So often, we hear that money can’t buy happiness. And it’s true that you can’t pick up joy in a box on the shelf.  But what if spending money actually could deliver happiness in return? There’s a lot of evidence that it can!

It turns out that once our basic needs are met, having more money doesn’t necessarily correlate with more happiness. Instead, there is a plateau in happiness levels after we achieve a certain income — having more money doesn’t buy us better wellbeing. According to multiple studies, what does increase happiness is using our money to give back to those in need.

Every year, millions of employees in the public and private sector participate in charitable giving through workplace campaigns. The Combined Federal Campaign (CFC) for federal employees is one of the largest workplace giving campaign in the world, generating millions each year for global causes. This year’s CFC theme is GIVE HAPPY. That’s because they know what we know: When you give happiness, you get happy too.

There are endless resources out there dedicated to the topic of happiness — books, podcasts, and even academic studies try to teach people how to feel happier. It’s needed now more than ever; on a scale of 1 to 10, people worldwide rate their happiness as a 5.54, according to the Happiness Index. And in addition to personal happiness, as employee engagement declines, organizations are looking for ways to keep employees engaged and happy at work. In our personal and professional lives, many of us could use a boost of happiness.

In his TEDx talk, Michael Norton shared his research on this topic and said, “We see spending on other people has a bigger return for you than spending on yourself. So, if you think money can’t buy happiness, you’re not spending it right. The implication isn’t you should buy this product instead of that product, and that’s the way to make yourself happier. It’s that you should stop thinking about which product to buy for yourself and try giving some of it to other people instead.”

“Happiness is not something readymade. It comes from your own actions.” — Dalai Lama

There have been a number of studies that prove this over the years. In 2022, “The Emotional Rewards of Prosocial Spending Are Robust and Replicable in Large Samples” examined 15 previous experiments on the topic and found that spending on others does correlate with more positive feelings. Some key takeaways were:

  1. You have a choice, and it matters greatly. Getting to select the charities that you want to support is important to how happy we feel after donating. That’s why workplace giving campaigns like the CFC are so great! Instead of your employer donating a lump sum on behalf of the organization, you can still pick your favorite charities while enjoying the convenience of payroll deductions and the power of collective giving. Having the options for yourself connects you to the causes you care about and to your own happiness.

    Global Impact can help: We made a super fun and easy personality quiz to help you find charities that resonate with you. Take it to discover your Inner Global Champion and find more information about how you can make an impact in your workplace campaign.

  2. You should engage with charity work beyond your donation. Whether it’s by volunteering, subscribing to emails, attending events, or following social media accounts, understanding how your gift made a difference will increase your own happiness. By keeping up with ongoing nonprofit work, you’re engaging with the good you helped create regularly. That consistency is sure to bring you more positivity throughout the year than an annual pledge would on its own. Many workplace giving campaigns, including the CFC, have the option to pledge annual volunteer hours in addition to dollars alone.

    Global Impact can help: Check your workplace giving portal and favorite charity websites for more information. You can also subscribe to Global Champion Monthly: our newsletter covering global charity updates and uplifting news stories. Or, if you’re a campaign worker in your workplace, check out the giving hub for more employee engagement ideas.

Another 2022 study titled “Are the benefits of prosocial spending and buying time moderated by age, gender, or income?” found that the positive correlation between charitable giving and happiness showed regardless of gender or income level. Even participants who thought spending on themselves would make them happier reported higher feelings of wellbeing after donating to charity.

The research continually shows that beyond meeting our basic needs, increased money isn’t proven to bring us more happiness. But for the hundreds of millions of people around the world that don’t have those basic needs met, your gift can change lives. It’s estimated that 648 million people live on less than $2.15 a day. With that in mind, the gift of happiness can spread as far as possible with a donation to international charities. Giving to global causes has a vital, far-reaching impact on reducing poverty and creating a happier world.

For example, Operation Smile is literally delivering smiles — the symbol of happiness — by providing life-changing surgeries to children with cleft lips and cleft palates. Rise Against Hunger is putting nourishing meals on tables and World Relief is welcoming refugees into safety with open arms. The list goes on. Every Global Impact charity is contributing happiness in one way or another, and there are too many examples to mention them all here.

Keeping in theme with spreading happiness in the new year, the CFC is accepting annual pledges through Monday, Jan. 15, 2024. Now is the time for federal employees to start the year on a lighter, happier note. GIVE HAPPY through the CFC giving portal. If you’re still unsure of who to make your pledge(s) to, remember to take the quiz and explore our Charity Alliance list. It is an easy way to see what the leading international charities are working on, how your gifts help, and find each charity’s five-digit CFC code.

Lately, it seems like there is an extraordinary amount of sadness around the world. War, climate change, hunger, and the continued list of global challenges is daunting to face with a positive attitude. Instead of feeling overburdened by the negatives, what if we took some comfort in knowing that international charities are spreading goodness at a time when it is most needed? Giving to increase your own happiness is even more reason to give! You’ll always feel good about giving. It’s like a two-for-one deal: happiness for others + happiness for yourself = double the happiness.