Covid-19 puts Brazil’s third-sector in hot water but spurs digital transformation

digital transformation
Photo: Eduard Muzhevskyi/Shutterstock

New research by the Brazilian Association of Fundraisers (ABCR) shows that three out of four civil society organizations in Brazil were weakened due to the Covid-19 pandemic, facing severe budget constraints. 

One-fifth of the 1,760 institutions consulted by the study no longer have the funds to continue operations. To make matters worse, 65 percent of the institutions expect a reduction in fundraising in 2020, a stark contrast to the increase in donations seen in the country. Per ABCR’s Covid-19 donations monitor, over BRL 6 billion were raised so far to fight off the pandemic.

Covid-19 also disrupted the activities of 87 percent of the organizations surveyed. Still, the same number of institutions found ways to care for populations affected by the pandemic: half provided food or hygiene products to their target audiences, while another 27 percent did the same for new communities.  

Covid-19 affected different sectors in distinct ways. Those with an annual budget of up to BRL 100,000 for the year were the hardest-hit, as 55 percent believe their budgets will suffer a 30-percent reduction. The situation is more critical among organizations connected to culture and the arts, and better among health-related institutions. 

Unsurprisingly, they point out that the newest trend in the sector is a digital trend, with 53 percent of respondents saying the broader use of digital tools is the most positive impact of Covid-19, and 60 percent want to accelerate their use for fundraising. 

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