There has been a lot written on the “Attraction” or “Magnetism” of money. Ask just about any wealthy philanthropist and they will tell you that their generosity has always been returned many times over… even those who donate anonymously.
Statistically, this is true. 95% of households earning $10 million a year, or more, donate. They give an average of $2.6 million each year.
Americans donate 7 times more to charity than Europeans. Our Entrepreneurial system generates overflowing wealth that can be shared. This “boot strap” work ethic compels us to help our neighbors do the same.
The perception that the wealthy are donating to stuffy art galleries, symphonies and schools is inaccurate. They generally donate to the same types of charities as other income classes. 32-39% of their giving is to religious causes. Giving is the only part of the bible where God lays out a direct challenge for us to test him on. He promises that we will get more than we give. (Malachi 3:10)
Marc Zboch is a philanthropic leader. He explains six benefits of philanthropy for individuals, from success in business to personal health.
Security ranks next to the bottom on Maslow’s Hierarchy of Needs. Self-Actualization (the desire to become the most that one can be) ranked first.
We all want to be part of something bigger than ourselves. And there’s no better way to do this than by helping a good cause. Others are attracted to you and want to become part of your higher calling. We can be the person we want our children to become.
2. Business Success
Giving is a good way to enhance the success of an existing business or to build possibilities for a startup company. When a business leader does good, they provide a positive example for the community.
They may reap benefits for their business, like the ease of hiring qualified employees and raising the morale of existing employees.
The best employees to attract are those who have an ethic of giving more than they receive. A charitable attitude exemplifies this good work ethic. It’s why companies like Google and Hewlett Packard encourages their employees to volunteer a portion of their work time to different causes.
When you do the right thing for the right reasons, customers want to be a part of it. But most companies do this all wrong. They ask customers to donate to their pet cause. The Company is viewed as pushing customers to make a sacrifice for them.
A better way to involve customers is when helping doesn’t cost them. Let them know that part of their purchase goes to a cause. A good example of this is Tom’s shoes, where they donate a pair for each one that is purchased.
Often, customers will become regular donors to charities you introduce them to.
3. Personal Development
Giving back to the community allows people to grow and mature in new ways. Taking responsibility for the community is good for an entrepreneur’s soul as well as for their business aspirations. When an entrepreneur helps others, they can feel good about themselves and their contributions.
This is particularly true of volunteering for religious causes. Spiritual development can come about thanks to a philanthropist’s good works. Marc Zboch is a philanthropist who works with religious organizations both in this country and abroad to build self-sustaining agriculture projects. He is able to make connections between his own life and the lives of religious leaders. He is also able to connect with local community members and make new friends.
4. Financial Benefits
Entrepreneurs may experience some direct or indirect financial benefits from volunteerism, but these pale in comparison to the intangible benefits. Businesses that help others have a special ability to grow. Tax advantages are also possible for entrepreneurs.
When people become philanthropists, they are often encouraged to remember charitable organizations in their will. This is an especially generous form of giving, and philanthropists are encouraged to take part.
5. Joining the Greater Community of Philanthropists
Wealthy people who live in high income towns and communities donate twice as much of their income as wealthy who are isolated.
Philanthropy can be enjoyable when it comes to networking. People who volunteer and give to charitable causes can multiply their efforts and results by working with others.
They can get important face time with CEOs of companies and wise businesspeople, helping to build their professional network. Networking is one of the key activities that separates good business leaders from great ones, and it presents a huge advantage to philanthropists everywhere.
For example, a business owner focused on healthcare who is on the board of directors of a hospital is able to spend time with the hospital’s executives. This could present a professional and personal benefit.
6. Health Benefits
While this may be surprising, it is possible that volunteerism is good for a person’s health. Volunteering boosts your mental health and physical health alike. People who volunteer have better blood pressure, less depression, lower stress levels, greater happiness, and a longer lifespan. The old proverb, “It is better to give than to receive”, rings true for a longer life.
These health benefits are available for people who give money to causes as well as those who donate their time.
Giving Benefits Everyone
When business leaders become philanthropists, everyone stands to benefit. The organizations receiving the funding or volunteer hours are able to help more people, enhancing education and living conditions around the world. The companies that provide the funding reap benefits in their ability to do business and also in their bottom line. Some philanthropic efforts are also religious in nature, providing an avenue for personal growth.
Marc Zboch believes strongly in the power of philanthropy to change the world. Even though some people do not have the financial means to provide funding for community organizations, they can still donate their time. Time spent volunteering also confers benefits and helps charities running smoothly.