You dream of creating a new culture of giving. Is there a need for this type of culture in Brazil?
We’ve got a major problem with distrust in Brazil. Ours is a country where, since the era of colonisation, people have had little trust, be it in institutions or other people.
What does that mean for the third sector?
There’s a real lack of trust there, too. People are afraid to donate. It’s a problem exacerbated by the country’s staggering social inequalities.
That prevents people from donating?
If I donate money, people will think I’m too rich for my own good. Exposing oneself with money is also a security issue. Violence is an enormous challenge in Brazil. There’s also others contexts, beside this one, that discourage people from talking about charitable spending. In many cases, it implies that those who donate do so out of a sense of guilt and should not talk about it.
Do you see a bright side to any of this?
In spite of what I’ve just described, we have a strong civil society in Brazil. The pandemic has shown that we can build a better, stronger ecosystem.
How so?
During the pandemic, the speed with which the private and third sectors delivered solutions was a wonderful thing to see. And it’s exactly the approach we should take. We’re working to change the behaviour of society as a whole, to prove that we are a generous nation, and we’re on the right path.
Where are you seeing that?
In recent years, Brazil has improved its standing significantly in the World Giving Index and is now ranked 18th. But we can do better – we have to. Many still view philanthropy as the remit of the super-wealthy. They see charitable giving solely as a response to crisis: there’s an emergency. Help is needed. They donate.
‘Philanthropy itself is a solution, but at the same time, its very roots represent one of the problems it’s meant to solve.’
Rodrigo Pipponzi
So people shouldn’t wait for a crisis to donate?
Charitable giving should become a very natural civil act. To accomplish this, we’ve got to strengthen trust, improve the data, adapt the tax code and better prepare people who are already amenable to the idea. People have to understand the system.
You donate 100 % of the profits of your company’s products. What prompted you to start MOL as a social enterprise?
I come from a family of business-
people. Implementing my ideas was something I always wanted to do, so I founded the communication agency MOL in 2003. I quickly discovered that communication has the power to change people’s behaviour. It’s an important tool for transformation.
How did the idea of charitable giving become part of your business plan?
The founder of GRAACC is a close family friend. GRAACC is one of the leading organisations in the fight against childhood cancer in Brazil. It provides pro bono services for families and children across the country. GRAACC is where I first engaged in charity work and where I learned to love philanthropy. It’s also where I discovered the challenges of fundraising. I was immersed in the third sector at the same time as I was building my business.
How did you connect the two?
We launched a magazine called Sorria, which means ‘smile’. It was reasonably priced and sold at the chain of pharmacies my family owns, then we donated the proceeds to GRAACC.
Did that idea work?
We printed 120,000 copies of the
first issue. It sold out in three weeks. We were able to donate BRL 270,000, which is more than CHF 50,000. Then we scaled the idea. Five years later, GRAACC was able to build a new hospital with the donated funds. These days, we produce a range of publications and have given to around 200 NGOs. We have donated more than BRL 63 million to date.
Right: Rodrigo Pipponzi with Roberta Faria, co-founder and current CEO of Instituto MOL. Below: The team of the Jornada Doadora, a project run by Instituto MOL.
The goal of this first edition of the programme is to inform and stimulate the team to become donors and share their donation habits with their family and friends.
Your magazine is also remarkable, in that it tells positive stories.
Yes. It’s a collateral effect. We are creating content for a better society. The stories we tell are intended to improve families’ lives. Sorria, today, has become a series of books and other products with positive content.
Are your readers aware that the proceeds of their purchase are going to charity?
We communicate clearly on the product how the sales price is made up and where the money goes. It makes charitable giving easy. We don’t have to ask anyone for a donation. We’re offering a cool product, and if people like it, they’ll buy it regularly. This experience has shown me how my work can serve society.
How do things stand with the project these days?
We have expanded the company into a group that unites various initiatives. Instituto MOL, our non profit, is committed to promoting philanthropy among people and in companies. We have created an educational platform called Varejo com Causa, to educate professionals on how to better integrate philanthropy and social investment into strategy. The group’s mission is to strive for a nation of charitable givers.
