For a long time, the philanthropy It was associated with charity, practiced mainly by religious institutions and individuals. However, over time, it gained... a more strategic role, working towards long-term positive transformations.
In view of this, one arm of this mechanism stands out: the corporate philanthropy.
What is corporate philanthropy?
Corporate philanthropy It is the practice in which companies allocate financial resources, goods or services to social, cultural or environmental projects aiming promote the well-being of society. This is a way for corporations to take on a position of commitment to society, as part of their strategy. Corporate Social Responsibility (CSR) of companies.
For a long time, the philanthropy in companies was seen as a way of washing, an English term that means 'laundering' and which has come to mean deceiving, exaggerating, omitting or even lying about results and achievements that improve the company's image.
However, today, the corporate philanthropy is part of the strategy of corporate social responsibility of business, being incorporated in accordance with the values of organizations.
For example, amid the tragedy in Rio Grande do Sul, in April of this year, companies from different sectors mobilized almost R$ 14 million to help the affected population. Furthermore, according to the Donations Monitor, about 34% of donations carried out in Brazil in 2023 were carried out by companies.
This shows that the private sector is increasingly emerging as a hope in the face of adversities faced by the civilian population, which is extremely important, since the government and third sectors alone do not have sufficient resources, capillarity or technology to meet current needs.
Corporate philanthropy and ESG: what is the relationship?
THE corporate philanthropy It is, even today, little explored as a strategic instrument of ESG, but It has real potential to catalyze the agenda.. By supporting well-structured philanthropic initiatives, companies unlock resources and generate simultaneous impact across the three dimensions of ESG: environmental (conservation and climate projects), social (education, health, reduction of inequalities), and governance (transparency and accountability as a condition of the philanthropic model itself).
The difference between philanthropy as genuine ESG and philanthropy as washing It's in the structure: one-off donations without measurement tend to be perceived as opportunism; structured programs, with a clear theory of change and performance indicators, build real credibility.
Why invest in corporate philanthropy?
There are many reasons to adopt the philanthropy in corporate strategies, forming a two-way street of benefits, both for the philanthropic sector and for the company that implements it.
See some advantages:
- Alignment with the ESG Agenda: although little explored for this purpose, the philanthropy can be a catalyst for ESG Agenda. By supporting philanthropic initiatives, companies unlock resources for the following areas: environmental, social and governance;
- Image and Reputation: allocating resources to philanthropic initiatives can improve a company's reputation, creating a positive perception among customers and stakeholders;
- Competitive Advantage: consumers are increasingly demanding about companies' positioning in the face of social and environmental adversities. According to the Brazil Donation Research, carried out in 2022, 44% of the population takes into account whether a brand or company supports causes or invests with a positive impact;
- Employee Engagement: increase employee satisfaction and engagement, making employees feel proud to work for a company that makes a difference in the community.
Examples of corporate philanthropy in Brazil
Serasa Experian
THE Serasa Experian is a global company, leader in information services. In Brazil, the organization works to develop consumer relations, translating data so that they can be the tip of the economic and social transformation. With the objective of work on the financial health of people and companies, Serasa Experian developed the Boosts Startups, an initiative that aims to foster startup acceleration.
Natura
THE Natura is a Brazilian multinational company of cosmetics, hygiene and beauty products, which created the Living Rivers Fund with the aim of support in structuring recycling chains in eight municipalities near Manaus, helping to build a more sustainable packaging chain for Natura products, while supporting the development of local communities.
Avon Institute
The Avon Institute is a non-governmental organization, the social investment arm of Avon, which aims to to welcome and protect women and girls who are in situations of violence and reduce the impacts of violence by offering shelter and protection services and, at the same time, support for the professional reintegration of these women, helping them to face violence in the short, medium and long term.
Elite Education Network
THE Elite is a private educational institution that believes that it is possible to transform realities through education and, therefore, opened the Elite Transform Fund, which aims to fund scholarships for low-income students in the Elite Education Network.
Business institutes: how to structure philanthropy
There are many forms of companies to structure philanthropy, but one of the most effective is structuring your own institute, This can be done either by opening a new CNPJ (Brazilian tax ID) or through a partner organization that hosts the initiative. dedicated professional structure It allows for the centralization, management, and accountability of resources allocated to causes with a positive impact, with much greater rigor than one-off, decentralized donations.
A well-structured institute opens up possibilities for supporting causes such as education, health, and the fight against hunger. Reconstruction of areas affected by natural disasters., always aligned with the company's CSR strategy.
Thus, these partner institutes operate in a way that maximize the positive impact of companies on society, contributing to the construction of a positive corporate image and the creation of shared value between the company and the community.
Specialized management: why host the institute in a partner organization
A company that decides allocate resources to philanthropy It doesn't necessarily have to be., Having all the legal and administrative structure ready to begin.. They exist organizations specializing in the management of philanthropic resources, capable of providing all the necessary infrastructure without the company needing to open and maintain its own CNPJ (Brazilian tax ID).
THE hosting an institute in a resource management organization specializing in philanthropy brings several benefits to companies such as:
- Immediate availability to use a non-profit CNPJ to execute positive impact strategies;
- Tax and fiscal benefits;
- Dedicated specialized financial and administrative structure and team;
- Saving time and resources.
THE Sitawi Finanças do Bem has more than 18 years of experience in management of philanthropic resources And it could be the ideal partner for you. host your institute. We act as an intermediary, managing the administrative and financial aspects to ensure more efficient use of capital. This allows companies to focus their time, team, and effort on planning, implementing, and monitoring their desired outcomes.
Check out Sitawi's differentials:
Compliance and security: we guarantee high level of compliance and safety in operations, For this purpose, we also have a Compliance team that looks after the ethics and conformity of operations;
Customizable services: financial management and accountability are activities that can be customized according to the partner's needs and initiative, and additional services can also be added, such as curating beneficiaries and strengthening supported organizations according to the company's interests;
Team of experts: dedication of a specialized team, trained in administrative-financial procedures for philanthropic resources, to monitor and execute the operations of partner initiatives;
Furthermore, companies that assess by Real Profit they can deduct up to 2% from income tax by investing in philanthropic initiatives, making your social work even more advantageous.
