July 02, 2014
The Brazilian philanthropic landscape presents great challenges but also interesting opportunities that could result in Brazil becoming a leading force among the BRIC countries in terms of social investment.
Fueled in part by French economist Thomas Piketty’s Capital in the 21st Century, wealth creation accompanied by gaping inequality has dominated the global conversation in recent months. And Brazil, which has improved on inequality measures over the last few years (one of the few countries in the world able to make that claim!), continues to be one of the most economically unequal countries in the world. That reality requires not only government but other sectors in Brazil to come up with creative solutions and structural changes that will reduce inequality. Indeed, it is why I see great opportunities for philanthropy in Brazil, both in terms of taking risks and in contributing to a more sustainable development path for the country.
In 2013, Forbes magazine identified 124 Brazilian billionaires. Most of those fortunes were concentrated among families that owned or controlled the largest companies in the country. Nevertheless, Brazil is ranked 91st (out of 135 countries) in the World Giving Index published by the Charities Aid Foundation – evidence that philanthropy has not kept pace with wealth creation over the last few years.
At the same time, the world's view of Brazil has changed, and international giving to the country has fallen fairly dramatically. According to a 2006 McKinsey report, the total amount of dollars sent from U.S. donors to Brazilian civil society organizations fell some 70 percent between 2002 and 2006. That, in turn, has led to a changed landscape for many Brazilian CSOs. According to the Associação Brasileira de Organizações Não Governamentais (ABONG) – the Brazilian association of NGOs – international funding for human rights NGOs has been replaced by funding from government and/or state-owned companies, which could pose a threat to the long-term independence of those NGOs. Moreover, as noted by Joan Spero in her report Charity and Philanthropy in Russia, China, India and Brazil, the weakness of civil society in Brazil may inhibit giving domestically and is one of the important challenges Brazilians must address over the next decade.
Spero also notes in her report that religion and family values have played a central role in the development of charitable giving in the country. But the emergence of new trends such as individual giving (as distinct from family giving) and a growing interest in impact investing on the part of young and high-net-worth (HNW) individuals is helping to create a new dynamic that seems likely to result in new opportunities for civil society organizations and philanthropists alike.
I see myself as part of these new trends. I worked for years in the financial markets and spent many hours in conversation with brilliant people who use spreadsheets and complex formulas to create money from money. I also got married and started a family. By the time I was pregnant with my third child, I realized I wanted to focus on creating a better world for my kids – and other kids. So, with the full support of my husband, I decided to switch from the corporate world to the nonprofit world and apply the expertise in dealing with capital I had developed to employing capital to address the social and economic disparities in my country.