Philanthropy is the Market for Love

Today, November 15, is National Philanthropy Day. 

Officially recognized as a national day by President Reagan in 1986, National Philanthropy Day is an annual day of celebration that recognizes the contributions of philanthropy to the world. 

Simply defined, philanthropy is the use of private resources for public purposes. The giving of resources like time, talent, and treasure has deep roots in human history.

The word philanthropy comes from the Greek words “philos,” meaning “that which is beloved,” and “anthrōpos,” meaning “humankind.”

Philanthropy, literally translated, means for the love of humanity.

Philanthropy and the Market for Love

Dan Pallotta is an entrepreneur, author, and humanitarian activist. He famously created multi-day charity events like the Breast Cancer 3-Day walks and AIDS Rides and has raised hundreds of millions of dollars.

Pallotta is the author of Uncharitable – How Restraints on Nonprofits Undermine Their Potential, a best-selling book and a 2023 documentary that challenges historical limitations placed on nonprofit organizations (I highly recommend it). He gave one of the most popular TED Talks in history, challenging us all to think differently about the role and scale of charity in the role.

In an October 2023 interview on the We Are for Good podcast, Dan said something I had never heard before, and I don’t think I’ll ever forget – “Philanthropy is the market for love.”

He spoke about philanthropy's role in society compared with the market economy, which is good for most of society but always leaves out some at the edges. 

I cringed at this at first – are you saying that charities are commercializing and “selling” love? Is our job to be marketers for love? Does that diminish the very essence of love? 

Dan went on to share several examples, talking about the 15% of society that the business and market economy misses…

How do you monetize the prevention of a suicide, or caring for someone with mental illness who may never be a productive member of society, in the economic sense?

How do you monetize the love that a kid gets in Special Olympics? And yet, don’t we all want that kid to get that love?

Or how do you monetize the feeling of friendship and companionship that a shut-in elder gets from a nonprofit that provides someone to visit her or him? You can’t monetize that, yet none of us wants that person to be alone.

Dan’s point is that business and the market economy work very well for the 85% of people who can take advantage of it, but in any developed economy, there are always people who are left out. There are also intractable problems that businesses can’t solve – that’s where the philanthropy and the nonprofit sector come in

Philanthropy is the market for all those people for whom no other market is coming.

“Because you can monetize love. People want to feel love. People want to give love, and they’re willing to pay for that. In the same way they want to taste chocolate. In the same way they want to listen to music and other ephemeral experiences. We just need to excite demand for love at that level by unleashing the nonprofit sector, unleashing its voice, giving it voice the same way Coca-Cola has voice, giving it capital so that it can amplify that voice the same way Apple is able to amplify that voice and create a country, a community a world of compassion, as much as consumption.”

– Dan Pallotta

💡 Takeaway: Philanthropy is the market for love – the market for those people and needs in society for whom no other market is coming.

If philanthropy is the market for love, how might that shape how you and I think and act? What if we saw our role as helping people to participate in the market for love this holiday season?

The Role of Philanthropy This Holiday Season

Amidst the shopping and eating and gift-giving and receiving this holiday season, philanthropy offers something precious – the chance to help people express their love for humankind through acts of generosity. 

If you are a nonprofit leader, you offer donors a gift – the gift of being able to participate in the market for love.

Each act of generosity is an act of love. Remember that as you invite people into your cause this season. 

💡 Takeaway: This holiday season we offer the gift of participating in the cause of love – a blessing that is just as valuable as any physical present.

Happy Philanthropy Day!

Until next week… Surfs Up! 🌊

  - Dave

P.S. Applications for our January Sustainer Growth Coaching Program close on Wednesday. If you are interested, you can read more and indicate your interest at www.imago.consulting/coaching. 

About the Author | Dave Raley

Consultant, speaker, and writer Dave Raley is the founder of Imago Consulting, a firm that helps non-profits and businesses create profitable growth through sustainable innovation. He’s the author of a weekly trendspotting report called The Wave Report, and the co-founder of the Purpose & Profit Podcast — a show about the ideas at the intersection of nonprofit causes and for-profit brands. Connect with Dave on LinkedIn.

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