What is Philanthropy and Why is it Important

1. Why is philanthropy important?

Communities around the globe face complex problems, every day. Think poverty, environmental challenges, and lack of access to healthcare. These are just a few areas in need of investment and development – which can’t always be fulfilled by governments.

This is why philanthropy is so vital. It has the power to accelerate progress where it’s needed most, and support the causes that can fuel real change in the world. This benefits people, the planet, and society as a whole.

2. What role does philanthropy play in our society?

Philanthropy has the power to influence lasting social change. When an organisation receives support, a ‘ripple effect’ takes place. Many lives are touched, potentially for generations.

Philanthropy can be looked at as one of the cornerstones of a stable society. When people come together to help others, whether donating money or time, we’re reminded what it means to be human. And from there, communities grow stronger.

3. What’s an example of philanthropy?

Philanthropy encapsulates acts that solve and prevent social problems. Take Premier League footballer Marcus Rashford’s school meal campaign from 2020, which called for eligible children to have access to free school meals during the school holidays, as well as a full-scale review of the free school meals system.

While monetary donations played a part in this UK-wide campaign, Rashford’s push for lasting change was the main driving force. The UK Government changed its policy over free school meals vouchers during lockdown as a result of the campaign, making it a perfect example of philanthropy.

4. Types of philanthropy

Here are just some of the key types of philanthropy:

Impact philanthropy

This focuses on making the strongest impact and benefitting as many people as possible through strategic philanthropic actions. It often involves grassroots approaches that target specific goals.

Strategic philanthropy

This involves someone supporting the causes that matter the most to them, and deciding on the best way to help. It may be a matter of donating to a single charity yearly, or building a portfolio of organisations to donate to at different times.

Venture philanthropy

Here, venture capital principles and services are applied to the social economy. This kind of social investment may include long-term investment approaches, hands-on support, and board management.

Family philanthropy

This is the act of giving as a family, very much in the long term. It helps establish a culture of giving for generations, and passes on positive attitudes towards money and helping others. It’s a powerful form of philanthropy, as it allows for families to keep giving as the philanthropic landscape changes. It also helps families to build and achieve lasting impact.

5. What is a philanthropy event?

Philanthropy events give non-profits a platform for sharing their mission and stories directly with donors. There’s a strong focus on learning, and typically lots of chances to network.

Philanthropy events can be held remotely, as well as face-to-face. Our philanthropy webinars inspire our private clients in their giving. The sessions bring experts together to talk about the issues affecting the world, and what the charity sector can do to help tackle them.

Read next: What is a philanthropist?

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Further resources

What is a philanthropist?

Philanthropists donate time, experience, funds or skills to causes that benefit society.

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How to become a philanthropist?

Anyone who wants to do good in the world can become a philanthropist.

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