Key Term

What is Philanthropy?

Definition

Philanthropy refers to the voluntary act of donating money, resources, time, or expertise to support charitable causes and promote the welfare of others. It encompasses both individual giving and organized efforts through foundations, trusts, and other charitable entities, with the primary goal of addressing social issues, advancing education, supporting the arts, or improving various aspects of society.

Significance

Philanthropy plays a crucial role in addressing societal challenges and filling gaps where government and business sectors may fall short. It serves as a powerful mechanism for wealth redistribution, social change, and community development. In the context of charitable giving, philanthropy represents more than just monetary donations; it embodies a strategic and often long-term commitment to creating positive social impact. Modern philanthropy has evolved to include impact investing, venture philanthropy, and data-driven approaches to maximize the effectiveness of charitable contributions and create sustainable solutions to complex social problems.