Do you have to be rich to be a philanthropist?

No. A philanthropist is anyone who gives time, talent or money to make positive change happen, whatever their wealth or status. What makes someone a philanthropist is the aim, lasting good for others, not the size of the gift.

Which type of philanthropist are you?

Probably one of seven profiles that studies of major donors describe, each with a different main motive: the communitarian (helping the local community), the devout (faith), the investor (tax and estate benefits alongside the cause), the socialite (giving through events and networks), the repayer (giving back to an institution that helped them), the altruist (a moral duty) and the dynast (a family tradition). Knowing your own profile helps you pick a vehicle: a dynast often wants a family foundation, an investor a donor-advised fund.

Why is philanthropy important?

Because it pays for what markets and public budgets leave aside: early research, local causes too small for a public budget, new ideas that need a first backer. It is also big: in the US, giving reached an estimated $617.2 billion in 2025, and individuals gave 64% of it ($394.2 billion), far ahead of foundations (19%), bequests (10%) and companies (7%).

Who is a good example of philanthropy today?

Footballer Marcus Rashford is a well-known one: his school meals campaign in 2020 called for eligible children in England to get free school meals during the holidays. Money played a part, but the push for lasting change drove it, and the UK government changed its policy on free school meal vouchers during lockdown as a result.

Who first used the word philanthropy?

One of the first known uses is in Prometheus Bound, a play attributed to Aeschylus, written in the 5th century BCE: the word describes Prometheus's gift of fire to humankind. Plutarch, in the 2nd century CE, used it to describe superior human beings. In medieval Europe the Christian virtue of charity took its place. In English, Francis Bacon treated philanthropy as a synonym of goodness, and Samuel Johnson's dictionary defined it as "love of mankind; good nature".

Why is philanthropy criticized?

Mainly because big donors get to steer public priorities. Critics argue that elite giving can protect the power of the wealthy, that tax deductions subsidize the gifts of high earners more than those of everyone else (the "upside-down effect"), and that donations can clean up a reputation, as with the Sackler family and the opioid crisis.

How much of a charity event's ticket money goes to fees?

On a $50 ticket paid by card, between $0 and about $3.40, depending on the tool and its settings. On Donorbox's free Standard plan, event tickets carry a 3.95% platform fee, against 2.95% for a donation form, plus card processing ($3.38 in all at the 2.2% + 30¢ nonprofit rate); Givebutter charges no platform fee on any campaign type when donor tips are on, and a flat 3% plus 2.9% + 30¢ per card when they're off ($3.25). A gala, an auction or a charity run raises money and awareness at once, so pick the tool before you print the tickets. Our guide to nonprofit event management software compares the dedicated tools.

What is philanthropy? Definition, types and the tools to give well

What philanthropy means, how it differs from charity and CSR, the main ways to give, and the tools donors and nonprofits use, with their real fees.

Philanthropy is the voluntary giving of money, time, skills or other resources for the public good, with the aim of improving lives over the long term. The word comes from the Greek philanthrōpía, "love of humanity".

You don't need to be rich to be a philanthropist. This page explains the idea in plain words, walks through the main forms of giving (from a donation to a donor-advised fund or a foundation), separates philanthropy from charity, CSR and impact investing, and compares seven tools donors and nonprofits use, with the fees nobody mentions up front.

Romain CochardCEO of Hack'celeration

Updated 20267giving tools compared7forms of philanthropy explained7common questions answered

Some links to tools may be affiliate links. The definition and our take on each tool stay the same either way.

How it works · Who gives, how, and why

How philanthropy works: the three T's and the main forms of giving

At its simplest, philanthropy is private action for the public good. Business pursues private gain; government provides public services paid by taxes; philanthropy sits in between, with private people and companies choosing, freely, to fund what they think society needs. Nothing forces the giver, and the giver expects nothing back in payment.

Givers usually talk about the three T's:

Time: volunteering, mentoring, sitting on a nonprofit board.
Talent: professional skills given for free, like an accountant reviewing a charity's books or a marketer building its website.
Treasure: money, stock, real estate or other assets.

