Why is philanthropy important? Communities around the globe face complex problems, every day. Think poverty, environmental challenges, and lack of access to healthcare. These are just a few areas in need of investment and development – which can’t always be fulfilled by governments. This is why philanthropy is so vital.

There are many benefits to being a philanthropist. Experts conclude that charitable giving can improve one's emotional and even physical well-being, and philanthropists have the satisfaction of knowing they have contributed to the greater good.

We as human beings are meant to share accomplishments and celebrations with others. That's why creating a sense of community and belonging by giving back can actually drastically improve your life. From decreased rates of depression to higher confidence ratings, feeling purpose and belonging can make a huge difference in young adults' lives.

Philanthropy has been a major source of funding for various sectors, such as religion, higher education, health care, and the arts. Philanthropy has also been influenced by different social movements, such as abolitionism, women’s rights, civil rights, and environmentalism.

Examining the dynamics of American-style capitalism since the eighteenth century, Acs argues that philanthropy achieves three critical outcomes. It deals with the question of what to do with wealth—keep it, tax it, or give it away. It complements government in creating public goods.