What is Philanthropic Giving? 

Transforming Wealth into Meaningful Impact

Philanthropic giving refers to the practice of utilizing one’s personal wealth and resources to impact social causes, improve communities, and enhance quality of life for others. Supporters may choose to give their time, talent, or treasure to the causes that matter most to them, with the goal of sustainable and meaningful change. For many ultra-high-net-worth individuals, philanthropic giving marks the opportunity to turn their success into a lasting legacy that reflects their values and aspirations. 

The History of Philanthropic Giving

Although philanthropy has taken many forms throughout history, some point to George Peabody, a 19^th century financier and philanthropist, as the father of modern philanthropy. Peabody’s contributions include the Peabody Donation Fund, which provided housing for London’s poor and the Peabody Education Fund, which created a public education system in the eleven former Confederate states and West Virginia after the U.S. Civil War.  

Peabody’s actions inspired Andrew Carnegie who, along with John D. Rockefeller, established foundations focused on education, world peace, healthcare, medical research, and social reform, some of which continue their work today. 

Rockefeller saw significant value in approaching philanthropy strategically. “About the year 1890, I was still following the haphazard fashion of giving here and there as appeals presented themselves. I investigated as I could, and worked myself almost to a nervous breakdown,” he wrote in his memoirs.  

There was then forced upon me the necessity to organize and plan [philanthropic activities] on as distinct lines of progress as we did with our business affairs.”  
–John D. Rockefeller 

Technological advances have further revolutionized the field, giving rise to new approaches including venture philanthropy, impact investing, and digital crowdfunding.  

Women in Philanthropy

Women also played a key role in the history of philanthropy—and continue to play a central role today. “Fundraising is a female-dominated profession,” argues Sanky, the female-founded, non-profit communications firm. Their history of women highlights the 19^th-century American women who stepped up to assist poor widows and orphaned children after the War of 1812.  

The educational publisher Gale traces women in philanthropy even farther back to parochial institutions, including the Catholic Daughters of Charity of St. Vincent de Paul, founded in the 1600s.  

Women have long been drivers of philanthropic work in local communities and globally, with statistics suggesting that 57% of global volunteer work is completed by women. 

57%

Percentage of global volunteer work completed by women.  

The Benefits of Philanthropic Giving

Philanthropic giving offers ultra-high-net-worth individuals the opportunity to create impact in the areas that matter to them—and leave a legacy for generations to come—as in the following examples of several well-known business leaders and the causes they’ve supported: 

• The Bill & Melinda Gates Foundation aims to create a world where every person has the opportunity to live a healthy, productive life. The foundation, which has received more than $36 billion in contributions from Warren Buffett, has funded scholarships, sanitation efforts in developing countries, global health initiatives, and medical research, among others. 

• Michael Bloomberg has given billions of dollars, both personally and through his organization, Bloomberg Philanthropies, to causes across the arts, education, environment, government innovation, and public health. 

• The Penny and Phil Knight Campus for Accelerating Impact funds scientific discoveries into tools and treatments to improve people’s lives; cancer, neuroscience, and cardiology research; and international trade and economic programs. 

For those who donate, experiencing the positive impacts can produce a deep sense of personal fulfillment and meaning.  

Additionally, strategic giving can create synergies with other like-minded individuals and related organizations, which may open the door to an even more significant impact on the target cause. 

Finally, philanthropy can also offer ultra-high-net-worth individuals appealing tax advantages. 

Types of Philanthropic Giving

Philanthropic giving manifests in various forms. Understanding these different approaches can allow ultra-high-net-worth individuals to use their resources strategically to address pressing social issues and drive lasting, positive change.  

Corporate Philanthropy

Corporate philanthropy refers to the efforts of businesses to support social causes through a number of different vehicles, including corporate sponsorships, matching gifts, volunteer time off, and in-kind donations. In addition to contributing to a worthy cause, corporate philanthropy can assist with attracting and retaining talent, enhancing a company’s reputation, creating partnership opportunities, and delivering potential tax benefits.

Venture Philanthropy

Venture philanthropy integrates the strategies of venture capital with charitable endeavors to enhance the effectiveness and scalability of these initiatives. This approach focuses on investing in social enterprises and non-profits that have the potential to achieve substantial social impact. Through funding, strategic guidance, and operational support, venture philanthropists aim to help these organizations scale their initiatives and enhance their effectiveness, fostering innovation and long-term success while addressing critical social issues. 

Impact Investing

Impact investing involves allocating capital to companies, organizations, and funds with the dual goal of 1) achieving measurable social and environmental benefits and 2) generating a financial return. This approach attracts investors who seek to align their portfolios with their values and contribute to positive change. Unlike traditional investments, impact investing emphasizes outcomes that benefit society and the environment. 

Philanthropy and the Arts

Arts philanthropy involves providing support to cultural institutions, artists, and creative projects that contribute to societal enrichment and the preservation of cultural heritage. By funding museums, theaters, galleries, and educational programs, philanthropic giving can help ensure the accessibility and sustainability of the arts. This support fosters creativity, promotes cultural diversity, and enhances community engagement. Arts philanthropy not only preserves historical and artistic legacies but also inspires new generations of artists and audiences, contributing to the vibrant cultural fabric of society.

Disaster Philanthropy

Disaster philanthropy is dedicated to offering immediate relief and supporting long-term recovery efforts for communities impacted by disasters, such as wildfires, hurricanes, and humanitarian emergencies. This type of giving includes financial contributions, in-kind donations, and volunteer efforts aimed at mitigating the impact of disasters and rebuilding affected areas.

By investing in preparedness, response, and recovery, disaster philanthropy plays a crucial role in enhancing resilience and reducing vulnerability to future crises. It ensures that affected communities receive the necessary resources and support to recover and rebuild. 

Family Philanthropy

Family philanthropy involves family members coming together to create a collective impact through charitable activities. This fosters a sense of unity and shared purpose among family members, while allowing them to address causes that resonate with their values. Family foundations and trusts are common vehicles for this type of giving, which provide a structured framework for making donations and managing philanthropic initiatives. Some ultra-high-net-worth individuals manage their family’s philanthropic planning through their family office. In addition to impacting meaningful causes, family philanthropy initiatives can instill a legacy of giving across generations. 

Climate Philanthropy

Climate philanthropy aims to mitigate climate change and its effects. Organizations operating in this arena focus on a wide variety of solutions, including deploying clean energy solutions, assisting communities in developing greater resilience to extreme weather, responding to climate-related disasters, or advocating for legislative support for more sustainable solutions. Ultra-high-net-worth investors passionate about climate change may also choose to invest in companies and funds pursuing environmental, social, and governance (ESG) initiatives directed at climate change to further their impact. 

Meaning, Legacy, Impact

Philanthropy can be an intensely personal endeavor—an opportunity to make a difference in the areas that matter to you, an opportunity to add meaning to your life, and the chance to leave a lasting legacy. By understanding all the ways you can engage in philanthropy, you’ll have a better sense of what’s next for you, whether that’s beginning your philanthropy journey or scaling up your impact. 

If you’re interested in exploring more philanthropic endeavors with a group of engaged peers, we invite you to learn more about the TIGER 21 global community. TIGER 21 has created Networks where Members can come together on topics of common interest. Through the TIGER 21 Philanthropy Network, Members with all levels of philanthropic experience come together to connect, inform, inspire and build community to amplify the community’s philanthropic involvement and impact.  Members have a strong desire to give back, to pay good fortune forward — and to be as effective as possible in powering our world’s future by finding and developing entrepreneurial solutions to help improve the lives of so many in need.