Generosity, the Next Beauty Trend

There’s something wonderfully lyrical about the idea that beauty and generosity are inherently linked. Perhaps the classical Greek poet Sappho said it best: “He who is fair to look upon is good, and he who is good will soon be fair also.”

Numerous studies have demonstrated that giving and perceived attractiveness are intertwined, yet for perhaps the first time, just-published research has documented a clear link between generosity and physical beauty.

First, some background. Since the 1920s, social scientists have documented the “halo effect.” This is the bias most of us have in favor of those who are physically attractive. When we see people who are good looking, we tend to assume they have other positive characteristics even before we know anything about them. 

For example, we assume that the pretty woman we’ve just met must also be charming and intelligent. Upon meeting a handsome man, we immediately conclude that he’s insightful and trustworthy as well. It’s as if people who are attractive walk around with a halo, resulting in positive personality traits being ascribed to them simply because they’re good looking.

Sadly, I do not suffer from the halo effect.

Interestingly, researchers have also long documented the halo effect in reverse: essentially, that those who do good things are perceived to be more physically attractive than an objective analysis would otherwise conclude.

The quintessential experiment in this area is to ask a study group to rate physical attractiveness simply by looking at pictures of people. Then researchers show those same pictures to a second study group, but this time, they tell stories about the generous and giving things those people have done. Inevitably, the people in the pictures are rated as significantly better looking by the second study group. When people get a reputation for being generous, they tend to be perceived as better looking than they really are.

If you need further evidence of the efficacy of this halo effect in reverse, note that my work in philanthropy is the only logical explanation for why my lovely and charming wife, Cari, has remained married to me for the last 25 years.

What’s different with the latest research is that for the first time, it separated out physical attractiveness and giving behaviors. “The Good-looking Giver Effect: The Relationship Between Doing Good and Looking Good” was published earlier this year in the Nonprofit and Voluntary Sector Quarterly

In this study, researchers Sara Konrath from Indiana University and Femida Handy of the University of Pennsylvania considered whether generous people are more likely to be rated as physically attractive, even when we didn’t know they are generous people. It turns out that they are.

“We find a ‘good-looking giver’ effect – that more physically attractive people are more likely to engage in giving behaviors, and vice versa,” Konrath and Handy wrote. “Thus, in ecologically valid real-world samples, people who do good are also likely to look good.”

Perhaps the most fascinating finding originated with the data set from the Wisconsin Longitudinal Study. The researchers found that the relative physical attractiveness of generous people actually increased as they aged. Those people who were significantly more generous in their late 50s were rated as better looking by the time they reached their early 70s.

Keep in mind that the rating of their relative attractiveness was done by a study group whose members did not know anything about how generous – or cheap – they had been during their lifetime. Hence, the reverse halo effect played no role in how the study group perceived physical appearance.

The researchers concluded, “Overall, financial giving in older adulthood was associated with more attractiveness several years later.” 

Of course, the causal relationship remains an open question. People who are generous tend to experience a sense of joy and well-being from their actions. Perhaps that contentment helps ease the aging process. Giving people also tend to have broader social networks, and we know there is a direct link between stronger interpersonal relationships and happiness. Maybe sustaining greater levels of happiness over time can be seen in a person’s appearance.

“While we cannot fully explain why the link between giving behaviors and attractiveness exists,” Konrath and Handy wrote, “we find remarkably consistent overall effects across the three studies, despite being conducted at different times, using different participants and using different methods and measures.”

One can only hope that the researchers’ final summation proves to be true. They wrote, “Our results suggest that beauty products and procedures may not be the only way to enhance an individual’s attractiveness; perhaps being generous could be the next beauty trend.”

This article, written by Door County Community Foundation President & CEO Bret Bicoy, originally appeared in the Peninsula Pulse.

An Unusual Request in an Extraordinary Year

It is not my habit to write columns asking people to give to a specific charity.  At the Door County Community Foundation, we track and monitor the work of every non-profit organization in our community.  More than anyone else, we know how many effective and deserving charities there are in Door County.  When I encourage people to give to the Door County Emergency Response Fund (www.RespondDoorCounty.org), I’m really asking folks to give to a pool of money to be distributed to numerous organizations in our community.  There’s nothing in it for the Community Foundation because we charge no fee nor take any percentage of those gifts.  Elevating a single charity over all others is uncomfortable for me and something I never do except in an extraordinary situation. 

