Africa shows philanthropic gains, but Global gaps persist in new global index

Africa is emerging with stronger philanthropic foundations, but it faces hurdles in a global landscape that remains uneven for giving.

The 2025 Global Philanthropy Environment Index (GPEI), released by the Indiana University Lilly Family School of Philanthropy, ranks 95 economies on how enabling they are for philanthropic work.

The report focuses on the period between 2021 and 2023, and measures six factors: legal and administrative ease, tax incentives, cross-border flows, political context, economic conditions, and socio-cultural support.

A country is considered to have a favorable environment if its average score across these six factors is 3.5 or higher.

According to the Index, 61% of the represented economies met that threshold.

Sub-Saharan Africa on the Rise

Sub-Saharan Africa saw some of the most notable improvements. The region’s average score rose from 3.07 in 2018 to 3.90 in 2025.

This places it among the 10 out of 15 global regions with favorable philanthropic conditions.

Gains in the ease of operating organizations were key.

Simplified registration processes and lowered financial thresholds contributed to a more accessible legal framework.

In Kenya, new tax incentives helped boost scores.

Zimbabwe improved processes for nonprofit registration, and Nigeria invested in a centralized database for nonprofits to enhance accountability and reduce administrative duplication.

Compared with other improving regions such as the Gulf States and Central Asia, Sub-Saharan Africa showed a stronger cultural and grassroots foundation. In the Gulf, the push for nonprofit growth was state-driven.

In Africa, however, the growth reflected both civil society resilience and a strong tradition of community-based giving.

Still, the region remains behind top-ranking areas like Northern and Western Europe, known for low regulatory burdens, high government trust in nonprofit actors, and generous tax policies.

For instance, Denmark and the Netherlands scored above 4.5 in almost all indicators.

The Middle East and North Africa also improved on operational ease but continued to face limits on funding, particularly regarding foreign grants.

Between 2021 and 2023, global shocks shaped giving environments: pandemic recovery, inflation, and rising displacement.

Events such as the Türkiye-Syria earthquake, wildfires in Greece, and Southern Africa’s prolonged drought drew philanthropic responses.

In Africa, organizations adapted through digital platforms and diaspora engagement.

In Zimbabwe and Uganda, mobile-based giving expanded.

Mobile money and crowdfunding lowered entry points for international support, particularly in the wake of disasters.

In Nigeria, virtual fundraising events became common, while in Kenya, philanthropic groups increasingly partnered with fintech startups to track donations.

Diaspora philanthropy gained momentum, with Africans abroad contributing more during emergencies.

This trend was mirrored in other regions, notably the Caribbean and parts of Southeast Asia, where overseas remittances are increasingly used for social investment, not just household support.

The shift toward digital engagement wasn’t universal. In fragile or under-resourced areas, connectivity issues and regulatory hurdles constrain digital expansion.

However, overall, the report found that 73% of GPEI experts observed an increase in inter-organizational collaboration, partly driven by these new digital practices.

Cross-Border Giving Remains Restricted

Cross-border flows scored the lowest globally, averaging 3.40. In Africa, these flows face significant barriers.

Restrictions on foreign donations and complicated banking regulations hamper responsiveness to urgent needs.

For organizations responding to emergencies or climate-related disasters, these limitations are particularly burdensome.

Latin America, Southern Asia, and the Middle East face similar issues.

By contrast, some parts of Europe now treat foreign and local donations equally. Spain’s 2021 tax reform aligned both categories, a policy model African regulators could study.

In Sub-Saharan Africa, delays in currency exchanges, added scrutiny of foreign funding, and a lack of legal clarity on cross-border donations deter international donors.

The GPEI notes that in countries with highly regulated banking systems or political suspicion of foreign civil society funding, these flows are either blocked or channeled through complex intermediaries, raising costs and reducing effectiveness.

This also affects Africa’s ability to tap into global philanthropic momentum. Foundations in Europe and North America increasingly fund climate and development projects, but without conducive laws, African organizations are often left out of major funding streams.

