Have you ever heard the saying, “The more you give, the more you get”? It sounds like something your father might say, but according to economist Arthur C. Brooks and some fascinating new research, it’s actually true. Yes, giving to charity can make you richer—not just in a "feel-good" way, but in actual dollars.
Giving and Wealth: It's a Two-Way Street
The common assumption is that you need to be rich to give. After all, you can't donate what you don't have, right? Well, Arthur C. Brooks turns that idea on its head. He points out that while people who earn more do give more, the opposite is also true: people who give more often end up earning more.
Research from the Social Capital Community Benchmark Survey (SCCBS) shows that this connection between giving and earning is more than one way. In fact, if you give just $100 more than your neighbor this year, you might see as much as an extra $375 in your income next year. That’s a 275% return on investment! It's not too shabby for something that also makes you feel good inside.
A 2009 study by the National Bureau of Economic Research found that charitable giving leads to higher income. For every dollar you give to charity, you can expect to make approximately $3.75 in return, on average. This aligns with Arthur C. Brooks’ research, reinforcing that generosity has measurable financial benefits.
Brain Chemistry to the Rescue
So how does this work? Neuroscientists have found that when you give, your brain activates regions associated with rewards and pleasure, like the caudate nucleus and the nucleus accumbens. Basically, your brain gets a little dopamine hit when you do something generous, reinforcing the idea that giving is good for you. It’s like your body’s way of saying, "Keep being generous—it’s making you happier!"
Studies show that generous people are 43% more likely to say they are very happy compared to those who don’t give, according to the Harvard Business School. This increased happiness directly correlates with better performance at work, which can contribute to career advancement and financial gain.
More Friends, More Opportunities
And then there’s the social aspect. Generosity isn’t just about making yourself feel good. When people witness your charitable behavior, they tend to elevate you into leadership roles, and these connections can open up new doors and opportunities. Giving makes you a more respected and trusted member of your community. And that can pay off in ways that boost both your social capital and your bottom line.
Social capital can help you make more money by connecting you with valuable opportunities through your network. If you have strong relationships with business professionals, they might refer clients to your company, leading to more sales and income. Or, if you're in a job, a good connection might recommend you for a higher-paying position, boosting your earnings.
According to a study published in the Journal of Economic Psychology, individuals who engage in charitable activities tend to form more social connections. These connections often translate into opportunities for economic and career growth, as people are more likely to do business with or hire someone they like, trust and admire for their generosity.
It’s Not Just You—It’s the Economy, Too
The wealth-boosting power of giving doesn’t stop at the individual level. Brooks points out that charitable giving has the power to drive economic growth on a national scale. Studies show that when giving increases, so does a country’s GDP. It’s a virtuous cycle: economic growth pushes up charitable donations, and more donations push up economic growth. Who knew that donating to charity could be patriotic?
A report by Giving USA found that charitable donations in the U.S. reached $484.85 billion in 2021. This immense figure contributes to stimulating the economy, creating jobs, and improving community infrastructure, which in turn builds an environment where economic growth and individual prosperity can thrive.
So, How Does Giving Make You Wealthier?
Let’s break it down:
● Psychologically, giving feels great. That emotional boost translates into better mental and physical health, which in turn can help you perform better in your career or business.
● Socially, giving builds stronger connections and opens doors. People who give tend to rise into leadership positions, which brings new opportunities for success.
● Economically, your donations don’t just disappear—they stimulate the economy, which can eventually lead to more wealth for everyone, including you.
“Everyone can be great because everyone can serve."
- Martin Luther King Jr.
References:
Brooks, Arthur C. Who Really Cares: The Surprising Truth About Compassionate Conservatism. Basic Books, 2007.
Dunn, Elizabeth W., and Michael I. Norton. "Spending Money on Others Promotes Happiness." Science, vol. 319, no. 5870, 2008, pp. 1687-1688.
“How Giving to Charity Could Help You Earn More Money.” The Guardian, 5 May 2015, www.theguardian.com/money/2015/may/05/how-giving-charity-help-you-earn-more-money.
Social Capital Community Benchmark Survey. John F. Kennedy School of Government, Harvard University, 2000.
Sargeant, Adrian, and Jen Shang. Fundraising Principles and Practice. Wiley, 2010.
“The Science Behind Why Giving Is Good for Your Health.” Greater Good Magazine, University of California, Berkeley, 27 Nov. 2017, greatergood.berkeley.edu/article/item/the_science_of_giving.
“U.S. Charitable Giving Reaches $484.85 Billion in 2021.” Giving USA, 21 June 2022, givingusa.org/press-release-giving-usa-2022-americans-gave-484-85-billion-to-charity-in-2021/.
