Philanthropy in Brazil acts as a transformative force, promoting socioeconomic development and strengthening social ties across the country. Whether via corporate or independent philanthropy, socio-environmental initiatives expand social impact and complement the work of the public sector on complex and urgent issues.

Each actor plays this role in a unique way. Companies shape their philanthropic actions according to their values ​​and strategies, while independent philanthropists and family institutes choose specific causes, creating a personal legacy. In this article, we will discuss the differences and characteristics of each approach, highlighting the impact they provide for the common good.

What's behind corporate philanthropy?

Business, or corporate, philanthropy is the practice in which companies allocate resources to social, cultural or environmental projects without the expectation of direct financial return. Unlike corporate social responsibility (CSR), which is directly connected to the company's activities, corporate philanthropy operates separately from profit objectives, focusing only on positive impact.

Companies can structure their philanthropic practices in different ways. Some choose to make direct donations to CSOs and projects, while others create their own institutes with a team dedicated to managing social initiatives. Another strategy is to establish partnerships with specialized intermediaries, to ensure that resources are applied efficiently and in line with the company's values.

Corporate philanthropy brings benefits to both the company and society. It strengthens CSR, reinforcing the company's commitment to ethical and sustainable practices and promoting well-being in the communities where it operates. To learn more about how to align philanthropy with ESG and CSR, check out the Sitawi Finanças do Bem guide , which provides practical strategies to maximize this impact.

And what does it have to do with ESG?

In recent years, corporate philanthropy has become a social pillar in ESG strategies, reinforcing companies' commitment to sustainability and ethics. Integrating social investment practices into these principles has been a trend for organizations seeking broad and strategic social impact.

These investments allow us to promote social inclusion, education, quality of life in communities and increase the brand's credibility. Furthermore, this integration of practices reinforces transparency and impact measurement, ensuring that investments are effective and responsible.

A current portrait of independent philanthropy

Independent philanthropy is characterized by the autonomous action of individuals, families or institutions without a direct link to a company. This type of philanthropy allows freedom to support causes aligned with donors' personal values, allowing them to create a legacy on specific themes and areas of personal interest.

A current panorama of independent philanthropy in Brazil was outlined by the study “ Filanthropy that Transforms ”, promoted by Rede Comuá. The study mapped 31 independent philanthropic organizations in the country, showing that the main focus of donations (74%) is the institutional strengthening of organizations that defend rights. These organizations distributed more than R$470 million in direct donations, employed 719 people and supported around 10,000 initiatives.

The notion of independence is central to these organizations, as it allows autonomous action, without dependence on supporting companies or families. Instead, they mobilize resources from diverse sources — national, international, public and private — and stand out for their ability to articulate networks and in-depth knowledge of their fields of activity, such as socio-environmental justice and human rights.

The Bem Maior Movement is an example of independent philanthropy aimed at strengthening social organizations and advancing social justice in Brazil. Focused on creating lasting impact and promoting social transformation, MBM works to support causes that seek equity, sustainable development and social cohesion. Through investment and strategic partnerships, MBM works to leave a legacy that strengthens the social sector and expands access to opportunities in territories across the country.

Comparing Corporate and Independent Philanthropy

Although they share the goal of strengthening society, corporate philanthropy and independent philanthropy have different approaches and structures. Here are some of the key distinctions:

• Alignment with values : Corporate philanthropy aligns with the company's values ​​and mission, while independent philanthropy is guided by the philanthropists' personal or family values.
• Control and focus : companies usually create institutes focusing on topics aligned with their operations and business strategy. In independent philanthropy, the focus is freer, shaped by individual or family interests, with the possibility of supporting a wide range of causes.
• Flexibility vs. Corporate structure : Independent philanthropy offers greater flexibility and rapid responsiveness, while corporate philanthropy generally follows formal strategic planning and stricter corporate rigor.
• Grantmaking capacity : in independent philanthropy, as evidenced by the Rede Comuá study, the grantmaking capacity (donation to strengthen other institutions) is a central pillar. These organizations are able to efficiently channel resources to causes that require ongoing and strategic support.

What is the best way?

Companies can integrate corporate philanthropy into their CSR and ESG policies, aligning their impact actions with the corporate mission. Independent philanthropy offers the chance for individuals and families to support specific causes in a personalized way, creating a legacy in areas such as human rights and community development.

Companies and philanthropists can find the model that best suits their values ​​and impact objectives, expanding the reach of their actions towards a fairer and more inclusive society. Regardless of the model, the important point is that philanthropy in Brazil continues to promote concrete changes, facing social challenges and contributing to the well-being of communities.

What do you think about starting to integrate this perspective into your philanthropic practice?

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