Philanthropy

What Is Philanthropy, and How Does It Impact You?

Philanthropy is large-scale charitable giving aimed at improving our society. These altruistic donations typically include money, time and other resources.

What Is Philanthropy?

Philanthropy, rooted in the Greek word for "love for humanity," remains a deeply altruistic action. It involves large-scale charitable giving to improve society in areas such as arts, education, the environment, health care and science.

While typically associated with financial contributions, philanthropy also includes donating time, talents and resources. It can also offer tax and health benefits, making it a meaningful way to make a positive impact.

Types of Philanthropy

*Giving Money

Making a cash donation to a charitable cause is often the easiest way to support a charitable organization.

*Giving Time

Engaging in a volunteer activity aimed at helping others or addressing a societal problem.

*Giving Other Resources

Donating valuable things other than your time and money.

The possibilities here are endless.

PRO TIP

Beginning your philanthropic journey can be as simple as occasionally donating money. However, you can achieve greater results if you create a strategic vision.

How To Get Started

1. Identify the causes you care about.

2. Set realistic goals.

3. Conduct foundational research on charitable organizations of interest.

4. Start gradually increasing your contributions.

5. Get involved in the causes you care about most deeply.

6. Stay informed on the causes and organizations you support.

Benefits of Philanthropy

Philanthropy offers the opportunity to positively impact society. It allows individuals to make a difference on a global or local scale, while also potentially enjoying tax and health benefits.

Philanthropic investment vehicles, such as 501(c)(3) organizations, charitable remainder trusts (CRTs), charitable lead trusts (CLTS) and donor-advised funds can optimize reach and provide tax advantages.

Moreover, scientific studies have shown that charitable giving can improve mental and physical health, leading to greater happiness, connectedness, and even longer life expectancy.

REMEMBER

Charitable giving and philanthropy are similar, but there are differences between the two. Most notably, charitable giving is relatively limited in scope and duration, while philanthropy is conducted on a larger scale for an extended period.