CHARITABLE PLANNING
Hannah Shaw Grove
The Link Between Giving And Wellness
Studies show that generosity can boost happiness and overall well-being .
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MONG OTHER RESPONSIBILITIES , ADVISORS HOPE TO help their clients achieve financial wellness — the state in which they feel both financially secure and comfortable that they can meet their financial obligations . There are relationships between money and happiness , and philanthropy can play a role in this . Consider , for instance , a survey by the University of California , Berkeley of 632 Americans . It found that spending money on other people is associated with significantly greater happiness .
These are things we should keep in mind with year-end giving season around the corner , and that makes now the ideal time to initiate charitable planning with your clients . Here are some valuable insights about giving and wellness to share with clients , especially those who ’ ve yet to realize philanthropy ’ s many merits .
Intention Matters
There are plenty of things we all can do to be happier — and most of them require us to be intentional with our time , actions and thoughts . Numerous studies show that it ’ s not how much we have , but rather how we use what we have that has the greatest effect on our happiness , which the Berkeley study reminds us .
Happiness Spreads
Giving to others generates an abundance of benefits , not only for givers and receivers but also for those who witness acts of generosity . The UC Berkeley research also points to a virtuous cycle between giving and happiness : Giving makes people happier , and happier people give more .
Givers also regularly report increased feelings of satisfaction and competence , along with a greater sense of purpose . In 120 of 136 countries , says UC Berkeley , people who donated to charity in the prior month reported greater satisfaction with life . Furthermore , a Foundation Source study of more than 1,700 Americans who engage in charitable activities suggests that giving helps people feel more connected with their communities , too . People give to help family , their local community and friends or for religious or spiritual reasons .
The same is true for those who volunteer . The Foundation Source research found that many people engage in charitable activities by volunteering and aspire to continue doing so in the future . Donating time and expertise along with physical help can switch our focus from our own troubles to the needs of those around us , fostering social connections and benefiting everyone involved .
Physical Benefits
Medical experts are starting to focus on the tangential benefits of giving , too . In a UnitedHealthcare poll of people who had volunteered in the previous 12 months , the large majority felt healthier ( cited by 76 % of the respondents ), had improved moods ( cited by 94 %) and reduced stress ( mentioned by 78 %). Similarly , a blog by the Columbia University Irving Medical Center recently said that generosity has the potential to affect health and well-being by boosting a person ’ s mood , self-esteem and the immune system , in turn reducing stress , anxiety and blood pressure . The associated chemicals that are produced by the body in response to giving can also help reduce physical discomfort and aid sleep .
Stronger Families
Engaging in charitable giving is also an ideal way for family members to bond with one another and strengthen multigenerational ties for years to come . By volunteering together and collectively determining which causes and charities they support , a family can clarify its values and traditions , improve its inter-
24 | FINANCIAL ADVISOR MAGAZINE | OCTOBER 2024 WWW . FA-MAG . COM