Does Brazil have a common understanding of philanthropy?
Yes, among experts involved in philanthropy, but more than 200 million people live in Brazil, and within a population that big, profound social differences exist. We have huge geographical contrasts, which is why we need a common understanding of philanthropy. We have to demonstrate a new outlook on philanthropy for people. We have to show them it isn’t just for wealthy individuals. And very importantly, it isn’t just about money. We’ve got to create a narrative about generosity in our society. That’s a massive task and requires hard work. For it to succeed, that work needs to occur between sectors, civil society, private enterprise and government.
Does philanthropy come into play where the state or private sector fails?
Yes, of course. Many people in Brazil would not have access to healthcare or education without the third sector. But it’s more than just that. Philanthropy is governed by its own accountability and is not the solution itself. It stands in defence of democracy, promotes a thriving society and has a positive impact on people’s behaviour. It can go where the state and private sector cannot and favour specific causes, such as human rights. It can drive change, regardless of any government agenda, and it can take greater risks. It can influence and create public policies. Philanthropy has the potential to uncover solutions and rewrite the narrative. It effects change in a structured and very thoughtful way.
Is that why all of society has to be involved?
We’re talking about solidarity and generosity here: the commitment must come from society as a whole. We’re talking about a new, common understanding of society itself. Major change is not possible when parts of our society are shut out. Society mustn’t be thought of in silos.
Earlier this year, Brazil saw a change of government. How did that change the work of the third sector?
The last four years were a challenge for civil society in Brazil. People’s sense of trust was strained even further. Jair Bolsonaro tried to impose his ideas on society and excluded civil society. The pandemic didn’t make things any easier. Luiz Inácio Lula da Silva has been in power since the beginning of the year. The new government has a much more open stance towards civil society. Communication has opened back up. We’re seeing representatives of civil society taking on government roles, which is already leading to an idea of shared agendas. It’s strengthening civil society and rebuilding people’s trust.
Does it also strengthen democracy?
Philanthropy is a powerful defender of democracy, but Brazilian society remains divided.
Can philanthropy help bridge that divide? Do your publications reach all of society?
Yes, our publications are available to all. But it’s true – Brazil is a polarised nation. In recent years, polarisation has been a daily topic of conversation. But things are changing. People are tired. TV, newspapers and websites have finally started to cover other topics as well. Things are quieting down, which is good for philanthropic engagement.
Where does the third sector stand?
Among certain parts of society, anyone connected to the third sector is automatically on the left’s side. Many of my friends say that my charity work puts me on the left. But I’m neither left nor right. Generally speaking, philanthropy has its own ecosystem and can bypass polarisation.
Is philanthropy creating solutions to society’s problems?
Philanthropy itself is a solution, but at the same time, its very roots represent one of the problems it’s meant to solve: philanthropic activity is usually in response to an imbalance in society. When wealth is controlled by the few, philanthropy is the result. In Brazil, I often see that philanthropy does not balance power, but preserves existing structures.
How might that change?
We can help by introducing new ideas and developing philanthropy. We must be willing to have difficult conversations. We must acknowledge our privilege. We’ve got to learn how to share our privileges with others and discover ways to make a difference. We must ask: how can we spread our privilege? That’s not an easy conversation to have with those who hold the power in society. But it’s these awkward discussions that will lead to fresh ideas and newfound trust. We’ve got to reach out to different organisations and involve the people whose problems we aim to solve. Developing philanthropy is a difficult task because you have to question your own sense of goodwill – and certainly your own wealth – at the same time. It’s an act of decolonisation.
Are people ready for that?
Not everyone – not every organisation, or philanthropic group or government body – but my generation, and the generations to come, are open to having this conversation and challenging the status quo. If you come from a very wealthy family and inherit millions of dollars in one fell swoop, you’ll ask yourself, is this all for me? Younger generations will question how such wealth came about in the first place. And they’ll think about what to do with it. I hope we’ll have these discussions. Our approach should be creative and generate fresh ideas. It’s a long process. Above all, we must listen to – and truly hear – the concerns of the next generation, because only then will we know how to achieve this change in philanthropy.