A philanthropist is a person who donates time, money, experience, skills, or talent to help create a better world. A philanthropist is a person who donates money or gifts to charities, or helps people in need in other ways. Some famous examples are Andrew Carnegie and Bill & Melinda Gates. With its anthropic root, philanthropy literally means love for humanity.
Therefore, philanthropy is donating money for a purpose or cause that benefits people you don't know personally. Usually, animals are also included. The greatest American philanthropists have included Warren Buffett, Bill Gates, Andrew Carnegie and John D. Rockefeller, but tens of millions of us could consider ourselves philanthropists on a much smaller scale.
Penalty tax that applies to disqualified individuals from public charities (see Disqualified Person) who receive excessive benefit from financial transactions with the charity. The few exceptions to this rule include paying reasonable compensation to a disqualified person for services that are necessary to fulfill the foundation's charitable purposes. Significant contributors to a private foundation, foundation managers, certain public officials, family members of disqualified individuals and societies, and associations in which disqualified individuals have important interests. A legal device used to set aside money or property from a person for the benefit of one or more people or organizations.
Paying excessive benefits to a disqualified person will result in fines being imposed on that person and, in some circumstances, on the charity's board of directors (see Intermediate Sanctions). The second test, sometimes referred to as the section 509 (a) () test, applies to charities, such as symphony orchestras or theater groups, that derive a substantial portion of their revenue from selling services that promote their mission, such as selling tickets for performances. Public charities (see Public Charity) can exert pressure as long as lobbying does not become a substantial part of their activities. Other organizations exempt under Section 501 (c) (must pass a public support test (see the Public Support Test) to be considered public charities, or must be created to benefit an organization that is a public charity (see Supporting Organization).
There are two public support tests, both designed to ensure that a charitable organization responds to the general public and not to a limited number of people. Unlike private foundations, public charities are not prohibited from making financial transactions with disqualified individuals as long as the transaction is fair to the charity. A test, sometimes referred to as 509 (a) (or 170 (b) (A) (vi) for the sections of the Internal Revenue Code in which it is found, is for charities, such as community foundations, that rely primarily on donations, grants and contributions. A fund managed by a community foundation in which the donor has specified that the fund's income or assets be used for the benefit of one or more specific public charities.
Charities that are not public charities are private foundations and are subject to more stringent regulatory and reporting requirements (see Private Foundation). A document filed with the Secretary of State or other appropriate state office by individuals who establish a corporation.