What is philanthropy: understanding the benefits of giving

SINCE the beginning of time, people have always found ways to help others who are less fortunate than themselves. So when one asks ‘what is philanthropy?’  to put it simply, it is an act of giving something of yourself – be it money, resources or time – to promote the welfare of others. While philanthropy is often associated with wealthy individuals or large organisations, it is a concept that can be practised by anyone, regardless of their financial means.

Though the terms charity and philanthropy are often used interchangeably, there is a difference between charity and philanthropy. What sets philanthropy apart is the intent behind the giving. While charity usually relieves suffering – like humanitarian aid during natural disasters, wars, pandemics, etc – philanthropy is focused on creating long-term solutions to intractable social problems. The benefits of charity are usually immediate – relief for the receiver and tangible for the donor – while the benefits of philanthropy, which include promoting social change, improving the quality of life, and creating a more just and equitable society, are seen as a form of social investment for the long term.

Though philanthropic activities have been part of the social fabric of human societies since time immemorial, philanthropy per se has evolved over time. The last few decades have seen individuals and organisations employing a more strategic approach to giving aimed at achieving specific goals to create lasting change.

The History of Philanthropy

Philanthropic activities can be traced back to ancient civilisations, where wealthy individuals and rulers would provide support to the less fortunate in their communities or kingdoms. If you asked the ancient Greeks, for instance, ‘what is philanthropy?’, they would have replied philanthrōpía means love for humanity. Using one’s wealth and resources to help others was considered a virtue. In India, the ancient concept of dāna, or the act of giving, continues to be central to Hindu, Buddhist and other religious traditions and it is believed that giving to others will bring good karma.

So what is philanthropy or what has it become in modern times? With the creation of foundations, trusts, and other organisations dedicated to promoting social good, philanthropy today has become far less ad hoc, from the heart, and much more institutionalised and from the head. There are many examples of philanthropists, but among the most well-known in history include Andrew Carnegie, John D. Rockefeller, and Bill and Melinda Gates. Through their vast wealth, these individuals have made significant contributions to causes such as education, healthcare, and poverty alleviation.

What is a Philanthropist?

A philanthropist is someone who donates their time, money, or resources to help others. Philanthropists are typically wealthy individuals committed to creating social change and improving the lives of others. However, anyone can be a philanthropist, regardless of their wealth. The key is to have a strong desire to positively impact the world. Philanthropists typically give to causes they believe in and work closely with organisations to create meaningful change.

Among the most famous examples of philanthropists who exemplify this approach is Bill Gates, the co-founder of Microsoft and one of the richest people in the world. Gates and his wife, Melinda, founded the Bill and Melinda Gates Foundation in 2000 with the goal of using their wealth to address some of the world’s most pressing problems, including global health and education. In a letter outlining the foundation’s approach to philanthropy, Gates wrote, “We don’t just write checks. We also invest our time, energy, and ideas.”

Another well-known philanthropist is American TV personality Oprah Winfrey, who has donated millions of dollars to causes like education and women’s empowerment. In an interview with Forbes, Winfrey spoke about the importance of using her platform and resources to make a difference: “I’ve been blessed with success, and I feel like I have a responsibility to share that success with others.”

The Benefits of Philanthropy

Philanthropy is a powerful tool for creating positive change in the world. When we give our time, money, or resources to help others, we make a difference in their lives and in ours, especially the gain in emotional well-being.  Here are the top seven benefits of philanthropy in no particular order. 

1. Philanthropy strengthens community

One of the most significant benefits of philanthropy is its ability to strengthen communities. When we give back to our local community, we help to create a sense of unity and shared purpose. By supporting local organisations and causes, we can help to build stronger, more resilient communities. When people work together to support a common cause, it fosters a sense of belonging and connection that can be powerful.

2. Philanthropy is contagious

Another one of the benefits of philanthropy is that it can catalyse others to be generous too. Seeing their peers, relatives and friends giving can inspire them to do the same. Philanthropy has a ripple effect, and one act of giving can trigger many more. Sharing our experiences of giving and the impact it has had can motivate others to get involved too.

3. Philanthropy helps you network

By getting involved in philanthropic activities, organisations and causes, you can meet like-minded people who share your values and interests. This can lead to new opportunities and connections. Whether it’s volunteering at a local nonprofit or attending a fundraising event, getting involved in philanthropy is a powerful way to network.

