What is Philanthropy?
*Information compiled from Delaware Valley Grantmakers', Forum of Regional Associations of Grantmakers', and Southern California Grantmakers' websites.
Modern philanthropy, broadly defined, entails the voluntary giving of charitable donations in support of the common good. Today in the U.S., the term philanthropy refers not only to the act of giving, but also describes an extensive network of foundations, corporate donors, and individual givers who support numerous causes and interests in order to improve the quality of life in our communities.
Philanthropy – by making contributions to nonprofit organizations – has been responsible for many of the United States’ proudest accomplishments. Philanthropy helped fuel the civil rights movements for women, African-Americans and Latinos, among others as well as supporting the rich tapestry of arts in this country.
The Council on Foundations describes philanthropy’s contributions by pointing out societal advancements directly related to foundation grantmaking, in a series of “Great Grants”: Emergency 911, Hospice, Public Libraries, Sesame Street, and more.
The Giving Forum points out the unique role of philanthropy in this country: “Organized philanthropy as it is practiced now in the United States is one of the nation’s great social innovations – America’s passing gear’ for accelerating invention, in Paul Ylvisaker’s memorable words. While reflecting on philanthropic innovations just taking hold, it is useful to remember that today’s institutional forms and ingrained practices were once new and untested.”
A timeline prepared by The Giving Forum called The Future of Philanthropy provides a brief tour of some of the major innovations in organized giving. Not all of them were the very first of their kind; some of the dates mark the time of an innovation’s mainstream adoption or the start of its more widespread use. But all have helped to shape philanthropy as it exists today.
How Philanthropy Works
While philanthropic organizations can vary greatly in size and type, most operate by providing needed resources to nonprofit organizations in the form of cash grants, technical assistance, in-kind donations, and volunteer time. These nonprofits in turn transform those charitable donations into programs and services that benefit our communities, such as:
| • | providing food and shelter |
| • | strengthening educational programs |
| • | improving health and child care |
| • | protecting the environment |
| • | enhancing access to technology |
| • | supporting art, cultural and historic treasures |
Beyond providing grant dollars, philanthropy can also provide leadership in bringing people and organizations together around a particular issue, need, or project. As part of what is often referred to as the "third sector," philanthropy can use its unique position to work fluidly with government and community leaders, businesses, and the general public to forge alliances that will mobilize and leverage resources toward common goals.
Who is Giving
People involved in charitable giving today differ from those of the past. White men who earned their fortunes during the late 19th century founded most of the major foundations that exist today. Their enduring wealth still helps alleviate poverty, enhance education and promote the arts.
Joining those time-honored grantmakers are today's newest givers. They have their own traditions and their own ideas about helping the world. Unlike the donors of the past involved in organized philanthropy, they are not just white; among today's major donors are now African American, Native American and Hispanic peoples. Women joined a field once dominated by men. And younger donors are taking the reins from a retiring generation of grantmakers.
More information:
Council on Foundations:"About Philanthropy"
Foundation Center: "Foundations Today Tutorial"
Forum of Regional Associations of Grantmakers:"Understand Philanthropy"