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Perspectives for Brazilian Philanthropy is featured in Alliance Magazine

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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’.

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Check out Alliance’s full article here.

Culture of giving in Brazil: Brief scenario

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It is not possible to talk about innovation and trends in giving in Brazil without first looking at the landscape of the donation culture.

According to the World Giving Index 2021, an initiative of the British organization
Charities Aid Foundation (CAF) carried out since 2009, Brazil occupied the 54th
position among the 114 countries covered in 2000, rising 14 positions in relation
to 2018 data and 20 positions in relation to its average position in the last 10 years
(Charities Aid Foundation, 2021). The index is composed of the answer to three
questions made to a sample with national representation: in the last month, (1) did
you help a stranger, (2) did you donate money to a social organization, or (3) did you
do some kind of volunteer work? In a year of socioeconomic crisis and lockdown
caused by the COVID-19 pandemic, helping out a stranger was the variable that
evolved the most in Brazil, showing that empathy and solidarity are on the rise.

Another study also helps us understand how the culture of donation has been
transformed in the country: Brazil Giving Research 2020, the most comprehensive
survey on the practice of individual donation in the country, promoted by the
Institute for the Development of Social Investment (IDIS). Its second edition,
carried out by Ipsos Research Institute between January and June 2021, shows that
the landscape of the donation culture has changed in the country in the past five
years since the first edition of the survey in 2015 (IDIS, 2021).

Part of the change was an evolution in the positive perception of giving and of
civil society organizations (CSOs), as well as an increase in their credibility. There
was also a great advance in the way Brazilians understand what citizenship
is and engage in solving problems, with a greater awareness that social and
environmental challenges in Brazil must be addressed by civil society and not
exclusively by the government.

An aspect of Brazilian culture that has an impact on the donation culture is people’s
resistance to publicizing or commenting on a donation made to others. Brazilians
understand that saying that they donated means expecting some compensation or
something in return, or promoting themselves, and this is socially disapproved. This
attitude, however, is beginning to change as a result of assertive communication
campaigns and concrete actions by a local movement to foster the culture of giving
in Brazil. When talking about donations, influence grows, and so do donations.

Taken together, these elements are indicative of a more mature society.

In the five-year period from 2015 to 2020, donating in cash was the most popular
way of giving, chosen by 53 percent of the respondents, and only 17 percent said
they had made some kind of online transation. However, there was also a great
development of technological tools for donation, such as giving platforms, taxfree instant bank transfer methods (PIX), social media to promote giving with live
broadcasting and giving buttons, and even a timid emergence of crypto giving.
These developments resulted in advances in two directions: accountability and
operational ease of donating. From the perspective of CSOs, it is easier to publicize
their performance and be accountable, even though the third sector requires
a general improvement to become more professional and have a more robust
management structure.

From the donor’s point of view, it is easier to follow what is done with the donated
resources, meaning the effective destination of the money. Regarding operational
ease, faster and more practical mechanisms for donation emerged with donation
buttons on e-commerce and social media, PIX, and so on. Combined, these effects
are beneficial to further boost donations in Brazil.

With cultural changes and technological advances, an increase in the volume of
donations in the country would be expected, but it has not happened. In 2020, 66
percent of the Brazilians said they made some kind of donation, while 37 percent
confirmed they actually donated money for a CSO. Together, they summed a total
of BRL 10.3 billion (equivalent to a bit more than USD 2.1 billion in 2021, adjusted
for inflation). In 2015, the total donations from the Brazilians reached BRL 13.7
billion (equivalent to over USD 4.7 billion in 2021, adjusted for inflation).

In these last five years, Brazilians had to deal with the effects of one of the worst
socio-economic crises in their history, and then faced the worsening of this
situation with the arrival of the COVID-19 pandemic. According to the World
Inequality Report 2022, Brazil is one of the most unequal countries in the world:
the top 10 percent captures 59 percent of the total national income while the
bottom half of the population takes only around 10 percent of the national income
(World Inequality Lab, 2022). The pandemic has further accentuated this scenario.
The World Bank estimates that its effects drive up to 49 million people into poverty.
According to the Brazilian Instituto for Geography and Statistics (IBGE), the
country reached its highest unemployment rate since 2012 on April 2021, when
14.8 million people were looking for a job and the survey published by Oxfam in
January 2022 presents an estimate that, between April 2020 and April 2021, 377 Brazilians lost their jobs per hour, and that more than 600,000 companies
went bankrupt (Barros, 2021). The impact was felt in other areas as well. A survey
carried out by the Brazilian Research Network on Food and Nutrition Sovereignty
and Security pointed out that Brazil had at least 19 million people suffering from
hunger in that year (Gandra, 2021). The number of Brazilians who went hungry in
the new coronavirus pandemic doubles what was recorded in 2009, with a return to
the level observed in 2004. Before the country starts to recover and restructure its
economy, the tendency for this crisis is to worsen.

