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

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. 

• Go deeper: Could Covid-19 spark a culture of charity in Brazil?

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