Generosity Basics, How Generosity Works

How Does Generosity Work?

Real generosity benefits both the giver and the receiver in equal measure. You can call it a paradox. I call it magic!

Generosity is productive

A single act of generosity creates ripples of benefit that have the power to become self-sustaining… a virtuous cycle if you will. The practice of generosity produces more generous behavior.

See Generosity Rules for stories that illustrate this ‘virtuous cycle’. This cycle has been powerful throughout American history. More opportunities for more citizens enabled by fellow citizens have produced our remarkable American prosperity. I wrote The Greater Good to tell this story.

Generosity Benefits Everyone (especially in America!)

Best of all, real generosity benefits both the giver and the receiver in equal measure. You can call it a paradox.  I call it magic!  Americans are called to be generous to one another in our nation’s creed, the Declaration of Independence.

It is wrong to think that only ‘poor’ people need the benefits of generosity. We must recognize that ‘rich’ people benefit every day from generosity as well. Those tech billionaires  use hospitals and museums, and public parks.  They use antibiotics and portfolio management strategies.  All these things and many more are products of citizen generosity in America (see The Greater Good).

Generosity is an investment in the well-being of others

Generosity may take the form of simple charity – meeting immediate needs for food, shelter, and care. It also takes the form of investment, with the expected return being an increase in the general well-being of a community large or small, an increase in what I call ‘the greater good.’

Generosity drives ideas and ideas drive generosity

I believe that IDEAS are the most important currency in America, not dollar bills. People are generous, often to the point of taking great risks, because they BELIEVE in a particular way to improve the greater good. They believe in an IDEA and want to invest to make the idea into a reality. They are social ENTREPRENEURS, risk takers for good. I’ve written about the power of ideas here: Philanthropy: Investing in America’s Freedom and Progress.

Related Resources

Explore more of Claire's writings about how generosity works