Yet if there is one common theme running throughout this year, it’s that we’ve been in one extraordinary situation after another.  Thus it seems appropriate that in my final column of 2020 I embrace the extraordinary nature of this year and ask you to join me in giving to a charity that is critically important right now, namely, the United Way of Door County.

The first goal articulated in United Way’s Agenda for Change is “helping to meet basic needs for food, transportation, housing, safety, and jobs.”  That’s the goal most of us associate with United Way and the role they’ve ably played in Door County for decades.  When the Board of Directors of the Community Foundation activated our Emergency Response Fund, we invited United Way to partner with us precisely because we wanted to borrow their deep experience in helping meet the basic needs of the people of Door County.

United Way spreads our contributions among several local charities that provide the basic needs for our less fortunate neighbors.  They provide financial support so that groups like HELP of Door County can assist victims of domestic violence, WICHP can offer services on Washington Island, Neighbor to Neighbor can loan out free medical equipment, and so much more. 

Unfortunately, there are ominous signs that COVID-19 is beginning to hinder the ability of United Way to reach its campaign goal this year.

“The majority of our companies [that run workplace campaigns] pushed back the timing of their employee campaigns by at least a month or two,” says Amy Kohnle, Executive Director of the United Way of Door County.  “They are just running their campaigns now.  They have until the end of the year to complete those campaigns.”

The early results have not been promising.  For those companies that completed their workplace campaigns on the normal timeline, they have experienced a significant decrease from last year.  “We have seen an average of a 20% decrease in the companies that have already wrapped up their campaigns,” says Kohnle.  “In weekly conversations with other united ways across the state, this is the trend that they are seeing as well.”

To make matters even more challenging, Door County’s scarcity of large employers means that there are fewer places for our local United Way to run a workplace campaign.  The average united way receives 93% of gifts from employee payroll deductions and other forms of workplace giving.  In Door County, it is 35%.  This makes the United Way of Door County highly reliant on individual donations that come from outside the workplace.  Unfortunately, during a global pandemic, it’s hard for United Way to hold fundraising events or visit potential donors in their living room.

Just a few days ago, our Door County Emergency Response Fund and other relief efforts (like www.FeedDoorCounty.org and www.RentReliefDoorCounty.org) collectively surpassed $1 million in contributions.  All of those dollars are needed to respond to the challenges caused by the COVID-19 crisis.  Further, many federal and state assistance programs end by December 31 and if the politicians in Washington and Madison cannot come to agreement, we’ll be on our own as a community.  Thankfully we’ve planned ahead and the Emergency Response Fund is well positioned to deal with the increased COVID-19 related demand over the winter months even if the government fails to act.  However, we cannot also fill-in for a hobbled United Way campaign.

My wife’s and my ability to give is modest, but we spread it out over a wide range of organizations about which we care.  This year, we’re also making sure to do our little part for the United Way.  Perhaps more than ever before, we need United Way to be successful in its campaign.  Please join us and give at www.UnitedWayDC.com.

This article, written by Door County Community Foundation President and CEO Bret Bicoy, originally appeared in the Peninsula Pulse.

COVID-19’s Impact on Charitable Giving

While the story of COVID-19 in the United States is still being written, the first bit of research is shedding some light on how the virus and the resulting recession is beginning to affect charitable giving. 

The Indiana University Lilly Family School of Philanthropy’s Women’s Philanthropy Institute just released “COVID-19, Generosity, and Gender:  How Giving Changed During the Early Months of a Global Pandemic.”  It’s perhaps the first legitimate research into how people’s charitable giving is changing during this health and economic crisis.  Note that for purposes of the study, the “early months” of COVID-19 is based on data collected through the middle of May.

In normal times, giving tends to track well with the state of the greater economy.  For instance, during the Great Recession when the economy was in turmoil, total giving declined by 7.2% in 2008 and fell another 8.0% in 2009.  The same seems to hold true for the early days of the current recession.  A survey at the end of April found that 63% of non-profit organizations reported decreased fundraising revenue during the first months of the pandemic.

Yet those declines are not falling equally across all types of charities.  During recessions contributions to basic human needs increases while all other categories decline.  Indeed, during the early months of the pandemic the study found that 21.4% of households plan to decrease their giving to education, arts, and environment related charities.  The study notes “early data show that, similar to previous recessions, organizations dedicated to basic needs and health could fare better than those focused on religion, and especially better than those serving all other purposes.”

Yet COVID-19 hasn’t just caused a recession, it’s also analogous to a natural disaster.  While I recognize it’s not precisely a disaster event, the virus has similarly inspired a dramatic and sudden outpouring of organizations directly responding to the “disaster.”  In the early months of this crisis, 32% of households made a charitable gift to an organization that serves people struggling because of COVID-19 and the resulting recession. 

