What Is Philanthropy?

When people think about philanthropy, they often picture Forbes-List giants like Warren Buffett or Bill and Melinda Gates, or the bronze likenesses they see on plaques in libraries and hospital wings. However, the real meaning of philanthropy is much broader—and is not exclusive to the wealthy. Philanthropy is defined as any act of giving that improves the lives of others or society in general (including animals and the environment). Generally speaking, the difference between charity and philanthropy is that charitable acts are typically a one-time response to a singular crisis-related event, while philanthropic acts are done strategically over the long term to address an ongoing problem. Such generosity isn’t always monetary in nature, either; people who regularly volunteer their time or skills with nonprofits and charities are also philanthropists.

6 Wellness Benefits of Philanthropy

Even on a small scale, you might perceive the donation of time, money, or other assets as something people do primarily for the sake of appearances, or to fulfill a moral obligation. Alternatively, you may assume that philanthropy only benefits those on the receiving end of the equation. But, the truth is that philanthropic acts also improve the lives of those who give, particularly in ways related to general well-being. Generosity gives donors:

• The satisfaction of helping to solve a problem
• A sense of empowerment and purpose in dark or chaotic times
• Reduced stress
• Improved overall health
• A sense of connection to community
• Tax deductions

If you give with sincerity, you could benefit from any of these factors. In other words, philanthropy might be good for you.

How to Maximize Your Philanthropic Impact

If you currently volunteer or donate to charities, kudos: you’re already a dedicated philanthropist who is part of the solution to any number of problems. But, there are ways to maximize your philanthropic impact that don’t necessarily require significant wealth. 

First, educate yourself on effective giving strategies that work best for your budget, lifestyle, and interests. There are many highly recommended books for new and curious philanthropists that can help you understand your options. 

Among the most popular of these avenues are donor-advised funds (DAFs). Donors give a selected number and kind of financial assets to a sponsored fund and choose from a number of investment options that will serve charities in the short term and grow the wealth, known as philanthropic capital, for further use in the long term. Contributions to donor-advised funds offer a number of benefits to philanthropists: they are tax-deductible, generate risk-free revenue owned by the fund rather than the donor, and allow donors to recommend which organizations to support. You can read about more related strategies and benefits here.

If you’re a Christian, you may be wondering which faith-based charities you should help. Fortunately, there’s a donor-advised fund for that, too. The Canadian National Christian Foundation (CNCF) operates the CNCF Giving Fund, which simplifies the contribution process for philanthropists as much as possible while giving them optimal control. If you’re ready, click here to connect with CNCF and maximize your philanthropic impact for God’s Kingdom with the CNCF Giving Fund. CNCF can work with you and your trusted financial professional or help you find a Canadian Christian Financial Advisor near you!

About Canadian National Christian Foundation

CNCF is a community of givers who are seeking to advance the Kingdom of God by connecting the resources God has entrusted to them with His work on earth.

Similar to other public foundations, CNCF’s difference is the commitment of its staff and directors to the Word of God, its non-denominational history and status as a Christian foundation, and its ability to allow donors to donate anonymously, at a time and gift value of their choosing.  Learn more by visiting our website.