Many people know that giving charitable donations can help reduce tax burdens, especially for those who are in a high tax bracket. Eduard de Guardiola is here to show you that the benefits of giving to charity extend far beyond tax breaks.
Giving isn’t always easy, regardless of one’s income and tax bracket. When looking over our budgets and allocating our money, it’s easy to give preference towards opening a college fund for your children, saving for that well-deserved vacation or even going on a shopping spree. But whatever your intentions are, be it tax benefits, altruism or a combination of both, there are plenty of returns that derive from giving to charity. Many scientists believe, based on recent studies, that the long-term social, emotional and financial benefits of charitable giving outweigh the instant gratification of spending on pleasure.
Eduard de Guardiola, on the benefits of philanthropy:
The satisfaction of helping others
Although there are national safety net initiatives in place in the US, such as disability benefits and food stamps, giving to charities can still make a big difference according to Eduard de Guardiola. By donating to local charities, your money will help those less fortunate in times of crisis. Community charities typically respond quicker and more to the individual at hand than larger government organizations do, and they typically rely more on private donations. Therefore, donating locally provides direct support to the people in your community and generally raises the well being of your community as a whole.
Improve your own life fulfillment
According to a study in Germany, people who spend time and resources on charities experience a greater level of satisfaction in life than those who do not. The study continues that communities where people are inclined to giving to charity also demonstrate greater levels of overall life satisfaction. This is also explained on the individual level, through another study by the University of Oregon. Their study shows that charitable donations create a response in the brain that floods the brain with dopamine and endorphins. This has been compared to the same feelings that are derived from exercise and meditation.
The study concludes that people who gave to others tend to score much higher on feelings of joy and contentment than individuals that do not give to charity. This ‘feel good’ effect of giving to charity not only benefits mental health, it also contributes to physical health benefits. In the same study, it was found that people who volunteer and give to charity scored better on key measurements in overall physical health than those who do not volunteer.
Reduce your tax burden by giving to charities; give money and save money.
Lastly, charitable contributions can reduce your tax burden when it comes time to file your income taxes. Many people are aware of this benefit of giving to charity, and for this reason, it has been mentioned last as it may come to no surprise to most readers. For those who are interested in making donations for tax-related purposes, Eduard de Guardiola suggests that you contact your accountant to find details on what your options are before you take out your checkbook at your local charity organization.