THE IMPORTANCE OF PHILANTHROPY AND CHARITY

The Importance of Philanthropy And Charity

The Importance of Philanthropy And Charity

Introduction

The idea of charity first emerged at the end of the 18th century, when large corporations began helping finance voluntary agencies and religious groups. Today, the idea of philanthropy, the spirit of active goodwill toward others as demonstrated in efforts to promote their welfare, has become so accepted in America that few now escape the demands of giving. In fact, many important institutions are partly or wholly dependent on it. Philanthropy has been organized and coordinated to eliminate much of the spontaneity of giving. (Cunningham,1992)

Discussion

In the charitable contributions literature, economists motivate philanthropy using two distinct yet equally believable models: the public goods model in which donors give motivated by what their gifts accomplish, and the private consumption model in which donors give motivated by how giving makes them feel. This article develops a third philanthropic motivation called impact philanthropy. Impact philanthropists give motivated by their desire to personally 'make a difference.' While that motive is straightforward, it leads to distinct predictions regarding the interdependence of charitable gifts, the effect government programs have on private giving, the effectiveness of various fundraising strategies, and the relationship between a charitable organization and its donors. (Glier,1988)

Charities are normally in competition with each other, attempting to raise funds from companies, groups and individuals for worthwhile causes. However, at times they work in concert, both in fundraising and in providing assistance on the ground to relieve suffering and deprivation. For example, in parts of Africa where there has been the risk of mass starvation as a result of severe droughts and the after-effects of the tsunami in Southern Asia, famine relief charities have worked in close cooperation. (Cuuningham, 1992)Furthermore studies define that profit organizations divided in positive and normative model which is micro and macro.

Within families, children are defined as dependents, subject to parental authority. Economic dependence is a crucial, and often neglected, aspect of children's status within families (see Leonard 1990; Hood-Williams 1990; Delphy and Leonard 1992). Children's lifestyles are dependent on their parents' income and their parents' decisions about how that income should be spent. The goods children receive come in the form of gifts or maintenance; they have things bought for them rather than buying them for themselves. Children can exercise choice over these purchases only if their parents allow them to choose. A child may well receive pocket money, or money as gifts, but this too is given at adults' discretion and adults may seek to influence how it is spent. Dependent, adult-mediated consumption is one facet of the power that parents have over children.(Hendrick,1997)

According to the Foundation Center, funding for health grew fastest among major program areas since 1999, followed by the environment and education. Within the health category, the fastest growing areas are reproductive healthcare, medical research, and public health. Giving toward education includes funding for scholarships, fellowships, and other forms of student aid, and this category grew ...