Partnership between Casa Socio-Environmental Fund and government financial institution to invest in 400 social projects in Brazil.
Support for local initiatives is essential for resilience and adaptation to global crises. Photo: UNDP Colombia
Socio-environmental crises, though global in nature, are most felt in specific regions, with intensified impact on vulnerable territories and marginalized populations in the Global South. Supporting local solutions is therefore essential to combat the extreme effects of these crises, as well as to strengthen adaptation and resilience. However, the reality of resource allocation moves in the opposite direction. Data reveals that only a fraction of global climate financing is directed towards assisting localized-level initiatives, contrasting with the rich ecosystem of institutions that support communities, such as local socio-environmental funds, which have been transforming how funding reaches where they are most needed, urgent, and effective.
The strength of these funds lies in their proximity to the communities they support, agility in addressing challenges, and networks of reliability. These actors are also crucial in fostering a culture of targeted investment, catalyzing internal resources, and diversifying financial backing sources. This is important because access to significant financial capital often depends on cooperation with international organizations or larger foundations, which frequently have agendas that do not reflect the realities of developing countries. Bureaucratic barriers, a lack of trust, and the perception that local funds lack scalability obscure what is clear in practice: these funds demonstrate immense adaptability to grown level demands, achieving far more efficient results than traditional mechanisms by driving development through genuinely grown place-based solutions.
A clear example of the power of local philanthropy is the Fundo Casa, which has supported thousands of projects across different regions of Brazil and Latin America in nearly two decades of operation. Recently, Fundo Casa partnered with Caixa Econômica Federal, a Brazilian government-owned financial institution, shedding light on the importance of sparking national philanthropy.
The program will allocate approximately US$7 million to directly benefit 400 social organizations from all regions of Brazil, representing the largest investment in the history of Caixa’s Socioambiental Fund (FSA). This initiative will promote capacity building and knowledge exchange among the involved organizations, reinforcing the importance of collective learning and collaboration.
“It is a compelling response for those who still doubt the viability of a scalable and effective approach,” writes Cristina Orpheo, Executive Director of Fundo Casa, in an article reflecting on the scale of support for local communities. The scalability issue is addressed once national funding structures of different natures can establish significant partnerships, like the one with Caixa.
By building trust among stakeholders and fostering a culture of giving , national philanthropy can create a robust system for local-level initiatives while contributing to a more sustainable and equitable philanthropic landscape. Partnerships like the one described above are concrete examples of a revitalized and creative philanthropy.
Addressing today’s crises will require greater recognition that no global solution can succeed without local action. Now, more than ever, it is essential for the philanthropic ecosystem to embrace new ways of fulfilling its social mission, investing in what is necessary and supporting what is already working.
