Non-profit organizations working for social development are often termed charitable trusts. We also come across several philanthropists running organizations that seem just the same. It can be naturally confusing to differentiate them just by the name since their services appear alike.
Funds, donations, and social services are the foundations of any charitable trust, philanthropic organization, or even a volunteering activity. Exploring a little vividly, let’s discover the difference between the concepts of charity and philanthropy.
How are they distinct?
Philanthropy is a professional subject exploring the root causes of problems and solving them on the whole. It seeks to bring solutions to eradicate the root cause by helping society stand on its own legs. Charity is a generous activity to extend possible help to rescue society. It intends to solve the issue then and there rather than devising any solution for a permanent remedy.
The difference in their functioning
A charitable organization works for a particular cause, say, for flood relief, food donation during the pandemic, raising awareness about cancer, or providing free education to the poor. Philanthropic organizations generally have a broad prospect like construction of low rented houses for workers, funding for the development of a hospital or school, supporting regular meals for various schools and universities. In short, charity works for immediate help and rescue, but a philanthropist looks forward to eradicating the issue by solving it.
Who are the owners of the trusts?
Charity doesn’t demand the person to think and look for solutions to solve the problem. If any group finds itself capable of gathering money and providing immediate help, they can set up a trust. As they have to arrange resources and make sure they are utilized well, the trustees and the owners should have commercial knowledge for proper management.
A philanthropist is a thinker, a social reformer, who deeply analyses the problem to support the development of a solution. They should be more analytical thinkers to study and understand the requirements.
Where do the trusts get donations from?
As philanthropic organizations work with a wide outlook, their donations also need to be huge. Generally, the founders or the aspiring philanthropists put their own money into development. Along with them, corporations, established businesses, and high-earning individuals donate in the lump sum.
In contrast, the charity collects small amounts from everyone available to extend their help. They can start collecting donations in public places like restaurants, malls, and hospitals to send them to trusts. These days, we can also find social media encouraging their users to pay through links and e-wallets for relief funds worldwide.
How much can the public associate with them?
Helping out the struggling people is natural humanity. In fact, everyone steps forth to work for a cause genuinely. As charity accepts the smallest of the funds, it is more approachable to the public like you and me. Donations mainly depend on our ability to give a substantial amount. Say, a charity collects small amounts from all, but philanthropists need in large amounts.
Therefore, in short, charity refers to immediate help, whereas philanthropy is the core development to resolve the issue. Even though they work for a similar notion, these discussed differences draw a faint line between them.