What Drives Healthy Generosity

Generosity comes into existence through action. People give because they are responding to a situation that they cannot stand anymore. They simply must do something to right a particular wrong, or to create a better version of the current reality.

This imperative comes from a place deep within, and many people who give are not able to articulate exactly why they do. They just feel compelled to do so.

But it comes from values.

Someone places value on human life, and when they see something happening in the world, be it poverty, war, famine or other injustices, that rubs up against their value. Usually they see something that reflects an image of themself. It might be children, or women, or parents.

They then give as a response to their values being challenged.

This is an extremely healthy way to give. It comes from a place of purity. And it is usually the starting point of a giving journey, which begins with that almost visceral response and then eventually leads to a place where an individual has a well thought out philosophy of philanthropy with a portfolio of organisations they support for a number of reasons. But at the heart is the imperative that first prompted their generosity. That never leaves.

What can you do?

So many things are outside of our control. The world is a big place and things happen quickly. What can one person do to stem the tide of poverty, or racism, or sexism, or any other -ism you can think of?

Why bother, right?

If Frozen 2 has taught us anything, (aside from the fact that sequels can be better than the original and water has memory) it’s that sometimes all we can do is ‘the next right thing’. Sure, it’s an animated kids movie, but this is a healthy philosophy that I would love my kids to encapsulate as they grow up in this world. Heck, I would be proud to be able to say that this is how I live my life.

When faced with seemingly insurmountable challenges and overwhelming odds, (be they wind, fire, water or earth spirits…look, just watch the movie), you can still do something. The next thing. The next right thing. Over time, the amount of ‘right things’ you do adds up and begins to make a huge difference.

The challenge in these moments is to figure out what the next right thing is. Let me help you with this – I can guarantee that it has something to do with generosity.

Nobody has any idea…

If event A happens right before event B, does that mean that A caused B? It’s hard to say that it doesn’t.

That’s why so many professional athletes have ‘lucky’ items of clothing that they wear – they played a great game once and decided that it was partly because they were wearing a specific pair of underwear. Now it makes up part of their pre-game ritual, even though it stinks and has holes in it.

This philosophy has birthed thousands of ‘experts’ who can share the ‘secrets of their success’, and if it has worked for them, you can do it too and it will work for you, guaranteed*. But somehow their secrets seem to fall short for most people.

At best, the greatest advice anyone can give you is, “Here’s what I have done that has worked for me…so far.”

But luck, timing, and other things outside of our control make up about 90% of all success.

Where you were born, your access to education, meeting the right person at the right time, being the in the right place and the right time, none of these things have anything to do with your ability.

Sometimes success comes in spite of what we did and who we are, and looking back we are not sure how it happened because we did everything ‘wrong’.

I’ve often heard it said, ‘no one has any idea what they are doing, they are just making it up as the go along.’

If that is true, it’s an uncomfortable reality because surely someone knows what is going on and how to do this life thing, someone must be in charge of it all? Maybe not.

Does this mean there is nothing we can learn outside of our own experience? Of course not, but it is important to have the perspective that nothing is guaranteed, and what we think is the ‘silver bullet’ may not be.

It is possible that right now, the thing that you are most sure about in life is based on an incorrect assumption. Whilst that seems unlikely, what is more likely is that the thing you are most sure about in life is based on a partial truth.

So, what do we do with this, seemingly, pessimistic perspective?

I always bring it back to the knowledge that some things are always good for us. Sleep. Eating well. Family/relationships. Generosity. Spiritual endeavours. If we do those things we know that if everything else if life falls over because of something outside of your control, you will still have everything you need.

*not a guarantee

How do I know if it’s generosity? (Or manipulation…)

Sometimes what may look great on the surface, or upon initial consideration, turns out to be a little less than we expected. I have met people who appear to be amazing, accomplished, friendly and incredibly successful at first glance, but as I spent time with them, I began to realise that they were not quite what they promoted. In fact, they have played fast and easy with the truth.

Generosity can be just like that. Someone may give you attention, gifts and surprises which are delightful. Over time though, something doesn’t appear right, and you may feel pressured into thinking, or acting or responding in a certain way because “you owe them”.

