{"id":23552,"date":"2024-11-14T10:32:08","date_gmt":"2024-11-14T13:32:08","guid":{"rendered":"https:\/\/www.idis.org.br\/en\/?p=23552"},"modified":"2024-11-14T11:00:43","modified_gmt":"2024-11-14T14:00:43","slug":"idis-launches-the-3rd-edition-of-the-endowment-performance-yearbook","status":"publish","type":"post","link":"https:\/\/www.idis.org.br\/en\/2024\/11\/14\/idis-launches-the-3rd-edition-of-the-endowment-performance-yearbook\/","title":{"rendered":"IDIS launches the 3rd edition of the Endowment Performance Yearbook"},"content":{"rendered":"

The discussion regarding the significance of endowments, as well as their legacy and enduring influence on socio-environmental initiatives, is gaining momentum in Brazil. In an edition that encompasses a historical series from 2019 to 2023, IDIS – Institute for the Development of Social Investment launches the 2023 Endowment Performance Yearbook<\/strong><\/span>, presenting a sample of 74<\/strong><\/span> out of 107 eligible funds, which together total BRL156<\/span> billion in assets (around USD 26 billion)<\/strong><\/span>.<\/p>\n

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Profile of the sample of endowment funds analized in the Endowment Performance Yearbook between 2021 and 2023.<\/p>\n

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The survey, aimed at endowment managers, reveals that in 2023 funds achieved an average return of 10.6%<\/strong><\/span>, the highest since 2020, and that most funds prefer investments in fixed income, cash and equivalents<\/span><\/strong>, categories that concentrated 81% of financial investments in endowment funds.<\/p>\n

The publication’s foreword comes from Senator Fl\u00e1vio Arns, responsible for drafting Bill 2.440\/23<\/span><\/strong>, created as a complement to Law 13.800\/19<\/span><\/strong> on Philanthropic Endowment Funds. Arns emphasizes that “endowment funds are essential for the social development of our country, as they promote projects and causes that transform the lives of Brazilians.”<\/em><\/p>\n

According to the Monitor of Endowment Funds in Brazil<\/span><\/strong>, a project coordinated by IDIS, 115 Brazilian endowment funds<\/a><\/strong><\/span> have been mapped, and eight of these were created just this year. Endowment funds bring together a set of private assets with the aim of using income to provide long-term funding for the institutions and\/or causes they support. In other words, the creation of an endowment fund perpetuates in the work of an institution or in support of a cause.<\/p>\n

The Endowment Performance Yearbook provides a panorama of information on cash flow, allocation, returns, investment policy and the governance of endowments. According to the publication, R$3.5 billion was redeemed in 2023 alone<\/strong><\/span>, of which R$3.2 billion (around USD 550 million) was allocated for causes and R$270 million (USD 46.6 millions) was destined for expenses.<\/p>\n

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Five main causes supported by endowments analyzed by the Endowment Performance Yearbook 2023.<\/p>\n

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Education continues to be the cause that receives greatest support with 47 funds allocated to the sector. This was followed by research and knowledge, inequality\/ economic and social development and social assistance. Most of the funds are concentrated along the Rio-S\u00e3o Paulo axis, with S\u00e3o Paulo accounting for 69% of the total number of participants in the survey.<\/p>\n

“The Yearbook presents parameters and references for the work of managers. Now in its third edition, the publication <\/em>is recognized as a guide for decision-making and has been fundamental to our advocacy actions in search of improved public policies in Brazil,”<\/em> states Paula Fabiani, CEO of IDIS.<\/span><\/strong><\/p><\/blockquote>\n

Regarding the number of donations received, in 2023, the 74 endowments received a total of BRL 517 million in donations<\/strong><\/span>, but the average amount granted per fund remained stable, dropping slightly from BRL 9.3 million in 2022 to BRL 8.8 million in 2023. Also noteworthy is the concentration of donations in just a few funds<\/strong><\/span>, confirmed in this edition by the fact that the five funds most engaged in fundraising received 75% of the donations<\/span><\/strong>. It’s no surprise, then, that fundraising continues to be the biggest challenge facing managers<\/strong><\/span>, especially those responsible for funds with assets of less than BRL500 million.<\/p>\n

Another discovery revealed by the survey concerns the low ethnic and racial diversity in governance bodies<\/strong><\/span>. Representation from the black, brown and indigenous population on councils and committees is very low and did not exceed 8% of the members in any of the cases analyzed. The information presented in the publication was collected through an online questionnaire, answered directly by the managers of the equity funds.<\/p>\n

Check out the full launch event (available only in portuguese):<\/p>\n