Abstract
This essay attempts to use exchange and balance theories to explain philanthropy. For exchange, such theoretical components as attractions or rewards, costs, barriers and alternatives are invoked to make sense of the biography of a Chinese philanthropist in Hong Kong who donated two schools to remember his father and wife. The balance theory was also used, which argues that people do not seek to maximize their pleasure or to minimize their pain, but to balance, advancing one purpose or concern without neglecting the other-to enhance their well-being and to act morally. The essay argues that the case study method is most able to handle complex behaviour and complex lives. It concludes with a plea for more active use of social theory in research on philanthropy as moral and economic behavior embedded in the social contexts of family, marriage and community.