Embracing Generosity: Top 4 Reasons to Include Giving in Your Financial Strategy

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As a nation, we are very generous with one of our most precious resources: money. In 2020 alone, Americans gave $471 billion to charities. And with over 1.54 million charitable organizations (in our country alone) to choose from, it’s not hard to find a worthy cause.

And it’s not just individuals and families giving back, small businesses are known for their giving impact on charities, local service groups, and religious and youth organizations. Many small businesses also encourage their employees to give their time and talents by volunteering locally. Small businesses often give more than their big business counterparts— 75% of small business owners give approximately 6% of their profits to charities every year.

Motivations for Charitable Giving

There are often a variety of emotional, social, ethical, and even political motivations for why people and organizations give back. Some common motivations for giving include:

Gratitude. Giving can often come from an overflow of gratitude in our hearts. Whether we’re grateful for our career, our family, or our community, giving is a natural response to gratitude.

Spiritual beliefs. Many religions place an emphasis on giving and caring for others.

Altruism. Many people have a selfless concern for the well-being of others and want to demonstrate this concern by giving others their money and time.

Wanting to leave a legacy. When we come to the end of our lives, most people want to be remembered for their positive impact on the world, not for what they accumulated.

Tax benefits. The potential tax deductions make giving even better! A financial coach or tax professional can help you see the impact of giving on your tax liability.

Sense of community. When you give, you become part of something bigger than yourself and you can feel a sense of camaraderie and closeness with those around you.

Enhancing your reputation. Wanting to be known for your generosity is not always a bad thing—sometimes your giving may inspire others to give too!

Belief in a cause or movement. A tangible way to show your support for something, whether it’s medical research, social causes, or even political affiliations, is to give.

Our motivations for giving are often deeply personal, stemming from our values, emotions, and experiences.

Top 4 Reasons to Include Giving in Your Financial Strategy

Giving back at the holidays is a very common and worthwhile endeavor, but including giving in your monthly financial strategy can bring a host of benefits:

Enhanced positive emotions.
Connection with your community.
Ability to share your values.
Contribution to the greater good.

Regardless of the amount you give—which can vary greatly depending on your stage of life—your contributions have meaningful impacts on both yourself and those that you give to.

1. Enhanced positive emotions.

Charitable giving makes us feel good! When you give, your brain releases serotonin, dopamine, and oxytocin, chemicals that increase positive emotions and create a sense of connection.

This joy and enhanced well-being can have positive effects on all areas of your life, including your finances. You’re more likely to be productive and engaged at work, have a positive, can-do attitude, reduced stress, and an increased level of satisfaction.

Giving also has profound health benefits, such as lower blood pressure, longer lifespans, and an increase in self-esteem which can help fight depression.

2. Connection with your community.

When you give to others, you expand your network in a productive and worthwhile way. You come alongside similar-minded people which can strengthen your connection with your community and create positive change.

Giving also opens our eyes to our greater, global community. Sometimes we can get so busy in our day-to-day lives that we lose sight of the struggles and needs of those outside of our inner circles.

Giving can also inspire small business leaders, helping them grow, learn and broaden their understanding of others’ needs, ultimately impacting and influencing their companies.

3. Ability to share your values.

This benefit also spans both individual and small business giving. Everyone carries around values and beliefs and we can demonstrate and share these with others through our giving. This can motivate others to demonstrate their values and help you connect with people who care about the same things as you.

Your small business can tangibly show your core principles through your philanthropic efforts. For example, if caring for the environment is an integral part of your business’s values, then donating to environmental groups might be part of your financial strategy. You may also highlight the steps your company takes to care for the environment, such as promoting paperless communication or recycling.

You can also engage your customers in giving by leading by example and offering to match their contributions. Using your business’ platforms, particularly on social media, can help promote worthy causes and spread awareness of issues that are close to your heart.

4. Contribution to the greater good.

When giving is an integral part of your financial strategy, you’ll be able to regularly contribute to the greater good of society. You may choose to give a particular contribution every month to a cause that is near and dear to you or you may choose to make your giving category more flexible, ready to meet needs as they arise.

Some societal benefits of giving include:

Reducing poverty.
Preserving the environment.
Helping when a natural disaster strikes.
Increasing education for youth.
Promoting scientific research.
Increasing access to healthcare.
Empowering marginalized communities.

Whether you choose to focus on the neighborhood you live in, a country across the world, or somewhere in between, giving ensures you’re contributing to something bigger than yourself.

Making the Most of Your Contributions

Once you’ve determined to include charitable giving in your financial strategy, there are many ways to ensure you’re making the most of your contributions, including:

Creating a giving budget. Just like with any other expense, you want to make sure your giving amount is within your means. If you’re on a tight budget, you can start your giving journey by offering your time or even giving $10 a month to a cause you really care about. When your discretionary income increases, you can increase the amount you give.

Consider a donor-advised fund (DAF). These funds allow individuals and businesses to give cash, securities, stocks, and other assets to charities of their choice while receiving tax deductions. DAFs are managed by sponsoring organizations and funds within the DAF can be invested, allowing your contributions to have an even greater impact!

Host fundraising events. If you’re a small business owner, consider hosting a fundraising event with your team! This will not only raise money for a good cause but promote bonding among your employees.

Encourage generosity with your children. Our legacy can last far longer than our lifespan when we impart our wisdom, values, and giving habits to our children. As your children start earning their own money, encourage them to give a portion of it to causes they care about or people they see in need.

Fine Tune Your Financial Strategy with Financial Fitness Coaching

At Financial Fitness Coaching, we’re passionate about helping others so they can align their values with their financial strategy. When your financial life is in order, you open yourself up to more possibilities, including achieving your giving dreams.

Achieving financial freedom can help not only yourself and your family, but your entire community. To see how we can help you and your business, send us an email at info@financialfitnesscoaching.com or simply schedule a free 20-minute Discovery Call on our calendar.