We experienced the overwhelming philanthropic response in Door County as well.  The United Way – Door County Community Foundation Emergency Response Fund (www.RespondDoorCounty.org) received perhaps 80% of its contributions in the short period from when we activated it in March until Governor Evers’ Safer-at-Home order was terminated in mid-May.

What’s fascinating is the universality of COVID-19 related giving.  The study shows “no direct relationship between charitable giving in response to the pandemic and how greatly the state in which one lives was affected by the virus during the initial months of the crisis.  This runs counter to studies on disaster giving, which show that those living in areas closest to a disaster are most likely to give for disaster aid.”  This seems to imply that at least in the early days of the pandemic’s arrival in the United States, our citizens were united as one country and we were willing to help our fellow Americans, regardless of in which state they lived. 

One surprise was the amount of giving that did not involve a non-profit at all.  48.3% of households gave to their community by doing things they wouldn’t otherwise have done such as “ordering takeout to support restaurants and their employees or continuing to pay individuals and businesses for services they could not render.”

Like many families whose jobs were secure, my wife and I ordered take-out meals far more often than normal and when I finally got a haircut, I also paid for the previous three appointments that were cancelled. 

The study highlights one important statistically significant demographic difference among the households included in the study.  Among single men whose giving is declining, 23.4% attribute it to furloughs or business closures reducing their personal income.  For single women, that number was a markedly higher 31.8%. 

“There are also gender difference in the pandemic’s effects,” the study notes.  “Women have been on the frontlines of the crisis at work and at home – from comprising the majority of essential workers to having greater caretaking responsibilities for children and older relatives.  It follows, then, that these roles have left little room for donating time and money, despite a strong body of research demonstrating that women are particularly included toward these behaviors.”

While the recession will likely result in lower giving overall in 2020, the study concludes that “the fact the majority of households did not adjust their giving during [the early months of the pandemic] can be viewed as a positive sign for philanthropy.”

This article, which originally appeared in the Peninsula Pulse, was written by Bret Bicoy, President and CEO of the Door County Community Foundation.

My Frustration with COVID-19

I counted 146 cars lined up for food in an aerial photo of the Door County Food Pantry Coalition’s distribution at the Sturgeon Bay fairgrounds Aug. 5. The photo was taken 15 minutes before the first box was even handed out. Looking at the line, I was frustrated, and I was embarrassed.

Like so many of us, I’ve been frustrated by how much COVID-19 has disrupted my life and that of my wife and children. Yet I’m embarrassed because my personal discomfort is nothing compared to the struggles some people are facing in our community – people such as those who lined up Aug. 5 for that most basic of necessities: food.

I’m frustrated that we didn’t get to properly celebrate the accomplishments of our youngest son, Kekoa, who graduated from UW-Madison at the age of 19 after completing his degree in just two years. Instead of marching into Camp Randall to accept his degree in mathematics and economics, Kekoa stared at a computer screen and watched a commencement speaker make an address from his kitchen table.

I’m frustrated because our middle son, Bret Jr., worked hard to graduate from college in three years and earn an enormous scholarship from Michigan State College of Law, only to be told just four days after he arrived in Michigan that his classes were all moving online.

I’m frustrated because our middle daughter, Nalani, moved into her freshman dorm at UW-La Crosse but has to remain largely isolated from other students. I’m frustrated because our youngest daughter, Malia, is attending her junior year of high school online from a lonely corner of our house.

The list of my frustrations goes on and on. My wife, Cari, and I didn’t play volleyball this summer. We can’t spend Sunday mornings with our church family. Our trips to Florida, Texas and South Carolina were all canceled. Our weekly trivia night with friends over dinner and beer at the Brick Lot is a distant memory.

But my family is incredibly lucky compared to many others. We are not one of the 6 million Americans who have contracted the virus. My wife and I were not furloughed from work, nor are we among the 40 million people who have lost their job. There are many people whose lives have been disrupted in ways far more profound than anything my family has endured.

That day at the fairgrounds, 500 people received food from the coalition. A week later, the coalition set up another food-distribution event in Sister Bay for families in northern Door County. It has been doing this all summer long. The coalition (FeedDoorCounty.org), in partnership with United Way, has been hosting food-distribution events at various locations for several months. These massive efforts are coordinated by people who are far more organized than I am, so when I do attend, I simply try not to get in the way.

