Historical origins and legal underpinnings of organized philanthropy

Philanthropy is at least as old as recorded human history and most likely began near the same time that humans began to organize into social groups. There are many charitable aspects to most organized religion. For example, Christ was recorded to have cured the ill and fed the hungry. However, philanthropy and charitable giving are not universally global phenomena across all countries and cultures and there are many factors that must be considered; in the U.S., they have origins in religion, in the idea of mutual assistance, in democratic principles of civic participation, in the acceptance of decentralized and varied approaches to problem solving, in individualism, and in limited government (Billiteri, N.d.).

As a result of the culmination of factors that can be used to underpin the historical foundations of philanthropy, each culture and civilization must be considered independently. In most cases there are cultural influences that affect how people and institutions aggregate, deploy, and discuss money and the notion of wealth itself can be a cultural construct; for example, some Native American or indigenous peoples operate in a "gift economy" in which people give valuable goods and services to others without any explicit agreement for immediate or future rewards (Alexander, 2011). Thus with the establishment of a monetary economic system, there is a necessity for philanthropic acts for those who are unable to participate in the system to meet their basic needs. Many people take for granted that the economic system is a part of life, however there are alternative examples to be found.

Private and Public Foundations

Many people instinctively believe that there are distinct divisions between non-profits, and public and private philanthropic organizations. However, these divisions are probably less distinct than most people realize. For example, many contemporary observers have commented on the blurring of these sectors since nonprofits earn revenue, companies produce environmentally beneficial products, and the government invests in social innovation (Bernholz, 2012). Many of the activities that these institutions will do on a daily basis will appear identical even though they represent different types of organizations.

There are other ways in which the traditional lines are also being blurred. For instance, there are also commercial vendors of charitable giving products, nonprofit producers of some of the world's most widely used software products, and networks of mobile phone crisis responders who don't fit into any circle and the creation of new corporate forms for good and the impact investing movement have become standard parts of philanthropy (Bernholz, 2012). Globalization and the rise of information technology have allowed for the evolution of philanthropic activities and have developed new forms of infrastructure to these ends.

Roles of Philanthropy

There are many different perspectives on the roles of philanthropy in an ever increasing globalized world in which higher levels of inequality are being created than ever before. In this context, today as never before there is an opportunity for philanthropy to play a vital role in support of human development and many seek to better understand what actions philanthropy can take to put people and communities at the center of development, to stimulate popular community-based philanthropy, and to establish horizontal and reciprocal relationships between those providing philanthropic resources and those utilizing them (Schearer, 1995). Currently technology is allowing for these consideration and connections at precedent levels across international borders.

One role of philanthropy deals with a moral obligation to help those in need. However, as the world becomes more connected, it is becoming increasingly clear that the benefit is mutual to all stakeholders. One example can be provided by developing sustainably, environmental protections, and reductions in greenhouse gas emissions. Another salient example is public health. The health of the world's population is increasingly becoming interrelated.