Philanthropy is the act of giving money, time, or resources to improve the welfare of others, typically through charitable donations to nonprofit organizations, foundations, and causes rather than to individuals directly. It differs from simple charity in that it is often organized, sustained, and aimed at addressing root causes rather than immediate needs.
In short: philanthropy is organized, sustained giving aimed at a cause -- not a single act of charity.
The two words are often used interchangeably, but they describe different things. Charity responds to an immediate need -- a meal for someone who is hungry today, a blanket during a cold snap. Philanthropy takes a longer view: it funds the research, the institutions, and the systemic work aimed at reducing hunger or homelessness in the first place. Both are forms of giving; philanthropy is the strategic, sustained end of that spectrum.
Philanthropy happens at every scale. An individual donor gives to a cause they care about. A family or corporation runs a giving program. A private foundation -- itself a nonprofit organization -- makes grants to other nonprofits year over year. In the United States, philanthropic giving is documented publicly: nonprofits and private foundations file an annual Form 990 with the IRS disclosing their revenue, grants made, and how funds were spent.
What is philanthropy?
Philanthropy is the act of giving money, time, or resources to improve the welfare of others, typically through charitable donations to nonprofit organizations, foundations, and causes rather than to individuals directly. It differs from simple charity in that it is often organized, sustained, and aimed at addressing root causes rather than immediate needs.
What is the difference between philanthropy and charity?
Charity typically addresses an immediate need, such as feeding someone who is hungry today. Philanthropy is broader and more strategic, aiming to address the underlying causes of a problem -- such as funding research into hunger's causes -- over a sustained period.
Who practices philanthropy?
Individuals, families, corporations, and private foundations all practice philanthropy, ranging from small individual donations to large, multi-billion-dollar foundation grantmaking.
How is philanthropy different from a nonprofit organization?
Philanthropy is the act of giving; a nonprofit organization is often the vehicle that receives and deploys that giving toward a charitable mission. 990 Scout tracks the nonprofit organizations and foundations that carry out philanthropy, sourced from their public IRS Form 990 filings.
990 Scout is a free, searchable database of the IRS Form 990 filings behind that giving -- 2M+ nonprofits, their finances, grants, and salaries, sourced directly from public tax filings.
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