Philanthropy in Central and Eastern Europe 2020-2023

Posted on March 7, 2024 by Anna Korzeniewska

Graphic reads: Unlocking Private Capital for Social Good in Central and Eastern Europe. A comprehensive analysis. Bottom logos: Social impact alliance for Central and Eastern Europe. With support from Google.org. Dentons. Kantar. A map of Europe is shown on the right with central and eastern European countries highlighted in pink. — Unlocking Private Capital for Social Good in Central and Eastern Europe.

Institutional affiliation: Social Impact Alliance for Central and Eastern Europe (CEE Impact Foundation)

The report “Unlocking Private Capital for Social Good in Central & Eastern Europe” published in September 2023 by the Social Impact Alliance for Central and Eastern Europe, is a comprehensive analysis of the research conducted between 2020 and 2023 in collaboration with key stakeholders and decision-makers in 11 countries of Central and Eastern Europe: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia. It also includes insights from Ukraine, as the war has been the context, catalyst, and driving force behind the activities of businesses, investors, and individuals in the region.

Potential vs. challenges

The countries of Central and Eastern Europe are facing a pivotal moment, brimming with opportunities and challenges. After approximately 30 years of a free market economy, both individuals and companies possess the means and willingness to contribute to social and environmental causes. With the right incentives, individual giving could nearly double. Skills-based volunteering, pro bono services and mentorship from the corporate sector are becoming transformative for nonprofits. The social impact ecosystem is also maturing, with the infrastructure already in place and robust organizations facilitating social development and EU regulations nurturing this domain.

However, there are also challenges that need to be addressed – lack of awareness, education, cooperation, “how-to” knowledge, transparent legislation, tax incentives or the viable offerings in the market. As the region’s economies are relatively young, the pursuit of profit remains a central priority for businesses and investors, hindering the adoption of a more socially responsible approach. Philanthropic giving remains emotionally driven, with donors still reluctant to fund infrastructure organizations and more systemic causes. Following the accession of most Central and Eastern European countries to the European Union, many Western donors who had previously supported such initiatives have shifted their focus to other global regions. This leaves a huge gap that neither international nor domestic donors are willing to fill.

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A culture of generosity

Posted on February 28, 2024 by Kathi Badertscher

Kathi Badertscher and Jeannie Sager pose for a photo with NGO staff. — Left to right: Saudi Friendship staff member, Dr. Yahya Alzahrani, Saudi Friendship General Manager Hesham Alkhateeb, Dr. Kathi Badertscher, Al-Ahsa Tour Guide, Dr. Jessie Lecy, Jeannie Sager, Saudi Friendship high school student volunteer.

In December 2023 I traveled to Saudi Arabia with friend and colleague Jeannie Sager. We had the honor of being two of three women presenters at the Eleventh Forum for the Development of the Non-Profit Sector. While I have been privileged to travel personally and professionally many times, this was my first trip to the Middle East. The experience was full of powerful impressions that will last a lifetime.

In this blog post I reflect on the Saudi Arabian culture of hospitality and generosity. The Kingdom has been famous for its culture of hospitality for those traveling to its holy cities Mecca and Medina to perform Hajj, the sacred Islamic pilgrimage. I was overwhelmed, however, that the welcoming culture would extend to the far eastern region of the country – especially to a white woman in Western attire. I purchased my tourist visa online and received approval almost instantaneously. Naturally, I expected politeness during our stay, but Jeannie and I were welcomed with open arms – beginning with the passport control officer at the airport. He peppered me with questions exuding curiosity and warmth, not interrogation: was this my first time in the Kingdom? What U.S. state did I come from? What are my impressions so far? Staff in restaurants, shops, and our hotel asked us throughout our stay how we were enjoying the country.

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Philanthropy in Nepal

Posted on January 31, 2024 by Rewati Raman Dhakal

Bowls with donations at the Swayambhunath temple in Kathmandu, Nepal.

“From Traditional Practices to Modern Trends and Challenges of Philanthropy in Nepal”

Philanthropy is of great importance in Nepali society and reflects commitments deeply rooted in the country’s diverse religious and cultural landscape. Growing ownership and motivation of people to solve common societal problems has also been a key element for increased philanthropic activities in Nepal. While much of the philanthropic activity is informal, the number of philanthropic organizations has recently grown, and they are actively engaged in various types of philanthropic work. This blog post provides insights into traditional practices, modern trends, challenges, and recommendations for philanthropy in Nepal, among individuals and organizations.

Faith, Culture, and Traditions

The major faiths of Hinduism, Buddhism, and Islam each contribute to a wide range of altruistic practices, exemplified by the cultural traditions of daan (donations), zakat (almsgiving), and bhiksha (food given as alms). About 81.19% of the Nepali population[1] identifies as Hindu, and the Hindu act of giving, known as “Daan,” plays a major role in society. It has greater significance than either chanting mantras, performing Yajna (ritual done in front of sacred fire), performing pilgrimages or fasting in achieving dharma (fulfillment of religious and moral duties) and alleviating sins. Daan is also carried out during religious events and has significantly contributed in carrying out philanthropic projects. Among the various forms of giving, Tula Daan (scale donation) is one of the unique customs in Nepal. While Tula Daan is rarely observable to the public eye, it involves individual donations of specific items equal to the giver’s body weight, such as grain or other items available within their income. Tula Daan was initially associated with deterring adverse planetary effects and achieving religious goals, but it has evolved in recent years to include contributing to social objectives. Modern examples include individuals donating their weight in books to support local libraries or people donating coins or cash to support orphanages, hospitals, schools, and community projects.

