This time of year is about giving generously, and for many family offices, it’s a great time to re-evaluate their philanthropic endeavors.
Engaging the Next Generation in Family Office Philanthropy
For many families with wealth, philanthropy is more than just giving back – it’s about establishing a legacy that reflects values and bringing people together around causes that are important to them.
While many family office philanthropy efforts are led by older members of the team, it is important to invite younger generations into discussions around these topics to ensure they can carry the values and legacy well into the future.
Starting Young
Introducing philanthropic concepts at a young age helps instill the importance of community involvement and generosity.
As younger family members grow up and become more involved in family office leadership and efforts, they will have a deep understanding of the impact of giving and will be more willing to get involved in more detailed conversations about charitable foundations to get involved with, grantmaking, community need, and how those align with the family’s long-term goals.
Making Sure They Have a Voice
Encouraging involvement means giving younger family members a seat at the table – to share their thoughts, voice, and opinions.
It also means giving them opportunities to make decisions.
Instead of just explaining where the family donates their money and efforts, invite them to start researching organizations or causes and present them to the rest of the family office team.
This not only helps expand the family office reach, but it also allows them to learn more about funding priorities and how new causes or organizations meet those.
Giving younger generations opportunities like this creates a sense of ownership and also keeps older generations learning more about new perspectives.
Thinking Long-Term
Family offices often have longevity and legacy in mind.
For this reason, some family offices establish a separate philanthropy committee that includes only next-generation individuals.
This may include teenagers, university students, or young adults who are passionate about discussing charities, reviewing grants or nonprofit proposals, and more.
Having this team work alongside the more established philanthropic team gives younger people the opportunity to hone their leadership skills and gain more confidence in asking questions and making decisions surrounding charitable initiatives and giving.
Step Out from Behind the Desk
Donating money is a big part of philanthropy, but it’s not the only way to make an impact.
Remember that philanthropic efforts also include action and hands-on family office effort through volunteering is a great way to include multiple generations.
Whether it’s serving at a community organization, participating in cleanup projects, supporting youth programs or volunteering at local nonprofit events, shared experiences allow for bonding, establishing memories, and establish the fact that giving back isn’t just about writing checks – it’s about service, too.
Incorporate Education
Family offices may consider offering educational workshops or mentorship opportunities for younger generations.
Some important topics to consider could be
- Understanding how private foundations and donor-advised funds work
- Researching and evaluating nonprofit organizations
- Understanding grantmaking and charitable giving strategies
- What tax considerations are associated with philanthropy
- How to measure charitable impact
- Best tips for creating budgets
This type of education gives younger people the tools they need to understand all of the facets that go into building and executing an effective philanthropic mission.
The Bottom Line
At the end of the day, family office philanthropy should be about passing down the values that are most important to the family.
When younger generations are given a significant role in shaping the family’s philanthropic future, they are better prepared to become great stewards of its resources and continue a legacy of true generosity.
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