Private investment in the social sector grows again in Brazil

In 2020, private social investment grew again in Brazil, according to the Gife Census — check out the main results of the research.

Census carried out by Gife reveals increased concern about the combat the hunger

The growth of private social investment broke the decade's record in 2020, reveals the Gife 2020 Census, one of the main surveys on the topic in Brazil. Private social investors are institutes, foundations, companies and philanthropic funds that invest private resources in projects of public interest.

The research, released in December 2021, shows that private social investment in the country reached R$ 5.3 billion in 2020, a jump of 71% compared to 2019, when there was a decrease of 11% compared to 2018. Before that, the highest increase (15%) had been recorded in 2012.

The budget realized in 2020, moreover, was 63% higher than expected by investors, who expected to contribute a total of R$ 3.3 billion in the year. This increase is due to the mobilization of private social investors to combat the effects of Covid-19 — R$ 2.3 billion was specifically directed to actions related to the pandemic.

Another effect of the pandemic was the directing of more investors to the category of protection, assistance and social development (which includes the fight against hunger), it grew by 34% compared to the previous survey, carried out in 2018 and was equivalent to investment in education, considered the sector that historically mobilizes the most resources.

Among the survey respondents, 76% invested in education and 75% invested in protection, assistance and social development — of these, 18% said they had not previously worked in this area and would stop investing after the pandemic and 11% invested in this area for the first time and will continue to invest after the pandemic.

A food security (31%) and hygiene and prevention (27%) were the subareas where investors acted most in their initiatives to combat Covid-19.

Companies participate more

For the first time, the Gife Census shows a greater volume of Donation than implementing projects when directing private social investments, which the study considered an inversion of private social investment, as investors tend to direct more resources to their own projects than to third parties.

In 2020, companies began to have a significant participation (37%) in private social investment due to the actions of some organizations in combating the Covid-19 pandemic.

When the pandemic is over, there may be a drop in private social investment, according to Gife. Still, the outlook should be better than that of 2019. Half of the organizations said that, in 2022, they intend to maintain the same level of investment as in 2021 — the forecast was to reach a total of R$ 4.2 billion, lower than that of 2020, but higher than that of 2019.

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