Everyday Money

You may think that in these straitened times philanthropy is the first thing we should reduce or cut out as we attempt to make ends meet. But, in an article featured in Portfolio, it was demonstrated that “... people grow wealthier when they give more.” The study from the Social Capital Benchmark Survey examined philanthropic behaviours and household income plus other factors such as age, religion education and more. It found that higher income related to higher charitable donations and that “more giving doesn’t just correlate to higher income; it causes higher income.”

This sounds crazy I hear you expostulate, but giving is usually linked with other behaviours. For example, donors are usually confident in their financial situation, have some level of knowledge regarding tax and most likely have a financial plan. Secondly donors are generous people, a characteristic which others find appealing. It is likely therefore that these generous people attract higher salaries or are more successful in business.

Maybe there is a kernel of truth in that old saying; you get back what you give out.