Although there are similarities between philanthropy and charitable giving there are distinctive differences in how and where the funding is derived. What’s important is that the goal of all giving regardless of the strategy is to provide an outcome that makes a difference in the lives of those who are in need.
According to Giving USA 2021, which reports on charitable giving in the United States for the year 2020, charitable giving in the U.S. totaled $471.44 billion, an increase of 5.1% from the previous year.
Philanthropy vs. Charity
Philanthropy is more of a long-term strategy and often involves a commitment to providing multiple gifts over a number of years with the goal of creating systemic change. While charitable giving is focused more on providing immediate relief to people and is often driven by emotions, philanthropy is focused on helping people and solving their problems over the long-term. Regardless of the cause, the act of charitable giving is rewarding for those that participate.
In addition, philanthropy can also offer the ability to better identify with what the recipient of such aid needs. Visiting the population where the children who receive humanitarian aid is an example which is relatable to donors.
Charity can be done by anyone individually and for a specific, close objective and doesn’t require large resources to get involved. Although philanthropy is generally related to larger organizations and initiatives, charitable giving by individuals comprises 80% of all donations to charities and nonprofit organizations in the US. What they do have in common is that, in any action related to both, what is done is to dedicate their own resources to improve the well-being of other people.
If you’re interested in giving back, there are many ways to get involved. One option is to join PayGiv, which offers cashback on purchases that can be donated to a nonprofit of your choice. Regardless of how you choose to give, remember that every act of giving can make a difference in someone’s life. Join Now