So, how do you know when someone is genuinely being generous?

In other words, how do I know if someone cares about me or just cares about themselves?

Here a few things to look out for:

If it comes with strings

If you are given a gift of any sort, but it requires something of you in return, that is not generosity. It is a transaction. Which might be okay if everyone in the transaction is fine with it, but don’t confuse it with someone be generous to you. If you are unsure, try saying no to the request that is made (either a verbal request or an unsaid expectation) and see what the response is. If they get upset because you are not giving them what they are owed, then that’s your answer.

If it keeps you in a place of vulnerability

Some gifts seem very generous, and may even be given in good faith, but the consequences of the gift keep the receiver in a place of vulnerability. The Nestle scandal in the 1970’s comes to mind – there was outrage when it came to light that they had provided free formula to new mother’s in hospital in developing countries, which seems incredibly generous. But after the mother’s left hospital they needed to purchase it. Of course, by this time the mother’s breast milk production had been interrupted due to the formula use and they had no other option but to find the money to pay for the formula. A ‘gift’ that seems generous but kept people in a place of vulnerability instead of empowering them.

If it hurts you

Sometimes receiving a gift can cause you damage. For example, if someone gave you one billion dollars.

“How could that hurt me?” you ask.

Large amounts of money can create a huge burden, damaging relationships and families, and build significant costs and taxes to manage.

“I’ll take my chances” you say, well it didn’t work out so well for these guys. A gift for someone who is not ready for it can create huge problems.

Most of the time when you receive a gift, it is lovely but there are times when it turns out not to be generosity at all. Generally, anytime a gift is given that creates a power imbalance, it’s most likely not a generous act.

The only thing to say when you receive a gift…

One way to give someone else a gift, is to let them give a gift to you.

Don’t let that be the only way that you give other people a gift, because that would mean you are a taker, possibly a bit of a jerk, but accepting a gift well is an underrated skill.

How do you respond when someone gives you a gift?

“You shouldn’t have”

“You spent too much”

“That wasn’t necessary”

“But I didn’t get you anything”

Here’s a reminder: You are allowed to be on the receiving end of an act of generosity. It’s okay if someone gives you something nice. Some people are wired to express their love and gratitude more through giving gifts.

If you refuse it, you are getting in the way of someone else having the joy of giving. If you don’t receive it well then it can tarnish the whole experience for everyone.

The only thing to say when you receive a gift is “thank you”.

If you must, you can add “you are very kind”, or “I love it”. That’s it.

By just accepting it graciously, you are ensuring that generosity is going both ways.

I must add that the above does not apply if someone is trying to manipulate or coerce you through giving gifts. That’s downright shady behaviour and you have every right to refuse that. Forcefully if necessary.

Noble Causes

“What is the use of living, if it be not to strive for noble causes and to make this muddled world a better place for those who will live in it after we are gone?” – Winston Churchill

I agree with Winston. What else is there to do?

That leaves just two questions:

What are noble causes?

What is worth spending time, money and effort to achieve? What are the things that you are willing to sacrifice for? To be able to put other things on hold for. What is it in our world that is worth prioritising and saying ‘no’ to other things because of it. Once you have an idea of that, then I think you have a noble cause on your hands.

What is the striving?

What is required of us to achieve the goal of fulfilling these noble causes? If the cause is truly noble, then any amount of effort is justified. How we do the striving is more complex. The way that we behave is just as important as the outcomes we achieve.

How are we doing the work?

I believe the noble causes begin with other people. Anything that helps people, without damaging other people in the process, is a noble cause.

How we strive is just as important as the noble causes we strive for.

Good Things

I think we all have an innate sense to hold on to what we have. Loss Aversion is a strong cognitive bias which suggests the pain of losing something is twice as bad as the pleasure of gaining something. So, we hold on.

As you could imagine, this bias makes it very difficult to be generous. Giving something away is at odds with Loss Aversion. It goes against everything that we feel is right.

The result of this, if left unchecked, is that we can become stuck in a place where we don’t want to give anything up, which could be holding us back from taking the next step, from growing. Specifically, when it comes to money, loss aversion can create stinginess, keeping us in a small, dark place where the accumulation of money is the only focus.