At one of these events, the coalition ran out of food, so I was asked to speak with families that we had to turn away. I told an older woman whose husband had dementia that we couldn’t help them that day. I told a young woman with three small children in the back seat of a very old car that we had run out of food. She broke down crying.

As frustrating as COVID-19 is to me, I cannot fathom how frustrating this health and economic crisis is for those who aren’t as lucky and privileged as I am.

Although July and August have been strong months in tourism, Door County got a late start. It also seems likely that far fewer buses with leaf-seeking visitors will be here this fall. The most recent Door County unemployment rate was almost three times normal. Many local families that live off seasonal wages won’t earn enough this summer to carry them through the winter.

It’s unrealistic for me to feel no frustration about the many life experiences that this virus is stealing from my family. Yet I must also remember how comfortable my life truly is. Although it’s beyond my power to solve my family’s small frustrations, it is completely within my power to help alleviate the much bigger struggles that many in our community face.

Please join me by giving to the Door County Emergency Response Fund (RespondDoorCounty.org). As a partnership between the Door County Community Foundation and United Way, the Emergency Response Fund creates and supports projects such as the Food Pantry Coalition and the Rental Assistance Program (RentReliefDoorCounty.org). As the weather turns cold and jobs dwindle, we will face a very difficult off-season. We can get through it if we support one another as a community.

This column was written by Bret Bicoy, the President and CEO of the Door County Community Foundation and originally appeared in the Peninsula Pulse.

Think About Who’s Asking You to Wear a Mask

Pretend for a moment that the governor did not issue an order requiring everyone in Wisconsin wear a mask. Imagine that you’ve never heard of Dr. Fauci, and the president doesn’t tweet. Consider a world with no talking heads on cable news fostering division to drum up ratings, and no politicians exploiting the pandemic for partisan political purposes.

In this imaginary world, COVID-19 is still here, but the only people you can hear from are the health professionals around you.

In that simpler and quieter existence, how would you respond if your friends at Door County Medical Center told you that wearing a mask will dramatically reduce the spread of the virus in Door County? What would you do if your neighbors at Door County Public Health asked you to wear a mask because it protects vulnerable people around you?

During our evening exercise walk through Sturgeon Bay, my lovely wife and I regularly cross paths with the CEO of our hospital. Every day, we walk by the home of our public-health officer. These aren’t Washington politicians or Madison bureaucrats. They are Door County folks whom we know personally. They and their colleagues are the same people whom my wife and I have been trusting to look after our family’s health for many years.

I suspect that in this imaginary world, the hyperbole and vitriol that have characterized the wearing of masks would quickly come to an end. There would be no politics involved. It would just be our friends and neighbors – who also happen to be our trusted health professionals – telling us that if everyone wears a mask, we will dramatically reduce the spread of the virus and keep our vulnerable friends and neighbors safe.

Still, if only a handful of us wear a mask, nothing will happen. It takes all of us to act if we’re going to accomplish our goal of eradicating this virus. And there’s something beautiful about the symmetry of this truth: The path to protecting the Door County community requires us to come together in a spirit of community and take collective action as a united community.

We human beings are at our very best when we support one another. Working for the Door County Community Foundation, every day I see generous people doing incredible things to improve this community.

The most obvious form of generosity is the money they give to help others. For instance, at the Community Foundation, our Emergency Response Fund has received about $800,000 in contributions that are now being used to provide food, pay rent and help families that are struggling during this global pandemic and the resulting recession. (You can learn more at RespondDoorCounty.org.) But generosity isn’t limited by your ability to write a big check.

We all know about the heroism of emergency responders: the professionals we count on to be on the front line of any crisis. During this crisis, our community has also been blessed with “everyday responders”: ordinary people who have stepped forward to volunteer and help however they can. Everyday responders have been delivering meals, staffing food pantries, taking care of kids, sewing face masks and doing many other selfless things to keep our community strong.

Yet perhaps the simplest form of generosity is ultimately the one that will have the most dramatic effect on our community – but only if we all do it together as a community. It’s the simple act of wearing a mask.

Goodness knows that I don’t know about the legality or constitutionality of the governor’s order requiring all of us to wear a mask. I do suspect that if it’s constitutional for a government to require me to wear pants so that the community is spared from having to look at my private parts, it’s probably also constitutional for the government to require me to wear a mask so that the community is spared from any virus I might spread. But hey, what do I know?

Regardless, wearing a mask isn’t about legality, or constitutionality, or even liberty. Wearing a mask is about community. It’s an act of generosity. Wearing a mask is each of us doing our part to keep our community safe.

