Philanthropy is a wonderful way to increase connection, share values and create meaning among family members. When you discuss your values and giving goals, your whole clan can find ways to make more of a difference.
By involving your children and grandchildren in philanthropy, you’ll be gaining insights as everyone contributes information, broadening family members’ perspectives. The family engages in a forum where values are openly shared and translated into family donations.
Generations might not share the same interests or motivations for giving and might approach giving in diverse ways—some may like traditional grantmaking, while others might want to invest for impact or experiment with new approaches. Family philanthropy allows you to learn more about what matters to each individual.
Here are some strategies on approaching your charitable giving:
- Create clear expectations and freedom to come and go. Provide a clear plan for how everyone will work together and then invite children to be involved. Make it optional—not mandatory.
- Identify and articulate shared values. Work together to describe and agree on the main objectives of your giving as a family.
- Honor individuality and family needs. Allow your children the flexibility to choose organizations to support.
- Provide opportunities for active learning and meaningful work—Encourage exploration and discussion about issues that matter to the family.
- Focus on the impact—By considering these questions, you’ll better engage your family:
- What values or interests define our charitable giving?
- Which causes or issues are most important to us?
- What role do I want family members to have in continuing this legacy?
What to watch for
Don’t try to force generosity by making giving mandatory—you’ll make it an obligation instead of something joyous. Here are other no-no’s:
- Don’t dictate where the money goes—The purpose of a philanthropy plan is to involve adult children in the decision-making process—don’t make the kids feel like they’re only along for the ride.
- Avoid the spray-and-pray approach—Giving small gifts to every organization that asks throughout the year may be easier than saying no or agreeing on a strategy, but giving a little bit to a lot of charities is typically not a satisfying way to see a substantial change. For more rewarding results, create a plan based on your family’s values and goals and then work proactively to achieve it.
Gaining feedback from younger generations in giving decisions can make the giving experience even more joyful. You’ll connect through telling stories and sharing memories of giving traditions with other family members. And this will give them role models—to teach by example, knowing that they’ll follow the path. Definitely draw out your children’s core values so they can be active participants in the research and selection of causes and charities that reflect those values.
You will want to leave a lasting impact on causes close to your family’s hearts, setting up your children and grandchildren to continue giving beyond their lifetimes. Families that do this say that it’s brought them closer together, as well as closer to the communities where they live. You’ll be ingraining in them the idea that giving should have a purpose and to see what benefit the family is providing. Family philanthropy can help members know one another on a deeper level, strengthening your bonds. By involving younger children, your tradition of giving will emphasize the idea that helping someone else is a gift for them as well.
We welcome the opportunity to put our tax expertise to work for you. To learn more about how our firm can help advance your success, don’t hesitate to contact Kathy Corcoran at (302) 254-8240.
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