Philanthropy - Meaning Behind the Word
Philanthropy is pronounced fuh·LAN·thruh·pee in English
Even if you know what "philanthropy" is conceptually or you've heard of it before, the definition and what it means are all over the place. For the everyday person, for nonprofits, for the rich, for the poor, it has different subtext. Let's explore a few definitions and a little history to uncover what philanthropy actually is, because we certainly do not all agree.
If you ask Oxford...
Philanthropy is the desire to promote the welfare of others, expressed especially by the generous donation of money to good cases
So...just the desire to help others? And does it HAVE to be to good causes? What if the donor gives only for personal recognition and prestige? Does that make what they are doing not philanthropy? Hard to say.
If you ask Merriam-Webster...
Philanthropy is goodwill to fellow members of the human race; especially: active effort to promote human welfare OR an act or gift done or made for humanitarian purposes OR an organization distributing or supported by funds set aside for humanitarian purposes
So...it is either active effort (doesn't even have to be a donation/gift) or can even refer to an organization? In the nonprofit industry, people do not tend to refer to organizations as "a philanthropy", so that may also be confusing.
If you ask Fidelity Charitable...
Philanthropy is generosity in all its forms and is often defined as giving gifts of “time, talent and treasure” to help make life better for other people.
This definition seems a little more industry appropriate, and a little more specific to giving volunteer hours, money, or expertise to help other people.
And finally if you ask the traditional Greeks…
The word comes from the two root words "philos" meaning love and "anthropos" meaning humanity or humankind, so together Philanthropy means love of humanity.
The literal definition has aged over the years into most commonly referencing donating to charity or the less fortunate, and charitable giving is certainly a way of expressing love for humanity. This can take the form of giving money/resources directly to those who need it, donating to a nonprofit organization that has an altruistic mission/goal to make the world better, or giving it to a foundation (organization that can then allocate the resources to one or multiple causes.) Giving cash is not the only way to be philanthropic. Giving time through volunteering or helping a charity through ideas and expertise are also considered forms of philanthropy.
Philanthropy is often used interchangeably with closely related industry words. Synonyms for philanthropy include: charity, altruism, donation, endowment, contribution, and giving. These obviously do not all refer to the exact same thing, but in our common vernacular, they are often used as if they are.
Philanthropy vs. Charity
These two terms are often confused and interchanged, but in general philanthropy refers to making long term impact, whereas charity refers to short term giving or one-time giving. For example, giving to charity might look like donating to a nonprofit that provides care to cancer patients and philanthropy might look like funding an organization focused on cancer research and solving the issue long term.
What is a philanthropist?
It is also possible to be a philanthropist. A philanthropist is someone who habitually gives or has given a high volume of resources, enough to be known by others. Some famous philanthropists you may have heard of include: Oprah Winfrey, Bill and Melinda Gates, Warren Buffet, Mackenzie Scott, and many others who share substantial wealth, but you don't have to be a billionaire to be a philanthropist. Someone of average income who gives regularly or is known for giving to charity is a philanthropist also.
What is philanthropy in business?
Philanthropy in business is the act of corporations or foundations giving resources to charity for the benefit of humanity, tax advantages, good PR, or all of the above. Individuals are not the only entity that can be philanthropic or be known for philanthropy. Most (if not all) fortune 500 companies have a foundation or a sub-organization responsible for giving away a small percentage of profits each year for all kinds of reasons. Whether it is good optics or it is to appease shareholders, philanthropy in business can be advantageous to both the donor and charity.
What are some examples of philanthropy?
Some examples of philanthropy include giving large sums of money to support and grow nonprofit organizations, schools, churches, or research centers, but it also includes giving to a local youth sports team, volunteering at a food bank, helping the homeless, or giving 5 dollars on Facebook to a natural disaster relief organization.
Philanthropy means quite a lot of things, but its roots are in the love for people and wanting to make the world a better place. That's something we can all get behind.
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