What is philanthropy?
Philanthropy is an act of thoughtful giving – a recognition that the resources you have can make the world a better place if applied with care and consideration for the needs of others.
Given the challenges faced by our communities, society and the wider world, it is no surprise that more people are considering how they can give their money, and their time and effort, to affect small changes that can sum up to a larger whole.
As individuals, we rarely call ourselves philanthropists. In fact, we rarely use the word at all in the UK, but it is an important word, denoting responsibility and respect for others. It is a recognition that those who have financial resources have the opportunity, and the privilege, to serve others and our communities. We can play our part in ensuring a compassionate society that values every life, celebrates community, culture and belonging, prioritises fairness and equity, and safeguards the planet that sustains us.
What prompts philanthropy?
In the UK, having a lot of money is something we don’t typically talk about. Yet money is the source of complicated emotions and family dynamics. Whether you earn it or inherit it, it is not unusual to feel conflicted about the opportunities and responsibilities that come with wealth.
This is usually where philanthropy comes in. Once a person realises they have enough for themselves and their family’s financial security and well-being, it is very common to consider how else they could use their financial resources to support places, issues and people in the wider community.
Getting started as a donor is harder than you would think and often involves lots of questions. How much should you give? How do you find the right charities to support? How can you ensure your gift will make a difference?
There aren’t easy answers to these questions. Philanthropy is incredibly personal, which is why the notion of a philanthropy journey is important. It will take time to gain confidence. Your early gifts might be smaller in value until you build up knowledge and experience. Philanthropy is truly something that you practice; it is something that you come to understand and get better at doing over time.
If you are thinking about giving five-figure or six-figures sums each year, then there is a wider philanthropy sector that can provide support and advice.
If you are starting out with smaller amounts, which many people do, then think of it as a learning journey.
What is the role of philanthropy?
When you give philanthropically, you are stepping across the threshold from the private to the public sector. This raises the question of where philanthropy fits alongside public sector funding. Philanthropy is sometimes seen as a replacement for government funding, but that is neither a helpful nor accurate characterisation.
Philanthropy simply cannot replace what government does either in terms of the amount of money available or the ability of individuals to sustain giving over time.
Also philanthropic funding goes to places where government funding – and private sector funding – can’t go or won’t go.
- Meeting needs not met by government
The most marginalised people are usually those who have lost faith in government because programmes don’t reach them or don’t meet their needs. This isn’t necessarily the fault of government, which works to meet the needs of the many. But for those whose experience is outside the limits of public policy, philanthropy can support specialist services catering to their needs. - Working toward social innovation
Where government must be prudent with public funds, philanthropists can take risks and freely invest in social or environmental innovation, or pilot initiatives to address difficult social issues. And, where the private sector must maximise financial value, philanthropy can fund work that might never be commercialised or taken to scale. - Championing a better society for all
Operating outside the boundaries of public policy means philanthropy is also free to challenge the status quo, to raise the voices of those who otherwise wouldn’t be heard, and to call for changes that will result in a better society for all.