The figures show that average Brazilian in 2020 was poorer and more
concerned about their future than they were in 2015 (IDIS, 2021). Therefore, it
is understandable that part of their willingness to donate has been nullified by
uncertainty and economic insecurity, justifying the decrease observed in 2020 in
the proportion of donors of any nature, whether of money, goods, or time. Many
donors have probably become grant beneficiaries. On the other hand, classes with
greater purchasing power have responded, and donated more in 2020 than before.
As Brazil Giving Research 2020 shows—while the national average of donors was
37 percent, 58 percent of the people who earned between 6 and 8 times of the
minimum wages donanted in 2020—7 points higher than in 2015 (IDIS, 2021).

In Brazil, according to a sector mapping carried out by the Institute for Applied
Economic Research (IPEA), there are more than 800,000 active CSOs that
respond to the most diverse of causes (IPEA, 2021). The impact they generate is
increasingly communicated, contributing to the understanding that Brazilian CSOs
are closely linked to problem solving. Brazilians are empathetic and supportive,
and this cultural trait is receptive to the appeals of philanthropy. These are solid
foundations, and when the economic situation improves, a consistent recovery in
donations is expected. With knowledge and an understanding of new models for
enabling donations, it will be possible to go even further.

IDIS participates on report focused on the impacts of the pandemic on philanthropy

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Candid and the Center for Disaster Philanthropy (CDP) released a new report, Philanthropy and COVID-19: Examining two years of giving, that details COVID-19-related philanthropic funding in 2021. Candid and CDP’s third assessment of COVID-19 philanthropic data notes a concerning decline in giving by large U.S. foundations even as communities face decades-long efforts to recover from the compounding effects of the pandemic.

One of the chapters of the report is dedicated to pointing out how the pandemic impacted philanthropy in other countries, one of them Brazil. IDIS contributed with its expertise and point of view and the project Emergency Health Fund – Coronavirus Brazil created by IDIS, BSocial and Movimento Bem Maior in 2020 and which raised R$ 40.4 million to help hospitals in 25 Brazilian states against COVID, was highlighted as a case study.

Check out the main highlights of the report:

Candid and the Center for Disaster Philanthropy (CDP) released a new report, Philanthropy and COVID-19: Examining two years of giving, that details COVID-19-related philanthropic funding in 2021. Candid and CDP’s third assessment of COVID-19 philanthropic data notes a concerning decline in giving by large U.S. foundations even as communities face decades-long efforts to recover from the compounding effects of the pandemic. The new report highlights the need for more philanthropic support for long-term recovery, and CDP provides actionable steps funders can take to invigorate their COVID-19 giving strategy, including:

  • Increase support to marginalized communities.
  • Provide flexible funding to grantees.
  • Implement trust-based philanthropy.
  • Fund as locally and grassroots as possible.
  • Commit to transparency by sharing grants data with Candid.

In previous reports, CDP and Candid noted the record amount of disaster-related funding for the pandemic. The new report includes analysis of Candid’s coronavirus data set (as of December 15, 2021) to illuminate funding trends among U.S. foundations, corporations, and high-net-worth individuals. To date, Candid has recorded $1 billion for COVID-19 in 2021. Additional key findings from the report include:

  • 18% of COVID-19 funding was explicitly designated as flexible funding or general support.
  • 17% of funding was coded for policy, advocacy, and systems change.
  • Health, human service, and education organizations received the highest shares of funding.
  • U.S. donors allocated 22% of funding dollars to recipients based outside the United States.
  • For U.S.-focused domestic funding, 27% of dollars was explicitly designated for racial and ethnic identities. Of this, 71% didn’t indicate a specific identity, but instead, was broadly designated for “racial equity” or “communities of color.”

This report also examines data from Candid’s Foundation Giving Forecast Survey, which surveys large U.S. foundations about their grantmaking. This year’s survey asked respondents about their total grant payments in FYE 2020 and 2021 and also sought to find out how much of this funding was specifically for COVID-19-related support. Results show:

  • An 11% increase in overall grantmaking, but a 31% decline specifically for COVID-19-related funding in FYE 2021.
  • Corporate foundation funding for COVID-19 decreased by 76%; community foundations’ funding decreased by 43%; and funding by independent foundations decreased by 24%.
  • COVID-19 funding accounted for 7% of total giving in FYE 2021, compared to 12% in FYE 2020.

