Philanthropy
Philanthropy is about charitable giving to meritorial deeds on a large scale, but it represents not only just a charitable donation. Philanthropy shows a sincere endeavour of a person or certain organisation grounded on altruism and striving to improve people’s life and make the world a better place. Sometimes these prosperous individuals may set up private foundations to promote their charitable activity.
Nonprofit organisations are set up to facilitate a lot of social aspects, such as public safety, science, education, health, and human rights. In the U.S. charitable philanthropies which are classified as nonprofits are freed from liability to pay federal tax under the Internal Revenue Code (IRC) 501(c).
Definition of Philanthropy
Philanthropy relates to charitable work or other good activities such as volunteering that requires your time, skills and efforts in order to support people or promote better conditions of life in general. Some individuals assume that being a philanthropist is about spending significant amounts of money on universities’ support like repair and restoration of buildings or providing research centres with required budget or conditions and materials. Other people suppose that philanthropic acts refer to regular donations to certain places like public schools, theatres and museums.
There are many possibilities to implement charity contributions on a local to an international level, inserting corporate philanthropy. There also can be particular individuals who make philanthropic efforts. In short, philanthropic work may be carried out not only of altruism and on humanitarian grounds but for receiving tax breaks, and sometimes, for these both reasons. Thus, any person can become a philanthropist if they are ready to commit their time, money, talents or skills to those who need support and help.
Historical background
Philanthropy takes its roots right from ancient times, in particular, from the Greek civilization. For example, in his will, Plato entrusted his nephew to use the earnings of the family farm to subsidise the academy that the famous Greek philosopher founded in 347 B.C. The funds helped faculty and especially students to maintain the academy working.
About 150 years later, Pliny the Younger donated the third of the funds to a Roman school for boys. He delegated the students’ fathers to deal with the rest. Pliny had the intention to arrange an educational process for young Romans right in the city so thus educated ones may stay in their homeland without moving abroad.
In the mid-thirties of the seventeenth century, Puritan settlers were mentored by John Winthrop of the Massachusetts Bay Colony, who said that the wealthy segments of the population should take care of the poor people, who could not barely help themselves. Some time later John Harvard bequeathed half of his property to the school, so today we know Harvard University mostly because of his efforts underlined in its basis.
Other well-known philanthropists are associated with such names as Mother Teresa and Norman D. Rockefeller (though these personalities are still controversial to many critics). In the 21st century, charity activities keep on popularising among affluent people, so some of them like Melinda Gates, Dolly Parton and Warren Buffett continue to give charity donations in various forms.
Benefits
Philanthropic activities let people get various benefits, so there are a lot of positive sides of being a philanthropist. Scientists come to the conclusion that charity giving can boost an emotional and physical health, and many philanthropists feel satisfacted by the fact they managed to do something important and useful for the common good. Nowadays some investigations indicate that charity enthusiasts get less depression and higher self-esteem, they also have lower blood pressure. Philanthropists even may live longer lives in comparison with those who are not into philanthropy activities.
The profits of philanthropy are allowed not only for some individuals. Corporations and associations which support charitable contributions get a variety of offerings from creating a better public image, improving more vital brand awareness, and engaging new partners and talented specialists who may be attracted to an organisation that facilitates charities. As well, employees who work for associations or organisations, which provide society with different kinds of benefits — are more cheerful and have more input into their jobs. Moreover, because companies are made to gain money, a prominent philanthropic vibe often stimulates sales and attracts new consumers.
Taxes in Philanthropy
Despite the fact that people really get profits from charity giving, when it’s time to pay taxes, some individuals benefit more than just other people. The IRS let most individuals subtract around 60% of their adjusted gross income (AGI).
There are very moneyed individuals who use philanthropic activities to protect themselves from paying large tax bills. However, some claim that millionaires and billionaires dodge paying their share of taxes pretending they do important worthy things for society instead of paying bills.
Famous Philanthropists
For example, many Americans in the USA give their money only for the things they find reasonable and issues they relate to. The following personalities are just some of the examples of those who are engaged in charity activities.
Andrew Carnegie.Probably the most well-known example of philanthropy is associated with Andrew Carnegie, just because of the huge amount of his givings. Carnegie's prosperity helped to build more than two thousand libraries all over the globe. He also sponsored several universities and a charitable fund that still works a century after Carnegie's death in 1919.
According to the estimates of his total charitable contributions, Andrew Carnegie spent around $350 million. He stood for his vital principles where if a wealthy man dies rich — he dies in dishonour, and thus other prosperous personalities and a society in general — learned to follow his example.
The Ford Foundation. Another example of how philanthropy works (what philanthropy is) is the Ford Foundation’s story of charity activity. Edsel Ford, the son and heir of Ford Motor Company founder Henry Ford, established/funded the corporation in 1936. This fund concentrates on supporting democracy, boosting economic opportunities, and sponsoring education.
The organisation’s areas:
- Civic activism and governance
- Mainstreaming disability
- Justice in terms of gender, ethnic and racial issues
- Climate change and natural assets
The Gates. Billionaire and co-founder of Microsoft, Bill Gates with his ex-wife Melinda, set up the Bill & Melinda Gates Foundation to support worldwide development and global health care programs. The fund covers a wide global range.
The organisation works globally and in the USA with investigations and fights against disease and to support people who live in poverty. As the foundation's website indicates, the fund has spent around $54 billion on charitable contributions since 2000.
Mother Teresa. Being a philanthropist doesn’t mean you should be necessarily rich to spend money in order to be perceived as a charity giver. Actually, there are many remarkable individuals who aren't that prosperous and wealthy but people know them for their strong philanthropic strive. Mother Teresa is a perfect example for this statement. In 1950 The Catholic sister set up the Order of the Missionaries of Charity (another name is the Missionaries of Charity) in the Indian city of Kolkata. The aim of the charity fund was to deliver “material and spiritual welfare" to vulnerable segments of population”.
Charity vs Philanthropy
We may use the words charity and philanthropy in the same connotation, though philanthropy often implies a wider range of giving. Its purpose is to aid different communities and help them grow in a long-term period. At the same time charity commonly means giving and helping a particular person over a short-time. For example, individuals can give warm coats to the homeless people during a cold period, can provide vulnerable ones with different goods, or send money to a stipend fund. These acts are also considered as charity but the efforts philanthropists make are quite different from it, as it’s simply not the same — giving things and building libraries.
The most influential philanthropist
According to the reports from Forbes magazine January 2022, an American magnate Warren Buffet has spent 46 billion dollars, helping and contributing people throughout his life.
Who can be a philanthropist
Every person can try themselves in the field of philanthropy, even if they are not considered as affluent individuals. It’s possible to give your clothes, your time, your talents and efforts. You may also donate for a certain aim, and over time, you may become known as a philanthropist.
Corporate Philanthropy
Corporate philanthropy refers to givings for charitable causes and/or organisations by corporations. The most typical way of giving through a corporation is donation, however there are also other possible ways to do so. Other ways of charitable actions may include volunteering (e.g. when specialists give their time to charities), community investments, sponsorships and scholarships.
Different Types of Philanthropy
Philanthropic activity is expressed with different formats. Individuals may participate in different projects as well as corporations. It also can be combined, for example, when someone donates and an organisation makes its contribution every time after it. Or it may appear in a form of instruction, when someone bequeathed in the will to spend their assets on different charities. The easiest way to take part in such an activity is simply donating money right to scholarships funds, charities or offering stipends and grants.
People can donate money directly to charity, fund scholarships, or offer grants and stipends. Though it’s not only money that characterises the field of philanthropy — actually enthusiasts may also gift their time during volunteering.