To overcome the obstacle of Loss Aversion, it is best to give some money away. When you do that two things happen:

  1. Something shifts within you.

The psychological impact of giving money away allows you to see the world differently. What you thought would be a loss, turns out to be something different. Not only does it feel good to do good, but giving money away shows you that you don’t need as much as you think and it lessens the burden of seeking to accumulate.

2. Something shifts in the world.

Both in the way you see the world and the actual world. All of a sudden, the world appears to you as a place that is redeemable. A place that you can make a difference to and one that is filled with good people trying to do good things.

The world will also be a better place because you have put some money in the hands of those good people trying to do good things.

Overcome loss aversion. Give some money away and see the difference it makes to you and the world.

People Aren’t Dumb

“People aren’t dumb. The world is hard.” Richard Thaler

Managing your finances is hard. Planning for retirement is hard. Holding down a job is hard. Balancing priorities between family and work is hard.

It’s easy to think that people who struggle in one or more areas of life are dumb, but there is so much assumed knowledge as you become an adult. If someone doesn’t take you aside and teach you about everyday things like Medicare, private health insurance, car insurance, the importance of superannuation, then it’s possible you may never know how to manage them.

Add to that, sometimes, just getting through the day is a challenge, let alone trying to keep it all together, feeding all the people in the house, paying all the bills and planning ahead. It takes a lot to be a person.

What if we thought the best of each other. What if we put judgement aside and gave the people in our lives some slack. They aren’t dumb, they aren’t awful, the world is hard and they are just different from us.

It’s that sort of generous outlook as we think about other people that gives us the space to accept people for who they are, and where they are right now. We all want everyone to try and get better as a person (I know I want that for me and those around me), but some people wont change. Who they are today is who they will be. That’s okay.

We all manage the tension of loving people for who they are and at the same time hoping for something more for them. But the world is hard. Let’s love people (and ourselves) in this moment and let tomorrow take care of tomorrow.

Generous Identity

Each person, no matter who they are or what they have done, has intrinsic value, the value and beauty of life. There is something magical about it. We struggle to find the words to truly express just how amazing life is. If you are living and breathing, you are so valuable. You are a miracle.

From that foundation of value comes gratitude. As we experience this amazing life, as we get to take the next breath, as we enjoy life with other people around us, it is natural to be grateful for what we have been given. And it is absolutely something we have been given – we didn’t create ourselves, we didn’t produce the life force that flows through our bodies, we are just experiencing and benefiting from it.

This gratitude then, is the birthplace of generosity. Because we have been given so much, therefore it makes sense to give to others.

Generosity is at its strongest when it comes from a place of valuing yourself.

I have value as a person, I bring value just by existing, and out of that I can be generous to others. My value doesn’t come from what I give, but from who I am. I am confident in who I am and out of that confidence I give.

Stinginess, on the other hand, is weakness. Stinginess is the easy way out. It requires no effort, no forethought and no creativity. It is also toxic to everything it touches.

Choose gratitude and generosity.

Success Will Follow

Give first and success will follow.

Although, it depends on what your idea of success is. If success means ending up a stingy old person, making no positive impact on the world, then giving is most definitely not for you.

But, if your idea of success is having a loving family, being a generous person, sharing your life with those that you care about, having a life of growth and learning, then that will require something of you first.

I have become more aware over the years that a generous act is the catalyst for most of the good things in life. Some of those good things are guaranteed, like the positive emotional and psychological effects that generous acts have, and some of them are not guaranteed at all.

For example, there is no guarantee that if you are a generous person that you will have a happy, loving family life. But I can guarantee you definitely won’t have a happy, loving family life if you are not generous. It’s a risk to be generous and hope that good things come, but the consequences of not being generous are heavy.

The irony is that being generous solely for the sake of reaping the benefits takes something away from the generous act, but it doesn’t completely cancel it out. So, even if you can only muster a generous act because of what good it will bring you, keep doing that. Over time, being generous will change you and you will begin to seek the rewards less and less.

So, give first and then see what comes.