People give to charities for a multitude of reasons.
Reducing your taxable income has been a driving force for charitable giving. Nonprofits saw a significant decline in donations when the standard deduction was doubled. Fewer people itemized; fewer people received a tax benefit from giving.
Charities had to recalibrate and emphasize other ways to give.
- Appreciated assets like stock
- Qualified charitable distributions from your IRAs
- Naming charities as beneficiary
Believing in a cause is another reason people give. There is a plethora of charities supporting a wide range of causes, from mother earth, veterans, animals, to education. The list is endless. You can find a cause you believe in, find where you can make a difference.
One study has shown people who volunteer for two organizations or more have a lower mortality rate. I think part of that result can be attributed to having purpose. For retired people, it can be a reason for getting up in the morning. It improves your quality of life, resulting in a longer life.
Social interaction and building a community are a result of people coalescing around a cause. There are relationships formed as people work together to solve an issue. That sense of belonging and socialization is critical for a person’s well-being. (Covid taught us that in spades). Being part of a community is a benefit of being generous.
Being generous can improve your health, similar to eating healthy and exercising. Studies have shown giving can reduce your blood pressure, lower stress, and decrease anxiety and depression. Feeling good is a product of doing good. It kicks off your endorphins and dopamine – the feel-good hormones.
The Harvard Business School study determined that being generous had the same physical impact across cultural and economic lines. There may be truth to the proverb, “It is better to give than to receive.’
However, just as in eating healthily and exercising, you need to be consistent in your behavior. Generosity needs to be a lifestyle.
Being generous is an opportunity to make a lasting impact, to leave a legacy. How strongly do you believe in a cause? Enough to make the charity a beneficiary in your estate? Large gifts to charities allow them to strengthen and expand their programs. Or give them a foundation to draw an income stream.
Charities that impact lives are creating a legacy.
Bringing lasting change to one life has a ripple effect.
