There are thousands of charitable organizations located around the globe, and they all depend on donations to stay active. Some organizations accept items such as food, furniture, clothing and toys, while others rely on cash to function. Giving to one of these charities is a worthy cause. Not only will you help people in need, but you will also reap the many benefits of charitable giving. Here are five ways charitable giving will improve your money management skills and personal life.
Earn Tax Deductions
Many people are aware that donating money or goods to a charity qualifies them for significant tax breaks. The higher the tax bracket you are in, the more sizable your deduction will be. You must itemize your tax return to receive this benefit. Over the course of a year, these deductions could add up to a significant amount.
Improve Local Community
There are many types and sizes of charitable organizations. If you choose to support a small, local charity, you will also have the opportunity to improve your community. Instead of supporting people on the other side of the world, your monetary contributions will have a direct impact on people located in your community so you can see the difference your money makes. Individuals can mirror the charitable giving of companies such as Sullivan Community Space to ensure their money goes directly to the community to make it a better place to live.
Achieve a Higher Community Standing
If you donate regularly to one or more charitable organizations within your community, you will quickly become an important figure. The charities you give to will recognize you as a giver and may openly acknowledge your donation, which makes you a more recognizable figure in the community. Many charities also place top givers on their boards, so you may even have the chance to participate in your chosen charity. This provides you with a unique opportunity to influence the agency’s decisions. The more money you can give, the more likely it is that you can influence the charity.
You are more likely to donate to charities that support causes that you believe in, so you want the organization to flourish. By donating openly as an example, you can influence others to do the same. This may instill a generous, philanthropic spirit in your children, or it could inspire friends and family members to support a worthy cause. If you are already a recognizable figure in the community, your donation could draw attention to your chosen charity and cause others to contribute as well. Regardless of how or who you motivate to give, you have impacted the charitable community by influencing others to give as well.
Whether you donate time, money or items, giving to others is rewarding mentally. A study conducted by the University of Missouri concluded that people who give to charitable organizations are more likely to live a happy, satisfying life. Giving to others releases a surge of dopamine, which lights up the section of the brain that recognizes rewards. This allows for immediate satisfaction, encouraging you to donate more in the future.
Not only does donating money help you learn to manage money better, but it also comes with many significant mental benefits. Supporting a worthy cause may elevate your standing in the community and earn you sizeable tax deductions, but it also promotes feelings of happiness and satisfaction. It also allows you to become more involved within your community and motivate others to become more involved as well. Therefore, becoming a charitable donor is a wonderful way to give back to your community while reaping personal benefits.