The main forms of philanthropy, from the most common to the most structured:

Individual giving. Gifts from people, at every level. It's the largest source of charitable giving.
Planned and legacy giving. Bequests in a will, charitable trusts and estate plans.
Donor-advised funds (DAFs). An account at a sponsoring charity: you give once, take the tax receipt now, and recommend grants to charities later, while the money stays invested.
Foundations. Private, family or community foundations that make long-term grants, usually with staff and a strategy.
Corporate philanthropy. Company donations, employee matching gifts, payroll giving and corporate foundations.
Faith-based giving. Through religious institutions: zakat in Islam, the tithe in many churches, dasvandh (a tenth of earnings) for Sikhs.
Venture philanthropy. Business methods applied to social goals. Impact investing, which expects the money back with a return, is a neighbouring idea rather than a form of philanthropy: the table below sets them apart.

A few newer approaches change who decides. Trust-based philanthropy gives nonprofits unrestricted, multi-year money and light reporting. Effective altruism picks causes by measured impact per dollar. Diaspora philanthropy is migrants funding development in their country of origin.

Real example · From a check to a strategy

A worked example: the same $5,000, given three ways

History gives the big examples. Thomas Coram's Foundling Hospital, opened in London in 1739, is described as the country's first children's charity. Andrew Carnegie gave away most of his fortune and paid for more than 2,500 public libraries. Today, the Giving Pledge, started by Warren Buffett, Melinda French Gates and Bill Gates, asks the very wealthy to give the majority of their wealth in their lifetime or in their will.

Most philanthropy looks smaller. Take a freelance designer who wants to give $5,000 a year to education. Here are three ways to do it:

Direct gifts. She sends $5,000 to a scholarship fund in December. Simple, no fee on her side. In the US, from tax year 2026, a filer who takes the standard deduction can still deduct up to $1,000 of cash gifts ($2,000 on a joint return); above that, only itemizing counts.
A donor-advised fund. She opens a DAF, contributes $5,000 in appreciated stock, takes the receipt that year, and grants the money over the next two years. A gift to a DAF generally doesn't count toward the $1,000 deduction for non-itemizers, so this route pays off mainly when she itemizes or gives appreciated stock. At Daffy, the flat membership costs $3 a month ($36 a year); at Fidelity Charitable, the $100 floor applies, because 0.6% of $5,000 is only $30. On a small fund, the flat fee wins by $64 a year.
Time and talent. She keeps $2,000 in cash gifts and redesigns a literacy nonprofit's website for free. The nonprofit saves an invoice that could cost more than the cash.

Three details that general explainers skip, all found in the fine print:

An idle DAF doesn't stay idle. If a Fidelity Charitable account makes no grant for two years, Fidelity Charitable grants 5% of the balance to a public charity its trustees approve.
A DAF needs no opening deposit, or a big one. A personal Fidelity Charitable Giving Account has no minimum initial contribution; Vanguard Charitable asks $25,000 to open an account.
Your gift arrives net of fees. Through a Donorbox form on the free Standard plan, a $100 card donation reaches a US nonprofit as $94.55 after the 2.95% platform fee and Stripe's nonprofit rate of 2.2% + 30¢.

In practice · Start giving with a plan

How to start: pick a cause, a budget and a vehicle

1. Pick one or two causes. Spreading $500 across twenty charities makes each gift too small to matter and floods your inbox. Choose what you care about and where you know the people involved.

2. Check the organization. Look it up on a rating site like Charity Navigator, read its annual report, and ask what one dollar pays for. For a young or local nonprofit without a rating, a coffee with its director tells you more than a score.

3. Set a yearly budget. A share of income (some traditions use a tenth) or a fixed amount. Write it down: regular, predictable gifts are worth more to a nonprofit than a single large check, because it can plan around them.

4. Choose a vehicle. Under a few thousand dollars a year, give directly. Above that, or when you give appreciated stock, a donor-advised fund saves paperwork and can save taxes. When your family wants staff, a strategy and a name over decades, a private foundation becomes worth its legal and running costs.

