Despite–or perhaps in light of–the recent whirlwind of commentary about new federal laws and the implications for the charitable deduction and charitable giving, it is really important keep in mind that for most individuals, the decision to give is driven by deeply personal factors–such as compassion, moral obligation, empathy, or a belief in a cause—rather than financial incentives.
Indeed, altruism and emotional resonance, not tax breaks, are at the heart of philanthropic motivation. While tax incentives can influence giving, they typically play a supporting role—not a leading one. Psychological and social drivers are deeply powerful motivators for giving that tax considerations cannot match.
That’s why we have always loved this article from the Greater Good Science Center and what it stands for, including our favorite points:
Generosity is truly human.
Generous behavior isn’t merely a social construct; it’s embedded in our evolutionary makeup. Researchers have found that species ranging from bees and chimpanzees to bats exhibit “prosocial” behaviors, suggesting that generosity evolved to enhance survival. In humans, acts of generosity light up the brain’s reward pathways—similar to pleasurable experiences like eating or intimacy—highlighting that generosity is inherently satisfying.
Philanthropy benefits both the giver and the receiver.
Engaging in generous acts delivers tangible psychological and even physical benefits. Volunteering and offering support—whether time, goods, or emotional aid—have been linked to increased well-being, higher self-esteem, and even delayed mortality, particularly among older adults. Furthermore, many studies reported greater happiness when spending resources on others compared to oneself.
Charitable values can be nurtured.
It’s especially good news that acts of philanthropy are influenced by a blend of personal and social factors. Certainly, empathy, humility, and moral values play a role. What’s more, cultural norms, expectations of reciprocity, and strong social networks motivate generosity, too. Unsurprisingly, people are more inclined to come to the aid of specific individuals rather than abstract causes, and generosity tends to be “contagious”—spreading through social groups and communities.
If you love supporting your favorite causes, no matter what’s going on with the tax laws, you are in good company! At IECF, we are honored to work with hundreds of families and individuals whose giving is anchored in genuine concern for others. This in turn helps create sustainable long-term positive impact in the community we all love.
Please reach out to our Charitable Giving Team anytime, and stay up to date on all the good work we’re doing through the power of philanthropy. Sign up for our eNewsletter, Philanthropy Matters, today.
The team at IECF is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.
