They say money can’t buy happiness. But that’s only if you’re trying to buy your own happiness. It turns out, what you do with your money can actually buy happiness . . . both for you and for others. A recent study found that spending more of your income on others has more of a positive impact on you than spending money on yourself.1 Another study found the same to be true in both rich and poor countries.2
While more money can help alleviate some of life’s stressors like paying off debt, making the rent or mortgage payment, or buying a reliable car, it doesn’t increase your happiness when you spend it on yourself. But the opposite is true when you choose generosity.
Three Benefits of Donating to Charity
The concept of generosity seems radical these days with inflation and the cost of living continuing to rise. But thankfully, that hasn’t discouraged people from contributing what they can. Last year, Americans gave $499.3 billion to charity.3 That’s a huge testament to the role generosity can play in creating a culture of giving.
At SageSpring Wealth Partners, giving is at the heart of what we do. Our most meaningful work is getting the opportunity to advise our clients on how to give both purposefully and effectively. We’re proud to say that last year, 343 of our accounts contributed to nonprofits and charities. This year, we’re hoping that number continues to grow.
Here are three benefits of donating to charity you can experience this year:
1. You can make a difference in the lives of others.
You can’t necessarily buy happiness for yourself, but you can absolutely help others experience that through financial gifts. By donating to charities, foundations, nonprofits, and even churches, you can make a huge impact on the lives of those in your community and around the world. Is there a cause that breaks your heart? Is there a foundation that’s working to find a cure for a disease you or someone you love has been affected by? You won’t have to look too hard to find someone who could use a helping hand financially.
2. You’ll gain more happiness.
As we previously mentioned, multiple studies have found that generosity begets happiness. As the giver, you’ll receive far more joy through your generosity than if you were to spend that money on yourself. It’s time to start dreaming: How can you increase your joy this year through your financial gifts?
3. You can receive tax deductions.
With your generous donation before the end of the year, you can receive a charitable giving tax deduction on your 2023 taxes. Before you give, check to see if your donation qualifies for deductions with the IRS here. There are many different ways to give: donor-advised funds, stocks, and even bundling your donations. If you’re unsure of how you can best utilize your charitable tax deductions, we’d love to help.
Want to learn more about how you can give wisely this year? Contact a SageSpring Wealth Partner today. We’d love to help guide you as you use your finances to impact your community and increase your joy this holiday season.