How Advisors Can Help Families Manage Philanthropy Across Generations
There are many reasons for the widening of views across the branches of the family tree. A few examples include:
Geographic distance: branches of the family moving across the country or even the world
Career: some may leave the family business or pursue a professional area that is distinct from the historical driver of wealth
Personal life: marriage/divorce, having children, religious experiences, student vs. working status
Whether intentional or incidental, individuals naturally deviate from a perceived “baseline” of values within a particular family, which can manifest across emotional, geographical or educational spectrums. In some cases, this distance might put family members on opposite sides of certain issues.
The key to engaging clients in these complicated conversations (where the end goal is to agree on benevolent acts of public service) is to encourage listening to one another. Give every branch of the family tree an opportunity to share their values. Most importantly, learn why they feel the way they do and why giving in a particular area is important to each member of the family.
Consider Thanksgiving dinner — the stereotypical family always has a set of two people with polar opposite views. More likely than not, those two people share many other commonalities and many other points of agreement. When conflicting values bubble to the top of philanthropy planning, it’s helpful to explore other ways in which family values overlap.
Perhaps one branch of the family supports organizations tackling food insecurity and sustainable agriculture while another now focuses efforts on K-12 education. There may be ways to combine the two, such as taking funding elementary school meal programs for children living in food-insecure households. Another solution for this example would be to work with high schools to build community gardens and lesson plans around sustainable agriculture.
There is no universal solution that suits every family. Commonly, charitable giving can be allocated in different proportions to various causes and family branches. In other cases, certain children or grandchildren are given their own focus area to champion within their philanthropic efforts.
Defining the values of the current and upcoming generations, recognizing commonalities and divergences in interests, and establishing a structure for joint and individual giving can enhance the family’s involvement and harmony regarding its charitable principles.
Craig Styles is a vice president at Morgan Stanley. He is a philanthropic advisor with a diversified history of working in the financial services and philanthropic consulting industries. He is skilled in mission and vision development, charitable giving strategies, intergenerational philanthropy, nonprofit governance, fundraising and development strategies and internal operations.
