Multi-Ethnic Group Of People's Arms Raised Holding Letters That Form Give./ PHOTO; Pexel
Philanthropy is often judged by how generous people are or how much money is raised. But generosity alone does not explain why philanthropy thrives in some places and struggles in others.
Behind every donation, foundation, or community initiative sits a less visible factor: the environment that allows giving to happen or quietly makes it difficult.
The 2025 Global Philanthropy Environment Index (GPEI) puts this reality into sharp focus.
Produced by the Indiana University Lilly Family School of Philanthropy, the report looks beyond acts of giving and instead examines the conditions that shape them.
It asks a simple but powerful question: What makes it possible for philanthropy to operate well?
What “Favorable” Really Means
The report is clear that a favorable philanthropic environment is not about weak regulation or unchecked freedom.
Instead, it is about balance.
As the GPEI explains, such an environment is one that “provides adequate incentives and reasonable limits to encourage individuals and organizations to engage productively in philanthropic activities.”
In practical terms, this means laws that are clear and predictable, governments that do not treat civil society with suspicion, tax systems that encourage giving, and social norms that value community support.
When these elements come together, philanthropy can function as intended, supporting public good efforts alongside the state and the private sector.
Crucially, the report emphasizes that these conditions are not accidental.
They are shaped by “policy choices made by governments and by historical, cultural, and political traditions.” In other words, philanthropy reflects how a society chooses to organize trust.
How the Environment Is Measured
To make this idea concrete, the GPEI examines six areas that affect philanthropy.
These include how easy it is to run a philanthropic organization, whether tax incentives exist, how open cross-border giving is, and the broader political, economic, and social context.
Each country is scored on a scale from one to five. An environment is considered favorable if the average score across these areas is 3.5 or higher.
Using this method, the 2025 report finds that 61 percent of the 95 economies assessed meet this threshold, with a global average score of 3.60.
On the surface, this suggests that philanthropy remains possible in much of the world. But the details tell a more uneven story.
Where Philanthropy Finds Space to Operate
Western Europe emerges as the strongest region overall, scoring favorably across all six areas. Northern Europe and Canada and the United States follow closely.
In these regions, philanthropy benefits from stable laws, limited political interference, and strong public trust in nonprofit organizations.
The report points to continued digital innovation, efficient registration systems, and supportive tax policies as reasons these environments remain strong.
Philanthropy here is not treated as an exception or a threat, but as part of normal public life.
This stability matters. When rules are predictable, organizations can plan long term, respond quickly to crises, and focus on impact rather than survival.
Progress and Pressure in Other Regions
In contrast, Latin America records the most difficult conditions for philanthropy.
The region scores below the favorable threshold in most areas, reflecting political uncertainty, economic instability, and tighter controls on civil society.
These pressures make it harder for organizations to operate freely or receive funding, especially from abroad.
At the same time, the report highlights progress in regions that are often overlooked.
Sub-Saharan Africa shows notable improvement compared to earlier editions of the Index, particularly in how easy it is to operate philanthropic organizations.
Regulatory reforms and growing recognition of civil society’s role have helped improve conditions in several countries.
The report includes Kenya among countries where changes in policy and tax incentives have contributed to a more supportive environment.
Still, the GPEI cautions that these gains are uneven and can easily be reversed if political or economic conditions shift.
Culture as the Quiet Foundation of Giving
One of the most consistent findings in the report is the strength of socio-cultural support for philanthropy.
Across nearly all regions, traditions of giving, religious charity, volunteering, and community support remain strong.
The GPEI notes that “deep-rooted values and traditions continue to shape giving practices,” even where formal systems are weak.
This explains why philanthropy often persists in difficult environments through informal networks, faith-based organizations, and local solidarity.
But culture alone is not enough. While it can sustain generosity, it cannot replace clear laws, fair regulation, or access to resources.
When formal environments remain hostile for too long, even strong cultural traditions come under strain.
Cross-Border Giving Under Strain
The report identifies cross-border philanthropic flows as the weakest part of the global environment. This area receives the lowest average score and has declined over time.
According to the GPEI, there is a “continued deterioration in conditions for cross-border giving.”
Stricter financial rules, increased scrutiny of foreign funding, and political suspicion have made it harder for organizations to move resources across borders.
While many of these measures are linked to security concerns, the report warns that overly restrictive systems risk blocking legitimate humanitarian and development work.
This is a critical issue at a time when many of the world’s biggest challenges—climate change, conflict, displacement—do not respect national borders.
Why the Environment Matters Now
The years covered by the report, from 2021 to 2023, were marked by overlapping crises.
The pandemic, climate shocks, and conflict tested the ability of philanthropic actors to respond quickly and at scale.
The GPEI shows that where environments were favorable, organizations adapted faster, used digital tools more effectively, and worked more closely with governments.
Where conditions were restrictive, responses were slower and more fragile.
The report also draws a clear link between favorable philanthropic environments and climate action, noting that countries with supportive conditions for civil society tend to show stronger engagement on environmental issues.
The Bigger Message
The 2025 Global Philanthropy Environment Index makes a quiet but important point. Philanthropy does not fail only because of lack of money or goodwill.
It struggles when the environment around it makes trust difficult and action risky.
A favorable philanthropic environment is not about removing rules. It is about creating fair, clear, and supportive systems that allow generosity to serve the public good.
As global challenges grow more complex and public resources tighten, the conditions that allow philanthropy to work will matter more—not less.
In the end, the report reminds us that how societies treat philanthropy is a reflection of how much space they are willing to give to collective action itself.
Help us tell more untold stories of African Philanthropy!
