The Life Arc of a Philanthropist: Progressing Through Seven Stages of a Life of Giving
Philanthropy, the art of giving to create a positive impact on society, is a dynamic and evolving journey that passes through seven distinct stages. These stages aren’t static but represent a spectrum of engagement, driven by personal values, experiences, and often, significant life events. In this article, we’ll explore each stage along with the life events that can propel individuals from one stage to the next.
1. Checkbook philanthropy
At the inception of their philanthropic journey, many individuals start with checkbook philanthropy. Think of the times you ordered Girl Scout cookies, wrote a check for the neighbor’s child on your doorstep fundraising for the school band or gave to the charity collecting donations outside the grocery store. Checkbook philanthropy provides immediate support to those in need. It’s a straightforward and accessible way to make a difference by financially contributing to established charities or causes .
Life event: The birth of a child, a windfall inheritance or even a solicitation in the mail can trigger a reactive, in-the-moment decisions that may depend on where you are, how you are feeling and/or who is asking.
2. Reciprocal philanthropy
Reciprocal philanthropy occurs when philanthropists are drawn to mutually beneficial relationships with other donors or organizations they’re familiar with. Examples include networking forums, boards of directors and standard-setting organizations. In this stage, donors support each other’s causes to foster collaboration, resource sharing and a sense of community. It’s a stage that often arises when individuals recognize the value of working together to create meaningful change.
Life event: Professional partnerships or affiliations can spark reciprocal philanthropy. The act of collaboration and the shared commitment to a common goal often prompts like-minded individuals to join forces on a philanthropic cause, advancing them to this stage.
3. “Connect to a cause” philanthropy
In the “connect to a cause” stage, philanthropists develop a deep and emotional connection to a specific mission. Common examples are an alma mater or a local religious institution. This connection is often rooted in personal experiences, values or passions. At this stage, philanthropists invest not only financial resources but also their time, expertise and energy to make a meaningful impact .
Life event: Personal experiences or witnessing significant life events, such as a natural disaster or a loved one’s battle with a particular ailment, can evoke a strong emotional connection to a cause. These life events can serve as a catalyst for individuals to delve deeply into philanthropy, striving for a more profound impact .
4. Philanthropy at work
Philanthropy at work is the integration of giving into one’s professional life. This stage involves incorporating philanthropic initiatives into business operations, such as corporate social responsibility programs, workplace giving campaigns and employee volunteerism. We have a client at this stage whose company donates one product to a youth organization for every product they sell. Philanthropy at work allows for a symbiotic relationship between an individual’s career and their philanthropic endeavors.
Life event: Significant life events like a career change, promotion or the acquisition of a business can lead philanthropists to leverage their professional platform for social good. They may feel compelled to align their work with their philanthropic values or give back to the community that has contributed to their business’s success. Either way, philanthropy becomes an integral part of their professional identity .
5. Personal involvement philanthropy
As philanthropists gain a deeper understanding of the issues they care about, they often progress to the personal involvement stage. Here, they become actively engaged in the projects and initiatives they support. One of our clients is on the board of a local hospital and chairs its fundraising campaign, for instance. Another client has partnered with a local women’s shelter to build a transition home in memory of his mother’s childhood experience. Personal involvement means working closely with nonprofit organizations, community leaders and other stakeholders to achieve tangible, positive outcomes .
Life event: A profound personal awakening or life-altering experience can propel individuals toward personal involvement philanthropy. These events often lead philanthropists to go beyond monetary contributions to take a hands-on role in driving change.
6. Family engagement philanthropy
Family engagement philanthropy is centered around the desire to cultivate a culture of giving within one’s family. It entails involving family members, including children and grandchildren, in charitable activities and decisions. This describes one of our clients, who allocated an amount each adult child could give away plus a joint allocation that the children together had to decide on. Family engagement is a means to pass down values, ethics and a commitment to social responsibility to the next generation.
Life event: Family milestones like marriage, new arrivals to the family or becoming empty nesters can inspire philanthropists to impart their values and sense of social responsibility to their loved ones. These life events often spark the desire to keep the family connected by engaging them in philanthropic endeavors .
7. Legacy philanthropy
The ultimate stage of a philanthropist’s journey is legacy philanthropy. At this point, individuals and families focus on creating a lasting impact and a meaningful legacy. They may establish a foundation, endowment or trust to ensure their philanthropic work continues beyond their lifetime. One example that comes to mind is the local business owner who left his entire nine-figure estate to a charitable trust to benefit a rural community, with a committee of local representatives making decisions about what initiatives should be supported. Legacy philanthropy aims to influence social change, shape public policy and provide sustained support to causes that matter most.
Life event: Retirement, the sale of a significant asset (such as a business or valuable real estate), inheritance or even a personal health scare can tip someone into legacy philanthropy . A legacy philanthropist reflects on the lasting impact they want to leave on the world and becomes motivated to establish structures that ensure their philanthropy endures. A common response is to add a stipulation to their estate plan that directs how their accumulated wealth is to be distributed to charities now and into the future.
A purpose-driven life
The life arc of a philanthropist is a dynamic and evolving journey, shaped by personal values, experiences and significant life events. From writing a check to establishing a legacy, each stage represents a vital contribution to making the world a better place. Life events have the power to propel individuals from one stage to the next, ultimately shaping their philanthropic legacy and the positive change they leave behind in the world. Whatever path they take, the journey of a philanthropist is a testament to the incredible potential for individuals to make a lasting impact on society.