There are very different generational attitudes to philanthropy in families. While previous generations saw philanthropy as “giving money to non-profits”, the rising generation of wealthy individuals has broadened and redefined the term, considering it to be “the action of transforming others’ social well-being through generosity”.
The rising generation is more engaged and involved in philanthropic endeavors, and do so at earlier ages than their predecessors. They’re also motivated by the value propositions behind sustainable and impact investments, and often drive such initiatives with their own or family businesses. Those of inherited wealth can experience a sense of unease or outright guilt fueled by societal judgment over their wealth, which may drive giving priorities.
A family office can take a holistic approach to the family’s financial and personal life. This can mean more time to spend with family or commit to philanthropic interests, which can also bring the family closer.
Generational families that endure for 100+ years share a number of factors. Near the top of that list is a shared commitment to community, service and philanthropy.
Consider This: Which generations in your family are involved in philanthropy decisions? Do you have a philanthropy strategy that sets priorities and the process for allocation? Do key family stakeholders across multiple generations know the answer to the question “why our family gives”?
Original articles:https://www.denverpost.com/2019/10/13/on-philanthropy-bruce-deboskey-the-secret-sauce-of-thriving-100-year-families/, https://www.forbes.com/sites/francoisbotha/2020/01/23/why-do-families-give-the-5-spheres-and-motivations-around-philanthropy/#5b02a5b07dc0, https://www.forbes.com/sites/whittiertrust/2020/04/01/a-family-office-can-give-you-back-your-personal-time/#1b1726ea20ee, https://www.marketcurrentswealthnet.com/interviews/family-philanthropy-a-new-book-qa-with-mitzi-perdue/, https://www.forbes.com/sites/francoisbotha/2020/07/29/how-the-worlds-next-generation-of-ultra-wealthy-are-redefining-what-it-means-to-give-back/#5eab0d8d5aad[reprinted with permission]
Actionable Generational Wealth Succession
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