The last few months of the calendar year bring families together for various celebratory occasions. Integrating philanthropic conversations at family gatherings provides a unique and powerful opportunity for families to bond and reinforce their values to address the world’s most daunting issues. 

In preparation, family members can visit charities, review proposals, research several nonprofits with similar missions, and use meeting time to discuss each organization’s methods and determine which is the best candidate for your gifts.

A family philanthropic discussion also enables collaboration between family members. Centering a conversation on giving is also an excellent way to inspire the next generation by encouraging healthy attitudes about helping others and instilling a sense of financial responsibility.

Whether your family has a long philanthropic history or you’re just getting started, it’s never too early — or too late — to engage your family in giving. Continue reading to learn about potential challenges and tips to help you make the most of your family’s journey into philanthropy.

Potential Challenges 

Family Dynamics and Interpersonal Relationships 

While your family may be close-knit and able to work well together, making collective decisions about money can reveal deeper and lesser-known differences. Proactively establishing a formal structure and process can encourage open discussions so all voices can be heard and put a system in place to handle conflicts. 

Doing so can be as simple as developing formal or informal guiding principles to clarify procedures, rules, and values or working with a consultant to facilitate the conversation.

 

Ownership and Control 

It’s not unusual for a family to have a dominant wealth creator — often the person who controls the purse strings in the family’s giving. As a result, those who didn’t create the wealth may not feel empowered to voice their opinions, especially if the matriarchs or patriarchs seem unwilling to give younger generations the autonomy to make decisions.

From the outset, family members should decide who will be involved in philanthropic giving, including children’s spouses and grandchildren, and who will have decision-making power. 

Once the parameters are determined, discussing the decision-making process is essential. For example, will it be by consensus or via democratic decision- making? Are there instances when a delegated approach is the best approach? 

Fundamental Differences in Core Beliefs, Politics, or Values

Different beliefs, political leanings, and values can play an enormous role in family philanthropy, especially when engaging in multigenerational giving.

Conflict will inevitably ensue without an honest conversation about how to address these differences. Often, families are excited to start their philanthropic journey but fail to understand the value in the critical step of examining values and priorities.

The conversations should go beyond core values to include what family members are most passionate about funding and the boundaries that determine what they won’t fund. Engaging in this necessary step will help focus on areas of agreement, rather than differences, to reduce possible clashes.

 

Differing Areas of Interest

Rarely will families universally agree on which causes to support. But unfortunately,  supporting too many causes may reduce the impact of your gift. For example, what do you do when you and your spouse are deeply passionate about education, your parents care deeply about the environment, and your children are committed to investing in equitable healthcare?

There are several solutions, depending on financial resources. One option is for families to define anchor causes that everyone agrees to support. Then, discuss the problems, answers, and places you care about most. Examining those priorities may reveal intersections between issues that weren’t immediately evident. 

Sometimes, creating or supporting multiple funds or foundations is the answer.

However, families might also find ways to integrate various issues or learn about them together and see if they reach agreements once they know more.

Steps To Facilitate Family Giving

Several steps can make the family giving process smooth. Some may be particularly helpful if you’re new to family giving. However, others are critical for any family-giving effort.

Organize a Family Giving Orientation

Create an orientation that encourages a discussion of family history, the family’s founding philanthropic legacy and vision, and any historical grantmaking by family members and their prior funding guidelines.

Ask Family Members To Articulate Their Giving Goals

Consider requesting that each family member express their family giving priorities in writing, rank them, and indicate the timing, amount, and mode of giving they would like the family to consider.

Develop a Family Mission Statement

Using each member’s giving goals statement, look at common goals and priorities. Next, discuss competing goals and prioritize them as new opinions are offered. Finally, incorporate top goals into a charitable mission for your family.

Establish Structures and Processes

It’s critical to ensure that structures and processes are in place from the beginning. For example, discuss how the family will make decisions, an approach to handling conflict, and delineate the roles and responsibilities of each family member. 

Start Small and Decide Where To Give

It may take some time to understand what’s involved in collaborative grantmaking. In addition, it will also take time to discover how family members can best work together. Begin making choices about where and when to give, and set ground rules for making these decisions as a group.

Set Realistic Expectations About Interest Levels and Time Commitment

Each family member’s capacity for philanthropic involvement will differ depending on their personal and professional journey. Making an honest assessment from the start will ensure that family members’ roles are appropriate to their situation.

Select a Giving Vehicle

Investigate giving vehicles that enable family members to be as active in the process as they desire and further financial goals.

Assess Your Impact 

Establish a time to review regularly the impact of your family giving strategy. Devoting even a small amount of time at family events or holidays to this activity will allow you to enjoy the results of your giving.

Leverage Expertise 

There’s a lot to be considered when building your family’s giving strategies. Beyond family dynamics, gathering vetted information about charities, understanding the tax implications, and performing due diligence to determine possible involvement are needed. 

Whether you’re experienced in family giving or just beginning your journey, TrustBridge Global offers an extensive range of knowledge to enhance your grantmaking capabilities. Working with the TrustBridge global network ensures that your funds are distributed where they can make a meaningful difference.