Faced with an unprecedented scenario, 2020 represented a milestone for the sector philanthropy in Brazil. The mobilization of society and the diversity of ways to donate, such as campaigns and Philanthropic Funds were and still are fundamental in the fight against pandemic. The biggest challenge now will be to transform these practices into a permanent legacy.
Covid-19: the wave of solidarity
According to Covid Donation Monitor, initiative of the Brazilian Fundraising Association (ABCR) supported by Sitawi, we arrive at an amount of more than R$6.5 billion donated for more than 570 thousand donors in the last year as a response to Covid-19. However, the peak of this awareness occurred in the first three months of the pandemic, with the collection of more than R$5.7 billion until the end of June, driven by different campaign formats such as crowdfunding – the famous virtual piggy banks – charity live streams by famous artists, emergency funds, among others.
The causes that received the largest volume of donations: health and social assistance, followed by education, highlight the inequalities that were exposed during this period. Covid-19 exposed the serious situation of a large part of the population in terms of basic needs such as housing, access to drinking water, food and technology. As if this alarming scenario were not enough, Brazil also suffered environmental disasters, such as the fires in the Amazon and Pantanal, in addition to the unbridled pace of deforestation in these regions.
In view of this emergency context, the donations came onto the agenda quickly and relevantly, thanks to the collaboration between different actors, such as the private sector, social organizations and various classes of civil society. In addition, the speed of diagnosis and the reach of social organizations through networks built over decades were essential for resources to reach the end at the speed imposed by the crisis.
The culture of giving in Brazil
Even with the record amounts mobilized in pandemic, we have a long way to go to promote a culture of giving permanent in the country. Historically, we have been far from the top in rankings of largest donors. The research World Giving Index 2019, promoted by the Charities Aid Foundation (CAF), showed that in an average calculated over 10 years, the Brazil ranks 74th in a solidarity ranking with 140 countries.
One of the factors that influences the culture of giving is the population's knowledge and trust in social initiatives and organizations. According to the research Brazil Giving Report 2020, in recent years the population's perception of the third sector was already on the rise, which may have contributed to the jump in donations. According to research, eight out of ten Brazilians said that social organizations had a positive impact on the country as a whole (82% in 2019 versus 73% in 2018).
One clear and transparent communication of the activities and results of social organizations was also identified as a determining factor for the return of donors. In addition innovation capacity sector, through virtual campaigns, digital platforms and online funding through bank accounts or credit cards, is also a factor that has already positively stimulated the donation scenario in Brazil.
The Boom of Philanthropic Funds
The need to act urgently amid the pandemic has raised the alarm for the demand for effective solutions to manage donated resources and ensure transparency in accountability. In this context, Philanthropic Funds began to attract greater attention from donors, especially from founding organizations, who were looking for a reliable and fast channel to get donations where they need to be.
How do these initiatives work?
Created with the intention of supporting a specific cause or project, we Philanthropic Funds donations can come from a single donor or be open to third parties – individuals or legal entities, national or international – to donate as well. The purpose of philanthropic fund is to act directly on the path between the donated capital and the entity or cause that will receive it, creating solutions for increase effectiveness and transparency and ensure delivery in accordance with the initiative’s objectives.
THE Sitawi has been operating since 2012, with the creation of the first fund, using its expertise in financial management at management of philanthropic resources, which gives the founder more time to focus on the strategies and execution of the initiative. Once the objectives, as well as the governance, disbursement rules and accountability, have been established, Sitawi segregates the donations received into an account and manages the financial balance, sending monthly reports and being able to provide strategic advice for the impact of the initiative.
How is the performance of a Philanthropic Fund characterized?
In addition to solving resource management in practice with a high level of compliance, another difference between the Philanthropic Funds It's yours flexibility. In a Fund, capital can be disbursed in different ways, such as donations to civil society organizations or individuals, payments of expenses related to the provision of services, research, awards, among other various purposes.
In 2020, this characteristic became even more evident in the funds managed by Sitawi. We arrived at the total of 32 funds, 14 of them working directly on the response to the pandemic. Among the latter, the topics were diverse and included donations of Personal Protective Equipment – PPE and resources to institutions on the front line of the fight against Covid-19, distribution of organic food to vulnerable populations, awards for good practices, as well as initiatives aimed at communities in the Amazon region.
And how does the managed resource generate social and/or environmental impact?
Each fund has defined objectives of the social or environmental impact sought and they are agreed between the founder and the Sitawi. O Saving Lives Fund, for example, was created within the framework of Covid-19 with the aim of bringing necessary supplies to about thousand philanthropic hospitals across Brazil. The initiative relied on resources from individuals and legal entities through the logic of 'matchfunding' – for each R$ 1 donated by civil society or companies, BNDES, the founder of the Fund, contributed more R$ 1 up to a limit of 50 million. In total, the campaign raised approx. R$80 million for the acquisition of material, supplies and protective equipment for doctors, nurses and other frontline health professionals.
Prospects for philanthropy in Brazil: what to expect?
Predict a future outlook for the philanthropic sector is very difficult. Given a situation still directly affected by pandemic and its consequences in the social area, it will certainly be necessary to continue stimulating an environment favorable to philanthropy in the country. As could be seen in 2020, the strengthening civil society is crucial for rapid action in the face of large-scale crises. On the other hand, with the pandemic, many social organizations have increased the scope of their activities and expanded services to the population, therefore, they will need continuous resources to keep the work going.
After an event of global dimensions, such as the one we are experiencing, the expectation is that the tools that were strengthened during this period, such as online donations, digital platforms and also Philanthropic Funds, continue to evolve, generating greater trust and collaboration for initiatives and organizations in the third sector. Through the consolidation of these practices, a culture of philanthropy that prioritizes the impact of actions, accountability and more lasting structures to support society.
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