Philanthropist Recognized as National Hero

As we reflect on the history of Nepalese philanthropy and recognition of philanthropists, a special honor is given to Mr. Sankhadhar Sakhwa. Sakhwa is considered to be a benevolent figure. During the reign of Licchavi king Ananda Dev (879 AD), he liquidated the debts of the Nepalese people and ushered in a new era known as Nepali Sambat, a transformative act. Notably, the Government of Nepal officially named Sankhadar Sakhwa as one of the national heroes of Nepal on November 18, 1999 (B.S. 2056-08-02). Additionally, on November 26, 2023, the Postal Service issued a commemorative stamp featuring his likeness to highlight the lasting impact of his philanthropic legacy.[2]

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The Social Enterprise Craze: CSO Financial Sustainability in Ghana

Posted on January 29, 2024 by Noemí Oeding

Students gather to sing and share a meal in the courtyard at B.A.S.I.C.S. International prior to receiving afterschool tutoring. B.A.S.I.C.S. International, a nonprofit organization located in Accra, Ghana, graciously hosted students from Auburn University as they conducted field research in October 2019. — Students gather to sing and share a meal in the courtyard at B.A.S.I.C.S. International.

Known for its long-lasting, mostly stable democracy, Ghana has long been considered a “donor darling” in sub-Saharan Africa. Since the mid-1980s, international donors and foreign governments have generously supported civil society organizations (CSOs) in the country. This has led to a robust civil society sector with a large number of organizations focused on everything from direct service provision to advocacy. For example, between 2012 and 2020, the number of registered CSOs nearly doubled from approximately 5,700 to 10,030 (USAID). However, the sector is also heavily reliant on foreign funders, with approximately 70 to 90 percent of Ghanaian CSO funding from international sources.

This heavy investment from international donors was upended in 2010 when the World Bank re-classified Ghana as a lower-middle income country. In response, several international funders indicated that they would reduce financial outlays in Ghana in order to divert those funds to countries with greater need. Indeed, Official Development Assistance (ODA) to Ghana fell from approximately $1.8 billion in 2011 to approximately $900 million in 2019. While there was a surge of aid in 2020 in response to the COVID-19 pandemic, the increase was temporary. By 2021, aid was once again on the decline, nearing 2018 levels at about $1.2 billion.

Several government proclamations have further complicated the funding environment. The most recent of these, “Ghana Beyond Aid” (released April 2019) declared Ghana’s intention to be “aid-free” sometime in the near future. Although the charter is ostensibly designed to motivate the Ghanaian government to provide for its needs with minimal support from external sources, the document has caused confusion among international donors and CSOs operating in Ghana. Our research found that many CSO leaders viewed “Ghana Beyond Aid” as political propaganda, but were still concerned that these types of aspirational proclamations would cause foreign donors to further reduce aid—aid that the government does not have the capacity to replace.

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Giving as Doing and Being: A Ugandan Perspective

Posted on January 18, 2024 by Dennis Kilama

Tombs of Buganda Kings at Kasubi (Uganda). © CRA-terre. Author: Sébastien Moriset.

By: Dennis Kilama

After 15 years of active involvement in the nonprofit sector in Uganda, I joined the Ph.D. program at the IU Lilly Family School of Philanthropy to integrate research with practice in the Ugandan nonprofit sector. At the same time, I am keen to bring a Ugandan perspective to understanding the broader concept of philanthropy. Overall, my research interests intersect with financial sustainability, nonprofit organizations, and traditional African giving practices. In this blog post, I draw from giving practices in Uganda, a country in East Africa, to reflect on the broader concept of philanthropy.

Giving in Uganda is expressed as “doing good actions.” People give to specific causes. For example, people give to others during important life milestones, such as birth, weddings, and funerals.[i] Traditionally, it is expected for family members and friends to give gifts when a child is born; this is at the point you see the child for the first time. Giving at weddings is also a common practice, with special wedding committees established and wedding fundraising meetings arranged where gifts are auctioned, compelling people to give towards the items that would make the typically large traditional and religious wedding successful. Giving is also practiced during moments of death to ensure that the grieving family is supported with things during the season of mourning.

In addition to actions, giving in Uganda is also about “being present.”[ii] If someone dies in a village, the village people are expected to support the bereaved family and be physically present at the funeral. If an individual only sends a financial contribution and instead attends to their farm and not the funeral, that individual is considered a social misfit. The gift is despised because the giver is assumed to value themselves and their gift more than the recipient. The impression that you value material things over people socially disconnects you from others. To opt for financial contributions only instead of physical presence at a funeral is thus a cultural insult. While people may reciprocate and provide a financial or in-kind donation, giving as action and presence in essential life milestones is very important and more culturally respectful. Thus, philanthropy in Uganda is about giving gifts in cash or in-kind and being present to experience joy or trial with others. In this case, philanthropy is collective and a cause and effect of social connectivity.

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