True Investing: Generosity Beyond Giving

Can you name at least one company in your 401K?

If you can name several, are there any that support the production, marketing, or distribution of tobacco products? Support the provision of abortions? Do any exploit the most vulnerable in some way?

In addition to those that are not contributing to such things, are there any companies that are doing what you might call particularly “good” work (e.g., actively working toward positive change)?

As a Christian, what would it mean to steward your finances by considering the impact that your 401K investments have on the economy, on the social sphere, on the world at large?

As much as I do want to encourage you to know what your 401K investment is supporting, this is mostly to get the mind’s wheels turning. As far as stewardship and generosity go, we have much more to consider.

Beyond the 10%

Ten percent is the amount that tends to come to mind when Christians talk about “giving” or “tithing.” But whatever percentage we decide to give—whether to our local church, to parachurch or nonprofit organizations, and/or individuals and families who live off of support-raising—what becomes of the rest?

This concerns investing, for sure, but it also has to do with our everyday habits and, like our 401K, the things we are part of that we often don’t consider or make daily choices about. For instance, where do you shop? When you eat out or need transportation, how do you decide where you eat, what services you’ll use, and how you support them (e.g., do you tip? If so, how much)?

Of course, it goes without saying, not all companies are equal. But do our financial decisions demonstrate that we know this? Actions that line up with our beliefs can look like purchasing groceries that have been sustainably grown and harvested, and whose laborers have been treated fairly—creation care and worker’s rights. It can also look like abstaining from supporting companies that donate to and actively support policies contrary to Kingdom values—“voting” with your dollars.

Where are you laying up your treasures? Surely Jesus was referring to his followers’ lives holistically when he spoke to them about money on the Mount (Matt. 6:19-21, 24). Until we consider our investments and our purchases, in addition to our giving, our financial impact will be cut off from the rest of our Kingdom efforts as we seek to live more like Christ in the world.

But where to begin? Most changes cannot take place overnight, but you can likely get started today.

Investing for Good

At Denver Institute for Faith & Work’s 2020 event “Business for the Common Good,” three financial professionals spoke on the topic of faith-driven investing. Hannah Cumming from Eventide hit on three essential steps for those desiring more intentionally to make a Kingdom impact with their finances. These same principles apply to general purchases and budgetary costs.

Where to begin, and what to aim for:

Avoid doing harm. Do your homework. Find out what companies, practices, and values your financial decisions are supporting. To the greatest extent possible, avoid supporting those that do harm to others or to God’s good creation.
Embrace doing good. Go beyond avoiding the bad. What companies are actively seeking to further good practices in their work, products, and services? Support these companies.
Engage to capitalize on impact. Seek positive development for the long-haul. Communicate, invest relationally, and get involved in making decisions. Participate in advocacy and dialogue. Help those already doing good to reach their full potential.

Another thing that Cumming highlighted was the importance of caring for all stakeholders, not just the shareholders. Stakeholders we may overlook include customers, suppliers, employees, communities, and the environment. Not only is caring for stakeholders the right thing to do, Cumming stresses that it is the “smart thing to do.” In seeking to do maximum good for all involved, we will begin to see the cycle of how positive return and impact circles back to the company. (Win-win!)

Generosity is much more than something we consider on Sunday mornings or at (fiscal) year’s end. Financial generosity is intrinsically tied to any and all decisions we make concerning our finances, and our choices have great power to shape the world around us. What impact are yours making?