Philanthropy and Corporate Philanthropy have many faces. They are often linked with sales promotion, advertising, sponsorships, and event marketing. There is a correlation between these activities, as all tend to better position a business in the minds of its stakeholders and customers. But they are also different from each other.

A major difference is the source of funds. Donations, corporate contributions and budgets for Corporate Social Responsibility (CSR) projects and programmes are allocated from a company’s profits. Funds for sales promotion, advertising, sponsorships, and event marketing are taken as part of operating expenses.

The rapid growth of sponsorships and event marketing in recent years around the world has blurred the sources of funds for these activities. Tax collection and regulation authorities, businesses, charities, as well as philanthropy organisations could all benefit from ensuring transparency.

Philanthropy contributions ought to be made with no expected direct monetary return to the contributor. It is the impact of a company’s CSR programme that indirectly brings many benefits, including more customers and profits.

It is unethical and illegal to make contributions from philanthropy organisations and CSR budgets to political candidates running for office or to political parties and organisations. Trying to cut corners and do favours when being charitable could turn philanthropy into profanity.

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