4. Philanthropy benefits physical and mental health

Studies have shown that volunteering and giving can positively affect our physical and mental wellbeing. Giving back can reduce stress, increase feelings of happiness and fulfilment, and even lower blood pressure.

5. Philanthropy supports underfunded causes

Philanthropy is essential to covering running costs for under-funded causes and nonprofits. Many important social issues need more public visibility and attract little monetary support, and philanthropy can help to fill the gap. By supporting these causes, we can help create meaningful change where needed most.

6. Philanthropy is good for business

When companies give back to their communities, it can build brand loyalty and trust. Consumers are more likely to support corporations that demonstrate a social responsibility commitment. Additionally, companies that encourage their employees to participate in philanthropy can create a sense of purpose and engagement in the workplace.

7. Philanthropy helps you learn more about the world

By getting involved in different causes and nonprofit organisations, we can better understand the challenges facing our communities and the world and come closer to understanding the ‘what is philanthropy’ question.  It also broadens our perspective and helps us become more informed and empathetic citizens.

While philanthropy has various benefits outlined above, it can also take many forms. So if charitable work interests you and you were to ask the question ‘how to become a philanthropist’ here is a list of some of the most common types and examples of philanthropists – and one of them could be an inspiration for you!

1. Communitarian – doing good makes sense

Communitarian philanthropists are motivated by a desire to improve their community and believe that doing good for others can help create a more cohesive and harmonious society. They often focus on local causes and charities, such as supporting education or improving access to healthcare. These philanthropists are committed to making a difference where they live and often liaise closely with nonprofit organisations working on the ground in their areas to make a meaningful impact.

2. Devout – doing good is the will of a higher power

Motivated by religious or spiritual beliefs, devout philanthropists believe that it is their duty to help those who are less fortunate and that doing good is part of their faith. They often give to charities that align with their faith, such as supporting missionary work or providing aid to disaster victims. They may also give to support their place of worship or to fund religious education.

One well-known devout philanthropist is Warren Buffett, the CEO of Berkshire Hathaway. Buffett is a devout Christian and has donated billions of dollars to religious charities and organisations. He has said, “I don’t believe in imposing my religious views on others, but I do think that as an individual I have a responsibility to help those who are less fortunate.” 

3. Investor – doing good is good business

Believing that doing good is also good for business, investor philanthropists may give to charities or causes that align with their business interests or that have the potential to generate a positive return on investment. They may also donate to charities that support the environment or social justice, recognising that these causes can have an impact on the business world as a whole.

Jeff Bezos, the CEO of Amazon, for instance, has donated millions of dollars to charities that support education and environmental causes and in companies that are working to reduce carbon emissions. He said: “I believe climate change is the greatest threat facing our planet, and it’s time to take action.” As an investor philanthropist, Bezos has sought to create positive change while also recognizing the potential for these causes to benefit the business world.

4. Socialite – doing good is fun

Socialite philanthropists often attend charity events and galas, enjoying the opportunity to connect with others while also supporting a good cause. They may also give to causes that are in the public eye or that are associated with high-profile events or causes.

5. Repayer – time to give back  

Repayer philanthropists give back to causes or organisations that have helped them or their families in the past. They may feel a sense of obligation to “repay” those who have helped them and may focus their giving on causes related to their personal experiences. 

6. Dynast – following family tradition

Dynast philanthropists come from families with a long history of giving. Seeing philanthropy as a family tradition, they may work to continue the legacy of their parents or grandparents.

7. Altruist – giving from the heart

A desire to make the world a better place for those less fortunate than themselves motivated altruists. They give simply because it feels right and may spread their philanthropy to support various causes and organisations.

Philanthropy is a powerful force for good in the world, with a long history of individuals and organisations working to address some of the most pressing social and environmental challenges of our time. Whether you are a wealthy individual or someone with limited financial means, there are many ways to get involved in philanthropy and make a difference. By supporting causes and nonprofits that align with your values and beliefs, you can make a meaningful impact and help create a brighter future for all. As Oprah Winfrey once said, “The biggest adventure you can ever take is to live the life of your dreams and to make a positive difference in the world.” To support NGOs and engage in philanthropy, you can explore and donate here.

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