A new report, “Five Agendas to Drive the Transformation of the Philanthropic Sector in Latin America and the Caribbean”, supported by the Rockefeller Foundation and produced by The Resource Foundation and Dalberg Advisors, examines the current role of philanthropy in the region and proposes an innovative, locally grounded approach to strengthen outcomes for Latin American and Caribbean communities and populations. The study concludes that philanthropic giving is far lower than in other parts of the world, even as needs continue to grow.

However, according to the authors, philanthropy in Latin America and the Caribbean has the potential to mobilize more than US$ 5 billion per year if just 1% of the region’s private wealth were activated—an amount comparable to the total international aid currently received.

The study also identifies key structural challenges facing the philanthropic sector, including a lack of strategic investment and public distrust, and calls on philanthropic leaders to rethink how resources are managed.

“Latin America and the Caribbean have enormous philanthropic potential that has yet to be activated. We need philanthropy that goes beyond temporary solutions and works toward structural, sustainable change,” said Lyana Latorre, Vice President for Latin America and the Caribbean at the Rockefeller Foundation.

The study was presented during the first edition of “IDIS Coffee: Philanthropy in Debate”, a space designed for leaders of Brazilian organizations to engage in exchanges and reflections on how to make social investment more strategic, increasing resources and the capacity to engage across their value chain.

The first edition brought together around 35 leaders over the course of the morning, featuring presentations of studies and research, as well as debates.

Turning generosity into sustainable impact

The study shows that philanthropic culture in the region is less formalized than in other parts of the world. According to the World Giving Index, private donations represent only 0.2% to 0.3% of GDP- well below developed economies such as the United States (1.5%) or Canada (1%) and up to 50% lower than comparable economies such as Indonesia or South Africa (both around 0.4%).

According to the IDB, in its 2024 publication “The Complexities of Inequality in Latin America and the Caribbean,” the contrast is even greater when considering that the richest 10% earn 12 times more than the poorest 10%. The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) notes that nearly 200 million people live in poverty and 70 million in extreme poverty, totaling about 270 million people. This structural inequality is worsened by the effects of climate change, as shown by the Climate Finance Vulnerability Index (CliF), which places eight countries in the region among the most vulnerable in the world, combining exposure to extreme events with low financial capacity.

A call to strengthen trust and unlock local resources

In this context, international aid has also been reduced drastically, as many countries are cutting their cooperation budgets. This poses a major challenge for Latin America and the Caribbean. In response, the new report highlights the urgent need to strengthen local and regional philanthropy, ensuring continuity for transformative initiatives that benefit communities.

Another major challenge is the lack of trust: according to Latinobarómetro, only 27% of Latin Americans trust NGOs, which limits people’s willingness to donate through formal channels. In addition, there is a strong presence of so-called “silent philanthropy” or invisible generosity, in which many people make direct donations to communities or local causes without these resources being recorded or strategically coordinated.

In contrast to this lack of trust, the region’s population demands concrete actions and tangible results. According to a recent Rockefeller Foundation survey, 78% of Latin Americans support international cooperation if it demonstrates effective results—a rate higher than the global average of 75%.

“Across the world, philanthropy plays a critical role in bringing allies together, mobilizing resources, and scaling solutions that improve people’s lives and well-being,” said Elizabeth Yee, Executive Vice President of Programs at the Rockefeller Foundation. “Building on our track record in the region, we are proud to stand alongside philanthropic organizations and other partners in Latin America and the Caribbean as they work to build a healthier, safer, and more prosperous future.”

Five agendas to transform philanthropy

Based on this diagnosis, the study proposes five strategic agendas to transform philanthropy in Latin America and the Caribbean. These agendas emerged from a broad listening process, designed with full awareness of the diversity and complexity of the region’s philanthropic ecosystem. More than 70 regional leaders—including philanthropic organizations, companies, civil society groups, and local actors—shared their perspectives through interviews and focus groups. The process was also informed by an analysis of more than 40 reports and studies, ensuring a solid and diverse evidence base.

1 – Radical collaboration: Promote a cultural shift in how organizations work together. Co-investment without co-creation is merely coordination, not genuine collaboration. The study proposes moving from isolated projects to sustained alliances, with shared governance structures, common goals, and joint evaluation mechanisms.

2 – Mobilizing local resources: Encourage a new generation of donors who see philanthropy as a tool for social transformation, not merely assistance. The challenge is to broaden funding sources, integrate new actors (families, entrepreneurs, and emerging companies), and create incentives—both governmental and market-based—that enable sustained participation. The current reality is not a lack of wealth, but an inability to activate it.

3 – Purpose-driven investment: Prioritize the quality of resources over volume. The study highlights the need to design more strategic investments that measure returns in terms of social impact, sustainability, and institutional strengthening—not only immediate outputs. When resources are treated as charity, reach is limited; when applied as social investment, they can drive systemic change.

4 – Local leadership: Treating communities solely as beneficiaries creates dependency. It is necessary to recognize communities’ knowledge and capacity to manage their own development, ensuring they are partners in the process. Philanthropic agendas must adapt to territorial realities, respect local knowledge, and build solutions aligned with the cultural, economic, and environmental contexts of each place.

