You Don’t Have to be Rich to Give – Why Giving is Good for You

As far as philanthropy goes, Americans are far and away the most generous in the world in terms of their charitable giving, in both total amount and as a percentage of their income. In 2006, Americans gave a total of $295 Billion to charities at home and abroad. Is this because Americans are so wealthy, and have so much to give? A number of years ago Syracuse University economics professor Arthur Brooks set out to prove that, though many Americans give generously, people had to be wealthy before they were able to give substantially. The results of his research, much to his own surprise, showed that time after time, those who gave charitably actually became wealthier because of their giving, and not they gave because they were wealthy as he hypothesized. One of his studies showed that if one were to compare two families of the same socio-economic background, living in houses of the same size, on the same block, the family that gave to charity on a regular basis actually increased their household income, even after accounting for a host of other variables. Dr. Brooks’ research even shows that giving provides a statistical return on investment of 3.75 to 1!

It turns out that giving is not only a practice that consistently brings people more wealth, but also boosts mental and physical health, and increases social standing and happiness. Dr. Brooks offers a number of explanations for this seemingly paradoxical relationship. Personal happiness is one key to wealth, as many wealthy individuals have reported. Since charitable giving universally brings feelings of happiness and fulfillment, the act of giving itself makes people more productive and therefore more likely to increase their income. The act of giving also physically changes your neurochemistry, reducing 3 neurotransmitters that cause stress and anxiety, which often holds people back from being the most productive and successful they can be. Volunteering your time and money statistically boosts your health, so much so that giving provides the health equivalent of quitting smoking. Finally, charitable giving actually changes the way people treat you in your daily life - they admire the qualities they perceive in the giver’s personality and respond accordingly. . Giving tends to elevate your peer group standing, and increases your likelihood to be placed in leadership positions, which normally leads to increased wealth.

So the next time you’re worried about your finances, feeling emotionally drained, stressed out, or concerned about ‘getting ahead’ in life, break out your check book and give to a cause that you support. Give what you can - even if it’s only a small amount. You are guaranteed to feel better and you really will reap such benefits as increased wealth and better overall health.

Note: Professor Arthur Brooks presented these somewhat shocking findings at the 2008 American Fundraising Professionals Conference in April 2008.