5. Think tax early. In the US, itemizers can deduct cash gifts to public charities up to 60% of adjusted gross income in most cases, but from 2026, only the part of their gifts above 0.5% of AGI is deductible, and the tax benefit is capped at 35% for donors in the 37% bracket. Also from 2026, people who take the standard deduction can deduct up to $1,000 of cash gifts ($2,000 for joint filers), though gifts to donor-advised funds generally don't qualify. In the UK, Gift Aid lets the charity reclaim basic-rate tax on your gift, and payroll giving takes donations from your salary before tax.

6. Measure and adjust. Once a year, ask each charity what changed thanks to the money. Effective altruism, with groups like GiveWell and Giving What We Can, takes this furthest, comparing causes by results per dollar. A yearly check is enough to stop funding what isn't working.

Who it's for

Who practices philanthropy, and how

Typical philanthropists

Individuals giving a share of their income each year
Families running a donor-advised fund or a family foundation
Companies matching employee gifts or funding a corporate foundation
Professionals giving skills pro bono or serving on a nonprofit board
Very wealthy donors pledging most of their fortune

What they fund

Education and scholarships
Health and medical research
Local communities, food banks and housing
Arts, museums and culture
Global poverty, climate and disaster relief

Related terms

Philanthropy vs charity, CSR and impact investing: what changes

The words overlap, and many people use philanthropy and charity as synonyms. Here's how they differ when the difference matters.

	Philanthropy	Charity, CSR, impact investing
Goal	Long-term change to the causes of a problem	Charity: relief of an immediate need CSR: a company's responsibility in its own business Impact investing: a social result and a financial return
Time horizon	Years, often decades	Charity: now CSR: the company's strategy cycle Impact investing: the life of the investment
Who does it	Individuals, families, foundations, companies	Charity: anyone CSR: companies Impact investing: investors and funds
Money comes back?	No	Charity: no CSR: indirectly, through reputation and risk Impact investing: yes, by design
Example	Funding teacher training in a region for ten years	Charity: a food bank delivery CSR: cutting a factory's emissions Impact investing: a loan to an affordable housing builder

A short way to remember it: charity gives a fish, philanthropy teaches fishing. Most effective organizations do both.

The tools

The best tools to give and to raise money

Philanthropy today runs on software, on both sides of the gift. We compared seven tools: three donor-advised funds to organize your giving, two research tools to check where money goes, and two fundraising platforms nonprofits use to receive it. The quick route: you give a few hundred dollars a month, start with Daffy; you give stock or larger sums, Fidelity Charitable; you start with $25,000 or more, Vanguard Charitable; you vet a charity, Charity Navigator; you run a nonprofit, Givebutter or Donorbox. Each card gives a price, the limit and one tip. Workplace giving platforms such as Benevity aren't compared: employers buy them to run employee giving, volunteering and grants for their staff, so you use the one your company chose (ask HR whether it matches gifts). If you run a nonprofit, see also the best donation software for NGOs, the best CRMs for nonprofits and grant management software for foundations.

Fidelity Charitable: the classic donor-advised fund

Best for larger funds

Fidelity Charitable runs a Giving Account, a donor-advised fund (DAF): you donate cash, stock or other assets, get your tax receipt right away, then recommend grants to charities over time while the balance stays invested.

Who it's for. Donors who give several thousand dollars a year, often appreciated stock, and want one receipt and one place to manage every gift.

The limit. The yearly administrative fee is $100 or 0.6% of the balance, whichever is greater. Below about $16,700, the $100 floor wins: on a $10,000 account, that's 1% a year, before investment fees.

The tip. Each grant must be at least $50, and you must recommend at least one grant every two years. Set a yearly reminder so the account doesn't sit idle.

Price: $100 a year or 0.6% of assets, whichever is greater
Best for: Gifts of stock and larger yearly budgets
Limit: $100 floor weighs on small accounts

See Fidelity Charitable →

Daffy: a donor-advised fund in an app, at a flat fee

Best for small budgets

Daffy is a donor-advised fund built around a mobile app: you set a recurring contribution, invest it, and send grants to charities from your phone.

Who it's for. People starting to give regularly with a modest budget. Accounts start from $10, and membership starts at $3 a month, a flat fee rather than a percentage of the balance.

