What is a High Impact Philanthropist?

Before understanding a “high impact philanthropist“, we need to understand what is a Philanthropist” first.

What is a Philanthropist?

A philanthropist is a person who is actively making an effort to promote and enhance human welfare. Philanthropy means generosity in all its forms and is often defined as giving gifts of “time, talent and treasure” to help make life better for other people. One of the actions can be a monetary donation to those in needs of money, or indirectly via a high impact charitable organization.

You can also be a philanthropist by contributing your time. I am contributing my time to create a charity that focuses on high-impact charitable work, I am having a blast. The process is tough with sleepless nights getting everything ready, but I am a much happier person now. Tony Robbins once said that the secret of living is giving, I wholeheartedly agree with it.

You don’t have to create a charity to be a philanthropist, you can practice philanthropy by contributing and giving your time – such as helping in food banks, volunteering at animal shelters, or even raising funds to donate to your favourite causes.

Lets take a step back and define philanthropy. Greek playwright Aeschylus coined the term philanthropy in the 5th century BCE. The original meaning was the “love of humanity.” The idea of philanthropy has been around for thousands of years, philanthropy is the best side of human beings.

Philanthropic Examples, Ideas, and Definition

There are many ways to be philanthropic, here are some examples:

• Direct Donation to the charitable nonprofits
• Take advantage of high-impact Donation Advisors
• Volunteer your time (locals, virtual volunteering)
• Impact Investing – investments made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return
• Advocacy – Promote the causes in your network via social media, social gatherings, and be a promoter

What is High Impact Donation?

You can contribute time or money to charities or any nonprofits you love, however not all donations will yield the same impact. Australian philosopher Peter Singers defines effective altruism as focusing on giving that yields the most good – or how can we use our resources to help others the most? For example, it takes USD $40,000 to train a guide dog to provide  8-10 years of mobility companion service . On the other hand, the same USD $40,000 can provide 300 kids in needy communities a year of nutrient meals.  Maybe its such as reduction of carbon footprint vs number of jobs a charitable program creates. As a donor we need to choose on what yields the most good.

Our way of looking at high-impact is relative. We consider the effectiveness of your donation relative to a similar charitable program who aims for the same benefits.

In Canada, there are over 170,000 charitable and nonprofit organizations in Canada. 85,000 of these are registered charities recognized by the Canada Revenue Agency. According to the National Center for Charitable Statistics (NCCS), more than 1.5 million nonprofit organizations are registered in the U.S. In Australia there are approximately 56,000 registered charities. There are 180,000 nonprofits and charities in the United Kingdom. In New Zealand, New Zealand has over 27,800 Registered Charities.

So there are A LOT charities and non profits in the world, working to raise funds and have an impact.  Many of them work on similar programs and focus on the same causes, and are more efficient than the other.

Consider:

• A clear financial model. Is it clear how the charity spends and receives the money?
• A clear path for how donations are used.
• Transparency over who is in charge. 
• Clear roles and delegation. What is the role of the board, the CEO and other members of the executive team? Does the governing body monitor the performance of the charity?
• Policies designed to minimize misuse of funds. Are there clear guidelines over how the board, executive team and employees manage conflicts of interest?
• Is the charity putting those they serve ahead of themselves?
• do they have a sustainable model?

What is a high-impact Philanthropist and Donor?

A high-impact philanthropist, or high-impact donor, is someone who gives and donates with high-impact and donation effectiveness in mind. They are honest about their beliefs but also take into consideration how effective a charity is before making a donation of any size.

For example, a high-impact donor who has a special love in supporting charities that end hunger, the donor will not only pick the ones she sees in TV commercials or Youtube Ads, they instead will find the charities who are effective and high impact.

What are the benefits of being a high-impact philanthropist?

There are many benefits of being a high-impact philanthropist, as mentioned Tony Robbins believes that giving is the secret of living. I can say it in my own experience, it feels good.

I know that all the work I put in to promote high-impact philanthropy is going to make marginal improvements to the world but I am helping those who are serious about making a change.

How to become a high-impact Donor and Philanthropist?

You can become a high-impact philanthropist with any one of the following approaches:

1. If you can manage your finances, and you know where to find high-impact charities, you can choose to donate to the high-impact nonprofits.
2. If you can afford the time and want to help directly, you can find high-impact charities to volunteer at. You will expect to spend actual time working with other people who have the same beliefs as you, work and learn from experienced philanthropists.

My preference is do both, not only you can help great charities who don’t have an operation near you, you also can take real steps to help and learn more about how an actual charity works. The more you know how a charity works, the more knowledge you will acquire to distinguish great vs good charities. It is the same way I know what is critical and important in the charitable world.