Charity vs Philanthropy

5 min read

The comparison

Recently there has been an increase in articles comparing philanthropy and charity. The articles promote the idea that philanthropy is a better way to give. Statements such as "inspire philanthropy, don't beg for charity" lead readers to perceive more value in philanthropy. However, at Mite, we believe there is another side to the coin 🙂. Let's start with some definitions.

Defining philanthropy

Philanthropy is defined as ​​the desire to promote the welfare of others, expressed especially by the generous donation of money to good causes. The motivation behind philanthropy is a "desire to promote the welfare of others." It is a self-intentioned activity to further progress and actively encourage the fortune of other humans. Philanthropy acts to support "good causes." This "good" modifier does not denote a value related to impact or stewardship. Instead, the term is associated with the type of cause conducted. Philanthropy is generally thought to back causes with positive effects on humanity.

Another common perception of philanthropy is that it includes planning. It is based on a "desire" to accomplish a particular result. For this reason, philanthropic ventures are considered a better vehicle for societal change than simple charity. Organizations with missions to solve the world's greatest problems are likely built on a philanthropic philosophy. They desire to promote the betterment of all within society to alleviate overall suffering.

Due to the planned nature of philanthropic donations, they are of higher monetary value than other types of giving which is interpreted as more "generous". For this reason, philanthropy has traditionally been used by high net worth individuals making plans to give large donations to affect societal change. However, modern giving vehicles like community foundations, donor-advised funds, and giving circles are changing the philanthropic landscape by allowing middle- and low-income donors to act as co-ops for donations.

Defining charity

Charity is defined as the voluntary giving of help to those in need, typically in the form of money. The initiator of charity is a voluntary act of giving. The focus of giving in charity is people in need. Generally, charity meets a more immediate need and, therefore, has a more concentrated impact.

Charity is often presented as the haphazard giving of resources with little or no result beyond helping people at the moment. Where philanthropy is seen as more of a reasoned giving, charity is seen as heartfelt giving. The popular conception presents philanthropy as based on good planning and results in actual change. In contrast, the result of charity is generally limited to helping the individual(s) receiving the donated resources.

Etymology of charity

Etymology of Charity

Comparing philanthropy to charity is like comparing ice cream to milk. There are pronounced differences, but you do not get the first without the other. At least, that is what we thought. Modern articles present charity as a type of giving or even a nonprofit organization! That is not the word's original meaning.

Charity has its origins in Old English and was adapted from the Old French term "charité". The meaning of both words centers around benevolence, Christian love, and compassion. The ultimate root of the word charity is found in the Greek word "agape," which means love. In fact, charity is used interchangeably with love in different versions of the Bible (1 Corinthians 13:13 KJV,1 Corinthians 13:13 NIV).

Charity is the source of giving, and at its core is love. Philanthropy may be founded in charity and have a loving aspect to it. However, as demonstrated above, the heart may be eliminated from philanthropy, resulting in a human-centric act of influencing society.

Final considerations

The view that charity is less desirable than philanthropic investment is based on the idea that "charitable" appeals underperform philanthropic appeals in attracting donors. For this reason, articles suggest nonprofits give their donor appeals a philanthropic flair. According to these papers, meeting immediate needs through charity may be less desirable than planning to solve the world's societal problems. However, it can be argued that immediately meeting needs through actual giving far outpaces planned philanthropic giving in delivering help to people.

Philanthropic appeals result in the highest dollar value of donations because these appeals are presented to wealthy people. Wealth is not obtained without a plan and a high level of control. Those who can give much will require much from those they give to. At least, that appears to be the modern philosophy behind philanthropy.

We are in no way attempting to dissuade comparison between planned, investment style giving and the charitable giving directed toward meeting immediate need. Both have their purpose, and both, when effectively executed, have a significant benefit to people. But we will suggest that when intending to compare philanthropy to charity, readers would be better served if the author(s) would take the time to:

  1. Understand that philanthropy (care for your fellow humans) does not occur unless there is charity. If philanthropy is only a matter of human desire to influence society, it is not charitable.
  2. Consider the intent of giving. Is it more about growing an organization than answering people's needs? Growing organizations through philanthropy does not automatically mean people are helped.
  3. Remember that charity belongs to God, and it is always better to be involved in what God is doing than planning on changes you think would be good.