55% of Romania’s population donates to social causes, says new report powered by the Social Impact Alliance for ECE

According to a study conducted by the Social Impact Alliance for Central & Eastern Europe, 55% of Romania’s population (47% in the entire ECE region) donates to social causes. However, what’s even more impressive is the philanthropic potential of Romanians, amounting to EUR 1.22 billion annually – EUR 625 million more than the current donation levels.

This is the conclusion of the report titled “Unlocking Private Capital for Social Good in Central & Eastern Europe,” which includes a comprehensive analysis of research conducted by the Social Impact Alliance for Central & Eastern Europe (an independent and non-political think tank) between 2020 and 2023, in collaboration with key stakeholders and decision-makers in 11 countries in Central and Eastern Europe: Romania (with the participation of strategic partners: the Romanian Business Leaders Foundation, Dentons law firm, and Nexia Romania), Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia. The report also includes information about the situation in Ukraine, as the war served as the context, catalyst, and driving force behind the activities of businesses, investors, and individuals in the region.

The report offer extensive views of Romania’s ecosystem, while both legal entities and individuals already possess the means and willingness to contribute to the region’s social development. In Romania alone, there is the potential to double, if not more, individual donations.

Like other countries in the ECE region, Romania has been shaping its economic identity since 1991. Its accession to the European Union in 2007 undoubtedly contributed to the country’s development. Presently, Romania has a population of 19.1 million people and nearly 500,000 businesses, with over 480,000 being micro-enterprises (employing up to 9 individuals).

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The Social Impact Ecosystem in Romania and ECE Social and environmental issues are gaining increasing attention not only in Romania but throughout the entire ECE region.

“In the past four years, we have sought answers to the question of what should change in legislation, taxation, awareness, or education for private capital holders to support social and environmental causes more effectively or with larger sums. To this end, we conducted surveys on public expectations, including in Romania, conducting over 7,500 interviews with the general public and more than 230 interviews with experts from the private, public, and social sectors, as well as academia,” says Anna Korzeniewska, the founder of the Social Impact Alliance for Central & Eastern Europe.

Key Trends

The report titled “Unlocking Private Capital for Social Good in Central & Eastern Europe” highlights that as citizens of Central and Eastern European countries, we have an increasing amount of capital, resources, and willingness to engage in social issues – if properly motivated, we would be willing to donate almost twice as much as we currently do (from EUR 2.7 billion to EUR 5.5 billion).

Romanians help spontaneously

On the other hand, even though we already have something to share with others and are increasingly willing to do so, social engagement is not yet an integral part of our lives or the way we conduct business. As Anna Korzeniewska explains based on the survey results, we help spontaneously, as a result of an emotional reaction to a specific situation or crisis. Only half of the donors stated that they donate regularly (51% in ECE, 67% in Romania).

Companies play a crucial role

Companies play a crucial role in providing financial and non-corporal support (especially in employee volunteering or pro-bono activities). Nowadays, they are primarily motivated by external factors (regulations, expectations from parent companies, emerging pressures from customers and employees). However, due to the fact that the language and terminology of regulations, especially those related to non-financial reporting, are not fully understood by practitioners, many companies are strictly taking on the challenges necessary to ensure compliance. The situation is somewhat different for family businesses and smaller enterprises, where social circles and the personal experience of leaders play a significant role. These types of businesses tend to independently support causes that are important to them, usually at the local level.

People expect financial sector companies to get involved in poverty, education, and global economic growth issues

Meanwhile, residents of ECE countries speak for themselves about the kind of corporate citizenship they desire. They expect financial sector companies to get involved in poverty, education, and global economic growth issues. Food companies and retail chains should focus more on fighting hunger and promoting responsible consumption, while energy and automotive companies should address climate issues.

In turn, technology and IT companies should stimulate economic growth and support innovation. It is worth noting that citizens of ECE countries appreciate corporate social engagement – 50% of residents say they prefer to buy products from socially responsible companies (59% in Romania), and 45% are willing to pay slightly more for them (55% in Romania).

Media can promote correct attiudes through their actions

An equally important contribution to increasing awareness comes from the media, which can promote correct attitudes through their actions, and the public administration, responsible for shaping the legal and fiscal ecosystem, can encourage desirable behavior – for example, by rewarding socially engaged companies, inviting them to participate in business missions, or reserving certain tenders for companies that meet stricter criteria.

“Strategies and the openness of public administration to collaboration vary from country to country in the region. Some countries already have strategies and bodies specifically created to ensure dialogue with stakeholders, while others still lack regulations and structures to guide and shape priorities for other sectors,” says Anna Korzeniewska.

Increasing interes in impact investments in the ECE region

It should also be noted that there is increasing interest in impact investments in the ECE region, understood as an investment strategy that aims to generate financial returns while creating a positive impact. However, this market is highly profit-oriented, and decision-making criteria have not changed (the potential for profit generation remains a key evaluation criterion). If we expect to see an increase in the volume of impact investments in the region, the definition of impact and methods of measuring and reporting it must be better understood by practitioners, and this requires standards and tools. Additionally, start-ups need to offer better solutions, and government incentives such as tax incentives are needed.

The Key Role of Western Countries

The report titled “Unlocking Private Capital for Social Good in Central & Eastern Europe” highlights that residents of Central and Eastern European countries do not want to be left alone in developing a culture of charity.

52% of citizens believe that the current geopolitical situation requires support from more developed countries such as the USA, the United Kingdom, or Western Europe. Western countries offer access not only to capital but also to knowledge and education. This is important because greater awareness and implementation of best practices from more mature markets are essential if we want to move from crisis-driven philanthropy, which has clearly intensified during the COVID-19 pandemic and the war in Ukraine, to strategic and long-term philanthropy.

Ukraine appreciates the support it receives from Western countries. “In general, external support is very positively perceived. No less than 74% of Ukrainians view it as good or very good. The perception of which country is currently providing the most support is clear: the United States, the United Kingdom, and neighboring countries,” the report states. Ukrainians are concerned that a prolonged war could lead to a reduction in external support, emphasizing the crucial role of foreign media in highlighting the situation in Ukraine. As many as 84% of Ukrainian citizens believe that foreign media should provide greater coverage of the war in Ukraine.

The complete report can be read here.