CHARITABLE PLANNING

Hannah Shaw Grove

When your clients want to build a family legacy , getting the next generation involved in philanthropy can pave the way for lasting impact .

WEALTHY FAMILY ’ S FINANCES AREN ’ T ALWAYS TRANSparent to all its members . Many times , it ’ s only a small group of people actually involved with the money and finances who get to see the complete financial picture . That ’ s one advantage of philanthropy in a wealthy family ’ s dynamic : Not only does it help the family build a legacy , but it offers its younger members new ways to get involved regardless of the motivations for or the charitable vehicles used in each family ’ s giving .

Philanthropy is a framework that facilitates bonding as family members of different generations work together to identify their core values , locate shared goals and passions , and deploy assets in a way that creates impact and aligns investments with intent . Philanthropic activities can also help families teach younger members the skills they might need later to take on bigger roles in family enterprises .

When you help your clients align their philanthropic goals with their wealth management and legacy planning , they ’ re better equipped to forge the multigenerational connections they ’ ll need to ensure long-lasting wealth and impact for generations to come .

You can use the following insights to guide your charitable clients as they engage younger family members in their philanthropy and , ultimately , strengthen their family legacy .

By involving younger family members in the decisions and planning , your clients seize a pivotal chance to connect shared history , stories , ideals and values across the generations .

Embrace The Opportunity

By involving younger family members in the decisions and planning , your clients seize a pivotal chance to connect shared history , stories , ideals and values across the generations . Many families can set the stage for the growth , connection and maturing that occur when rising family members step into leadership positions — or help create new ones .

Your clients ’ charitable mission can only improve when they let new voices blend in , people with new strengths who can forge new roles and directions in the giving efforts . When decision-making bodies are more diverse , they make better decisions , whether they are working in formal governance structures ( like a family foundation ’ s board ) or making informal efforts ( perhaps in dinner-table conversations ). By involving newer family members in giving , your clients not only offer the next generation learning experiences but ensure the continuity of the grant-making effort and strengthen its impact .

Acknowledge The Challenge

It ’ s a fact : Navigating family dynamics is hard but necessary . Your clients and their family members may not have identical values , so it can take some work for you to discover which ones they have in common . Reaching that point means they must take stock of their individual interests and beliefs and

JULY / AUGUST 2023 | FINANCIAL ADVISOR MAGAZINE | 21