Global Philanthropy Trends: Assessing the Enabling Environment for Giving
Philanthropy is personal — giving your time, money, or resources to make a real difference. Whether supporting a family in need, funding medical research, helping protect our planet, or contributing to any other cause that resonates with you, every act of generosity has a ripple effect. It goes beyond what governments and businesses can do, filling gaps and tackling challenges in ways that truly change lives.
Philanthropy achieves its most significant impact when grantors stay attuned to the evolving global landscape and remain equipped with the strategies to maximize the effectiveness of grants in tackling critical challenges worldwide.
Trends in Global Philanthropy
Global philanthropy is continually evolving. A few major trends are reshaping how giving happens today:
Digital Transformation and Online Giving
Technology is reshaping philanthropy, making giving more digital, instant, and accessible. Over 50% of donors prefer online contributions via credit/debit cards over cash or mail.
Crowdfunding, one-click donations, and social media-driven campaigns have expanded nonprofits’ reach, a shift accelerated by the COVID-19 pandemic. Virtual fundraisers, contactless giving, and innovative online efforts are now the norm.
NextAfter’s 2024 Fundraising Benchmark Report shows that organizations embracing digital strategies see faster growth. Online giving, currently 10%-20% of donation revenue, is projected to reach 30%-50% by 2034.
Rise of Donor-Advised Funds and Impact Investing
New financial vehicles for philanthropy are growing. Donor-advised funds (DAFs) allow donors to contribute for immediate tax benefits while granting funds over time, and provided a record $52 billion in U.S. grants in 2022.
Similarly, impact investing blends philanthropy and investment, using social bonds, impact funds, and microfinance to drive change. As foundations and investors embrace these strategies, the global impact investing market now exceeds $1 trillion, signaling a shift toward innovative, high-impact giving.
Growth of Corporate Philanthropy and ESG-Related Giving
Businesses are growing in global philanthropy, with corporate giving increasingly tied to ESG (Environmental, Social, and Governance) commitments and social responsibility. Many companies establish foundations, match employee donations, or fund community projects. U.S. corporate contributions tripled from around $11 billion in 2002 to $35 billion in 2022, reflecting rising expectations to give back.
Beyond cash, companies provide in-kind resources, expertise, and volunteer time. As consumer and investor interest in social impact rises, corporations are predicted to continue expanding their philanthropic efforts.
Regional Differences in Philanthropy
Philanthropy varies widely across regions and cultures. The U.S. leads in charitable giving with nearly 60% of global individual donations, driven by a strong tradition, tax incentives, and a high number of charitable foundations. In Europe, philanthropy is shaped by legacy foundations and social welfare systems, often resulting in lower private donations than in the U.S.
Emerging economies in Asia, the Middle East, and Africa are seeing growing philanthropy, influenced by rising wealth and cultural traditions. In Muslim-majority countries, Zakat generates up to $600 billion annually for social services. India’s corporate giving law directs billions to charity, demonstrating the promise of international philanthropic giving.
Notably, countries like Indonesia and Kenya rank high in generosity by participation. Despite regional differences, philanthropy remains a universal practice shaped by economic conditions, laws, and cultural norms.
Assessing the Enabling Environment for Giving
The “enabling environment” for philanthropy refers to how conducive a country or region’s conditions are for charitable giving and nonprofit activities. It encompasses a range of factors — from laws and regulations to economic and political stability, cultural attitudes, and technological infrastructure — that can encourage or hinder philanthropy.
In other words, it’s the climate in which donors, charities, and civil society operate. A supportive, enabling environment makes it easy to donate and for charitable organizations to thrive, whereas a restrictive environment can stifle generosity and impact.
Globally, the enabling environment for giving ranges from favorable in some countries to challenging in others. According to the Lilly Family School of Philanthropy’s Global Philanthropy Environment Index (GPEI), about 62% of countries studied in 2018–2020 had an overall favorable climate for philanthropy (scoring 3.5 or above out of 5), while the remaining ~38% had less favorable or restrictive conditions.
A breakdown of some key components shows what comprises the enabling environment for giving and how it affects global philanthropy:
Government Policy and Tax Incentives: Supportive policies, like simplified nonprofit registration, legal protections, and tax incentives, foster philanthropy. The UK, for example, offers strong government support and generous tax relief (Gift Aid), earning a high philanthropy index score of 4.07/5.
Economic and Political Stability: Philanthropy thrives in stable environments — financial security (steady incomes, low inflation) and political stability foster trust and generosity. In contrast, crises and turmoil often reduce charitable giving by creating uncertainty. In addition, countries often see declines due to domestic economic stress. In short, a strong economy and good governance create fertile ground for philanthropy, while instability introduces uncertainty that can constrain generosity.