This article, written by Door County Community Foundation President and CEO Bret Bicoy, originally appeared in the Peninsula Pulse.

Lessons for Non-Profits from 50,000 Wills

People’s reluctance to talk openly about their charitable giving has always frustrated me.  Most folks will excitedly share stories about their beautiful new sailboat or the vacation they took to some exotic far away land.  Yet when it comes to the charities we support, we tend to be far more hesitant to share.

I’ve always found this sadly ironic.  We think nothing of exulting the ways we spend money on ourselves, but we consider it unseemly to talk about us at our most noble – when we’re giving away our money to help others.  Our world will be far better off when we talk as publicly about our leadership gift to the United Way as when we tell stories about our vacation exploring the south of France.

Beyond the establishment of societal norms, there is another more modest implication of most people’s unwillingness to talk publicly about their giving.  The field of philanthropy doesn’t have very good data.  That can be problematic because its hard to design a fundraising program if you don’t know a lot about what your donors are doing.  This lack of data is by far most problematic in the realm of estate gifts.

Most of what we know about estate planning comes from self-reported surveys and anecdotal experiences from people who work in planned giving.  Yet an increasing number of people are turning to the internet and online companies to craft a will.  As a result, for the perhaps the first time ever, we can examine trends in more than 50,000 wills created using the online will company FreeWill.

Before we look at the data, let me begin by saying that writing your will online may not be the best idea for you.  Your last will and testament is your final statement to the world and it will only be read when you’re gone.  Hence, you won’t be around to correct any errors or omissions.  Further, complex estates typically involve a trust.  Visiting with an estate planning professional to seek tax and legal guidance customized for your unique situation is a good idea for most folks.  However, regardless of the efficacy of online wills, there is value in reviewing the data.  Here are a few key takeaways from the study.

The average gift to charity through a will created online was $78,630.  That’s amazing especially when you consider that few wealthy families use an online will service.  The company that released the data refers to their clients as “everyday” people.  Yet the average charitable bequest of these average Americans is $78,630.  Because estate gifts typically come from assets, they are far larger than most of us can afford to give during our lifetime.  The lesson for charities is that estate planning efforts should not be limited to our most wealthy friends.  Middle class families can also make a significant contribution through their estate plans.

People without children give nearly twice as much money to charity in their estate plans as compared to parents.  This seems like a pretty obvious statement, but it’s good to have the data to back it up.  If you don’t have any children to include in your will, you have more money available to give to charity.  Interestingly, while parents have less to give, they are slightly more likely than non-parents to give to charity in their will.

Men comprise a minority of people writing online wills, but they bequests they leave to charity are almost 50% higher than those written by women.  The traditional thinking is that when it comes to planned gifts, efforts should focus on women for practical of reasons.  In most married couples, the woman is the younger of the two and they tend to live longer.  Yet this data indicates that the traditional thinking might lead charities to miss opportunities by not focusing enough on men.

People aged 44-64 are the ones most likely to include a gift to charity in their will.  This runs counter to many planned giving programs which tend to focus on retired people age 65 and above.  The data implies that many charities are missing an opportunity to begin an estate planning conversation at a much younger age than typically occurs today.

Of course, the key takeaway for any charity is that if you don’t already have a planned giving program in place you should start one soon.  It takes years for estate planning programs to reap rewards, but the gifts received can be large enough to transform a charity for the better.

This article was written by Door County Community Foundation President and CEO Bret Bicoy and originally appeared in the Peninsula Pulse

Life Without Me at the Community Foundation

About 10 years ago, Dick Egan – my friend and, at the time, board chair of the Door County Community Foundation – shared a perspective that completely turned my thinking on its head. He fundamentally reshaped how I view the responsibility of a charity’s board of directors relative to its CEO.

I am the president and CEO of the Door County Community Foundation. At other charities, the highest-paid professional staff person is the executive director. Although there are some important differences between a president and CEO and an executive director, for purposes of this article, let’s just refer to a nonprofit’s highest-ranking paid staff person as its CEO.

Almost all CEOs who have spent a lifetime in the charitable sector share at least one common perspective: We see board members come and go every year. Even the best board member serves only a handful of terms of a couple of years each. Thus we, as CEOs, consider ourselves to be the providers of stability and continuity in our respective organizations. Indeed, there is a lot of truth in that idea, yet Egan had a different point of view. He said, “The board is here forever. The CEO is not.”

