Philanthropy in Spain and Portugal: Understanding starts with information

According to the famous thought experiment, Schrödinger’s cat is neither alive nor dead until the box containing the cat is opened and we can see if it is breathing and purring or not. The point being made is that the absence of verifiable information results in the absence of understanding about even the most basic of facts.

This point is relevant to our understanding of philanthropy. The inadequate and patchy data on private giving makes it difficult to fully understand the presence, role and impact of philanthropy across the world. One such gap relates to the countries of Spain and Portugal where philanthropy is known to be long-standing but there has been an absence of robust data and analysis.

This particular absence is surprising because the Lisbon earthquake of 1755 is considered to be the first natural disaster to inspire a global philanthropic response, galvanising domestic donations, support from the country next door, as well as from people living in ports that had trading connections with the city. Because of this historical incident, we might expect Portugal and Spain to be among the more prominent countries engaged in philanthropic activity. Yet neither country has a notably vibrant philanthropic landscape, there are few well-known philanthropists from either country, and there is minimal research or scholarly attention paid to the sector in these countries.

Yet those countries are home to two long-established European philanthropic foundations: ”la Caixa” Foundation in Spain (established 1904) and the Calouste Gulbenkian Foundation in Portugal (established 1956), and the impact of philanthropic activity is all around in both countries, even if not explicitly noticed or commented on. Spanish and Portuguese citizens benefit from previous philanthropic gifts that have helped to build the physical infrastructure of their communities – such as churches, hospitals, schools, libraries, art galleries and sporting facilities – and philanthropic acts have also helped to fund a wide range of services that leave less of a tangible footprint but have improved the lives of countless citizens including helping the hungry, homeless and sick, providing educational opportunities, and funding significant scientific discoveries and medical advances.

One reason that philanthropy is often ‘hidden in plain sight’, especially in continental Europe, is a strong preference across these populations for a Welfare State which uses progressive taxation to fund and provide basic welfare needs such as health and education. Yet philanthropically-funded efforts can – and often do – co-exist with state provision. As the etymology of the word ‘philanthropy’ suggests: love of (philo-) humanity (-anthropos) has different objectives to the universal basic provision that is organised by the state, resulting in a different – and often complementary – financial mechanism. State funding and philanthropy are not the same, nor do they exist in zero-sum opposition: the tax base can be increased and at the same time more private generosity can be encouraged.

To help meet the need for information to better understand philanthropy in Spain and Portugal, we commissioned a nationally representative survey of their populations. Data was collected in April 2024 from a total of 3,222 respondents, comprised of 2,009 in Spain and 1,213 in Portugal. Three interesting findings from this study are that:

1. Giving time and money are common across both populations
   59% of people in Spain and 65% in Portugal made at least one financial donation in the past year, while 39% in Spain and 43% in Portugal volunteered their time for the benefit of others. Furthermore, citizens in these countries are very likely to be philanthropic in their daily lives with majorities confirming that they have helped strangers (77% in Spain, 82% in Portugal), donated to food banks (80% in Spain, 87% in Portugal), and freely provided expertise and connections (59% in Spain, 74% in Portugal).
   
2. Understanding of philanthropy is low, especially among younger generations
   Despite formal and informal philanthropic acts being commonplace only around two-thirds of the population (60% in Spain and 66% in Portugal) claim to understand what philanthropy is – with understanding dropping well below 50% among the youngest age group and those who have undertaken the least formal education.
   
3. Awareness of tax incentives for giving is relatively low
   Just over half of people in Spain (55%) are aware of the tax incentives that government offers to those who give to charity, compared to just under half of Portuguese respondents (47%). Statistical analysis reveals that individuals in Spain, older people, males and highly educated are more likely to say that they are aware of these incentives.

As a result of this research we suggest three recommendations as follows:

Firstly, as a third of the population do not know what philanthropy is, this rate could be increased by improving communication by and about philanthropic individuals and organisations to explain more clearly to the general public what philanthropy has funded in the past and what impact it continues to have today.

Secondly, as younger people are less aware of tax incentives for donations than older citizens, we recommend raising awareness of the existence of fiscal incentives, using social media or other channels, to prompt further generosity among young people.

And thirdly, as giving money and time often go hand-in-hand, we recommend more investment in support for recruiting and supporting volunteers, as well as better communication of the benefits to the individual and wider society as a result of becoming a donor and a volunteer.

Overall, as with many continental countries with a strong Welfare State, there is a clear preference in both Spain and Portugal for government as the primary provider. Yet our research shows that this view exists alongside broad acceptance of a positive role – in practice if not (yet) in theory – for philanthropy in meeting needs and enhancing the quality of life for individuals and communities.

Unlike the irresolvable conundrum of Schrödinger’s cat, the research we have conducted shows that philanthropy in Spain and Portugal is alive and well, and some simple steps could help it to thrive even further.