Cultural Attitudes and Social Norms:
Culture shapes views on charity and social responsibility. In some societies, giving is deeply ingrained as a moral or religious duty, fostering a strong philanthropic culture. For example, Indonesia ranks among the most generous countries, with 84% of people donating annually, driven by religious obligations (zakat, tithing) and traditions like gotong-royong (mutual aid). Kenya also ranks high, with philanthropy embedded in religious giving and the Harambee (community self-help) spirit.
Conversely, individualistic cultures or those with low trust in institutions may see less giving due to skepticism or lack of awareness. Public education and transparency help foster generosity. Ultimately, where compassion and charity are valued, philanthropy thrives.
Technology and Financial Innovation:
Technology is transforming philanthropy by making giving more manageable and more accessible. Modern payment systems, fintech innovations, and internet access reduce friction, enabling donations with just a few taps on a smartphone. In tech-advanced regions, nonprofits leverage social media, crowdfunding, and online platforms to reach millions, while mobile money services like M-Pesa expand giving in developing areas.
The pandemic further accelerated digital giving, from virtual charity events to fundraising via messaging apps. Emerging tools like cryptocurrency donations, peer-to-peer fundraising, and “round-up” apps engage younger donors and lower barriers. However, the digital divide persists, limiting philanthropy in areas with weak tech infrastructure. Bridging this gap while ensuring security is key to expanding global giving.
Challenges and Opportunities
Even as global philanthropy grows, there are significant challenges to overcome and promising opportunities to expand and improve giving. Understanding these can help stakeholders (donors, NGOs, and policymakers) take action to support a thriving philanthropic sector.
Barriers to Cross-Border Giving:
In our interconnected world, people want to donate globally, such as for disaster relief. However, regulatory barriers often complicate cross-border philanthropy. Differing national laws, foreign donation rules, and tax policies create significant friction.
Many countries impose strict oversight on funds across borders to prevent money laundering or foreign influence. Some require special NGO permissions, cap individual donations abroad, or deny tax deductions for foreign charities. As a result, donors in one country may struggle to support causes in another, even during crises like the war in Ukraine or COVID-19.
Streamlining regulations could enhance global giving. Efforts like Transnational Giving Europe simplify donations within the EU, and the U.S. offers mechanisms like equivalency determinations for foreign charities. Yet, legal obstacles persist, requiring continued advocacy and policy innovation.
Transparency and Accountability:
As philanthropy grows, people increasingly scrutinize how organizations use funds. Trust is essential, yet transparency remains challenging, with scandals and inefficiencies eroding confidence. A U.S. survey shows that only 33% of Americans trust private philanthropy, compared to 57% who trust nonprofits.
The trust gap results from perceptions of opacity, elitism, and unclear results. Nonprofits are addressing this by prioritizing accountability — publishing impact reports, conducting evaluations, and increasing financial transparency — to rebuild confidence and close the trust gap.
Technology aids this effort, with aids like blockchain tracking and real-time updates enhancing donor trust. Strengthening transparency reassures donors and boosts effectiveness, encouraging greater generosity.
Expanding Philanthropy Through Policy and Innovation
Innovative policies and collaborations can significantly boost philanthropy. Governments can encourage giving through tax incentives, streamlined nonprofit regulations, and support for cross-border donations. The Global Philanthropy Environment Index found that 55% of countries improved their philanthropic climate between 2014 and 2020, often due to policy changes. Nations can learn from successful models like U.S. equivalency determination or the UK and Canada’s giving incentives.
International networks can drive reforms, while emerging markets offer a chance to shape philanthropy with transparency and strategy—additionally, technology and fintech open new donor engagement and fundraising models. Strengthening policies, cooperation, and innovation can greatly enhance global philanthropy’s impact.
Maximize Your Giving Impact
Global philanthropy is dynamic and vital. It’s growing in new ways from online giving to impact investing, and its success depends heavily on the environment in which it operates. A key insight is that generosity alone isn’t enough; supportive laws, economic stability, cultural encouragement, and technological tools are critical to empowering people to give. When the enabling environment is strong, philanthropy thrives, and societies benefit.
Philanthropy is, at its core, a collective effort. In a world grappling with complex challenges, we all have the power to foster the spirit of generosity and solidarity. The needs may be vast, but so is our shared ability to create meaningful change. As the proverb reminds us, "Many little people, in many little places, doing many little things, can change the world." Together, our small actions can ripple outward, transforming lives and communities.
Many global philanthropists rely on organizations like TrustBridge Global Foundation to help navigate the complexities and risks of international granting. Opening a Foundation Fund (a Swiss donor-advised fund) with TrustBridge Global Foundation is a great way to begin staging your charitable donations for global impact. With a grant-making history in almost 100 countries, TrustBridge Global can offer insights and assistance in most countries you are exploring.