He wasn’t disagreeing with my perspective. Now in my 13th year at the Community Foundation, I have provided stability and continuity as members of our board have come and gone. Yet he was reminding me that the board of the Door County Community Foundation as a whole was here before me and will continue to exist long after I’m gone.

For those charitable CEOs who consider our profession a calling, the line between what is personal and professional often gets blurred. If you’re blessed with a job that is closely aligned with your skills and values, eventually it’s no longer possible to achieve any personal success in your career without commensurate organizational success. Your very identity becomes intertwined with your work. At its best, this kind of leader allows a charity to enjoy a lengthy period of impactfulness and prosperity that far exceeds anything that would have been achieved by a more dispassionate executive.

However, there is one great limitation among CEOs who have this kind of personal commitment. Eventually it becomes hard for those who view their life’s work as a vocation to imagine anyone else at the helm.

That’s why it’s so important to recognize that the board will be there forever, but the CEO will not. The board of every charity needs to look beyond the term of even the most talented and committed CEO to ensure that thought has been given to life without that leader.

There are lots of highly effective nonprofit CEOs in Door County who, I hope, will remain in their current positions for many years to come. Yet inevitably, change will come, and hopefully those transitions will be planned and executed in an orderly fashion. But unfortunately, sometimes life just happens, and fate ignores the plans we’ve made. If a charity plays an important role in Door County, then we need to ensure that it can thrive even after the most inspiring CEO has moved on.

This is a conversation we’ve been having at the Door County Community Foundation for several years now. Although I wouldn’t presume to include myself on a list of the most talented nonprofit CEOs, I do believe that during the last dozen years, I have developed and demonstrated a personal commitment that goes far beyond that of a hired gun. That’s a good thing, and it’s something we should hope every important charity in our community experiences.

Yet we never know what surprises life has waiting for us just around the corner. Thus the Community Foundation’s board has rightfully pushed me to prepare our organization for a future without me at the helm. That has led to reimagining our structure, shifting responsibilities, documenting processes and planning to create new positions. Our goal is to build an even more vibrant and impactful Community Foundation that we are certain will thrive forevermore.

The board of every important charity needs to do the same thing: Look beyond the term of your current CEO to ensure that you’re prepared for the transition that inevitably will come.

Personally, I plan to do what I do at the Door County Community Foundation until I’m not physically or mentally able to do it anymore because I simply cannot imagine having a good life without this work. But there will be a day when the Community Foundation will have a good life without me.

This article was written by Bret Bicoy, President and CEO of the Door County Community Foundation and originally appeared in the Peninsula Pulse.

Giving to Charity Makes Us Happy

“If you want to feel good, you have to go out and do some good.”

Oprah Winfrey articulated a fundamental value that many of us share, but sentiment isn’t sufficient for scientists.

Thus researchers set out to answer a complex question: Can people enrich their own lives through charitable giving? The answer brings us to a beautiful place where hard science and the human spirit intersect.

Research demonstrates that giving does indeed make us happier. With funding from the Bill and Melinda Gates Foundation, the Women’s Philanthropy Institute at Indiana University published the study “Charitable Giving and Life Satisfaction” in 2017. The researchers stated their conclusion with wonderful simplicity: “The more a household gives as a percentage of income, the higher the household’s life satisfaction.”

Their findings are universal. Whether your income is less than $50,000 per year or several times more, the trend holds true. It doesn’t matter whether you’re married, cohabitating or single: The more you contribute to charity, the happier you are.

Of course, there are variations as to the degree of improvement in life satisfaction that each demographic group experiences with increased charitable giving. Statistically speaking, single men are traditionally the group least likely to donate all. Not surprisingly then, the study found that single men receive the greatest boost in life satisfaction when they do become donors for the first time.

With both single and married women, on the other hand, the act of giving has a cumulative effect that accelerates their life satisfaction. It’s exactly the opposite of the diminishing returns you’d expect with most things that we think make us happy. Women experience more happiness with the next dollar they give away than they did with the last dollar.

These findings are consistent with what other scientists have discovered. Studies published by the American Psychological Association as well as researchers in the United Kingdom have demonstrated many positive links between the amount of money and time a person donates to charity and their psychological well-being and physical health.

In the 2017 study “A Neural Link between Generosity and Happiness,” published in the journal Nature Communications, researchers noted that “generous behavior is costly” because obviously you’re giving away your time and/or money. Yet generosity is commonplace in our world, and thus “standard economic theory fails to explain generous behavior.”

