The fact that charitable giving can help reduce your tax burden is well known, especially if you’re in a high bracket. But the benefits of giving extend far beyond tax breaks.
Of course, giving can be a challenge – especially when money is tight. After all, your income could just as easily go toward a college savings fund for your kids, a much-needed vacation, or even a new pair of shoes. But whether you’re interested in the tax benefits or have altruistic motives – or a little of both – you can end up getting back a lot more than you give when you donate valuable items, cold hard cash, or even your time to your favorite causes. In fact, the emotional, social, psychological, and financial benefits of charitable giving often outweigh the satisfaction of splurging on yourself or your family.
The Benefits of Giving Things Away
1. Activate the Reward Center in Your Brain
2. Improve Life Satisfaction
3. Feel Happier
4. Protect Your Local Community
5. Improve Key Measurements of Your Health
6. Reduce Rates of Stress
7. Induce Civic Engagement
8. Improve Your Employee Morale
9. Increase Your Community Standing
10. Reduce Your Tax Burden
Finally, and most famously, charitable contributions can reduce your tax burden at the end of the year. If you’re itemizing your tax return, you can report the dollars you contributed to charity for a deduction in your taxable income. Even if you’re short on cash, you can donate unwanted items to charity (such as clothing, furniture, and vehicles) and claim the value of these goods as a deduction.
Interestingly, research has indicated that the people who spend the most time thinking about charitable giving are actually the least likely to give. Unlike impulsive spending, impulsively giving can bring wonderful benefits to your mind, body, and community.
From: Mary McCoy – http://moneycrashers.com