How to Become a Philanthropist

Last Updated: March 15, 2020 Approved

Becoming a philanthropist, someone who donates his or her time, money, and/or reputation to charitable causes, can be a very rewarding thing. Think about well-known philanthropists, like Oprah, who donate millions to charities.

Part 1

Part 1 of 3:

Developing a Plan

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Determine what's important to you. There are a variety of different reasons you may want to become a philanthropist. People also have different outcomes they hope to achieve through giving to charity. Think about what's important to you and why before diving into the world of philanthropy.
- What are you reasons for giving? Are you giving out of religious belief, tradition, a sense of moral duty, or for some other reason? Spend some time consider the underlying moral beliefs driving your desire to become a philanthropist. This can help motivate you to donate time and money.^{[1]
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- What is your expected outcome? Do you want to help others in need? Do you want to cure a given disease? Think about how you can help and why you want to help.^{[2]
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- There are a litany of charities that need money help. Determining what's important to you and where you would like to focus your attention is an important first step to becoming a philanthropist.^{[3]
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2
Look for problems in infrastructure. Many people believe being a philanthropist is simply throwing money at a cause. This is not the case. Good philanthropists look for underlying problems in infrastructure and seek to change them. A creative, problem-solving spirit can help you in your pursuit.
- Say you want to improve access to medical care. The most obvious way to do so would be by building more hospitals. However, there may be problems you don't see preventing people from accessing health care. For example, maybe in certain regions there's no way to access a hospital. How could you combat this problem? You could help roads in rural areas of the country. You could increase access to public transportation. You could develop digital software to help diagnose issues remotely. There are many ways you can look into innovating existing systems to help solve problems at their core.^{[4]
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- In addition to donating time and money to charity, look for ways to change underlying power systems. Give money to politicians and political campaigns that support a particular cause. Try to start letter writing and phone call campaigns to address problems with how resources are allocated to poor communities.
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Strive to self-sustaining pursuits. You should always be looking for ways to make charity more self-sustainable. It's not enough to just blindly throw money at a cause. You have to look at the underlying issues creating problems in the world.
- For example, say your goal is to combat poverty. You could donate to soup kitchens and homeless shelters. However, a more sustainable pursuit might be to invest in education. This can help people foster employable skill sets.
- Try to start an organization that is designed to help underprivileged people achieve career skills that make employable. Enlist the help of teachers, for example, to start no cost vocational programs in a low income community.^{[5]
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Learn from entrepreneurs. Philanthropists can learn a lot from entrepreneurs. As the best philanthropic endeavors or longterm, self-sustaining pursuits, there's much to be gained from having an entrepreneurial spirit as well as a charitable one.
- Both business people and philanthropists spend a lot of time brainstorming and problem solving. They also both working with and motivating others. It might not be a bad idea to read a few self-help books written by powerful men and women. These kinds of books can teach you to think in an entrepreneurial manner that will help with philanthropic pursuits.^{[6]
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- Innovation is key to philanthropy. You will have to be constantly looking for new ways to solve problems. It might not be a bad idea to reach out to a CEO or businessperson and ask him or her for advice on how to foster an entrepreneurial attitude.^{[7]
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Part 2

Part 2 of 3:

Living in the Spirit of Philanthropy

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Volunteer. Most people associate philanthropy with giving money. However, donating your time to valuable causes is just as important. In addition to donating time, make sure you donate your money to charity.
- Look for opportunities to volunteer. You can find volunteer opportunities online or you can also watch for fliers and signs in your local community asking for help.^{[8]
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- Try to get involved in a certain organization for more than just a one time thing. While it's great to ring bells for the Salvation Army around Christmastime, remember that most non-profit and charitable organizations need help year round. See if any organizations have programs where volunteers are trained and assigned work year round. See where volunteers are needed. There may be a particular area where volunteers are lacking. Ask an organization you care about where they need extra help and volunteer your services.^{[9]
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Involve your friends and family. Teaching others about the important of charity is vital to the philanthropic lifestyle. Teach your friends and family members about the causes in which your invested. Invite them to help volunteer at events, give money to charity, and educate themselves and others about causes that matter. Use things like social media to your advantage. Post articles and links to the charities encouraging others to give to your cause and educate themselves about it.^{[10]
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Spread awareness. In addition to donating time to a cause, try to spread awareness as well. Oftentimes, causes can benefit from public awareness campaigns. This can lead to more people donating money to worthy causes.
- Think about creative ways to spread awareness. Incorporating social media can often have a phenomenal effect on public awareness. The ALS ice bucket challenge, for example, was an incredibly popular social media campaign in which participants dumped a bucket of ice water on their heads to help raise money for research into a disease known as ALS, which attacks nerve cells and leaves sufferers paralyzed. The challenge was widely successful, raising millions for charity and making more aware of ALS.^{[11]
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Part 3

Part 3 of 3:

Giving Money

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Evaluate charities. Not all charities are created equal. When making decisions about donating time and money, spend some time figuring out what organizations are most effective.
- You want to support causes that make a real impact. Determine which charities make a real impact and which do not. Look for tangible outcomes and real life outcomes. Solid charities will give you a breakdown of where the money goes. For example, look into how much is spent on charitable causes and how much simply goes back into the organization.^{[12]
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- Look for verifiable impact. That is, how many people does the charity actually help? What kind of services do they provide? A trustworthy charity will be able to provide real statistics rather than feel good anecdotes alone.^{[13]
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Donate to a few causes you feel strongly about. It can sometimes make more sense to go deep rather than wide. That is, donate more to a smaller amount of organizations. Your money will go further and you'll have more of an impact. Focus on a handful of worthwhile organizations rather than donating a small amount of money to one or two causes.^{[14]
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Reconsider charities each year. Reevaluate your cause each year. Charities are subject to change and this is sometimes for the worse. Reevaluate where you're donating your money each year. Watch for changes in infrastructure in existing charitable organizations that may change how your money is being spent. Stay up to date on news articles about existing charities and pay attention to the board of directors. Changes in power could lead to an organizations adjusting its values in a way you dislike.^{[15]
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Community Q&A

Question

How do I get books and resources?

Community Answer

You can always go to your local charity's website and look for resources there. Or, for example, if you wanted to help out at the local animal shelter, you could go get books on animal behavior. There are multiple ways to get information, including this website.
Question

How much money must one have to start a philanthropic organization that donates money to worthy causes? Does one need a license? Where does one apply for one?

Sapphia

Community Answer

In the USA, you should register your organization as a 501(c)(3) with the IRS, which can be done on the IRS website. You do not need a license in the US to start a non-profit organization. There is no set amount of money required to start an organization.