Long-term Family Philanthropy: Creating a Lasting Legacy of Generosity
How affluent families can align their values and strategies to impact future generations.
In an era where wealth transfer is at its peak, with an estimated $48 trillion set to shift from Baby Boomers to heirs and charities, the importance of structured family philanthropy has never been more pronounced. As generations evolve, so do their values and priorities, necessitating a cohesive approach to family giving. This article outlines the strategies that affluent families can employ to ensure their philanthropic efforts resonate across generations, creating not just a legacy of wealth, but one of meaningful impact and shared values.
Key Takeaways:
Structured family philanthropy aligns generational values, ensuring lasting impact.
Open discussions and role modeling are vital in passing down philanthropic values.
Generational engagement strengthens family bonds and maximizes giving effectiveness.
The Importance of a Shared Philanthropic Vision
Philanthropy, for affluent families, extends beyond mere financial donations. It embodies a shared vision rooted in deeply held values, which not only strengthens family bonds but also impacts the world positively. As Maryann Bell of Wingspan Legacy Partners highlights, "Having a family think through what’s important to them and what their values are — and then how to apply those values to a philanthropic platform or program — really connects individuals."
To achieve this, families must adopt a structured approach to philanthropy that includes prioritizing family values, establishing a mission statement, and fostering generational engagement. This approach ensures that each member, regardless of age, understands the family's philanthropic goals and feels invested in their success.
Bridging Generational Gaps
Each generation brings unique perspectives to philanthropy, influenced by their experiences and societal changes. Baby Boomers, for instance, often donate to local social services and religious institutions, while Millennials focus on health charities and human rights. Bridging these generational gaps requires open dialogues about shared values and causes.
Crystal Thompkins from BNY Mellon Wealth Management emphasizes that "each generation has its own set of beliefs and perspectives," underscoring the need for unity and understanding. Regular family meetings and discussions can facilitate this understanding, aligning the family's philanthropic endeavors with a unified vision that respects individual preferences.
Teaching Philanthropic Values Across Generations
Passing down philanthropic values is as crucial as inheriting wealth. As highlighted by the Curi Blog, "Just as we focus on passing along our beliefs, culture, and traditions to our children and grandchildren, we should consider a similar approach to transferring philanthropic values across generations." This involves engaging younger family members in charitable activities and incorporating philanthropic education into broader financial education.
Role modeling plays a significant role here. By actively participating in charitable activities, older generations can demonstrate the importance of giving back, inspiring younger members to adopt similar values.
Evolving Philanthropic Strategies
Philanthropic strategies should not remain static; they must evolve to reflect changing family dynamics and societal needs. Nearly 70% of affluent individuals base their giving on personal values, which can shift as new challenges arise. Recognizing different life stages of philanthropy can help families adapt their strategies to maximize impact.
Furthermore, the acceleration of technology presents new avenues for philanthropy, such as online fundraising and social media campaigns. Younger generations, in particular, view these platforms as powerful tools for social good, broadening the scope of family philanthropy.
Conclusion
In conclusion, structured family philanthropy serves as a cornerstone for creating a lasting legacy of generosity. By aligning values, fostering open communication, and adapting strategies to changing times, affluent families can ensure their philanthropic efforts resonate across generations. This not only strengthens family bonds but also leaves a positive impact on the world, fulfilling the true essence of philanthropy. As wealth continues to transfer, the opportunity to redefine family giving is ripe, offering a chance to build a legacy that transcends wealth alone.
