The hidden benefit of giving to charity

It's that time of the year when you might be considering last-minute tax deductions as a way to support causes you're passionate about and also reduce your income taxes. But can gifting improve your health and physical well-being, too?

The Institute of Noetic Sciences (IONS) recently summarized provocative research that suggests that giving is good for you -- for your health, your happiness and your sense of purpose. The IONS report identifies three aspects of gifting -- altruism, interconnectedness and compassion -- that have been positively linked to physical health by various researchers.

The logical actuary in me has to ask the $64,000 question: Are the associations between gifting and health identified by this research evidence of causation or correlation? In other words, does gifting actually cause you to be healthier, or is it just a coincidence? For example, if people who are healthier are more likely to give, then the link would be a correlation, not causation. Another example of correlation is that health and longevity are linked to income and education, and individuals with higher levels of education and wealth are more likely to give to charities.

On the other hand, in your later years, being part of a community, being connected to the world, and having a sense of purpose and meaning do have the potential to cause you to be healthier and live longer. For me, the causation-vs.-correlation issue won't be resolved scientifically in our lifetimes, so it comes down to a matter of faith. Gifting feels good to me, so I'll be filling out some checks in the next few days.

Regardless of whether you believe that gifting improves your health and life expectancy, many people contribute for the usual reasons -- to support worthy causes and reduce their income taxes. If that describes you, here's a helpful catalog of interesting nonprofit organizations that are making a difference in the world, prepared by MorganStanleySmithBarney. And for useful tips on selecting a worthy cause to donate to, here are some useful guidelines prepared by the Chicago Tribune.

Best wishes for a healthy and prosperous 2012!