Economic Conditions Still a Weak Link

Sub-Saharan Africa’s economic score—2.99—was below the global average of 3.41. Inflation and economic instability weigh on both giving capacity and philanthropic operations.

In several African nations, inflation levels remained in double digits through 2023, eroding disposable income and donor confidence.

In Northern Europe, the strongest economic conditions reflect high income levels and robust governance.

In contrast, many African economies deal with volatility that discourages both local and international support.

This disparity affects everything from grant size to the sustainability of nonprofit programs.

Even where legal frameworks are supportive, weak economic conditions can undercut philanthropic growth.

For example, nonprofit leaders in Ethiopia and Malawi expressed concerns that shrinking government budgets have shifted more responsibility onto the sector without corresponding funding streams.

Cultural Strength Supports Giving

Where Africa shines is in its socio-cultural environment. The region scored 3.75, up from previous years.

Religious traditions and community solidarity drive high levels of informal giving.

Countries like Ghana and Nigeria exemplify this dynamic, where support often comes through religious duty or mutual aid.

Traditional communal structures such as burial societies and savings groups often operate without formal registration, yet play critical roles in health, education, and disaster support.

Globally, this category remained the most stable. Canada and the U.S. led with a score of 4.80, due to established traditions of volunteering.

But while the North American model is institutionalized, Africa’s model is relational, rooted in reciprocity and shared responsibility.

In regions where religious engagement remains strong, such as Lebanon and Nepal, giving through faith-based systems is robust, just as in many African countries.

In Zimbabwe, religious institutions often operate health clinics and schools, funded largely through donations from members.

What Defines an Enabling Environment?

According to the GPEI, a favorable philanthropic environment includes policies and traditions that enable individuals and institutions to give effectively.

Six global recommendations aim to improve these conditions:

1. Clarify legal frameworks to reduce restrictions.
2. Digitize and streamline procedures to ease registration and reporting.
3. Ensure transparency without deterring donations.
4. Apply proportional requirements, especially for smaller groups.
5. Foster collaboration with governments to solve shared challenges.
6. Invest in infrastructure, including training, research, and digital platforms.

In African contexts, several of these reforms are already underway. Rwanda’s digitization of nonprofit registration has reduced costs and wait times.

In Uganda, proportional reporting for small organizations has been proposed.

These developments align with GPEI expert calls to adapt regulatory burdens based on organization size and capacity.

Improved collaboration between governments and nonprofits also emerged as a need.

While some partnerships exist, especially in health and education, formal mechanisms for joint planning and funding are limited.

Expanding government trust in philanthropy could unlock new forms of public-private cooperation.

Tracking Progress Over Time

Of 77 economies tracked across multiple GPEI editions, almost half saw improvement.

Sub-Saharan Africa was among the most improved regions, climbing from 3.07 to 3.90. Kenya, Nigeria, and Zimbabwe led with legal updates and strong civic traditions.

But not all trends are positive. Countries like Venezuela, Myanmar, and Argentina saw declines linked to political instability and constraints on civil society.

Latin America showed particular vulnerability to authoritarian shifts and civic space closures.

Eastern Europe offered mixed results. While Baltic countries like Lithuania and Estonia improved their tax and legal frameworks, countries like Belarus saw declines in civil society freedoms.

Despite setbacks, cultural support for giving held firm in many regions, including Africa.

Community values and shared responsibility continue to underpin philanthropy, even where legal and financial systems fall short.

In some fragile states, informal networks now fill gaps once served by weakened public systems.

 A Sector in Transition

Africa’s philanthropic environment is strengthening, particularly in regulatory clarity and cultural support.

Yet economic stress and funding restrictions continue to challenge its potential.

For philanthropy to thrive—on the continent and globally—policy reforms, cross-sector collaboration, and digital innovation are essential.

The 2025 GPEI provides a detailed roadmap for how countries can cultivate a more enabling space for giving in a turbulent world.

Whether through digitized systems, clearer legal pathways, or stronger community trust, the next phase of African philanthropy will depend on how effectively these recommendations are implemented and scaled.

The opportunity is clear; what remains is the collective effort to act.