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It is now proven that not only does giving make you richer in that it makes you feel good/ i.e. emotionally richer, but scientifically it can now be proven that giving makes you rich financially as well.

Apparently increases in personal income and giving mutually reinforce each other, and this is true for economic growth (GDP) and national charitable giving as well. Taking into account differences in age, religion, education etc, research now show that people who give charitably make more money than those that don’t and they give more when they become richer – perhaps not so surprising  – but emerging evidence proves that giving actually stimulates prosperity – people grow financially wealthier when they give more!

For more on this research see http://www.portfolio.com/views/columns/2007/10/15/Charity-Makes-Wealth.

Strategic giving is about values, efficiency, results and impact but it should also be about matching these values with societal needs. Sometimes the latter is missed and this is has on occasion given rise to the question of the “democracy” of philanthropy.  One definition of democracy reads as follows:

“government by the people; a form of government in which the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system.” (http://dictionary.reference.com/browse/democracy)

Truly effective giving considers values, undertakes thorough research and achieves impact. Without a giving strategy it is unlikely that the philanthropist will be successful, without a strategy it is difficult to point out results and hence there is no accountability. In order to assure accountability and democracy the successful philanthropist will engage with the community and beneficiary because how else can results be measured successfully? Hence the conclusion must be that successful philanthropy meeting the needs of the community it is targeting is “democratic” –emphasis on successfully meeting the needs.