Giving is more than just an act—it’s a way to build a legacy and strengthen family bonds across generations. Called “family philanthropy,” you and your family have an exciting opportunity to make a difference in a meaningful way. You can more effectively build a lasting legacy by aligning your family’s values with your actions (like charitable giving).

Below, we’re exploring the benefits of family philanthropy and how to get started.

What Is “Family Philanthropy”?

Family philanthropy is simple enough to define: It’s giving charitably as a family. All family members across multiple generations can work together to support their most meaningful charitable causes and positively impact society.

The key to making family philanthropy work is to create an open dialogue and clear communication among generations. This will help you find shared values and determine what areas matter most to each family member.

While simple enough in theory, family philanthropy can be challenging—especially if family members across generations don’t share the same values (or prefer to give back in different ways). For that reason, families need to have engaging conversations to learn what each family member wants out of their philanthropic endeavors and where there may be meaningful overlap in values. 

The Benefits of Family Philanthropy

When executed seamlessly as a family, your collective giving can pack a more powerful punch than when family members give individually.

Involving everyone can also help you more effectively teach younger generations about the importance of giving—rather than telling them it’s essential, giving as a family shows the powerful impact of gifting in action.

Overall, when you’re working together to support a common cause, it can strengthen your family bonds.

How to Build a Family Philanthropy Strategy

Building your own family philanthropy strategy involves two primary steps: identifying your shared values and goal setting.

First, Identify Your Shared Values and Causes

Talk to each other about your core values or any causes you’re particularly passionate about. Perhaps a family member has received a medical diagnosis and would like to support organizations researching cures, or you have a long history of adopting pets from local shelters. Maybe your family has always been environmentally conscious or wants to support those battling hunger or homelessness. 

If you have yet to define your shared values, hold a few family meetings and encourage an open dialogue between all members. Keep an open mind, and don’t be afraid to explore different interests.

Once you’ve narrowed down your family’s values, you may find it helpful to create a family philanthropy mission statement that reflects them.

Then, Establish Your Goals and Priorities

With a vision in mind, set some short-term and long-term giving goals. Your short-term goals might include making annual donations to your favorite charity, while your long-term goals may focus on establishing a foundation, endowment, or fund that can be used for future generations.

When developing your goals and determining your giving priorities, consider your family’s overall financial situation, mission, and available resources. Charitable giving is important for many, but you must ensure that you aren’t sacrificing your family’s financial security or well-being in the process.

Getting Involved: What Family Philanthropy Might Look Like

There is no one-size-fits-all approach to building out your family’s giving strategy. If you’re unsure where to start, here are a few different ideas (depending on your long-term giving goals and budget).

Getting hands-on: If you’d prefer to donate your time and energy (or perhaps in addition to your financial donation), find local charities or branches that allow you to volunteer. The great thing about volunteering is that there’s something for everyone in your family—working one-on-one with community members, canvassing for a cause, working behind the scenes on the phone or computer, etc. You and your family may even find it worthwhile to organize family volunteer projects, like cleaning up a portion of the local watershed or collecting canned goods for your favorite food pantry.

Making direct donations: Perhaps the simplest—yet still effective—method of supporting your favorite cause is donating directly to your chosen charity. Donations might include cash, appreciated assets (like stocks), or even property and collectibles, depending on what the charity is set up to receive. 

Establishing a donor-advised fund (DAF): For those planning to contribute regularly and significantly to charitable organizations, it may be worth establishing a DAF. These funds are created specifically to hold and grow charitable contributions until you’re ready to have them distributed to your charity of choice. DAFs can help donate appreciated investments or other assets and batch your family’s donations into a single tax year (to take advantage of the charitable giving tax deduction). 

Creating a family foundation or endowment: You and your family may choose to establish a family foundation or endowment for a long-term legacy of giving. Though this is a complex and expensive process, talk to an advisor and attorney before proceeding. However, family foundations can provide a structured system for managing and distributing significant charitable funds over time. 

Instill Philanthropic Values in the Next Generation

If you have younger family members you’d like to get involved in your family’s philanthropic planning, consider finding age-appropriate activities to help them understand the importance of giving. Encourage them to set aside a portion of their allowance for charity or participate in family volunteer days, for example. Ask them what causes they’d like to support, and help them find simple opportunities.

As they age, you may want to discuss with your other family members and a financial advisor what options you have for passing down the family’s philanthropic legacy to the next generation. These might include formal education or classes, mentoring, and getting younger members involved in the family foundation or DAF. 

Interested in Family Philanthropy? We Can Help

Our Mission Street Wealth Planning team can help you identify opportunities to maximize the impact of your family’s giving. From reviewing tax-efficient gifting strategies to researching charitable vehicles, we’re here to help you make the most of your philanthropic desires and goals—while keeping your other financial priorities and needs top-of-mind.

If you’d like to learn more about how we can help, schedule a consultation to discuss your personalized family philanthropy strategy.