These scientists wanted to see whether there was an observable neurological and physiological basis that explains the fundamental human desire to be generous with others. They randomly divided the study participants into two groups. The first group was instructed to spend a sum of money for other people’s benefit during a four-week period; the second was told to spend the money on themselves. At the end of the month, the participants were put into an MRI machine. In the participants who were generous with others, the researchers mapped increased neurological activity in the areas of the brain that are associated with increased levels of happiness. In other words, giving feels good.

The work of neurological scientists aligns with the conclusions of psychologists and the research of social scientists: There is neurological evidence linking a person’s willingness to give to others and their own life satisfaction.

This is something I experience virtually every week in my professional life. One of the primary roles of the Door County Community Foundation is to facilitate gifts from estate plans to charities and causes in the community. In my field, the old saying is that “you don’t give to the community foundation; you give through the community foundation.”

Thus far in my career, I’ve had the privilege of assisting hundreds of families whose estate plans have – or one day will – collectively donate almost a quarter of a billion dollars to charity. I’ve sat with an older woman on a fixed income who is leaving $10,000 to help our local kids as well as a wealthy couple whose estate will eventually contribute more than $30 million to fund a wide range of charitable activities.

Regardless of how much money is involved, all these people have one thing in common: They universally experience a tremendous amount of personal satisfaction because of the charitable legacy they’re creating.

Almost inevitably, when we finish planning for the charitable part of an estate plan, these generous people thank me for the Community Foundation’s assistance. Just stop to think about that for a moment: They are thanking me. The scientists finally can explain why: Giving to charity makes us happy.

 

This article, written by Community Foundation President & CEO Bret Bicoy, originally appeared in the Peninsula Pulse.

Revisiting Predictions about Charitable Giving

Political prognosticators love to make extreme claims on how a new policy will affect the future, then conveniently forget their predictions when the doom they imagined never arrives. In an effort to avoid being lumped in with those gasbags, I thought it would be intellectually honest to revisit a prediction I made one year ago.

In September 2018, I wrote the column “The Impending Decline in Charitable Giving” , in which I voiced a concern of many experts that the Tax Cuts and Jobs Act of 2018 would decrease the amount Americans donate to charities every year. The annual Giving USA report was recently published, so we now have a full year’s worth of hard data to review.

As a refresher, the anticipated decline in charitable giving was rooted in the fact that changing the standard deduction (from $12,700 to $24,000 for married couples) would dramatically reduce the number of households that itemize deductions.

This prediction by tax experts on both sides of the political aisle has come true. In 2016, more than 46 million households itemized their deductions. In 2018, only about 18 million did.

Taxpayers can claim a tax deduction for charitable gifts only if they itemize their deductions. Hence, the new tax law eliminated the deduction for contributions made by 28 million households. Although most of us give for altruistic reasons, financial incentives still matter. By removing the financial incentive to donate, experts predicted that charitable giving would decline.

We can definitively say that the prediction has become reality. Giving USA found that donations from individuals fell by an inflation-adjusted 3.4 percent last year. Unfortunately, that’s not the only troubling indicator.

Total giving consists of donations from individuals, foundations, corporations and bequests. Individual giving tumbled to just 68 percent of total giving, the first time it’s fallen below 70 percent since 1954.

My personal belief is that giving will decline in 2019 as well. Most people don’t follow tax-law changes closely and didn’t realize their donations were no longer deductible until April’s tax deadline. For those families, the loss of the financial incentive to give will have its greatest effect in 2019.

Please note that I’m not commenting on the wisdom of the new tax law – that’s above my pay grade. An argument can be made that putting more money into taxpayers’ pockets is better for our nation. I certainly hope that proves to be true. However, the inescapable reality is that charitable giving is falling, and it is in my job description to figure out how Door County can adapt to the laws of the land.

That’s where a tool long offered by community foundations is more important than ever. At community foundations across the country, we are combining a tool called a Donor Advised Fund with the tax strategy of “bunching.” In effect, this “restores” the deductibility of charitable gifts for many families.

Consider a real example of a couple at the Door County Community Foundation. Bob and Sally Johnson (not their real names) are retired and annually donate about $12,000 to charity. Before the new tax law, the Johnsons’ itemized deductions included their donations, Wisconsin taxes and medical expenses. With the new tax law, they found themselves claiming the standard deduction of $24,000 and thus received absolutely no tax benefit for their $12,000 in contributions.

