NEW YORK (Realist English). A new report supported by The Rockefeller Foundation urges a bold transformation of philanthropy in Latin America and the Caribbean (LAC), arguing that mobilizing just 1% of private wealth could generate over $5 billion annually — nearly equal to all international aid currently flowing into the region.
Titled “Five Agendas to Drive the Transformation of the Philanthropic Sector in Latin America and the Caribbean,” the study was conducted by The Resource Foundation and Dalberg Advisors. It identifies the key structural weaknesses holding back the region’s philanthropic potential — including low public trust, fragmented investment strategies, and a short-term aid mindset — while calling for a shift toward locally-driven, long-term, and systemic change.
“Latin America holds tremendous philanthropic potential that remains largely untapped,” said Lyana Latorre, Vice President for Latin America and the Caribbean at The Rockefeller Foundation. “We need a form of philanthropy that moves beyond short-term fixes and focuses on driving structural and sustainable change.”
A region rich in wealth, but low in giving
Private donations in Latin America and the Caribbean account for just 0.2–0.3% of GDP, compared to 1.5% in the United States and 1% in Canada, according to the World Giving Index. Despite having large concentrations of private wealth, LAC’s richest 10% earn 12 times more than the poorest 10%, according to the Inter-American Development Bank (IDB).
Nearly 270 million people in the region live in poverty, including 70 million in extreme poverty, according to ECLAC. Climate change has further deepened these inequalities, with eight countries in Latin America and the Caribbean ranking among the world’s most vulnerable, according to the CliF Vulnerability Index.
Declining aid, falling trust, rising need
As global aid shrinks and donor countries reduce cooperation budgets, the report warns that LAC’s development progress is at risk unless domestic philanthropy steps in to fill the gap. Yet only 27% of Latin Americans trust NGOs, according to the 2024 Latinobarómetro survey. Much of the region’s giving occurs informally through “silent philanthropy,” where individuals donate directly to causes without coordination or visibility.
Still, public appetite for effective action remains strong: 78% of Latin Americans support international cooperation — higher than the global average of 75%.
“Philanthropy plays a vital role in mobilizing capital and scaling solutions to improve lives,” said Elizabeth Yee, Executive Vice President of Programs at The Rockefeller Foundation. “We’re proud to support partners across the region as they build a healthier, safer, and more prosperous future.”
Five agendas to transform regional philanthropy
The report outlines five strategic priorities to reshape the region’s philanthropic landscape:
- Cross-sector collaboration – Move from isolated projects to long-term alliances with shared governance and evaluation mechanisms.
- Mobilizing local resources – Engage a new generation of donors and create incentives for sustained giving through governments and capital markets.
- Purpose-driven investment – Prioritize social impact and sustainability over short-term results, treating giving as social investment, not charity.
- Local leadership – Empower communities as co-owners of development, rather than passive beneficiaries.
- Professionalizing the sector – Build institutional capacity, transparency, and robust data systems to increase effectiveness and accountability.
“The capital is there, and so is the talent,” said Beatriz Guillén, Executive Director of The Resource Foundation. “What we need now is to activate them with purpose, build trust, and demonstrate that investing in the region is not charity — it’s a development strategy.”
The authors conclude that a redefined, professional, and collaborative philanthropy could unlock vast untapped resources, helping Latin America and the Caribbean transition from a region of donors’ dependency to one of shared prosperity and sustainable growth.
