and accessible to the general public.

PRINCIPLE 7: VERIFY the RESULT

Design, implement, and document the procedures adopted in the evaluation, ensuring that they can be reviewed and validated.

PRINCIPLE 8: BE RESPONSIVE

Make evaluation an instrument of strategic planning, guiding solutions aimed at course correction and maximizing the generated social impact.

Where do the principles come from?

The SROI protocol originates from the British organization Social Value International (SVI), which has been certifying professionals worldwide for its application for the past 15 years. Paula Fabiani, IDIS CEO, is the only Brazilian certified by the organization, and IDIS is now a reference in the application of the protocol in Brazil, with work carried out for organizations such as Amigos do Bem, Gerando Falcões, Petrobras, and Vale.

According to the social value network, “social value means understanding the importance that people attribute to changes in their well-being and using the insights we gain from this understanding to make better decisions.” In other words, the evaluation aims to inform evidence-based decision-making processes in social organizations.

Considering the challenges of measuring impact, SVI establishes a protocol for calculating the SROI index that encompasses various participatory research methodologies, including conducting in-depth interviews, focus groups with beneficiaries, questionnaires, and analysis of secondary data.

It is evident, then, that SROI is not just a numerical index but primarily the process and results of an intensive research and consultation activity involving beneficiaries of social programs.

Brazilian companies are not prepared to respond to emergency situations

By Andre Hanai, project manager at IDIS, and Paula Gonçalo, project coordinator at IDIS

About 25% of the deaths caused by rain in Brazil in the last 10 years occurred in 2022, and social investors must prepare more than ever for emergencies.

Between January 2013 and April 2022, natural disasters caused losses of R$341.3 billion throughout Brazil, according to data from a survey conducted by the National Confederation of Municipalities (CNM). The study also shows that in just the first three months of 2022, about eight million Brazilians had already been affected by some type of environmental disaster.

Speaking of numbers, another alarming fact on the subject comes from the government transition report released in late December 2022. It shows that the public money reserved for “support for emergency mitigation works for disaster reduction” was reduced from R$2.57 million to a mere R$25,000, becoming one of the budgetary bottlenecks for 2023.

In this context, solidarity has moved individuals and companies around emergency campaigns that seek to help communities most affected by natural disasters through the donation of food, clothing, medicine, etc., with Private Social Investment being a complementary alternative to public resources. The reduced volume of financial resources available and, mainly, the lack of coordination and strategic planning of actions show that there is a huge gap between social demands and the capacity of private social investors to respond to these tragedies, which increase in frequency and severity every year.

By definition, according to the ISDR – International Strategy for Disaster Reduction, a “disaster” is a “serious disruption of the functioning of a community or society, with impacts on people, goods, economy, and the environment, that exceeds the capacity of those affected to deal with the situation through the use of their resources.” The Covid-19 pandemic, a disaster of global proportions, has revealed the important role that companies can play in efforts to address emergencies, for example.

According to the 2020 Corporate Giving Ranking produced by IDIS – Institute for the Development of Social Investment, the ten companies that made the most donations and sponsorships in the world in 2020 allocated more than US$4 billion to Covid-19 response actions – equivalent to about R$20 billion. Meanwhile, in Brazil, the top ten corporate donors have given more than R$3 billion to the fight against the pandemic.

Floods in the State of Bahia in December 2021. Photo: Isac Nóbrega/PR

On the other hand, these numbers contrast with what had been observed as a trend in private social investment by companies focused on situations caused by disasters. According to the study Measuring the State of Disaster Philanthropy, conducted by Candid & Center for Disaster Philanthropy in 2019, although 70% of companies reported that disaster response is significant, the amount allocated to this type of action has been decreasing year by year, demonstrating that companies see this type of philanthropy as not very strategic.

The same study shows that philanthropy and private social investment could be more strategic. More than half of the resources aimed at emergencies are directed toward immediate response and relief of the initial shock caused by the disaster. At the same time, only 20% of donations support communities in becoming more resilient, promoting risk reduction and mitigation, and preparedness and readiness for emergencies.