Thus Bob and Sally recently created the Johnson Family Fund, a Donor Advised Fund at the Door County Community Foundation. They plan to “prefund” their charitable giving for the next four years by donating $50,000 into their fund before 2019 ends. As a result, the Johnsons will claim itemized deductions of about $60,000 this tax year. Then in tax years 2020, 2021 and 2022, they will claim the standard deduction of $24,000 and make no direct contributions at all. Instead, they will donate $12,000 each year to their favorite charities in Door County (and beyond) from their Donor Advised Fund.

Bunching several years’ worth of contributions through a Donor Advised Fund at your local community foundation is proving to be an exceptionally effective tax-planning tool for many families that once itemized their deductions but now claim the standard deduction. If Bob and Sally use highly appreciated stock to make their $50,000 contribution, their tax savings will be magnified even more as they avoid capital-gains taxes.

Talk with your tax-planning professional to determine whether bunching several years’ worth of charitable gifts through a Donor Advised Fund might help you maintain your level of giving. Our charities need all the help they can get.

This article, written by Community Foundation President and CEO Bret Bicoy, originally appeared in the Peninsula Pulse

Remembering the Birth of the Women’s Fund

The Women’s Fund of Door County is celebrating its 10th anniversary this year, and I thought it would be interesting to reflect on how it began.

It was February 2008 when Jane Stevenson and I were dreaming up ideas about how the Door County Community Foundation could make our community stronger. Just a few months prior, Stevenson had announced her intention to retire, and I had been hired to fill the very large shoes of this petite woman. Although our assets were extremely limited in those days, the Community Foundation’s board decided it was worth paying both of our salaries for a month so I could enjoy the benefit of her wisdom and experience before she retired.

Stevenson shared that she regretted not being able to create a women’s fund before she retired. As a parent of three daughters (and three sons as well), this was an issue near and dear to my heart. I suggested that instead of letting her talents go dormant during retirement, perhaps we could work together to get one started.

That’s how the Women’s Fund of Door County began: with the only two employees of the Community Foundation sitting in a 393-square-foot office with a beautiful, grand dream and no practical way to bring it into reality.

If you’re going to undertake an impossible task, it’s best to do so in the company of people you know and trust. BJ Cassidy had spent many years at WPS, eventually overseeing its philanthropic activities. Sue Todey had grown up in Door County but left to serve as an administrator for the Green Bay Area Public School District. During my years in Green Bay, I virtually “grew up” working under their leadership on many community projects and had great respect for them. They had both retired to Door County and become active citizens here, so Stevenson appreciated them as well.

“BJ and I had worked together in Green Bay on equity issues and brought those efforts here when we both became full-time Door County residents,” Todey said.

During the spring of 2008, the four of us gathered for the first time at Door County Coffee to begin making plans. Rather than just launch a new fund focused on women and girls at the Community Foundation, we thought it was important to first determine whether there was actually a need for this new fund.

“We gathered a lot of data to show the needs and then began recruiting others to get the message out there,” Todey said. It wasn’t long before Orlaine Gabert, Sherry Mutchler, Barb Perloff and several others joined us as we interviewed local charities and studied the issues facing women and girls in Door County.

“It was astounding to learn that many women suffered from a lack of self-respect and self-worth,” Stevenson said. “They desired and desperately needed to be financially secure.”

“It was very apparent that the communities of Door County needed to identify the skill sets young women and girls needed to be able to achieve their dreams and aspirations for a prosperous life,” Cassidy said. “Many opportunities seemed to be out of reach for girls to be able to make a sustainable future.”

After a winter filled with meetings, interviews with charities, and considerable research, the need became clear. Thus, in 2009, the Women’s Fund of Door County was formally launched as a fund of the Door County Community Foundation. Our success was far from certain, however, and many were still skeptical about whether we needed such a fund.

“The biggest challenge was to create awareness in the community that – in this beautiful and idyllic county – there were women and girls struggling and needing support and hope for a better life,” Stevenson said.

If there’s one thing I’ve learned over the years, it’s that these women are never intimidated by a challenge. Thanks to the perseverance and commitment of these leaders, plus Sally O’Brien, Sharon Lutsey, Vicki Wilson and the many others who followed them, the Women’s Fund of Door County now has an endowment in the seven figures and invests more than $100,000 every year in programs that improve the lives of women and girls in Door County.

“The Women’s Fund is the voice and hope of women in Door County,” Stevenson said. “We believe when we give women and girls the tools they need to succeed, their families and our communities will prosper.”

“Today a dream has come true,” Cassidy said. “We are making a difference.”

This article was written by Bret Bicoy, the President and CEO of the Door County Community Foundation, and originally appeared in the Peninsula Pulse.