Whether for tax benefits, because of
personal tragedy or just from having a heart of gold, many millionaires give
away money. Some have given away nearly everything they own, while others
manage to give while still maintaining their personal wealth. Either way, it's
fascinating when millionaires give away their money, and the rest of us imagine
what we would do if we were in the same position.
Significance
Millionaires
who give away money have the power to change hundreds of lives or make a
significant impact in a community. While small donations certainly add up and
also make an important difference, when a millionaire gives away money, there is
usually an immediate result. The donated money can have long-term effects, such
as sending students to college, providing homes and food for the less
fortunate, or giving someone in unfortunate circumstances a "leg up."
In many cases, those who have benefited from the money go on to become
successful and in turn donate their time or money, continuing the work set in
motion by the millionaire.
Types
Millionaires
who give away money do it for a variety of reasons or a combination of reasons.
These donations may be made for tax relief purposes. In this way, wealthy
individuals can have a more direct say in how their money is used, and it also
benefits a nonprofit organization. Some millionaires give money away because
they have been affected in a personal way by a disease or situation. For
example, a millionaire with a family member diagnosed with breast cancer is
likely to give away money to help with cancer research or that helps breast
cancer victims afford treatment. Some millionaires give money to those in less
fortunate circumstances because they believe it is the right thing to do. They
recognize that they have been fortunate and have the ability to help others.
Effects
When a
millionaire gives, the donation tends to snowball. Not only are others
encouraged to give more, the purchasing power of the organization or recipient
increases, which makes all of the donated dollars go further. In addition,
retailers and suppliers like to get in on the act when a well-known millionaire
donates, and stores or manufacturers will often donate products and services to
go along with a millionaire's donation. A wealthy donor may also provide the
seed money for a fund-raising event, paying for advertising, space rental and
other costs associated with a fundraiser, making every dollar stretch even
more.
Considerations
Before a
millionaire gives away money, he will often investigate the organization he
intends to donate to and carefully consider how the money will be used. Like
everyone else, he wants to be sure that the money will be used for its intended
purpose and that it will be spent carefully. The amount of tax saved through
donation is also a popular consideration, as is who will actually benefit from
the money.
Misconceptions
While the
rare few millionaires who give away nearly everything they have should be
recognized for their generous nature, there is a common misconception that
those who maintain their wealth don't give as much. By maintaining their
wealth, millionaires who give only a portion of their income are able to
continue to give year after year and often in greater and greater amounts. Over
a lifetime, a millionaire who holds on to his wealth is likely to give far more
than a millionaire who gave everything he had.