The study “A purpose-action Framework for Corporate Social Responsibility in Times of Shock”, developed by Francisco Javier Forcadell and Elisa Aracil, corroborates these data. It analyzed the performance of 218 companies in Spain during the first weeks of Covid-19 in the country and classified them into 4 categories (symbolic, selective, reactive, and supportive), based on the company’s performance in the two main dimensions considered critical to the effectiveness of corporate interventions in emergencies: the scope of the intervention and response time.

Companies classified as symbolic or reactive have a very slow response time but differ in the scope of their actions, with the symbolic being quite restricted and the reactive being quite broad, with a greater sense of social responsibility. The selective and supportive classifications categorize companies with a quick response time to emergencies. The selective is restricted in terms of the scope of intervention, generally preferring to act only when there is an immediate need for support, while the supportive looks broadly at the scope of intervention, allowing for greater flexibility and fostering proactivity and innovation. According to the research, 42% of companies had a “selective” performance, meaning they acted quickly but with a significantly reduced scope and less strategic approach, limiting the potential impact of actions on the beneficiary public.

The City of Petrópolis in February 2022 after landslides | Photo: Clauber Cleber Caetano / PR

Companies must broaden their view of emergencies, rethinking their private social investment strategy to support society. There is room for greater impact in the medium and long term, not only to assist communities in times of tragedy but also to seek their resilience and preparedness to face these tragedies, as well as their recovery and reconstruction. To do so, companies need to ensure clear structures, policies, and governance that operate quickly in emergency cases, ensuring that actions are effective and response times are shorter.

It is a fact that we must act to prevent the disastrous consequences of floods, collapses, or fires. But it is also a fact that they will come, and will have disastrous consequences in the lives of thousands of people. Are you prepared to do your part?

IDIS participates in the global event CCW2023 with a panel on Matchfunding

Between the 1st and 5th of May 2023, will occur the 4th edition of Catalysing Change Week (CCW). Considering the most significant global event led by civil society organizations and social entrepreneurs, this year’s theme is “Solutions from the Frontlines.”

To inspire attitudes that contribute to the achievement of the 17 Sustainable Development Goals (SDGs) stipulated by the UN, the event – ​​which takes place online – will bring together actors who are at the forefront of socio-environmental change ecosystems. The idea is that they share, throughout the week, their experiences and knowledge with a focus on accelerating collaborative change systems. Participants include representatives from the private sector, governments, civil society organizations, and philanthropists.

The event is organized by Catalyst 2030 and has more than 250 sessions and activities proposed by people worldwide. The objective is to identify local solutions to global issues and expand the debate and knowledge about good practices developed worldwide. To access content and best practices shared at previous events, click here: Embracing Complexity and here: New Allies.

 

About IDIS participation

IDIS, a founding member of the Brazilian Chapter of Catalyst 2030, will again be at the event. This year, the panel led by the organization “Matchfunding: a strategy to Enhance the Impact of Socio-environmental Projects” will discuss the concept of Matchfunding as a powerful strategy to raise funds and expand the expected social impact.

To illustrate the strategy, the Together for Health Program case, a BNDES Matchfunding initiative managed by the IDIS team, will be presented. The objective of the Program is to support and strengthen the Unified Health System (SUS) in the North and Northeast regions of Brazil, with a focus on improving and expanding primary care services. Over four years (2023-2026), the aim is to raise BRL 200 million for health projects that operate in this part of the country.

Luiza Saraiva, Manager of the Together for Health Program, will open the conversation, which will have the mediation of Guilherme Sylos, Director of Prospecting and Partnerships at IDIS.

Among the confirmed speakers is Carla Reis, representative of the BNDES, who will present the Together for Health Program and reflect on how the MatchFunding model can contribute to expanding the impact of government initiatives and strengthening public policies.

João Abreu, Executive Director of ImpulsoGov, the organization behind the “ImpulsoPrevine” Project, will also participate in the session. His initiative brings together free solutions and services for municipalities to expand the scope and quality of primary care in the SUS. The project is a potential beneficiary of Together for Health and is already ready to receive investments. Among other topics, João will address the challenges of fundraising for Health.

