Re-thinking charity: What is the future of giving?

By Garry Vatcher

Several years ago, we attended an international conference in Munich. It was an eye-opening experience. The funders we met there were very familiar with Ecuador and the challenges organizations face. One issue stood out immediately: in most countries, charities operate from permanent locations, while in Ecuador, it is far more common to rent.

At first glance, this may not seem important. But in reality, it creates instability. With limited government support and ongoing challenges with landlords, organizations can find themselves constantly at risk of losing their space. The message from international funders was clear: long-term stability requires long-term infrastructure.

This was one of many insights that pushed us to think differently. Fundación Hogar de Esperanza has worked to become a game changer in charitable giving in Ecuador. We have challenged traditional approaches to fundraising by focusing on innovation, transparency, and long-term sustainability.

And that brings us to an important reality we cannot ignore: Globally, the average donor is 62 years old, and 70% of donations come from people over 50. As these donors age, donations are expected to decline.

This means one thing:

Charities that rely only on donations will struggle to survive. To succeed in the future, charities must evolve. They must become more sustainable, more strategic, and more prepared for a changing world.

Using the Business Model
Relying entirely on grants and donations makes charities vulnerable. Around the world, successful organizations are moving toward earned-income models-selling products, offering services, or running businesses to generate steady, unrestricted income.

The difference is simple: Once a donation is spent, it is gone. But through a business model, that same support can continue generating income-it keeps giving.

At our recent annual meeting, we shared our financial results. Of the $343,276 in total income for 2025:

• $106,594 came from our business activities
• $43,831 came from in-kind contributions
• $157,851 came from cash donations
• $35,000 was a one-time donation for building renovations

These numbers tell an important story: A significant portion of the funds used to support our programs is now generated through our own activities.

Through our Thrift Shop, Expat Services Center, Hotel, Parking Lot, and Event Space, we are not only generating income-we are creating jobs for Ecuadorians, reducing our dependence on donations and building a sustainable model for the future.  These businesses played a vital role in allowing us to support over 12,000 individuals in need last year.

Recent Legislative Changes
Recent changes in Ecuadorian law have made it increasingly difficult for charities to operate businesses or raise funds locally. While our existing businesses have been grandfathered in, charities in Ecuador are not allowed to create new ones. In addition, charities now face restrictions when receiving property or assets, making it harder to sell or use them to generate income.

Instead of seeing this as a setback, we see it as an opportunity.

A New Structure for the Future
Foundation Hogar de Esperanza USA, Inc., our registered 501(c)(3) in the United States, operates separately from our Ecuadorian foundation. This structure allows us to own assets and generate income in Ecuador, without the same restrictions. All income generated through the U.S. entity supports our work in Ecuador.

The Seeds of Hope Corporation
Working with our lawyer and accountant, we have created The Seeds of Hope Corporation, a legally registered Ecuadorian company.

This company will:

• Purchase and manage assets
• Operate businesses
• Invest in social projects

All profits will be directed back to support the work of Hogar de Esperanza. This represents a new model for giving in Ecuador. While the Ecuadorian company will own the assets and businesses, Hogar de Esperanza Ecuador will run all the programs from the profits generated. Your donation can now be structured in a way that provides you with shares in the company, giving you and other supporters a voice in how the organization grows and operates.

Share Structure
The company will offer three types of shares:

1. U.S. Foundation Shares
   Donations made through our U.S. foundation will be used to purchase shares held by the foundation. Donors will still receive a voting voice. You will receive a tax receipt for this share; however, the share will be held by the U.S. foundation.
2. Direct Shares (Ecuador)
   Shares purchased directly in Ecuador (without a tax receipt). These shares can be bought and sold. These shares do not accrue dividends.
3. Large Investor Shares
   These shares may qualify for an Ecuadorian investment visa and function similarly to a fixed investment, with minimal dividends.

Looking Ahead
One of the most exciting initiatives by The Seeds of Hope Corporation is our Amazon Project.

We are building a self-sustaining investment model, with an expected return within three years. This initiative will create employment in underserved Amazonian communities while supporting development that respects their culture and environment.

You can find out more about this initiative here: https://hogaresperanza.org/en/amazon-project/

Get involved
This is more than charity. This is a new way of thinking. This is sustainable impact.  Please consider investing in the future of Hogar today! I would be happy to meet and discuss the best option for you. Many who could not attend our last annual meeting have asked us to do another one. We will be holding another informative session on Wednesday, June 10 at 2 pm.

To make an appointment to discuss this with me, you can contact Patricia at contact@hogaresperanza.org You can also attend our session by signing up here:

https://secure.qgiv.com/for/foundationhogardeesperanza/event/hdeamac/

Your Story Continues-Making a Legacy Gift
A legacy is not just about money. It is about the story you leave behind. It is about knowing that, in some small way, you helped change lives…that you helped create dignity…that you helped build something that will continue long after you are gone.

We can help you in a variety of ways. Maybe you want a building named after you, maybe you want to leave shares for the grandkids. There are many ways you can make a legacy gift.

A legacy is not what you leave behind. It is what you leave in others.
___________________

 Garry Vatcher is president and founder of Foundation Hogar de Esperanza. He has been coming to Ecuador since 1987 and permanently moved to Cuenca 12 years ago. The foundation provides emergency assistance to thousands of people each year. With his guidance, the foundation has forged alliances with some of Ecuador’s major institutions including hospitals, the National Police, Amazon communities, universities, and governments. The foundation has received numerous awards and recognition for its work from local and international bodies. For information about all Foundation Hogar de Esperanza projects, go to https://hogaresperanza.org