Family philanthropy can be a very effective way to bridge generations and engage the rising generation. However, according to a recent poll from Key Private Bank, there are significant differences between parents and children on matters of giving.
Most parents are not discussing philanthropy with their children, let alone agreeing on causes. 82% of advisors say very few clients involve the next generation in family philanthropy. Faith-based causes represent 73% of interest from parents, but only 3% from children. On the flip side, ESG causes are 3% from parents, and 59% from children.
It is self-evident that a lack of communication would only feed a further divergence of interests between generations. With increasing life expectancies and therefore a greater overlap between parents, children, and grandchildren, there are two likely outcomes: find common ground across generations, or fall into conflict.
Consider This: Who makes the philanthropy decisions in your family? To what extent are younger family members informed about choices or engaged in the decision making process?
Original articles: 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/#112919c85aad, https://www.prnewswire.com/news-releases/lack-of-family-conversations-about-philanthropy-fuels-differences-of-opinion-finds-key-private-bank-poll-300920068.html
Actionable Generational Wealth Succession
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