“Overall, surveyed funders did not maintain their COVID-19 support in the second year of the pandemic,” observes Grace Sato, director of research at Candid. “But defining COVID-19 support can be challenging. Since there isn’t a universal definition of COVID-19 funding, survey respondents used their own criteria to estimate how much of their grant payments were allocated for COVID-19. Many may not have considered increased general support or increased flexibility as part of their pandemic funding.”

Chart: Covid-19 support as share of total grant payments FYE 2020 vs 2021

To illustrate funding flows outside the U.S., country and regional experts described the philanthropic response in their localities. The report presents snapshots of COVID-19 funding in 11 countries, including case studies of how philanthropy responded to the crisis in India, Brazil, and Ukraine.

The report also provides information about CDP’s approach to disaster grantmaking. In 2021, CDP granted nearly $2.6 million in 2021 to address psychosocial health and wellbeing needs after disasters.

“We strongly believe that mental health is an area that will need ongoing funding to support global COVID-19 recovery,” said Regine A. Webster, vice president of CDP. “Our communities—especially communities of color—are going to feel the impacts of the pandemic for decades to come. We need to keep the momentum in ensuring that frontline organizations have the financial resources to address immediate needs and root causes to help all community members thrive.”

Philanthropy and COVID-19: Examining two years of giving is available here.

New research series details emerging trends in digital and other innovative charitable giving practices across the globe

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Analyses of philanthropic activity in Brazil and the United Kingdom identify expanded donor expectations for transparency from charitable organizations and significant growth in digital giving

 INDIANAPOLIS – Today the Indiana University Lilly Family School of Philanthropy at IUPUI launched its new research series, Digital for Good: A Global Study on Emerging Ways of Giving. The series will chronicle findings and insights regarding emerging trends in charitable giving, with a focus on how innovative giving methods such as mobile giving, crowdfunding, online volunteering, social impact initiatives and others are shaping giving in various countries.

Click here to download the material. 

 

The series, which builds on the school’s Global Philanthropy Environment Index and Global Philanthropy Tracker, will be released in phases over the next five months and feature profiles of eight diverse countries, beginning today with analyses of giving trends in the United Kingdom and case studies of non-traditional ways of giving in Brazil. Profiles of China, India, Kenya, Singapore, South Africa and South Korea will follow. For each country, the research team collaborated with in-country partner organizations or individual experts to identify specific trends, shape data collection, and develop report findings. The study series is based on research funded by the Bill & Melinda Gates Foundation.

 

“Expanding on our global philanthropy research by introducing these studies allows us to better understand philanthropy’s ever-evolving trends and to examine them in countries with varied philanthropic landscapes,” said Una Osili, Ph.D., Associate Dean for Research and International Programs at the school. “By identifying and understanding emerging ways in which people are giving, we can equip leaders of charitable organizations to better secure, shape and deliver much-needed aid and relief.”

 

The first two country profiles examine philanthropic engagement in Brazil and the United Kingdom prior to and throughout the COVID-19 pandemic. Both countries report an expansion of various types of channels for donations, while researchers noted the necessity of new, technology-based ways of giving for philanthropy’s continued growth in each geographic area.

 

Both country profiles focus on emerging and expanding ways of giving: online giving and crowdfunding in the United Kingdom, and charity rounding up, crowdfunding, and social impact publishing in Brazil. Social impact publishing involves the production of inspiring, revenue-producing editorial content in which a portion of the revenue generated is given to nonprofit organizations.

 

Key findings in the Brazil profile feature analysis of three relevant case studies and include:

 

These include donating through rounding-up for a charity at checkout, crowdfunding, and social impact publishing, practices which all encourage smaller, more frequent donations that accommodate charitable contributions on modest household budgets. From 2013 to 2020, donations collected through rounding-up for charity via Arredondar increased exponentially from just BRL 1,091 in 2013 (equivalent to USD 590 in 2021, adjusted for inflation) to more than BRL 1.6 million in 2020 (equivalent to USD 330,186 in 2021, adjusted for inflation). The social impact publishing house Editora MOL also experienced growth on the donations made through its editorial products: nearly one-sixth of all donations it received since 2008 were made during 2021. And in 2020 alone, the use of the giving platform BSocial skyrocketed from 600 registered donors to about 15,000, resulting in a four-fold increase in charitable contributions.

