Fundraising in Emerging Markets: Challenges and Opportunities

Overcoming obstacles
Traditions of philanthropy vary widely. In Latin America, there is no real culture of giving to social and environmental causes. In Asia, while almost everyone “gives,” they tend to do so to the extended family, poorer relatives or poor people in the neighbourhood. They also give to local temples and mosques. In Africa, strong patterns of kinship and community support also dominate over giving to nonprofits. In most of these countries, family and kinship still play major roles in people’s lives, and people personally know people in need — unlike the situation for many donors in the U.S. today. But this situation is changing with a growing middle class and increasingly smaller families. Improved levels of education also contribute to a rising number of people prepared to part with goods or cash to assist nonprofits they trust.

But nonprofit fundraisers can face serious, practical challenges. The postal system might not work, the banking system probably won’t facilitate regular giving, writing a cheque usually incurs bank charges and quality lists can be hard to acquire. But there are creative ways around most of the problems.

In Brazil and Colombia, for example, volunteers on motor scooters have been used to pick up donations from pledgers. In the Czech Republic, one nonprofit overcame the lack of mailing lists by volunteers delivering appeals door-to-door in middle-class neighbourhoods. Internet giving portals also are providing ways of making it easier for donors to give — and connecting communities across the globe. In the last few years, a number of giving platforms have been launched to encourage philanthropy in and toward specific countries — for example Conexión Colombia and Reconnect in the Philippines.

The rapid expansion of mobile phones in many developing countries, and, in particular, the ubiquitous use of text messaging, has created opportunities. In India, Greenpeace uses SMS to generate donor leads by asking people if they would like a tree seedling or house plant. Those who text back “yes” get the plant delivered by a Greenpeace representative who asks if they would consider supporting the charity.