While there are a variety of different taxonomies used for classifying philanthropic activities in Europe carried out by specific organisations or in specific countries, we believe that there are still significant gaps in understanding the broader philanthropic landscape. Through practical insights, this paper explores the diverse uses and benefits of taxonomies, and highlights how taxonomies contribute to better research, informed decision-making, enhanced collaboration and improved coordination, accountability, and transparency within the philanthropic sector. These insights build on the webinar "Common Taxonomies in European Philanthropy", held on 28 March 2023 as part of the Data on Philanthropy – By us, for us webinar series organised by Philea and ERNOP. To help make all of this concrete, this paper features a brief case study on the successful implementation of a philanthropy taxonomy by SwissFoundations. This case study showcases the key factors that led to its success and presents major findings that have emerged from its use and adoption.