• Why is Philanthropy Important?

    Whether it’s the Gates Foundation donating millions of dollars for COVID-19 vaccine development or it’s you giving some money to your local charity, philanthropy is making the world a better place for everyone.

    In today’s article, we’ll talk about the nature of philanthropy and go over some of the main reasons it’s essential.


    Understanding Philanthropy

    Philanthropy fundamentally refers to acts of charity and doing good deeds. For most people, philanthropy means donating large sums to charitable foundations. However, that’s just one form of philanthropic act; it doesn’t have to be about money.

    There are many ways to make charitable contributions. Lending your time, skills, and knowledge for a cause is essentially philanthropy. Volunteering at your local food bank – like I did at the LA Food Bank, a non-profit organization helping to fight hunger in Los Angeles – or soup kitchens in your local community can also be philanthropy. 


    Corporate Philanthropy

    In a more corporate sense, philanthropy also involves going through a strategic process of giving. That means finding a specific way to address the root cause of systemic issues.

    If a particular community is hungry, a philanthropic organization won’t just hand out food that would last a few days. They find a way to use their resources to address the cause of hunger. The goal of corporate philanthropy is to find long-term solutions that can make the world a better place.


    Reasons Philanthropy is Important


    1. It creates a snowball effect

    Philanthropy is a very influential charity project due to its ability to cause a snowball effect among individuals and organizations. Whenever a group successfully undertakes a socially impactful philanthropic project, people take notice. When they realize that something can be done about a particular issue or cause, they can get inspired to do something similar.

    1. It expands networks

    Whether you’re an individual or an organization, philanthropy can help expand your network. Charitable endeavors can help connect like-minded people and organizations to focus on a single cause. Society is built from networks, and this mutually beneficial system allows people to work and grow together. 

    1. It supports underfunded causes

    The reality is that governments are not always capable of addressing the needs of every cause. More often than not, governments tend to prioritize one issue over the other due to a lack of funding, creating gaps.

    Philanthropists can help fill many of these gaps by rallying support, funding causes, and convincing organizations to work together. Without philanthropy, many of society’s needs would have remained unmet.

    1. It’s good for businesses

    While the main focus of philanthropy is all about helping communities and solving societal issues, it can also benefit businesses. Consumers these days prefer companies that are actively doing something to improve the world.

    When businesses embrace philanthropy, they gain the opportunity to make a positive impact and build a loyal fan base that’s willing to pay more for products or services. 

    1. It improves mental health

    Philanthropy can also benefit an individual by improving their overall mental health. Philanthropy helps foster a strong sense of personal fulfilment, and when an individual finds purpose, they tend to have better emotional health. Since philanthropy and volunteerism help build networks, they may even be able to reduce a person’s loneliness.

    1. It improves public relations

    One benefit of corporate philanthropy is that it helps boost a company or a cause’s public relations. Besides providing positive exposure, corporate philanthropy can also help increase an organization’s reputation with its employees, customers, partners, prospects, and community.  

    Additionally, companies with noble causes and projects are more likely to be approached by talented employees. Today, many job hunters are interested in organizations with a history of goodwill. 

    1. It benefits the family

    Another aspect not commonly known about philanthropy is how it benefits families. Families who participate in charitable endeavors give their children the opportunity to learn valuable life skills like goal setting, volunteerism, and project management.

    Most importantly, it helps children learn empathy and improve their overall emotional intelligence. Philanthropy also allows the adults in the family to learn more about the world. It broadens their perspectives and fuels their passion for fighting for noble causes.


    Making the World a Better Place

    The world is, without a doubt, a better place due to the many philanthropic and charitable activities around. Societal and environmental issues usually lost to unfair bureaucracy are finally addressed.

    Innovations in health and digital technology continue to grow as more and more people are willing to donate funds to allow organizations to make the impossible possible. Most importantly, philanthropy inspires people to do good and help each other, especially in a crisis.

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