What Are The Long-Term Benefits of Donating to Charity?

As Anne Frank eloquently said, “No one has ever become poor by giving.” Donating to charity is one of the most rewarding acts, with several benefits for your mental, societal and financial health.

If charitable donations have yet to become one of your financial habits, this is the year to make it happen. Here’s what you should know about today’s giving behaviors, the long-term advantages and how to start donating to a cause you care about.

Giving Stats That’ll Inspire You to Donate

According to the Charities Aid Foundation World Giving Index of 2019, Americans are more generous than ever. The United States earned the No. 1 spot as the most giving country worldwide, with a score of 58% accrued over the last decade. Although money is the most common form of charitable donation, 72% helped a stranger, and 42% volunteered their time or services.

Nearly 60.7 million Americans formally volunteered through an organization from September 2020 to September 2021, amounting to 4.1 billion volunteer hours and $122.9 billion. Consumers have also placed increasing pressure on businesses to maximize their giving potential. As a result, corporations contributed $21.08 billion to charities in 2021 — about 23.8% more than in 2020.

Of course, foundations and nonprofit organizations work tirelessly to garner financial support. The most successful organizations have maintained a 43% retention rate in the U.S. These numbers are impressive — especially considering the more recent financial constraints of the pandemic. Despite economic downturns, international lockdowns and heightened uncertainty around COVID-19, the Giving Institute highlighted a whopping $471.44 billion in donations by the end of 2020 — the highest amount ever recorded.

Charitable success comes as the world embarked on the most crucial movements of its era — Black Lives Matter, Time’s Up, Me Too, the Climate Strike, March for Our Lives and marriage equality, among others. The demand for nonprofit measures to address these issues and empower change is dire, but their efforts are fraught without donations.

6 Reasons Donating to Charity is Beneficial

Millions of people worldwide have discovered the positive effects of charitable donations on their lives, others’ lives and the planet. How does giving make the most significant impact? These six long-term benefits should convince you to contribute to a cause you believe in.

1. Boosts Your Mental Health

Altruistic behaviors release endorphins that induce happiness — the “helper’s high.” These chemicals include serotonin for mood regulation, dopamine for pleasure and joy, and oxytocin for greater connection.

Studies have long backed this notion up. Researchers have found being kind to others enhances life satisfaction, and reduces depression and anxiety. Overall well-being also improves when givers take time to reflect on their altruism.

Regardless of how you give — money, time, services or another method — doing something good for others positively affects your mental health. It also increases your life expectancy. A 2020 study from Harvard University suggests people who volunteer more than 100 hours annually have a lower risk of death, less loneliness, and greater optimism and fitness.

2. Deepens Personal Values

You may be concerned about providing clean water for populations in developing countries. You could also have a passion for educating young girls. Locally, you might want to address lagging education, animal welfare or keeping drugs off the streets. Whatever you value likely steers your propensity for giving.

From the theory of human values, universalism and benevolence influence philanthropic decisions the most. Universal morals and values in particular indicate empathic concern, preservation, and a commitment to equality. Those who uphold these values likely donate to medical research and human rights groups. Environmental and humanitarian causes are also important to these individuals

These people often view giving to charity as a privilege as much as it is an obligation — if one has the means to donate, they should. Whatever they do to touch another’s life or make a difference is typically rooted in what they hold dear. Acting according to their guiding principles only deepens those values.

3. Creates Long-Lasting Impacts

If you choose a reputable charity, you can guarantee your donation will go a long way in creating positive change. Organizations divest that money in special programs and campaigns that drive their efforts.

Understandably, some people are concerned taxes eat up most charitable donations or the money goes toward administrative purposes rather than people in need. You might contribute to a charity before tax deductions on your salary or leave a gift in your will if you’re worried your cause won’t receive the total amount. Ultimately, every penny counts and allows charities to continue their mission throughout their…