Get Rich By Giving Away to Charities

Last Revised on November 23, 2007

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Economic research and studies concludes that giving makes you rich. There seems to be a good impressive prove regarding that — statistics from real data, not the mushy self-help stuff—supports the contention that giving stimulates prosperity, for both individuals and nations. Charity as it turns out can really help you become rich.

So where is the prove? The prove is the United States. Although the United States is a top capitalist nation in the world, the United States has man very philanthropic people. Consider this, there is an estimation that Americans have donated over $300 billion in 2006 to charities. That’s more than the GDP – gross domestic product (the annualized value of goods and services produced within a nation) – of all but 33 countries in the world. Nearly 75 percent of Americans give to charities each year. Look at this: about three out of four of this charities came from private individuals, not philanthropic organizations.

How does all this charities help Americans to their high levels of economic prosperity? The Social Capital Community Benchmark Survey, published in year 2000, is a study of about 30,000 people in more than 40 communities across the U.S. and is the best single source of data available on the civic participation of Americans. The study, which takes into account differences like age, sex, race, etc, shows that people who give charitably are making significantly more money. Although that result seems like common sense, it turns out that the link in the data between giving and earning is not just one-way and that simple. People do give more when they become richer—research has shown that a 10 percent increase in income stimulates giving by about 7 percent—but people also grow wealthier when they give more.

Interestingly, there is a new research out from the University of Oregon. That research found that charity stimulates parts of the brain called the caudate nucleus and the nucleus accumbens, which are associated with meeting basic needs such as food and shelter—suggesting to the researchers that our brains know that giving is good for us.

According to U.S. government data, G.D.P. per person in America has increase over the past 50 years by about 150 percent, while the charities per person in a dollar amount have risen by about 190 percent. In 2004, $100 in extra income per American drove about $1.47 in additional charitable giving per person. At the same time, $100 in giving stimulated more than $1,800 in increased G.D.P. This rate of social return shows that economic-multiplier effects are not limited to private investment. In short, giving plays a positive role in American economic growth. It is a good investment for our country.

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One Response to “Get Rich By Giving Away to Charities”

  1. think and grow rich Says:
    December 2nd, 2010 at 1:36 pm

    if applied properly, it may very well be the only source of income you might ever require.

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