Why you should be giving, no matter how effectively

“People with many interests live, not only longest, but happiest.”

- George Matthew Allen

I’m writing this on the “First Day of Christmas” (12 days before the 25th– or do the “12 days of Christmas” start on Christmas? Ah well…it’s the holidays.), and I’ll tell you what–this past weekend, I got a dose of what the holidays are *really* about…

Shopping.

I say this, with a good helping of eye-rolling. Whichever faith tradition you hold dear, it’s likely to have become extremely commoditized and “shopping-ified” (look, I’m a lawyer–not a novelist) around this time of year.

And we all complain about it, reliably, loudly and regularly–yet there we are at JCPenney, stocking up on plastic toys and off-brand cologne, all to “celebrate” the holiday. (And that’s a taste of my weekend, by the way…and I’m tired!).

Now, far be it from me to decry the operation of a healthy economy, but may I make a humble suggestion? Regardless of your tax-deduction needs, or even if you’re effective about it–consider making GIVING a large part of your holiday plans.

Why To Give, No Matter The Benefit

When we set up GRAT’s, or other mechanisms for clients to deliver their philanthropy, there’s much discussion about the benefits of the gift.

But what about for the giver?

This doesn’t quite work, when the giver is an estate–but since I’m not writing to a bunch of estates (I’m writing to real people!), I’ll proceed with some strong words about WHY you should be giving, no matter how effectively your money is spent by the charity!

1. Tax Rate Leapfrogging.

You can bump yourself into a whole different (lower) tax rate, at times, by reducing your taxable income. This is something to consult with your CPA about, if you wonder if you’re on the fence.  (If you need a recommendation for a qualified local tax pro, just let me know with a reply here.)

2. Your heart changes.

Studies show (http://www.livescience.com/health/080320-happiness-money.html) that when individuals spend money on gifts for friends or charitable organizations, their happiness increases — while those who spend on themselves get no such boost. Even Scrooge can agree that everyone wins.

3. You can double your money without doing any work.

Instead of simply sending off your money, why not find out if anyone is offering to match? Sites like www.DonationDoubler.org have lists of companies that will match your charitable contribution. Find one you like and suddenly you contribution goes twice as far!

4. You’re just going to blow it on something dumb anyway.

As pious as you are, there’s still extra money in your budget somewhere. Create a budget for charity donations, then take some of your extra money (each month or each year) and donate it to charity. Use your spending money to make a difference instead of spending it on Brookstone junk you’ll use once. And if you think you don’t have enough, take that extra 2% you’ll be earning next year and put that toward a charity fund. For someone making $30,000, that’s about $500!

5. Face it: If you don’t help now, you never will.

Don’t pretend that instead of giving money, you’re going to donate time. When was the last time you volunteered at a soup kitchen? Don’t let your mind fall for this trick. Send the money now or you’ll end up giving nothing.

6. Be a leader, not a follower.

This is the biggie, in my opinion. There’s just something that happens in your psyche when you cut a big (or relatively big) check to someone in need, or to a charity organization. You feel more powerful–more dynamic. You signal to your own unconscious: “Money doesn’t rule me. I have more than enough, so much more than enough that I’m giving it away.” Then, of course, something special often happens: more money seems to find itself in your hands.

I’m not advocating a mystical pay-it-forward scheme; I’m simply making the observation over years of being a student of how money “works”. And, it just seems to find itself in the hands of those who give it away.

So–was any of this convincing? Did it help you see things in a new light? Let me know…

I hope this was simple and straight–as usual.