According to a report released by Indiana University’s Lilly Family School of Philanthropy on Thursday, the global climate for philanthropy appears to have improved slightly since 2018, however, researchers warned that the invasion of Ukraine could dramatically alter the outlook for global Philanthropy over the next few years, especially across Europe.
Amir Pasic, dean at the Lilly School, stated that one of the best ways to improve the climate of global philanthropy was to remove restrictions on cross-border money flows to nonprofits.
Pasic stated that it is important to send money across borders quickly. These regulations are crucial.
He said that he was impressed by the innovative philanthropic activity that has been going on to bypass government restrictions. This trend is one he expects will continue. He cited as an example those who book Ukrainian rentals. Through AirbnbThey do not intend to use them as a way to get money into the country.
Pasic stated that the humanitarian need will always be there and that people will continue to invent.
The 2022 Global Philanthropy Environment Index is a new report that provides policy makers and philanthropic professionals with a comprehensive picture of global giving conditions.
The report found 56 of the 91 countries that were studied had a favorable environment to philanthropy from 2018 to 2020, the years they were studied. One-third of those surveyed reported that donors are restricted from giving money to countries other than their own.
The report is based upon questionnaires completed by country-based experts. The index scores countries and areas on a 5-point scale in six areas: ease to operate a philanthropic organisation, tax incentives and laws governing donations made across border borders. It also evaluates the political, economic, and socio-cultural environments (including cultural philanthropic practices).
There were improvements in the philanthropic environment in the Balkans, northern Europe, Southern and southeastern Asia, and sub Saharan Africa. However, there were slight declines in Canada, Latin America, the United States of America, Latin America, Oceania, and the United States of America.
The United States was near the top of this list with an overall score 4.76, slightly lower than the 4.77 in the previous report. Pasic noted that U.S. law changes made in 2017 decreased the number of individuals who itemize taxes, creating a less favorable environment for giving.
The global average was 3.63.
Ukraine and Russia
Experts in global charity said that the findings indicate that many countries around the world, including European nations, are well-positioned and able to respond to the humanitarian crisis that is arising from Russia’s invasion. Researchers also pointed out that the global environment for charity will likely change in the next few years due to the invasion. However, it is too early to know what these changes will be and whether they will improve or worsen the philanthropic environment.
Nick Deychakiwsky is a senior program officer at Charles Stewart Mott Foundation. He said that if Russia captures Ukraine, the philanthropic climate in both countries could change dramatically.
Deychakiwsky said that even if Ukraine repels the invasion, it will still require significant assistance for many years. If Russia loses in Ukraine, Russia may be willing to provide global philanthropic aid, he stated.
Deychakiwsky said that either way, countries in Europe have shown a tremendous ability for philanthropy, which can help in the humanitarian crisis. This response may be a significant boost for the regions in the next iteration.
He said: The report shows the value of having as many barriers as possible to cross-border Philanthropy.
Deychakiwsky is a veteran of philanthropy work in Ukraine and other countries within the region. His parents immigrated from Ukraine to the United States, and his wife is from Kyiv. He has many relatives and friends who remain in Ukraine or have fled the country.
Latin America
Deychakiwsky stated that he is concerned about the restrictions placed on philanthropy, especially in Latin America. Nadya Hernandez, program director at Wings (a philanthropy-development and support organization headquartered out of Brazil with 193 members organizations in 58 other countries), shared this concern.
Hernndez stated that some of those limitations include increased surveillance of non-profit activity, as well as additional bureaucracy.
Hernndez, who was a consultant on the report, stated that the findings are a call for action.
She said, “We could do better.”
Scoring Factors
The new report The report covers all 79 countries included in the 2018 report as well as 12 additional countries. Comparing the 79 economies that were included in both reports, we see a slight improvement of 3.64 to 3.67 in the global Philanthropic Environment.
The following are the key points
- One-third (79 countries) in both reports reported a decline of their political environment as a result of factors such as political instability, restrictions on foreign financing, state harassment, and negative campaigning, especially against human right and watchdog organisations.
- Easy operation of philanthropic organizations scored the highest (3.97), while the economic environment scored lowest (3.46). Researchers believe that the economy’s weak showing was likely due to the pandemic.
- The highest score increase was seen in the political environment, while cross-border giving saw a slight decrease.
