Authored by Cristiane Ramos
If, on the one hand, the COVID-19 pandemic crisis contributed to further aggravating existing social problems, exposing Brazilian inequalities, on the other hand, we saw a society of solidarity, which mobilized unbridledly to help combat the crisis and collaborate with its fellow citizens. O COVID-19 Donation Tracker, structured by the Brazilian Association of Fundraisers (ABCR) with the support of Movement for a Culture of Giving, surpassed the mark of R$ 7 billion donated. In this context, it is important to highlight three points:
1 – Importance of deductible donations as a promoter of social change
According to Law No. 9,249, of December 26, 1995 (art. 13, III), donations, up to the limit of 2% (two percent) of the operating profit of the donating legal entity, made by companies to non-profit civil entities, can be registered before your deduction is computed. In other words, a percentage of the results from the previous year can be allocated to initiatives promoted by Civil Society Organizations (CSOs). Direct donations do not follow the same rules as other known tax incentive laws, as it is not necessary to have prior approvals from Ministries or deposits in public policy fund accounts. In these cases, it is enough for the OSC to meet the requirements set out in the Law No. 13,019/14, known as the Regulatory Framework for Civil Society Organizations.
According to the GIFE 2020 Census, private social investment increased by 71% in 2020, rising from R$3.1 billion to R$5.3 billion. In 2020, Fundação Sicredi invested R$ 22.6 million in social actions through the Social Fund, totaling 2,273 incentivized projects. In March 2021, Fundação Itaú and Instituto Unibanco allocated R$ 37.5 million for an emergency action to combat hunger caused by Covid-19, supporting 171 civil society organizations. The numbers are impressive and all this mobilization will have a very positive impact on the donation culture in Brazil.
2 – Importance of promoting the culture of donation
Tax incentives are a form of allocation, of income tax deduction and not a donation, but these resources are significant and become one of the main forms of sustainability for CSOs. In other words, companies are potential transformers, they can change the standard of institutions and save lives. So why not see this destination as an alternative to promoting the culture of donation? It is necessary to place the donor as the source/root/gateway, donation as a means and the culture of donation as an end.
The culture of giving is about collective engagement and citizenship. It is a way of fostering a more humane culture that seeks to reduce inequalities, but also provides a change in mentality, making everyone more aware and more responsible. Through a sense of community and collaboration, it will be possible to provide better living conditions for populations living in vulnerable situations and consequently improve the social, environmental and economic conditions of our country. It is worth highlighting here that the allocation of companies made directly to civil society organizations falls within guideline 3 of the document For a Brazil + Donor, Always., developed by the Movement for a Culture of Donation that addresses the importance of stimulating and creating an environment favorable to donation.
3 – Relevance of civil society organizations (CSOs)
Civil society organizations (CSOs) contribute to mitigating issues that affect their areas of activity, generating a positive impact on the lives of citizens. CSOs are responsible for receiving and distributing donations, developing social projects for public purposes, delivering services to the communities where they are present. Furthermore, civil society organizations have different purposes in the sphere of human rights, they have know-how, they are legitimate agents and capable of distributing resources to face the country's social needs, seeking to maintain democracy and fighting social inequalities. It can then be said that CSOs are fundamental to guaranteeing freedom and a dignified life for citizens.
The trio – Deductible donations, fostering a culture of donation and civil society companies – has significant potential to make a difference in the lives of many citizens and in our country. Through them, it is possible to mobilize resources and transform them into social benefits in an agile, decentralized way (several companies and CSOs on different fronts and geographic regions) and increasingly qualified. That said, it is up to the entire population to get involved in a broader reflection so that we continue fighting for a stronger and more robust civil society and culture of donation.