5 – Professionalization of the sector: strengthening the philanthropic system should not be seen as an administrative expense. It is necessary to invest in modern infrastructure, with better information systems, specialized talent, and transparency and accountability mechanisms that increase the sector’s legitimacy and effectiveness.

“Philanthropy in Latin America and the Caribbean has enormous latent energy. The capital exists, and so does the talent. What we need now is to activate them with purpose, build trust, and show that investing in the region is not charity, but a development strategy,” said Beatriz Guillén, Executive Director of The Resource Foundation.

Let’s be honest, 25 years don’t come every day. In September, we’ll reach this milestone and, of course, we couldn’t let it pass without celebrating. It’s not just about the years of history, but especially about all the people who have built and continue to build it with us.

Throughout this journey, we have closely followed the evolution of Private Social Investment in Brazil and the world – its movements, advances, challenges. And everything we have achieved has only been possible due to the commitment, collaboration and collective work of different people with a common goal: to build a better world with more equity. In this celebration, we knew who should be at the center of the story: all the people who think, act, and drive social investment in forward. They are the protagonists – or rather, we are.

Some recognize us as a knowledge-generating institution. Others, as a advisor. Some know us for the projects we execute and nothing else. And there are those who define us as an intermediary organization. We are all of this, but above all, we are people who make all of this happen.

As we celebrate IDIS’s 25 years, we also celebrate the power of community, the strength of collaboration, and the unlimited potential of organized civil society. Social investment is much more than just a strategy; it is an expression of our shared humanity.

Therefore, we launch the campaign ‘Social Investment is about people’ and you are our special guest in this celebration.

Follow along and participate. After all, all of this has been built by us and by you, collectively.

Warm regards,

IDIS team

by Denise Carvalho, Senior Manager of Monitoring and Evaluation at IDIS.

In the corporate world’s waze of words, ESG has become a consensus for assessing and validating whether a company is socially conscious, sustainable, and has good governance. These are criteria supported by impact measurement methodologies that identify good companies to invest in. After all, ESG is directly linked to sustainability – here, related to the very viability of businesses’ existence and profit generation.

Transitioning to the realm of social investors, where profit is not the ultimate goal, ESG serves as a compass guiding organizations’ strategic actions and opens doors to measure the impact that developed projects have on the communities served. But how do you know if the positive impact justifies the investments involved?

Environmental impact measurement, for example, fosters various relationships: how many hectares have been spared from deforestation, how many greenhouse gases have been avoided, which water bodies have been cleaned, how much waste has been reduced. However, the calculation on the social side may be somewhat different.

One of the main obstacles faced by social investors, as highlighted by the ecosystem itself, is obtaining quality data related to the social pillar of the ESG Agenda. This perception was corroborated by the ESG Global Survey 2023, conducted by BNP Paribas, in which 71% of respondents pointed to result measurement as the biggest concern for investors. This agenda is seen as a guiding element for organizations towards more responsible practices, yet the challenge of standardization and consistency of data persists, particularly in the social sphere.

Currently, impact assessment methodologies are capable of rigorously measuring the results generated by the actions of social projects. These methodologies provide a thorough and well-founded analysis of how an organization’s activities influence people, communities, and the environment, seeking to understand the extent and effects of its actions, programs, and projects.

Impact assessment doesn’t just study “what” but also measures “how much,” “why,” and “how” changes occur. Since impact assessments are always data-driven and can provide information in a common language, communicating these analyses can bring great visibility to the organization itself, as well as enrich the debate on the ESG agenda in the corporate world.

Some companies and organizations already recognize the potential of impact assessments as allies of the ESG Agenda. For example, Petrobras has been conducting rigorous analyses in its various social and environmental projects as part of its commitment to the agenda. To achieve this, the company began a process of diagnosing and harmonizing indicators aligned with its socio-environmental strategy, allowing for a clearer identification of the impact in the communities where it operates. Intelligently used data enables strategic direction of actions and the expansion of the positive impact of projects.

Another aspect to keep an eye on when it comes to measuring social impacts is the adoption of tools such as Artificial Intelligence and blockchain as allies in this process, aiming to ensure even more transparency for social investors. The decentralized nature of blockchain, for example, prevents potential data manipulation, enhancing the credibility of impact reports. This allows investors to assess the socioeconomic results of funded projects more precisely, securely, and efficiently. Fintech Moeda Seeds and the Banqu platform are examples of organizations that have been working with the support of these tools to increase the credibility of the data presented.

It is through the materialization of impact that managers are armed with data that enable the strategic actions of organizations, relating the invested value to the social return of projects. It’s the antidote to the infamous “washing”.

Impact assessment is fundamental to establish a solid foundation for the sustainable success of organizations. It transcends mere measurement and becomes a strategic guide, directing companies towards paths more aligned with the ESG agenda. Although conducting impact assessments can be challenging, the benefits it offers far outweigh the possible obstacles.

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.

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:

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.

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.