Making effective altruism a family affair 

As the monsoon brought rain and flood in recent days, Filipino’s culture of giving and showing concern for others was again put in the spotlight. The culture of bayanihan, often depicted as neighbors lifting a hut to help a family relocate, manifested in other forms: community pantries, donation drives, rescue efforts, and even digital fundraising campaigns.

For many, that spirit of giving begins with random acts of kindness like sharing food, sending help to affected families, or volunteering time. For those among the country’s more privileged families, the desire to give back grows into something deeper. It becomes a calling to do more, to give with purpose, and to make a difference that lasts.

Many wealthy Filipino families have embraced philanthropy as a way of life. Some of them give back to pass values down through generations, others as a genuine wish to help others rise, and there are also those whose generosity is inspired by their own personal stories.

Affluent individuals and families can be benefactors to certain charities and causes while others set up a foundation to give back to the community following their successes. Whether it takes the form of direct donations or the establishment of family foundations, the philanthropic deeds of these people show their willingness to give back and make a lasting impact.

Giving through charities

Not every act of philanthropy needs to start with setting up a foundation. In fact, individuals who want to support multiple causes freely without the hassle of the legal, financial, and operational demands of a formal organization might prefer to start their contribution through other meaningful ways.

One convenient and practical path is supporting existing non-government organizations (NGOs). The Philippine Council for NGO Certification (PCNC) certifies non-profit organizations that meet established criteria for management and accountability, ensuring that donations are used properly. Accredited organizations cater to different advocacies that prospective philanthropists can choose from, including children’s welfare, animal rescue, livelihood, and medical missions.

Another way to give is by establishing scholarships or educational grant programs through schools or partner institutions. With education still one of the most transformative investments for individuals, grants can help deserving students achieve their academic dreams while donors may find emotional satisfaction and a deeper sense of meaning.

Establishing a family foundation

Those who want to formalize their giving back and build something more enduring establish their own or their family’s foundation. These allow individuals and families to focus their charitable efforts on advocacies close to their hearts and create a legacy.

In the Philippines, this process begins by registering a non-stock, non-profit corporation with the Securities and Exchange Commission (SEC). According to the commission, such corporations require a minimum capital of PHP 1 million and the submission of key documents, including the Articles of Incorporation and By-laws, which outline the foundation’s mission, governance, and operations.

The foundation must also obtain accreditation and licenses from relevant institutions and government agencies such as the Bureau of Internal Revenue (BIR) for a Certificate of Tax Exemption accreditation, the PCNC, and the Department of Social Welfare and Development (DSWD) if programs directly serve disadvantaged communities.

Setting up a foundation comes close to building another company, as it requires addressing important operational considerations. These include choosing which sectors or programs to support, designing a funding strategy, forming a reliable board, and ensuring transparency and accountability in all activities.

Enlisting experts such as lawyers can help in setting up foundations.

Pros and cons

Giving to charities offers wealthy philanthropists a convenient and flexible way to support multiple causes without dealing with legal and administrative requirements of setting up a foundation. On the other hand, starting a family foundation enables philanthropists to shape a focused mission, and build a legacy that reflects their values.

Both options come with their own challenges as well. Giving to charities comes with limited control over how donations are used, and it may not offer the same long-term recognition while setting up a foundation requires significant time, capital, and ongoing administrative responsibilities.

No matter the approach, what matters most is taking that first step toward making a difference. Philanthropy, after all, begins with generosity and intent, rather than organization and infrastructure.

(Editor’s Note: This article is part of a special collaboration between Metrobank and BusinessWorld. Our aim is to explore the facets of living well for Wealth Insights readers, who value the finer things in life. From discerning choices in cars, dining, and travel to appreciating exquisite jewelry and, ultimately, the journey toward building a legacy.)