The Science Of Sharing: Why Generosity Matters

As the leaves change across Severna Park and we gather with family around Thanksgiving, November naturally invites us to reflect on gratitude. While we often view giving as a moral obligation or seasonal tradition, behavioral psychology reveals a fascinating truth: Human beings are hardwired to give.

In behavioral finance and psychology, researchers refer to the psychological benefit of giving as the "helper’s high." When you give - whether it is your time, talent or treasure - your brain releases endorphins, dopamine and oxytocin. These neurochemicals lower stress levels, reduce blood pressure, and foster a deep sense of emotional well-being. Generosity is not merely an outward act of goodwill; it is an active investment in your own physical and mental health.

Understanding the Three Pillars of Giving

True generosity extends beyond writing a check. A comprehensive approach to living a fulfilled life involves allocating three distinct assets:

1. Time: Your most valuable finite asset. Volunteering directly connects you to your community and builds meaningful social bonds that are vital to longevity and happiness.
2. Talent: The specialized skills you have spent years developing. Offering professional expertise, coaching youth sports, or serving on a nonprofit board provides high-impact value to organizations that need guidance.
3. Treasure: The financial resources you work hard to build. Strategic charitable giving allows you to support long-term regional stability while optimizing your overall tax strategy.

Connecting Generosity to Our Local Community

You do not need to look far to make a tangible impact. Right here in Anne Arundel County, local organizations depend on community participation to fuel their missions:

• Severna Park Community Center (SPCC): As an independent nonprofit, SPCC serves as a hub for local families, youth sports and senior wellness programs. Donating funds, volunteering time, or supporting facility initiatives directly strengthens the heart of our town.
• University of Maryland Baltimore Washington Medical Center (UM BWMC): Giving your time through local blood drives hosted by UM BWMC provides lifesaving resources to neighbors facing critical health challenges.
• SPAN (Serving People Across Neighborhoods): Offering food donations or financial contributions to our local safety-net organizations ensures local families facing unexpected financial hardship have a warm meal during the holiday season.

Integrating Giving into Your Financial Strategy

While the personal and psychological rewards of giving are profound, charitable contributions also play an important role in wealth management. Strategic philanthropy can significantly impact your broader financial plan.

Tools such as donor-advised funds, gifting appreciated stocks, or utilizing qualified charitable distributions directly from an IRA allow individuals of a certain age to fulfill their philanthropic goals while managing taxable income efficiently. Aligning your charitable intentions with your tax strategy ensures your dollars go further for the causes you care about most.

A Cohesive Plan for Your Legacy

At LaBarge Financial, our founding philosophy remains simple: People come first. Money is ultimately a tool designed to support your life, care for your family, and strengthen the community you call home.

This November, take time to reflect on how you can share your time, talent or treasure. If you want to integrate meaningful charitable giving into a comprehensive, tax-efficient financial strategy, consider how to align your generosity with your family’s long-term financial plan.

Jason LaBarge, Financial Advisor and President of LaBarge Financial

7 Riggs Avenue, Severna Park, MD 21146

443-647-4321

www.labargefinancial.com

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