The Psychology of Giving

Giving
Monetary Giving - $316.23B in US in 2012 (Giving USA Report 2013)
Volunteering has declined (Bureau of Labor Services)

Why Do People Give
Helpers High
o Euphoric feeling, followed by a longer period of calm, experienced after
performing a kind act.
o From the release of endorphins
o followed by a longer-lasting period of improved emotional well-being
o study at the National Institutes of Health showed that when people thought
about giving money to a charity, the same pleasure areas that lit up on
brain scans when they thought about food and sex were illuminated
Warm Glow
o Impure Altruism
o Instead of being motivated solely by an interest of helping and giving to
others "warm-glow givers" also receive utility from the act of giving.
o They receive a warm glow - positives emotional feeling people get from
helping others.
(From 2006 NIH Study)
The Science of Gift
Endorphins are released from the pleasure and reward part of the brain
The mesolimbic system shoots out dopamine
o this occurs when will feed our most basic needs
suggesting that giving is an aspect of human nature
Anonymously giving lights up the subgenual area of the brain
o This is where Oxytocin, a hormone (also released during sex and breast
feeding is released)
Know as the love hormone
It induces feelings of warmth, euphoria, and connection to others
Is part of social interactions and human bonding neurology
(2006 NIH Study - Grafman)

Benefits of Giving
1. Giving makes us feel happy.
Helpers High and Warm Glow (as mentioned above)
2008 - Harvard Business School found that giving money to someone else lifted
participants happiness more than when they spent it on themselves
Happiness is central in the psychology and benefits of giving: Many other
benefits and effects stem from this happiness

2. Giving is good for our health.
Health benefits associated with giving include:
o Lower blood pressure, Increased self-esteem, Less depression, Lower
stress levels, Longer life (Piferi and Lawler)
According to a 1999 University of California, Berkeley, study, people who were
55 and older who volunteered for two or more organizations were 44 percent less
likely to die over a five-year period than those who didnt volunteer (even
accounting for many other factors including age, exercise, general health and
negative habits like smoking)

3. Giving promotes cooperation and social connection.
When you give, youre more likely to get back: Reciprocity
Research has shown that having positive social interactions like those from
giving is central to good mental and physical health.
o John Cacioppo (Loneliness: Human Nature and the Need for Social
Connection) - The more extensive the reciprocal altruism born of social
connection . . . the greater the advance toward health, wealth, and
happiness.
Good for community
o Lyubomirsky (The How of Happiness) - fosters a heightened sense of
interdependence and cooperation in your social community.

4. Giving evokes gratitude.
Can elicit feelings of gratitude
o Gratitude is integral to happiness, health, and social bonds.
o Barbara Fredrickson, a happiness researcher, suggests that cultivating
gratitude in everyday life is one of the keys to increasing personal
happiness.
When you express your gratitude in words or actions, you not only
boost your own positivity but [other peoples] as well. And in the
process you reinforce their kindness and strengthen your bond to
one another.
5. Giving is contagious.
Spurs a ripple effect of generosity through our community.
o A study by James Fowler and Nicholas Christakis shows that when one
person behaves generously, it inspires observers to behave generously
later, toward different people
o Altruism could spread by three degreesfrom person to person to person
to person - network of impact reaches beyond those that they know
Helpers High - spreading
o Paul Zak, the director of the Center for Neuroeconomics Studies at
Claremont Graduate University, has found that a dose of oxytocin will
cause people to give more generously and to feel more empathy towards
others, with symptoms lasting up to two hours.
And those people on an oxytocin high can potentially jumpstart a
virtuous circle, where one persons generous behavior triggers
anothers, says Zak.
Challenges
Overwhelmed by magnitude of choices (within nonprofit sector) and
undifferentiated organizations
Time versus Money
o Can lead to two distinct mind-sets that affect a persons willingness to
donate to charitable causes
o Resources and time

Employee Engagement and Giving
62% prefer to work for companies with opportunity to volunteer and give
Workplace giving and volunteering activities help employees to make sense of
their place within the organization in a positive manner.
o Help employees see their company in a new light
o Strengthens their commitment to the organization and nurtures feelings of
company pride and loyalty.


Benefits of Employee Engagement
o Productivity: An engaged worker is a more productive worker. Employees
become more engaged with their team as they all work toward a common
goal. This drives down absenteeism and apathy while driving up
productivity and employee satisfaction.
o Ethical Behavior: As employees engage in altruistic acts, they develop a
personal identity that leads to more ethical decision making. Working
ethically becomes a part of the corporate culture.
o Gratitude: When companies give employees the opportunity to give back
to the community, they feel a sense of gratitude to the organization for
giving them this chance, and this strengthens their emotional connection
with their employer.
o Pride: When employees feel proud about the work they do with giving
back to the community, this sense of pride is transferred back to the
company. Corporate pride ties in directly with the employee engagement
equation.

Example - Microsoft: Employee Giving Program
Microsoft matches employee nonprofit donations and volunteering year round up
to $15,000 per employee
Microsoft also helps employees find nonprofits that best match their volunteering
skills and interests
It adds up to a very real impact on local communities near and far and an
enduring giving culture that stems directly from our mission as a company: to
help people realize their full potential, in everything they do.
http://www.microsoft.com/about/corporatecitizenship/en-us/serving-
communities/employee-giving/

Hyatt Thrive
focus on local projects
contribute to the prosperity and well-being of their communities
draws on the knowledge and insight of a global cross section of stakeholders
including corporate leadership, property owners and associates throughout our
organization, community leaders and guests -
http://thrive.hyatt.com/aboutHyattThrive.html#sthash.YT7zq5xe.dpuf

Ways to increase employee engagement
company volunteer initiatives
Edelman Good Purpose Research has found that 49% of workers believer that
employers should offer company-run volunteer programs
44% feel that employers should provide employees with time to volunteer.
great demand in your workforce for corporate volunteer programs, especially
amongst millennials, who make up around 25% of the workforce and have been
shown by studies to be especially interested in working for socially responsible
organisations
Offer incentives to encourage employee giving