Maria Izabel Toro, Social Investment Manager at Grupo RD, and Andreia Rabetim, Intersectoral Coordination and Volunteering Manager at Vale, are also part of the panel of speakers for the session. From the funders’ perspective, the guests will discuss the reasons and benefits of a private company participating in a match funding style.

The week is an opportunity to engage, advocate and nurture the social entrepreneurship ecosystem. We’ll wait for you!

Registration to attend the session is now open! Register here.

 

Matchfunding: a strategy to enhance the impact of socio-environmental projects

When: May 4, 2023, from 10 am to 11:15 am
Where: Online event on the Catalyst 2030 website (Registration required to view sessions).

Opening:
Luiza Saraiva – Manager of the Together for Health Program

Speakers:
Carla Reis – Head of the BNDES Industrial Complex and Health Services Department
João Abreu – Executive Director of ImpulsoGov
Maria Izabel Toro – Social Investment Manager at Grupo RD
Andreia – Intersectoral Coordination and Volunteering Manager at Vale

Mediator:
Guilherme Sylos – Prospecting and Partnerships Director at IDIS

Brazilian Philanthropy in Perspective: sign up for IDIS newsletter

Reinforcing our mission to inspire, support and expand private social investment and its impact, IDIS has launched ‘Brazilian Philanthropy in Perspective’, a newsletter which will bring highlights on Brazilian philanthopy and our contrbutions to its advance. Among the topics, trends on philanthropy, cases studies, articles, publications and surveys.

The newsletter will be sent quartely, and you may sign up using the form below.

 

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ABOUT IDIS

We are IDIS, the Institute for the Development of Social Investment, a civil society organization founded in 1999 and pioneer in technical support to social investors in Brazil. With the mission to inspire, support and promote strategic philanthropy and its impact, we serve individuals, families, companies, corporate and family run institutes and foundations, as well as with civil society organizations, in actions that transform realities and contribute for the reduction of social inequality in the country.

Our actions are based on the tripod generating knowledge, offering advisory, and developing social impact projects that contribute to the strengthening of the ecosystem of strategic philanthropy and of giving culture. We value partnerships and co-creating, and believe in the power of connection, of joint learning, of diversity and plurality of points of view.

Perspectives for Brazilian Philanthropy is featured in Alliance Magazine

In the Perspectives for Brazilian Philanthropy 2023 by IDIS – Institute for Development of Social Investment presents the current scenario, identifies inspiring actions, and points out ways for a more strategic and transformative private social investment, bringing together elements that contribute to decision making.

It second edition is features in Alliance Magazine, the biggest philanthropy magazine in the world. The article highlighted the eight perspectives that have ‘boldness’ as a common element, in addition to also pointing out the complex and current Brazilian political, social and economics challenges.

The news also addressed the contents present in the publication. Paula Fabiani, CEO of IDIS, highlights in the introduction, the content ‘presents examples of innovations, new methodologies and financing models unexpected partnerships, significant changes, and new ways of doing differently (and better) what was already working’.

Download de full material:

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Check out Alliance’s full article here.

CAF launches Global Philanthropy Hub with free content from 10 countries

The platform aims to promote the culture of giving around the world, through content on philanthropy produced by partners of CAF’s International Network

Charities Aid Foundation (CAF) is a British organization dedicated to philanthropy for over 90 years, facilitating donations and charitie programs around the world. In Brazil, CAF has been represented by IDIS since 2005.

Nowadays, CAF International is the largest support structure for philanthropy around the world. Beyond of the UK Office, the network also includes operations in South Africa, Australia (Good2Give), Brazil (IDIS), Bulgaria (BCause), Canada, United States, India, and Turkey (Tusev).

Thinking about facilitating and strengthening this cross-border giving, CAF launched in the first weeks of December 2022, during #philanthropyweek , a  Philanthropy Hub, which brings together contents, both from network members and other partners in 10 different countries.

The Hub includes content about the themes:

  • Country Philanthropy Profiles
  • Supporting Emergency Relief
  • Enabling Private Philanthropy
  • Inspiring Corporate Giving
  • Facilitating Workplace Giving

ACESS THE GLOBAL PHILANTHROPY HUB