To the Civil Society Organizations (CSOs) play an essential role in building a more just and supportive country. Since Brazil's redemocratization process, their number and relevance have grown, consolidating these institutions as protagonists in the promotion of rights, the defense of collective causes, and the transformation of the realities of millions of people.
In view of the enormous social, environmental and economic challenges we face, especially on the path towards fulfilling the Sustainable Development Goals (SDGs), recognize and strengthen the CSOs is fundamental. They represent the strength of society mobilized for the common good.
What you will find in this article:
- What are Civil Society Organizations (CSOs)?
- The difference between an NGO and a CSO.
- Regulatory Framework for Civil Society Organizations (MROSC)
- The size and impact of the Third Sector in Brazil
- Challenges faced by CSOs in Brazil
- How can a non-profit organization grow and scale its impact?
What are Civil Society Organizations (CSOs)?
To the Civil Society Organizations They are private, non-profit entities with their own legal personality, constituted as associations, foundations, social cooperatives, or religious organizations. Their mission is... to act in the public interest., promoting social, environmental and cultural causes.
These organizations are present in areas such as health, education, culture, social assistance, human rights, environmental protection, housing, sports, and many others.
Although the most well-known term is "NGO" (Non-Governmental Organization), the acronym "OSC" was officially adopted by Law No. 13,019/2014, O Regulatory Framework for Civil Society Organizations (MROSC), This provides a more precise definition of the role of these institutions. More than just "non-governmental," CSOs are autonomous and proactive actors within organized civil society, capable of influencing public policies, mobilizing resources, and generating systemic impact.
NGO and CSO: what is the difference?
The main difference is of a legal and regulatory nature.“NGO”"It's a popular term, without a specific legal definition in Brazil."“OSC”" is the official designation established by MROSC, which precisely defines which entities fall into this category and how they can establish partnerships with the public sector.".
In practice, every NGO operating in Brazil operates under one of the legal forms recognized as... OSC. Using the correct term is especially important for accessing public funding, accountability, and establishing formal partnerships.
Regulatory Framework for Civil Society Organizations
According to MROSC, a OSC It can fall into one of three legal structures:
- Private non-profit entity
They are those that fully reinvest their resources in the institutional mission, without distributing profits or dividends to associates, directors or employees.
- Cooperative societies of public and social interest
Cooperatives made up of people in situations of social or economic vulnerability, focusing on income generation, training and inclusion.
- Religious organizations with social action
Religious institutions that develop projects or activities of public interest, as long as they are distinct from their strictly religious purposes.
These organizations make up the so-called Third sector, a space for action that differs from both the public and the for-profit private sectors, but which collaborates with both to promote collective well-being.
The size and impact of the Third Sector in Brazil
According to Map of CSOs, Brazil has more than 917 thousand registered social organizations, covering various causes and regions. The presence of these institutions reflects civil society's ability to mobilize for rights, justice, and development.
In addition to the social impact, the Third sector It has a significant economic impact:
- Represents 4.27% of Brazilian GDP, which is equivalent to more than R$ 420 billion, in 2022.
- It surpasses sectors such as the automotive industry and approaches agribusiness in terms of wealth generation
- Employs 5,88% of the national workforce, with more than 6 million jobs in 2022.
This data, obtained through research “The Importance of the Third Sector for GDP in Brazil“, coordinated by Sitawi Finanças do Bem, show that strengthening the CSOs It's not just a matter of social justice, it's a smart economic strategy.
Challenges faced by CSOs in Brazil
Despite their relevance, many CSOs and impact initiatives they find legal and administrative bureaucracy one of main obstacles to growth. Collectives and social movements without their own legal personality face concrete difficulties in:
- Raising funds from individual and corporate donors;
- To establish contracts with national and international funders;
- Access parliamentary amendments;
- To provide accountability with transparency and legal compliance.
This structural barrier is one of the main factors that They prevent initiatives with high potential for impact from growing and becoming sustainable in the long term..
How can NGOs grow and scale their impact?
Given that the tertiary sector represents more than 41% of Brazil's GDP and employs millions of people, strengthening the Civil Society Organizations It's a collective responsibility.
With over 17 years of experience in strengthening the impact economy, the Sitawi Finanças do Bem It is a CSO qualified as an OSCIP and operates as strategic partner for socio-environmental initiatives that need structure to grow.
To overcome the legal and administrative barriers that limit the reach of emerging collectives and CSOs, Sitawi offers the service of fiscal representation (fiscal sponsorship)A solution that provides the necessary legal and administrative structure for initiatives to operate safely, transparently, and in compliance with the law.
Through this service, organizations and collectives without their own CNPJ (Brazilian tax ID) can:
- To raise donations from individuals and legal entities, both in Brazil and abroad;
- Accessing parliamentary amendments and crowdfunding;
- Establish contracts with funders and institutional partners;
- Providing traceable and rigorous accountability—requirements demanded by any serious funder.
As a result, more projects are able to move from the planning stage to implementation, more causes gain scale, and more resources circulate within the impact ecosystem.
Frequently Asked Questions about Civil Society Organizations
A Civil Society Organization is a private, non-profit entity with its own legal personality, operating in the public interest. The term was officially recognized in Brazil by Law No. 13.019/2014 (MROSC).
“"NGO" is a popular term without a specific legal definition. "OSC" is the legal designation established by the MROSC (Brazilian Regulatory Framework for Civil Society Organizations), which precisely defines the entities eligible to establish partnerships with the public sector and access public resources in Brazil.
Through fiscal sponsorship services, such as that offered by Sitawi, the sponsoring organization makes its legal structure available to receive and manage funds on behalf of the initiative, ensuring legal compliance and accountability.
According to the Map of CSOs, Brazil has more than 917,000 registered social organizations — one of the largest ecosystems of organized civil society in the world.
