What Is a Benefactor? Definition & Role in Giving

By Kristi Waterworth – Updated Jun 30, 2025 at 12:47 PM

Key Points

Anyone can be a benefactor regardless of the size of their contribution.
Benefactors can get tax benefits by donating assets without realizing profits.
Benefactors target direct gifts, while philanthropists aim for broader human welfare.

When it comes to charitable giving, there are many roles that people and organizations can play. One of those is as a benefactor, which is an important role, indeed. Let's examine what a benefactor is and their role in giving.

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Coins in a glass jar labeled Charity. — Image source: Getty Images.

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Although most benefactors tend to be older and more financially comfortable, this is simply because they're more often able to give money, time, or resources than younger people. Sometimes, being a benefactor is helpful for estate planning, also largely a concern of older demographics.

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Demographics

Demographics are statistical characteristics of a population. They can include almost any descriptive trait, but the usual data points include gender, age, race, ethnicity, income and more.

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Philanthropists, on the other hand, also give but with a larger goal in mind. They're focused on improving human welfare on a grander scale rather than just supporting a charity or a cause.

They may be high-net-worth individuals who have taken some of their money to establish private foundations, like Bill Gates, or nonprofit organizations that can reach many with the backing of their benefactors. Both groups are vital for charitable giving to work and for the money and other gifts to go where they're most needed.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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