Community Crowdfunding for Brazil to Help the Poor

Inequality in Brazil Rises and Poverty Reaches 23.3 Million People

RioTimes Aug. 2019

The survey also shows that the number of poor grew in the country and reached 23.3 million in 2017. These are people who live on less than R$233 (US$58) per month.

High unemployment, which still affects twelve million people, is the main cause of high inequality. The difficulty of finding a job is even more harmful to young people.

Wealth Distribution and Income Inequality

Gfmag

Brazil has a relatively high Gini index of 44.9 (world average of 33.8) which means the income of the rich is far greater than the income of the poor.

Some of the world’s poorest countries (Central African Republic) have some of the world’s highest Gini coefficients (61.3), while many of the wealthiest (Denmark) have some of the lowest (28.8).

Community Crowdfunding to Reduce Poverty

According to the most important of UN’s 17 sustainable development goals, Goal #1: End poverty in all its forms everywhere.

Poverty is a social problem. A lot of suggestions that increased community participation is the ultimate way to reduce poverty.

Community Crowdfunding based on donation

According to the CAF’s BRAZIL GIVING 2019,

Seven in ten (70%) people report donating money in the past
12 months
200 Reais (US$ 47.22) was the typical amount donated in the past 12 months
52% donated to the Religious Organisations, 38% to the Children, and 31% helping the poor

Although Brazilians are very keen on making a donation, the amount is not sufficient to really help the community.

Community Crowdfunding based on Cashback

If the funding can be coming from cashback from merchants such as people eating out every day, buying out every day, it will be a good sustainable complement to the donation.

The mathematics:

As an example, GDP per capita for Brazil is about US$ 10,826 per year https://data.worldbank.org
The assumed retail merchant network can cover all walks of life in Brazil.
5% cashback will equate to 5% x US$10,826 = US$540 per year
Brazil has a population of over 200 million. Half of the people participate, 100 million users will generate cashback close to US$ 54 B annually.
5% cashback for wealth redistribution can also mean reducing the Gini Index by at least 5%.

Sustainable benefits such as :

Savings and credit scheme for people to establish small microbusiness enterprises
Young people venture funds
Education funds
Charity funds for poor people
Subsidy on Health Care
Invest in public buses

Conclusion

Based on 5% cashback, it will be US$540 per year, which is 10 times more than US$ 47.22 donation per year.

If you look at the 17 UN sustainable development goals, most of them are trying to apply the wishes and values of the wealthy countries to the poor countries such as gender equality, clean energy, responsible consumption & production, climate action, life on land, peace & justice.