Thursday, July 19, 2007

Mouth made of money

The Wall Street Journal recently reported on an interesting phenomenon in Giving Till It Hurts... And one author's analysis will make sense at least to those of us who grew up being taught to tithe 10% of our earnings in church. There may just be some logic to the old adage that the more you give, the more you seem to get in return.

Nonprofits say they are receiving an increasing number of “stretch” gifts, donations seemingly out of proportion to the givers’ resources. To the shock or chagrin of friends and family, these gifts often require donors to make sacrifices or at least live more modestly than their income would allow...

Arthur C. Brooks argues in his book “Who Really Cares,” which identifies the forces behind American charity, that people who give in a way that pinches are happier and, surprisingly, end up wealthier. According to Mr. Brooks’s analysis, a dollar donated to charity led to $3.75 in extra income for the donor in 2000. “They often create great discomfort among their families, but when people give there is substantial personal transformation,” says Mr. Brooks, an economist and professor of public administration at Syracuse University’s Maxwell School. “They tend to work harder,” leading to greater prosperity, and in the long run, he says, “this leads to more success, both financial and nonfinancial.”
Many of you probably volunteer your time, but I ask you, as I ask myself: Are we feeling particularly poor today? Maybe we should consider giving at a sacrificial level and see what happens...

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