Civil society organisations are critical bulwarks of democracy and promoters of social change. Tax and philanthropy are key means for them to prosper

Resource shortage is one of the biggest challenges facing Brazilian civil society today. The shortage of funding for civil society organisations and activities stems from an underdeveloped culture of giving. This is primarily due to a combination of factors: restrictive laws surrounding philanthropy, limited tax incentives for donors, public unawareness of the sector’s impact, and a lack of donor trust.  

Despite an investment of R$ 4.8 billion ($939 million) in 2022, Brazilian philanthropy has not managed to fill the gap left by international philanthropy, which began withdrawing from Brazil in the early 2000s. According to data from the GIFE Census (a body of data from the largest philanthropies operating in Brazil, which are primarily corporate and family foundations) in 2022, funds allocated to third parties which had been growing modestly since 2016, experienced a decline of R$1.1 billion compared to data from 2020 and fell back below the volume invested by donors in self-run initiatives (R$2.1 billion).  

The situation is especially difficult for grassroots groups, social movements, and organisations fighting for socioenvironmental justice and human rights. Very few local philanthropic organisations fund rights-based organisations.