The terms philanthropy and charity are often used interchangeably, and they are indeed very similar. However, there are subtle differences between the two. While both address need, charity tends to deliver short-term solutions in direct response to a crisis, while philanthropy has a focus on addressing the underlying issues that cause crises to occur.

1. The Difference Between
Philanthropy and Charity
b y D r E d g a r P a l t z e r

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BETWEEN PHILANTHROPY
AND CHARITY
The terms philanthropy and charity
are often used interchangeably,
and they are indeed very similar.
However, there are subtle differences
between the two.
While both address need, charity tends to deliver short-
term solutions in direct response to a crisis, while philan-
thropy has a focus on addressing the underlying issues
that cause crises to occur.
Charity: An Emotional Response
Charitable giving tends to come from an emotional
response to a specific situation, such as giving to disaster
relief funds, supporting organisations that help establish
clean drinking water in remote villages, or putting money
towards an essential medical procedure. Charity is often
a hands-on approach designed to meet immediate
needs, such as shelter, food and healthcare.
Philanthropy: A Strategic
Process
Philanthropy can also be triggered by an emotional
response, but it is more of a strategic process focused on
tackling problems at their root. Philanthropy and charity
both seek to make the world a better place by addressing
people and areas in need. However, philanthropists are
more likely to focus on long-term solutions.
THE DIFFERENCE

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While both address need,
charity tends to deliver
short-term solutions in direct
response to a crisis, while
philanthropy has a focus on
addressing the underlying
issues that cause crises to
occur.

4. You can learn more about
the legal aspects of philan-
thropy by visiting the blog
of Dr Edgar Paltzer.