 

“The three initiatives shared in this report highlight innovative ways that people are engaging in philanthropy in Brazil over recent years. Interestingly, these models are not digitally based; they evolved with no digital component, but digital will now contribute to their growth and expansion, and we hope they will inspire more ideas to promote philanthropy,” said Luisa Lima, Communications Manager at IDIS, the Institute for the Development of Social Investment, the Brazilian organization that conducted this research.

 

The most successful initiatives prioritize transparency and accountability in giving. In Brazil, as in many countries, charitable organizations face distrust or skepticism from donors about the use and impact of their donation. New giving initiatives that emphasize transparency and accountability can create more comfort for all donors with the nonprofit sector overall and can invite everyday donors to actively participate in a more inclusive civil sector.

 

“Transparency and accountability are crucial to the development of philanthropy in Brazil,” Lima added. “Although Brazilians are empathetic and supportive, there is an underlying attitude of distrust toward institutions that receive donations. Transparency is central to shifting these attitudes and building renewed trust within the philanthropic environment.”

 

Key findings in the United Kingdom profile feature results of an online survey of nearly 3,000 individuals and include:

 

Online giving has increased, especially during the COVID-19 pandemic. The proportion of donors giving via cash declined significantly during the United Kingdom’s first lockdown in March and April of 2020 and remained at levels much lower than usual even after many restrictions were lifted. Simultaneously, online giving showed a significant increase during the pandemic. On average, donors interviewed between May and July 2021 reported that 60% of their gifts in the past 12 months had been made online. Donations through a third-party app proved to be the most common way to donate online, with over half of respondents who donated online in the past 12 months noting that they had made gifts through applications like JustGiving or Virgin Money Giving.

 

A quarter of people gave via crowdfunding in the past 12 months. The most common reason to support a fundraising request via crowdfunding was to contribute to charity (30%). Findings suggest that 23% of people gave to crowdfunding ventures established for or by a friend or family member or those set up by a friend of a friend or an acquaintance, while less than 17% contributed to a crowdfunding effort established by someone they did not know. Notably, while a substantial portion (33%) of donors who gave via crowdfunding or social media sites said that they responded to requests posted by a friend, family member, or acquaintance, very few donors (4%) indicated being motivated to give by a social media “influencer.”

 

Online and offline solicitations often reinforce each other, making hybrid ways of giving the new normal in charitable giving. Researchers found that 63% of people who used social media to request donations also made requests in person.

“For the UK, the future for fundraising looks digital, but with a strong human element,” said Alison Taylor, Chief Executive Officer of Charity Services at the Charities Aid Foundation (CAF), which conducted the United Kingdom research. “Though donations may be conducted online, requests for support are often made by a friend or family member in person or via social media.”

This phenomenon highlights the continued importance of interpersonal connection when engaging would-be donors.

“The results of the first two country profiles suggest an evolution in giving practices and highlight a significant expansion of digital giving practices and peer-to-peer giving,” said Amir Pasic, Ph.D., the Eugene R. Tempel Dean of the Indiana University Lilly Family School of Philanthropy. “While these findings are the first in a series, the documented growth in digital giving and shifting donor expectations in the UK and in Brazil reinforce existing evidence that digital practices can help democratize the practice of philanthropy. Digital innovation makes philanthropy accessible and fosters greater transparency and accountability for how gifts lead to impact.”

 

About the Lilly Family School of Philanthropy

The Indiana University Lilly Family School of Philanthropy at IUPUI is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a comprehensive approach to philanthropy through its undergraduate, graduate, certificate and professional development programs, its research and international programs and through The Fund Raising School, Lake Institute on Faith & Giving, the Mays Family Institute on Diverse Philanthropy and the Women’s Philanthropy Institute. Follow us on Twitter, LinkedIn, or Instagram and “Like” us on Facebook.

 

About Charities Aid Foundation (CAF)

Charities Aid Foundation (CAF) is a leading charity and bank seeking to connect vital organizations, institutions and individuals working to ensure everyone has a stake in the future. We exist to accelerate progress in society towards a fair and sustainable future for all. For over 95 years, we’ve acted as a meeting point for companies, private philanthropists, fellow foundations, governments, charities, and not-for-profit enterprises. Our independence, expertise and international reach enable hundreds of millions of pounds each year to move across sectors and borders and arrive safely with thousands of charities to make a greater impact. We also lead an international network of like-minded charitable organizations. We collaborate to inspire innovation, share best practices, and improve cross-border giving in support of civil society.

 

About IDIS – Institute for the Development of Social Investment

IDIS – Institute for 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, IDIS serves 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 of 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.