What Is Charitable Giving?

You could narrowly define charitable giving as the money you donate to a licensed nonprofit organization. But experts often broaden that definition to include any use of your financial resources for the benefit of other people, according to the review article in Advances in Experimental Social Psychology.

That includes money you spend on friends and family members — but also on strangers.Some examples of prosocial spending that turn up in published research include buying coffee or lunch for a friend, buying a bike helmet for a niece or nephew, or donating money to help someone in need, according to the same review.And it’s worth noting that the benefit you get isn’t linked to the amount you give, or to whether you’re wealthy or in need of some financial help yourself. The research consistently shows that prosocial or charitable spending tends to do you good.

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