The Rewards of Charitable Giving: Beyond the Numbers
October 01, 2024
By Andi McNamara, CFP®
Vice President, Director of Financial Planning
Washington Trust Wealth Management
We talk a lot about charitable giving in wealth management because we recognize that charitable giving isn’t just about making a donation or getting a tax break; it’s about transforming lives—including yours.
By investing in the future, you have the unique opportunity to shape a better world and be remembered for something meaningful that serves as a reflection of your character, passions, and commitment to positive change. And when you give, you reap physical, emotional, and social rewards that go far beyond the value of the gift itself.
Strengthening Your Community
Sometimes, the most rewarding aspects of giving aren’t the direct impacts of your donation but the relationships and shared goals that grow out of your involvement. When you give to a cause, you become part of something bigger than yourself. You not only strengthen the organization but also foster a community of individuals who are passionate about the same issues. This sense of belonging, particularly when moving to a new location, can counter feelings of isolation and loneliness, promoting mental and emotional well-being. As you engage more with charities, it also enables you to better vet potential organizations for future investments of your time and resources.
Improving Your Health
The benefits of charitable giving extend well beyond the tangible outcomes of your contributions. Research has consistently shown that giving makes you happier and healthier. The 2022 World Happiness Report, which collected charitable giving and well-being data from around the world, found that donating money is one of the six strongest predictors of life satisfaction.1 According to a study published in the International Journal of Psychophysiology, people who gave social support to others experienced lower blood pressure, less depression, lower stress levels, and increased lifespan.2 These findings highlight a profound truth: the more you give, the more you get. Your acts of generosity not only help others but also create a ripple effect of positivity in your own life.
Broadening Your Life Perspective
Giving to those in need helps you gain a broader perspective on life, to step outside of your own experiences and consider the challenges faced by others. This newfound awareness can deepen your empathy and understanding, allowing you to appreciate the diverse experiences that shape our world. It also ignites a sense of purpose that can be transformative. When you witness the impact of your contributions, you may also develop a greater sense of gratitude and appreciation for what you have, creating a cycle of positivity that enriches your daily life experience.
Modeling Values to Future Generations
Charitable giving is an excellent way to instill values of generosity and social responsibility in the next generation. Whether you’re involving your family in giving decisions, creating a family foundation, or discussing the causes you support, you’re setting a powerful example of the importance of giving back and contributing to the greater good.
Creating a Lasting Legacy
Finally, charitable giving allows you to leave a legacy to ensure your values will continue to make a difference long after you’re gone. Whether volunteering your time or making a donation, sharing your wisdom, experience, and wealth has the potential to change lives and build something that will last far beyond your lifetime. When you choose the right vehicle for your giving—be it cash donations, donor-advised funds, or charitable trusts—you also increase the efficiency and impact of your generosity (this is where your wealth advisor can help).
Washington Trust Wealth Management: We Focus on Your Life, Not Just Your Wealth
At Washington Trust Wealth Management, we focus on the improving quality of your life, not just increasing your wealth. As part of our holistic life planning, we understand that charitable giving is about much more than financial benefits. It’s an opportunity to build connections, broaden your perspective, and find purpose and joy in your life. We are here to help guide you in embracing the profound benefits of giving, as it transforms not only the lives of others but also your own.
1 World Happiness Report, 2022.
2 International Journal of Psychophysiology. Science Direct. Social support and ambulatory blood pressure: An examination of both receiving and giving.
Connect with a wealth advisor
No matter where you are in life, we can help. Get started with one of our experts today. Contact us at 800-582-1076 or submit an online form.
By accessing the noted link you will be leaving Washington Trust's website and entering a website hosted by another party. Washington Trust is not responsible for, nor do we control, endorse or guarantee the content of any external sites. Please be advised that you will no longer be subject to, or under the protection of, the privacy and security policies of Washington Trust's website. We encourage you to read and evaluate the privacy and security policies of the site you are entering, which may be different than those of Washington Trust.
This document is intended as a broad overview of some of the services provided to certain types of Washington Trust Wealth Management clients. This material is presented solely for informational purposes, and nothing herein constitutes investment, legal, accounting, actuarial or tax advice. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. Please consult with a financial counselor, an attorney or tax professional regarding your specific financial, legal or tax situation. No recommendation or advice is being given in this presentation as to whether any investment or fund is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors, or markets identified and described were, or will be, profitable.
Any views or opinions expressed are those of Washington Trust Wealth Management and are subject to change based on product changes, market, and other conditions. All information is current as of the date of this material and is subject to change without notice. This document, and the information contained herein, is not, and does not constitute, a public or retail offer to buy, sell, or hold a security or a public or retail solicitation of an offer to buy, sell, or hold, any fund, units or shares of any fund, security or other instrument, or to participate in any investment strategy, or an offer to render any wealth management services. Past Performance is No Guarantee of Future Results.
It is important to remember that investing entails risk. Stock markets and investments in individual stocks are volatile and can decline significantly in response to issuer, market, economic, political, regulatory, geopolitical, and other conditions. Investments in foreign markets through issuers or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical, or other conditions. Emerging markets can have less market structure, depth, and regulatory oversight and greater political, social, and economic instability than developed markets. Fixed Income investments, including floating rate bonds, involve risks such as interest rate risk, credit risk and market risk, including the possible loss of principal. Interest rate risk is the risk that interest rates will rise, causing bond prices to fall. The value of a portfolio will fluctuate based on market conditions and the value of the underlying securities. Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment loss. Investors should contact a tax advisor regarding the suitability of tax-exempt investments in their portfolio.