IDIS – Institute for the Development of Social Investment

*By Paula Fabiani, CEO of IDIS – Institute for the Development of Social Investment

Private social investment – the voluntary and strategic allocation of resources for the public good – is essential for resolving deep gaps in the socio-environmental development in the country. Although the State plays a crucial role, there is no way around it. There are several challenges when it comes to providing what is necessary for everyone’s well-being, whether due to Brazil’s continental dimensions or the enormity of the country’s problems that need solving. And that is where private social investment may and must act: contributing to reducing inequalities and mitigating environmental damages. Only with the collaboration between government, companies and society will we be capable of addressing effective and everlasting solutions.

When we talk about private social investment, we’re talking about BRL 4.8 billion in corporate donations, that is, donations made by companies, according to the GIFE census 2023. A significant amount, but still below the figures recorded in 2020, during the peak of the pandemic, when the private sector’s donations exceeded BRL 5.3 billion. The historical figure reinforces that the private sector can invest more – and better.

Through this vision and inspired by the North American movement, Pledge 1%, IDIS – Institute for the Development of Social Investment and Instituto MOL launched Commitment 1% in Brazil.

Launching event of Commitment 1% which happened in São Paulo in PwC Brazil’s headquarters.

The movement has the purpose of gathering companies that already donate at least 1% of their annual net profit, as well as those that have committed to reaching this amount of donations in up to two years. Cyrela, fama re.capital, Gaia Impacto, MOL Impacto, Pantys, PwC, RD Saúde and TozziniFreire Advogados are the first signatories of the commitment, as well as other organizations who are already at an advanced stage in the process of their adhesion.

Designed for companies of all sizes and sectors, Commitment 1% has the goal to drive companies’ involvement with the present and future of society, so that they will invest in projects and organizations who need resources to continue their journey. These are donations for essential organizations that transform the realities of communities in which they are inserted through education, culture, sports, healthcare, environmental and income-generating actions.

With private social investment, companies only stand to gain. Beyond the financial advantages, since it becomes easier to raise funds on the market, companies also improve their reputation, with bigger engagement from collaborators and a more solid relationship with suppliers and clients. It’s an ecosystem that positively impacts all stakeholders.

Creating possibilities for the growth of private social investment and promoting the habit of giving in the country is, without a shadow of a doubt, a path to strengthening organized civil society as an agent of positive socio-environmental changes. This journey can only be traced to people and businesses who believe in the mobilizing and sustainable power of strategic philanthropy and commit to the generation of positive impact. Just start by committing to 1%.

After all, it is now up to us to repair the mistakes of the past and build a future for those who will come.

This august, Brazilian companies announced their pledge to Commitment 1%. Envisioned by IDIS – Institute for the Development of Social Investment and Instituto MOL, this initiative seeks to promote donations made by companies to civil society organizations. Amongst the companies that confirmed their commitment to the movement are Cyrela, fama re.capital, Gaia Impacto, MOL Impacto, Pantys, PwC, RD Saúde and TozziniFreire Advogados as well as five other organizations are already at an advanced stage in the process of their adhesion.

Inspired by Pledge 1%, movement in the United States that gathers more than 15 thousand signatories, Commitment 1% aims to gather Brazilian companies that already donate at least 1% of their annual net profit and those that commit to reaching this donation level within two years. According to the publication Corporate Social Investment Benchmarking, in 2022, Brazilian companies donated R$4,026 billion. That value equals to about 1/3 of the total donated by individuals, according to IDIS Brazil Giving Research 2022. During the same period, donations made by individuals reached R$12,8 billion.

“The goal

of this commitment is to contribute to the progress of private social investment in Brazil and encourage the longevity of donations as a strengthening strategy of organized civil society. The third sector plays a crucial role in reducing inequalities. Here, we have serious organizations that have been working for a long time in a meaningful way, and financing the work and strengthening of these initiatives is what will assure social transformation in the medium to long-term in the country. And this progress is the company’s responsibility as well”, emphasizes IDIS’ CEO, Paula Fabiani.

To the signing parties, the benefits of committing to the movement will be seen in several areas: access to a community of exchanges and knowledge, visibility to the actions taken and reputational gains with stakeholders and becoming an influential agent in your acting market.

“The companies that are committing with the 1% are providing and excellent example for others to follow the same path. As Ralph Waldo Emerson says: “Your actions speak so loudly that I cannot hear what you say.” – Aron Zylberman, Instituto Cyrela

At the same time as the recurring and strategic practice of philanthropy contributes to accelerating positive social change and strengthening civil society, companies can develop better relations with their contributors, suppliers and consumers. There is also potential impact on fundraising in the financial market (the strengthening of the S in the ESG helps drive valuation).

Launching event of Commitment 1% which happened in São Paulo in PwC Brazil’s headquarters.

The adhesion process includes the confirmation of the donations conducted and can be made online in the commitment’s website.

“Commitment 1%

is an ambitious and impactful project, capable of driving and accelerating the way that companies commit to the present and future of society, investing to strengthen relevant projects that need resources to keep going”, emphasizes Rodrigo Pipponzi, cofounder of Instituto MOL.

Access the Commitment 1% website here, available only in Portuguese.

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