Latin America

Regional Reviewer: Van C. Evans, Ph.D.
Institutional Affiliation: Generations Humanitarian

Overview

The Latin American region has had a rich history of philanthropy since the conquistadores established themselves in the New World. From 1492 onward, they instigated similar administrative functions in New World colonies used at the time in Spain, including deference to the Catholic Church, for public welfare. For three and a half centuries of Spanish and Portuguese rule in the Americas, philanthropy was instilled by the Church and the crown, and a rich tradition of philanthropy imbued the region. After the wave of independence in the 19th century, secular philanthropy evolved differently in the hearts and politics of each nation, and continues to do so, which explains the vast disparity in today’s country scores, although derived from a singular history.

Very favorable philanthropic climates exist in Colombia, Chile, and Uruguay. Already scoring well in past reports, these three countries have seen even more improvements with minimal regulation and oversight, increased high levels of freedom to form philanthropic organizations (POs) in all subsectors, and greater ease in government-driven complementary contracts. Such climates also cultivate a tradition of philanthropic giving and volunteering.

The tax system in other states, on the other hand, is less favorable to both making charitable donations and for POs receiving charitable donations. In most countries in the region, there is usually a low ceiling on the amount that can be donated and deducted, or there is no deduction whatsoever. Chile has been the most aggressive in changing this state of affairs, even opening the way for automatic payroll donation deductions.

Cross-border flows fare only slightly better. In Brazil, Argentina, and El Salvador, sending cross-border charitable donations is significantly impeded with high costs or not permitted at all. While most of the countries have favorable systems for receiving cross-border donations, others are more prohibitive. Until the Milei Administration, funds donated to Argentinian POs were retained by the central bank and then paid to the donee in Argentine pesos at the official exchange rate, an average of less than 50% of the market value. Bolivia is worse; in one case, ambulances were brought into the country for emergencies and left at the airport entry site because the tax charge was much more than the value of the vehicles.

Public policies and general political environments for POs vary across the region. Some see POs as adversarial and a threat to their control. Nowhere is this more evident than in Venezuela. Human rights organizations are not permitted; involuntary dissolution of POs does not honor due process and recourse is limited; PO registration authorities are corrupt and inconsistent. The Maduro government criminalizes POs that receive cross border donations. NGO staff that provide food and health are either in exile or in prison. In August 2023, even the International Red Cross offices were forcibly reorganized.

In most regional countries, socio-cultural values and practices result in low levels of donations to POs, but the people are more likely to help one another. In Peru, only 13% of the people donate, and only 18% volunteer, but a full 64% will financially help a stranger. Only 36% of Brazilians donate to POs, but 84% give, mostly in-kind. (In fact, 75% of Brazilians think that donors should not even admit that they donate.) Even the giving spirit of the Venezuelan diaspora is a significant actor in helping the country survive with remittances.

What about the future? While nearly all countries in the region report a decline in democracy, we see a greater professionalization of the nonprofit sector across the region. There is increased crowdfunding and heightened interest in climate intervention, gender equality, social justice, and organized religions.

View the full 2025 GPEI Latin America regional report:

View Latin America Report