The limit. A flat fee is a bargain on a large account and expensive on a tiny one: $36 a year is 3.6% of a $1,000 balance. And the fee is flat per tier, not for life: on an individual fund, $3 a month covers average annualized contributions up to $25,000, then $20 a month up to $100,000 and $40 beyond; a family fund pays $5 a month up to $50,000. A fund holding under $100 pays nothing.

The tip. Compare the flat fee with Fidelity's floor at your real balance: at $10,000, $36 a year against $100.

Price: From $3 a month (up to $25,000 given a year)
Best for: Regular giving from small amounts
Limit: Flat fee weighs on very small balances

See Daffy →

Vanguard Charitable: a donor-advised fund for large balances

Best for $25,000+

Vanguard Charitable runs donor-advised funds: you contribute cash, stock or complex assets, take the tax receipt, and recommend grants later while the balance stays invested. In 29 years it has granted $27 billion to more than 150,000 charities.

Who it's for. Donors with a large sum to give at once, often appreciated stock, who want the percentage fee to shrink as the balance grows.

The limit. Opening an account takes $25,000, each additional contribution at least $5,000, and each grant to a charity at least $500, ten times Fidelity Charitable's $50 grant minimum. It isn't built for $100 gifts.

The tip. The administrative fee falls by tier: 0.60% on the first $500,000, 0.30% on the next $500,000, 0.11% on the next $4 million. On a $1 million account, that's $4,500 a year (0.45%), before investment fees.

Price: 0.60% a year on the first $500K, lower above
Best for: Large gifts and appreciated stock
Limit: $25,000 to open, $500 minimum grant

See Vanguard Charitable →

Charity Navigator: check a charity before you give

Free research

Charity Navigator rates US charities on the health and cost-effectiveness of their programs. It has rated more than 245,000 charities and has offered free access to its data since 2001.

Who it's for. Any donor about to write a check to an organization they don't know well.

The limit. A rating is only as good as what the charity reports: its filings, its website and the impact data it shares. Charity Navigator added an impact score in 2020 and reworked its method in 2026 to weigh verified impact more, but a young or small nonprofit can still be unrated without being bad.

The tip. Use the rating to shortlist, then read the charity's own annual report. If you run a nonprofit, the same reporting discipline sits in your nonprofit accounting software.

Price: Free for donors
Best for: Vetting a US charity in minutes
Limit: Rates what a charity reports; small ones may be unrated

See Charity Navigator →

Candid: the database of foundations and grants

For grant seekers

Candid (the former Foundation Center and GuideStar) maps who funds what: nonprofit profiles, foundations and their past grants.

Who it's for. Nonprofits looking for funders, and family foundations studying who else funds their cause. A free account gives the basic profiles.

The limit. The full grant search is paid: Premium costs $219 a month on the monthly plan. Nonprofits that win grants then track them in grant management software.

The tip. The annual plan starts at $1,199 billed once a year, about $100 a month, against $2,628 for twelve months at the monthly price. If you'll search for more than five months, pay yearly: the annual plan also raises grant downloads from 250 to 1,000 a month. On the free account, you get one full profile view a month.

Price: Free account; Premium $219/month or from $1,199/year
Best for: Finding foundations and past grants
Limit: Grant search is behind the paid plans

See Candid →

Givebutter: free fundraising pages for nonprofits

Best free for nonprofits

Givebutter is on the receiving side: it gives a nonprofit donation forms, campaign pages, events and a donor CRM.

Who it's for. Small and mid-sized nonprofits that want to raise money without a monthly bill. The core is free forever, and Givebutter Plus, with automations, texting and reporting, starts at $29 a month billed annually ($33.80 on monthly billing), priced by your number of contacts.

The limit. "Free" depends on donor tips. With tips on, the nonprofit pays 0% platform fee and no processing fee. Turn tips off and a flat 3% platform fee applies, plus card processing at 2.9% + 30¢. Donors notice the tip too: one reviewer complained in 2026 about a $25 tip on a $250 gift.

The tip. Run the math on your average gift: with tips off, a $100 donation costs you $6.20 in fees. Givebutter connects to your other tools through its Zapier integration.

