Being Charitable Can Make Your Rich

I believe charitable giving should be a part of a person’s financial plan. I
think it’s is our responsibility to share our financial success with others. I
also believe that more giving actually will make you wealthier and happier.

You wouldn’t think it’s possible to become wealthier if you give away
money that could otherwise be used to invest or to be put back in your
business. In fact, pulling money out of your portfolio would actually
deplete your wealth, wouldn’t it? Giving equals more wealth is a very
counterintuitive thought.

So, how is it possible that giving increases wealth?

That is the exact question that Dr. Arthur Brooks, a professor and
economist at Syracuse University, asked. He interviewed successful
entrepreneurs to determine why they were wealthy. A common answer was
that they were wealthy because they gave a lot. Dr. Brooks thought, as
many of us would, that it was impossible that giving could equal more
wealth. He set out to disprove what they were saying. After conducting a
study he showed that it was, in fact, true that giving did result in more
wealth. In fact, in his study, he actually found the return on giving to be
3.75. He found that if a family gave $100 to charity they would receive
$375 back. In a separate study he found that those who gave to charity
were also happier than those who didn’t give.

This is also true on a national level. Americans are very wealthy versus
other countries. Our wealth is partially a function of our national giving if
Dr. Brooks’s research results are true. We are often painted as being
selfish. In truth, the opposite is true. We are the most giving country in
the world. For example, the average American gives seven times the
average German and fourteen times as much as the average Italian.

I’m trying to make giving a bigger part of my personal financial plan. I am
currently in the process of setting up a foundation, Rebuilding U, to help
divorced women obtain their college degrees by providing college
scholarships. There are many women, especially in Utah, who started
college, then got married, had kids, and ended up not finishing their
education. When divorced they can only get low paying jobs and then find
it difficult to support their families. The Rebuilding U scholarships will help
these women increase their earnings power and put them in a better
position to provide for their families.

My personal experience shows that giving does, in fact, lead to more
wealth. My business continues to grow. In addition, I find that I am
happier when I am giving of my time and resources than when I’m not
giving.