Tips for Supporting Your Clients’ Family Philanthropy

Family philanthropy offers a powerful way to have an impact on the causes that matter most to your clients. It can also bring families closer throughout the year, by creating a forum for shared experiences and values.

Of course, family philanthropy is not always simple. Generations may not share the same interests or motivations for giving. They may approach giving in different ways—some may be focused on traditional grantmaking, while others want to invest for impact or experiment with new approaches.

There are many structures that families can use to practice family philanthropy, but one of the most straightforward is a donor-advised fund (DAF). DAFs offer a streamlined, flexible approach to philanthropy, making it easier for families to support the causes they care about while also involving all family members in the decision-making process.

They also provide an excellent platform for involving children and other family members in philanthropy. Families can collectively decide on which causes to support, fostering a shared sense of purpose and teaching younger generations about the importance of giving back. This collaborative approach may help to instil values of social responsibility in children from a young age.

Engaging other members of a family in philanthropy and the process of charitable giving may also help your clients to create a platform for giving to continue beyond one single lifetime and could start a legacy of generous donors among the family.

Here are our top three things to consider when discussing family philanthropy with your clients.

1. Create a giving plan.

This should be the first step of family philanthropy. No matter how expansive their philanthropic aspirations might be, encourage your clients to think about how they want to get involved as a family and what resources they wish to commit.

2. Decide on the right giving vehicle.

Most families will choose between setting up a private charitable trust or foundation or setting up a donor-advised fund (DAF) to manage their giving. DAFs offers several advantages. DAFs offer a streamlined, flexible approach to philanthropy, making it easier for families to support the causes they care about while also involving all family members in the decision-making process.

3. Have a succession plan.

Talking about the family’s legacy is important. Ask whether there are family members who would like to take a leadership role in the future. Explore if the next generation intends to continue with the same mission or pursue other causes. Equally, discuss whether your client would be interested in setting up multiple DAFs for different family members during their lifetime to allow for a greater degree of flexibility.

Participating in family philanthropy can be a deeply rewarding experience for your clients, where each generation of the family is involved in a conversation about their values and goals.

To find our more, visit www.nptuk.org or please contact us.

About the Author

John Canady, CEO of National Philanthropic Trust UK, has 25 years of experience working across the business, nonprofit and government sectors. He specializes in creating and managing philanthropic funds for donors and family offices around the world who wish to base their philanthropy from the UK.