What is philanthropy? A guide for small nonprofits

Philanthropy, unlike charity, which focuses on short-term relief, is the giving of time, financial resources, and expertise to a nonprofit organization with the hope of finding long-term, strategic solutions.

Though some assume this type of giving is only for organizations with million-dollar donors, it's not. In truth, philanthropy is accessible to every kind of nonprofit, even small ones running on spreadsheets.

In this guide, we'll walk through how any nonprofit can make philanthropic giving a central part of their fundraising strategy, no matter their budget or donor database size.

Key takeaways

• Understand philanthropy vs. charity 🙏 Donors give to a cause, while philanthropists invest in solutions to the deeper issue.
• Offer multiple methods of giving 💸 Small nonprofits can and should offer philanthropists the ability to donate via DAFs, matching gifts, planned giving, and individual major gifts.
• Focus on philanthropy for financial stability 💰 While grants and individual donations are helpful, philanthropic giving is often unrestricted, relationship-driven, and compounding over time, making it better suited for long-term planning and impact.
• Look for major donors in your CRM 👀 Small nonprofits don't have to search far and wide for philanthropists. Your first major donor is probably already in your database.
• Do it all with Givebutter 🧨 Small nonprofits running on spreadsheets can accept DAFs, matching gifts, and recurring gifts, all tracked in one CRM, with Givebutter.

What is philanthropy?

Philanthropy is the strategic act of giving time, talent, and treasure to an organization in the hopes of solving the root issues. Unlike charity, which is giving that alleviates the short-term symptoms of an issue, philanthropy seeks to change the system causing those symptoms. Nonprofits usually need a mix of both funding sources to be successful.

That said, philanthropy is not a substitute for policy change or government funding. This type of giving is important, but might not necessarily remedy issues completely. It's also not a complete substitute for structural change.

More to explore

What is corporate philanthropy, & how can it benefit your nonprofit? →

How to attract philanthropic support as a small nonprofit

If you're a small nonprofit operating without a development director but ready to get started with philanthropy, we've got just what you need.

We'll show you how to identify potential philanthropists, make giving easier, and build stronger relationships over time.

Start with who you already have 🔍

While it might not seem like it, a $50/month recurring donor is already practicing philanthropy. The distinction is intentionality and consistency, not dollar amount. You don't need to search for new philanthropists; you just need to recognize and deepen the relationships you already have.

As Nonprofit Fundraising Expert and Executive Coach, Mallory Erickson says,

"[Philanthropists] are already on your list. Start speaking from your heart, and you'll start to see the people most aligned come to the top."

To do that, you'll want to:

• Mine your existing donor list before external prospecting: Major donors typically emerge from people already involved, such as board members, volunteers, and long-time supporters.
• Use the CURE framework: Once you've identified potential philanthropists, use the CURE donor lifecycle method to move donors up the relationship ladder. With this framework, nonprofits cultivate (create initial trust), upgrade (invite deeper involvement), renew (introduce recurring support options), and engage (stay in touch).
• Connect with warm leads: Ask board members or staff to reach out to people who already care about your mission. Some of your strongest supporters may come from those existing connections.

Dive deeper

How to cultivate donors: A step-by-step guide →

Make philanthropic giving easy 🎁

Though some assume philanthropy is only for larger organizations, that's not the case. Any nonprofit, even those with limited budgets and small donor bases, can participate.

Here's how:

Learn more

How to set up a nonprofit matching gift program →

Focus on the relationship, not just the gift ✨

Relationship-building is the core of major gift work. Donors want genuine, ongoing human connections rather than transactional asks.

Nail donor relations by:

• Connecting before asking: Engage supporters through events, site visits, and personal calls about your mission. Discuss the core issues you're trying to address and how they can get involved.
• Avoiding one-size-fits-all donor acknowledgment: Find out whether your donors prefer public or personal appreciation so no one feels uncomfortable.
• Getting personal: Send personalized impact reports, tailor thank-you messages to different supporter segments, celebrate donor anniversaries, and have board members check in on major donors.
• Focusing on measurable impact: Major donors and philanthropists want to know their gift made a difference, so prioritize trust, mission alignment, and genuine relationships.
• Managing it all in your CRM: Track every interaction in your donor database so relationships don't live in one person's memory. That way, every point of connection can be intentional and personal.

Learn more

Donor stewardship: How to build relationships that last →

Build your philanthropic community with Givebutter

Philanthropy isn't limited to large nonprofits or wealthy donors. In fact, it's an accessible approach to nonprofit fundraising for any organization.

With Givebutter, small nonprofits can accept DAFs, matching gifts, and recurring gifts, and track their donors and progress in one easy-to-use CRM and dashboard, for free.

Sign up for a free Givebutter account and start building philanthropic support today.

FAQs about philanthropy

What is the difference between philanthropy and charity?

Charity refers to the donation of time, money, and effort for immediate relief, while philanthropy centers on strategic, root-cause support aimed at addressing the underlying causes of a problem. Both are valuable and complementary, but they differ in purpose and level of engagement.

Who is considered a philanthropist?

Anyone who gives time, talent, or treasure strategically to address a social issue is a philanthropist, not just those who contribute a certain amount of money.

Is philanthropy only for the wealthy?

No. Philanthropists can range in how much they give. A $50/month recurring donor who's deeply aligned with the mission is practicing philanthropy. The distinction is intentionality, not dollar amount.

What are examples of philanthropy?

Philanthropy examples include a local business owner setting up a DAF and naming your org as a beneficiary; a board member asking their employer to match their annual gift; a longtime volunteer leaving a planned gift in their will; a $25/month donor who's given for 10 years.