Price: Free with optional donor tips; Plus from $29/month billed annually
Best for: Nonprofits raising money online
Limit: 3% fee if tips are turned off

See Givebutter →

Donorbox: donation forms with a clear per-gift fee

Simple pricing

Donorbox adds donation forms, recurring giving and campaign pages to a nonprofit's website. It says 200,000+ nonprofits use it.

Who it's for. Organizations that prefer a fixed, predictable fee to a tip model.

The limit. The Standard plan costs $0 a month, but each gift through a donation form carries a 2.95% platform fee (3.95% on event tickets and memberships), plus Stripe processing, typically 2.2% + 30¢ for a registered US nonprofit: $5.45 on a $100 donation.

The tip. The Pro plan, at $150 a month, saves 1.2 points on donation forms (2.95% → 1.75%) and 1.95 points on tickets, memberships and supporters' peer-to-peer pages (3.95% → 2%): it pays for itself above about $12,500 a month of form donations, or about $7,700 a month of ticket sales. Extras are priced one by one, like Text-to-Give from $19 a month: add them only when a campaign needs them. To push each gift into your donor list or nonprofit email tool, use the Donorbox Zapier integration.

Price: Standard $0/month + 2.95% platform fee + processing
Best for: Predictable fees on every gift
Limit: Fees on each donation add up

See Donorbox →

Is your tool missing from this page? Email us: hello@hackceleration.com

FAQ

Philanthropy FAQ

Do you have to be rich to be a philanthropist?
No. A philanthropist is anyone who gives time, talent or money to make positive change happen, whatever their wealth or status. What makes someone a philanthropist is the aim, lasting good for others, not the size of the gift.
Which type of philanthropist are you?
Probably one of seven profiles that studies of major donors describe, each with a different main motive: the communitarian (helping the local community), the devout (faith), the investor (tax and estate benefits alongside the cause), the socialite (giving through events and networks), the repayer (giving back to an institution that helped them), the altruist (a moral duty) and the dynast (a family tradition). Knowing your own profile helps you pick a vehicle: a dynast often wants a family foundation, an investor a donor-advised fund.
Why is philanthropy important?
Because it pays for what markets and public budgets leave aside: early research, local causes too small for a public budget, new ideas that need a first backer. It is also big: in the US, giving reached an estimated $617.2 billion in 2025, and individuals gave 64% of it ($394.2 billion), far ahead of foundations (19%), bequests (10%) and companies (7%).
Who is a good example of philanthropy today?
Footballer Marcus Rashford is a well-known one: his school meals campaign in 2020 called for eligible children in England to get free school meals during the holidays. Money played a part, but the push for lasting change drove it, and the UK government changed its policy on free school meal vouchers during lockdown as a result.
Who first used the word philanthropy?
One of the first known uses is in Prometheus Bound, a play attributed to Aeschylus, written in the 5th century BCE: the word describes Prometheus's gift of fire to humankind. Plutarch, in the 2nd century CE, used it to describe superior human beings. In medieval Europe the Christian virtue of charity took its place. In English, Francis Bacon treated philanthropy as a synonym of goodness, and Samuel Johnson's dictionary defined it as "love of mankind; good nature".
Why is philanthropy criticized?
Mainly because big donors get to steer public priorities. Critics argue that elite giving can protect the power of the wealthy, that tax deductions subsidize the gifts of high earners more than those of everyone else (the "upside-down effect"), and that donations can clean up a reputation, as with the Sackler family and the opioid crisis.
How much of a charity event's ticket money goes to fees?
On a $50 ticket paid by card, between $0 and about $3.40, depending on the tool and its settings. On Donorbox's free Standard plan, event tickets carry a 3.95% platform fee, against 2.95% for a donation form, plus card processing ($3.38 in all at the 2.2% + 30¢ nonprofit rate); Givebutter charges no platform fee on any campaign type when donor tips are on, and a flat 3% plus 2.9% + 30¢ per card when they're off ($3.25). A gala, an auction or a charity run raises money and awareness at once, so pick the tool before you print the tickets. Our guide to nonprofit event management software compares the dedicated tools.

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Philanthropy