Almost two years after the start of the pandemic, the social sector is experiencing a unique moment: the strength of donations, omnipresent in the first months of 2020, is no longer as intense—even though needs have only increased. Traditional spaces for collaboration and in-person action are still restricted, and a whole sea of possibilities has been opened up by online interaction. The effects of the Covid-19 crisis are expected to persist into the new year, and donation is becoming increasingly digital.
Below, we list five trends in philanthropy, based on key reports in the field and insights gained from working in the non-profit sector. These are just some of the many possible paths for our society to embrace solidarity in a committed and responsible way.
1. Hybrid events will be the new normal
Many eagerly await in-person interaction and closer contact at events that foster the exchange of ideas, experiences, and connections. But we also cannot deny that live streams have cut costs in tight budgets and expanded the geographical possibilities of participation—something extremely positive in a country with continental dimensions.
Next year should combine these two variables in hybrid events: in-person meetings that also allow for remote participation via online streaming. With mastery of tools like Zoom and similar platforms, interactions become more focused and brief, without compromising content.
This doesn't mean that live streams will be discarded: their popularity is undeniable and should remain strong in 2022, overcoming the uncertainty brought about by the spread of new coronavirus variants. But don't expect stratospheric numbers, as the fatigue produced by excessive screen time has brought viewership to more manageable levels.
2. Increasingly digital donations
In recent years, financial transactions have rapidly migrated to electronic methods, especially among high-income groups. But the real revolution is only a year old and goes by three letters: PIX. Massively adopted by the population, the instant payment method has forcefully reached the social sector, streamlining contributions, which are now of lower value and gain in scale.
In 2022, PIX is expected to continue growing, with new usage options, and to advance beyond classic contribution methods: recurring credit card donations and bank slips. The gains in speed and taxation are significant, even though important legal issues remain under dispute.
Other forms of donation should also gain prominence in the coming year, such as through NFTs, also known as non-fungible tokens. The acronym designates a certificate that guarantees ownership of a product existing in the digital universe, attesting to its authenticity and exclusivity.
In 2021, we followed auctions of virtual items that resulted in donations to civil society organizations in Brazil and several other countries. This should be the path adopted by companies that are beginning to explore the possibilities of the metaverse and cryptocurrencies, and it could be a significant source of income for the social sector in the future.
3. Companies mediating donations
Since the beginning of the pandemic, when it became possible to see companies mobilizing to donate and contribute to mitigating the effects of the Covid-19 crisis, we have witnessed the proliferation of donation buttons in apps like iFood, Ame, and Mercado Pago. In addition, we have seen several campaigns with a matching mechanism, in which the company commits to matching the donated amount.
Despite the slowdown in these actions compared to the initial months of the pandemic, in which the volume of actions was well above average, we noted the persistence of corporate donation initiatives, such as the rounding up of change, for example.
With the advancement of the ESG agenda and the experience of the pandemic, the trend is for companies to assume a role as intermediaries and promoters of donations, leveraging their consolidated structure to make payments. This is also an adaptation to consumer demands, which require more active and responsible stances from corporations.
4. Data collection and processing
No one disagrees that transparency and accountability are fundamental to the social sector—especially in Brazil, where trust in organizations is unfairly low. In a world driven by data and analytics, the organized and strategic collection of information is increasingly demanded by funders. The use of methodologies for measuring social impact, which seek to quantify the results of social actions in comparable categories, is also advancing.
Another important challenge for 2022 concerns the adaptations related to compliance with the LGPD (General Data Protection Law). Accustomed to dealing with sensitive data, the social sector will have to adapt to the requirements of the legislation, which seeks to bring more security and privacy to all citizens.
5. Local solutions for local problems
It seems obvious, but this maxim has long been ignored: people and territories experiencing a particular situation (be it a lack of adequate infrastructure, cases of social vulnerability, among others) are generally able to propose solutions that have a greater chance of working in practice.
This is one of the important legacies of the pandemic: local organizations and communities organized themselves with great reach and efficiency at a time when the public and private sectors were still taking their first steps. It became clear that, without logistics at the grassroots level, donations are unable to reach those who need them.
The creation of support and funding networks, in addition to emergency funds, has contributed to strengthening the work of organizations with established ties in their respective territories. In 2022, we should see a multiplication of actions in this regard, as well as a shift in funding from large donors to existing projects (what we call grantmaking) instead of their own initiatives.
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