What is philanthropy?

There's a misperception that only billionaires who use their wealth to finance new libraries or large-scale initiatives can be impactful philanthropists. That’s simply not the case. 

Stemming from the Greek words Philein, meaning to love, and Anthropos, meaning humankind, philanthropy translates to “the love of humanity.” Based on this definition, anyone promoting the welfare of others is a philanthropist. 

Read on to learn how today’s philanthropy extends far beyond the checkbook.

The three Ts of philanthropy 

Although charitable giving is traditionally expressed through the donation of money, individuals can contribute to a cause or community in countless ways using their time, talent, or treasure. 

Time

Time is precious but doesn’t cost a dime, making it a universally appealing avenue for philanthropy. Whether it’s visiting nursing home residents or building a community garden, this type of giving is something anyone can do, often through corporate volunteer programs. 

Since most nonprofits rely heavily on volunteers to drive their missions forward, giving of your time in a regular, scheduled pattern will have a significant impact. 

Talent

Utilizing your unique skills, knowledge, or professional expertise is an excellent way to give back. Creatives can write promotional materials or design a website for a nonprofit. Those in the legal field can offer pro bono guidance. Event planners can help host a fundraising event—the possibilities are endless.

Treasure

Large financial contributions are often the first thing that comes to mind when discussing philanthropy, but there are other forms of treasure that can support an organization or initiative. Lending a piece of art for display at a museum or donating an item or service at an organization’s annual auction are both examples of gifting non-monetary treasure. 

For those philanthropists who can donate charitable dollars, whether it’s to a collection box or funding scholarships at your alma mater, every gift, large or small, makes a big difference. 

Formal and informal philanthropy 

When it comes to philanthropy, it’s important to remember that no donor, gift, or nonprofit organization is the same. Because of this diversity, highly engaged philanthropists can give in formal and informal ways, often at the same time. 

According to a report released by the United States Census Bureau, over 75.7 million, or 28.3% of the U.S. population age 16 and up, formally volunteered through an organization between September 2022 and September 2023. Interestingly, a larger percentage (54.2%) of Americans participated in helping or exchanged favors with neighbors by house sitting, running errands, or lending tools between September 2022 and 2023. 
 

Vanguard Charitable donors strongly echo this giving behavior, with over 98% reporting they engage in charitable activities outside of their structured giving. 

Giving vehicles for maximum impact

For those who want to give their treasure while augmenting their giving with long-term philanthropic strategies, many have heard of private foundations. However, giving vehicles like donor-advised funds (DAFs) are a great way to grow charitable dollars while maximizing the benefits of giving. And because DAFs are offered by sponsors like Vanguard Charitable, they don't require the complicated bureaucracy that comes with establishing a private foundation. 

If you’re looking to maximize the tax benefits of strategic charitable giving, grant with timeline and acknowledgement flexibility, and keep costs low to give more to charity without having to operate a standalone charitable organization, a DAF is likely the right giving vehicle for your philanthropic goals.

Make your philanthropic mark on the world

Philanthropy doesn't look the same as it did generations ago. Now, people are leveraging strategic giving vehicles like donor-advised funds, discovering causes and charities online, and are able to respond to disasters across the world in minutes. 

But despite the evolution of giving over time, the heart of philanthropy remains—whether you give your time, talent, or treasure, all giving is philanthropy and all givers are philanthropists. So only one question remains: As a philanthropist, how will you give?