Exploring Philanthropic Motivations: Understanding the “Why” Behind Giving

Exploring Philanthropic Motivation

By Whitney Webb, Managing Director, Head of Family Governance

Several years ago, a client said to me, “I’ve been donating to animal shelters and animal welfare non-profits for years, but I know it is time to get serious about my giving. I’m sure there are more important causes out there.” When I asked why he gave to those causes he dove into deep stories of companionship, mental well-being, and the community he had found with other “animal-loving people.” Motivated by his personal experiences and the community that gave his life so much color, I encouraged him to lean into that instead of focusing on the causes that others may or may not define as ‘more important.’ In the years since, he has organized fundraisers and begun largely supporting canine companions for veterans for PTSD, a cause he learned about in a giving circle he joined.

When discussing philanthropy, the focus often centers on the ‘what’ and ‘‘how’—what causes to support, how to structure donations, and the logistics of giving. However, this approach can overlook a critical first step: exploring the ‘why’ behind giving. Without a clear purpose, philanthropic efforts risk becoming unsustainable or ineffective. This lack of clarity often leads to foundations donating only the required minimum 5% or leaving donor-advised funds (DAFs) untouched for years. The result can be sporadic, reactive giving, which adds further stress to nonprofits already grappling with limited resources.

What drives people to give? What ignites their desire to make a difference? And more importantly, how can we foster purpose-driven philanthropy that creates a lasting impact? Understanding the underlying motivations for giving can transform philanthropy from a transactional act into a meaningful and strategic endeavor.

What Catalyzes Philanthropy?

People are motivated to become philanthropists for a variety of reasons, often shaped by their experiences, values, and personal journey. While almost all philanthropists have some sort of altruistic motivations, there is often a primary, equal, or secondary driver. Let’s explore some of the most common motivations.

1. Lived Experiences

One of the strongest drivers for philanthropy is lived experience. Those who have faced significant challenges—be it poverty, health crises, or limited access to education—often feel a deep connection to causes that resonate with their personal struggles. These experiences create a clear and focused ‘why,’ making it easier to direct energy and resources toward specific issues. Whether it is compassion, anger, or passion, the clarity and emotions born from lived experience empower people to say no to causes that do not align with their personal mission.

2. Family Tradition

Philanthropy can be passed down through generations, creating a sense of connection to one’s family legacy. This can be an extremely powerful and rewarding motivation, but it is helpful for those in this position to also find personal meaning in their philanthropic efforts. Without that personal drive, obligation can begin to feel heavy and uninspiring, which can directly affect how one gives.

3. Life Stage

Philanthropic motivation is not necessarily tied to age; I see 9-year-olds just as motivated as 60-year-olds, but it can become a significant focus for people at specific life stages. Post-exit entrepreneurs or retirees often channel their energy into solving world problems, fueled by the desire to create something meaningful in a new phase of life. For these individuals, philanthropy is not just about writing checks but becoming deeply involved in shaping their lives and the future.

4. Peer Influence

As giving becomes more expected and celebrated in certain social and entrepreneurial circles—thanks to movements like the Giving Pledge or Half My DAF—peer influence can play a role in motivating philanthropy. Those who feel socially motivated may benefit from joining giving circles and learning networks to better engage with like-minded philanthropists, which, in turn, often increases collective grantmaking.

5. Guilt or Responsibility

For those who inherit wealth, the question often arises:  ‘How much is enough?’ Many grapple with feelings of guilt, particularly when they have not ‘earned’ the wealth themselves. However, channeling these emotions into pride in their philanthropic endeavors can transform guilt into action and passion. While the path from guilt to action may seem overwhelming, it is imperative to acknowledge this unique challenge that comes with privilege, and work to create a new definition of ‘success.’

6. Tax Incentives

While tax benefits may initially inspire someone to give, they are rarely enough to sustain long-term philanthropic engagement. For those driven by tax incentives, it is important to identify a deeper, personal motivation to ensure their contributions make a meaningful and lasting impact. However, philanthropists can use liquidity events or realized capital gains as a call to action to further explore their motivations.

7. Family Engagement

Many philanthropists are motivated by a desire to engage their families in giving, using philanthropy as a tool to instill values or work together toward a common goal. This can be a very powerful motivator when philanthropy focuses on family harmony, aligns with collective values, and emphasizes opportunities rather than obligations. Putting these intentions into practice can take time and dedication, but it provides family members with shared and individual ways to make an impact in the world, leading to sustainable giving.

8. Social and Business Networks

For some, philanthropy is a means to expand social and professional networks. This can be a great catalyst for engagement within communities and leads back to peer influence. If this is a primary motivator, however, it is important to ensure authenticity by finding a deeper motivation beyond networking to avoid surface-level engagement that may negatively affect trust and lasting impact.

9. Environmental and Global Responsibility

A growing number of philanthropists are motivated by concerns for the environment and the future of the planet, particularly for the next generation. In fact, younger generations feel increased anxiety and fear about the future of the planet. While fear can be a powerful motivator, it is essential to channel that energy into actionable solutions or education to help avoid paralysis.

The Importance of “Why”

It is important to note that there is no right, wrong, or best motivator in philanthropy, nor is the list above exhaustive. What matters most is to be honest with yourself about your primary and secondary motivators and lean into those preferences. In working with many post-sale entrepreneurs, I often see a key motivator as the desire to build and innovate. This is how they are wired, and for them, the cause might be less important than the strategy and the ability to create new ideas to solve old problems. One post-exit Cresset client shared, “Well, I shouldn’t just focus on a cause because it sounds fun to build a new initiative with my friend, I should probably look at the landscape of needs.” When we dug a bit deeper, it turned out the successful business he had just sold was established because “it sounded like something fun to build with a friend.” Allowing true motivations to drive philanthropy can lead to the most powerful outcomes.

Whether driven by personal experience, family tradition, peer influence, or a mix of factors, clarity of purpose helps philanthropists stay committed, engage more deeply, and make meaningful contributions. Without a clear purpose, philanthropy risks becoming sporadic, unfulfilling, and ultimately less effective. Through self-reflection and exploring the underlying motivations for giving, philanthropists can adapt their ‘what’ and ‘how’ to ensure their efforts are sustainable and truly transformative.

Contact Cresset to help uncover the motivations that drive your giving and make a lasting, purposeful impact.

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About Cresset

Cresset is an independent, award-winning multi-family office and private investment firm with more than $60 billion in assets under management (as of 11/01/2024). Cresset serves the unique needs of entrepreneurs, CEO founders, wealth creators, executives, and partners, as well as high-net-worth and multi-generational families. Our goal is to deliver a new paradigm for wealth management, giving you time to pursue what matters to you most.