The purpose of this study was to identify and map the philanthropy ecosystem and support organizations in East Africa (Kenya, Uganda, Rwanda, and Tanzania), including key actors, the legal environment, resources, enablers, and limitations. Philanthropic support organizations play various roles in the growth of philanthropy. These include local and international organizations providing philanthropic funding and intermediary organizations that support the growth of local philanthropy by raising both local and international funding. Other organizations support the growth of philanthropy by promoting the capacity, capability, and credibility of non-profits to enable them to attract and wisely utilize mobilized resources. Data was collected using both primary and secondary methods. A total of 56 respondents from the four countries participated in the study. The primary findings were triangulated with secondary data. This report is presented in two parts: the first part provides a general overview of the philanthropy support ecosystem in East Africa, and the second part offers country-level reports.
Findings indicate that a majority of civil society organizations (CSOs) in East Africa continue to depend on external resources from developed countries for the implementation of their programs. Despite this, there is growing recognition of the potential for local philanthropy in the region. This is backed by evidence of growing local giving, corporate giving, and a rapid rise in high-net-worth individuals entering the social sector through foundations. To maximize giving from ordinary individuals, the middle class, high-net-worth individuals (HNWIs), corporates, and major donors, CSOs must address issues such as trust, transparency, accountability, and demonstration of impact.
There is great potential for developing long-term giving programs. CSOs operating in East Africa have a chance to formalize fundraising efforts, including the promotion of home-grown philanthropy, to drive sustainability and long-term financial security. Corporate actors are increasingly giving to charitable causes. Critics have argued that this giving is most often driven by business needs. Nevertheless, it offers a great window for CSO sustainability. Giving by high-net-worth individuals is also on the rise in East Africa as more wealthy people establish charitable foundations to carry out their philanthropic work. Local non-profits have begun to tap into new and diversified networks to engage with a broader range of donors and private sector partners. The emerging opportunities include the need for more coordination and collaboration of large-scale funders and the need for investment in capacity development in the holistic sense. Philanthropists are becoming increasingly sophisticated in their giving, thus there is a compelling need for organizations to understand the interests of their donors and manage these relationships well.
A major internal challenge to CSOs is a lack of transparency and accountability for the funds raised. There is also inadequate investment by organizations in building robust fundraising architectures over the years. This is particularly evident in terms of low investment in staff and infrastructure, underdeveloped communication systems such as websites, and weak governance structures (board/trustee engagement). Organizations need to focus a greater proportion of their efforts on promoting more opportunities for philanthropists and the general public to give, including harnessing the power of digital fundraising and the potential associated with donating through local and global online channels such as M-Pesa, M-changa, PayPal, JustGiving, etc. Investment in digital marketing and communications will support the growth and prevalence of individual giving programs. Other areas for further development include the growth in family and community philanthropy, impact investment, platforms for high-net-worth individuals to showcase their philanthropy and build networks with peers, and building endowment funds.
There is also an opportunity to nurture local initiatives that have proven successful, such as cooperative movements and solidarity actions like harambee in Kenya, omuganda in Uganda and Rwanda, and ujamaa in Tanzania. To respond to global challenges, CSOs must become abreast of new models for international funding such as the growth of social business, corporate social investments, climate financing, and the use of social bonds. For African CSOs to thrive, there is a need for sustainability and collaboration through sharing of donors and information about philanthropy. Networking is key—the more extensive the network, the bigger and stronger the ecosystem. There is also a need to leverage locally raised funds to promote overall local resource mobilization efforts of African CSOs. Researchers and practitioners are called upon to write contextual reports and books on philanthropy in the region and demonstrate what is being done in the region. The philanthropy sector requires clear structures to be developed just as seen in other sectors, such as law and manufacturing, where professionals collaborate.
There is also a need for enabling legislation. However, although legislation is good, it can also have its limitations, especially in Africa, where the civic space is shrinking. Laws might not favor CSOs and should thus be allowed to emerge organically. There is also a need to decolonize aid because policies and laws tend to favor donors from the West rather than considering local dynamics. From a gender perspective, men philanthropists are more visible than women, but many women play a significant role in mobilization. The question is—how can CSOs integrate the nexus between gender and philanthropy? This calls for an exploration of the intersections between feminist principles and philanthropy. In conclusion, philanthropy should remain an enabler, not an end, and not a replacement for the government.
