Hannah Shaw Grove CHARITABLE PLANNING
Hannah Shaw Grove CHARITABLE PLANNING
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ily ’ s philanthropic priorities . It can also be instructive to have kids and young adults join site visits to nonprofits or events sponsored by the organizations the family is choosing to help .
It ’ s natural for tensions to arise when some people feel more empowered to make decisions and others feel less so . Family foundations that have been run solely by their founders , for instance , may find it difficult to transition to a more democratic process as new generations become involved .
That ’ s why it ’ s preferable to create a formal process for bringing in family members , a process that brings objective criteria to a transition that so often involves subjective viewpoints . Such a formal approach to crucial transitions is better than , say , an informal family discussion . Otherwise , it can be hard for the younger generations to step into leadership roles if they feel they don ’ t have clear authority to question , challenge and make decisions . This means families should put governance practices and decision-making structures in place , formats that give next-gen family leaders a solid base when learning how to engage , integrate and contribute .
Plan Transitions Carefully The older generation should take the time to discover their offspring ’ s passions and find roles for them in their philanthropic endeavors , matching the roles with younger family members ’ interests and leadership abilities , finding out who has the enthusiasm , education and drive for various responsibilities . That kind of thinking will help a family ’ s legacy survive and thrive .
One of the current questions that family foundations are grappling with is
It can be instructive to have kids and young adults join site visits to nonprofits or events sponsored by the organizations the family is choosing to help .
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Request your FREE subscription at www . fa-mag . com then create a common , shared vision with which they can all move forward . It ’ s a given that they ’ ll all have different views ; the challenge is to figure out how to align these views in the best ways .
It ’ s also important to recognize that a family ’ s philanthropy often mirrors its culture , dynamics and communication styles . To overcome the challenges of working together , family members must be able to communicate clearly with one another about their differences and similarities — and to navigate around any dysfunction .
One approach is to start early with education . Younger members should be involved with choosing the charities if they are going to understand their fam- whether to bring outsiders into the fold , a trend noted by the National Center for Family Philanthropy . It ’ s not always easy for an outside party to walk into a family setting , so your clients must have good reasons for bringing in new faces and be able to communicate the ways these people would bring value and new expertise to the table . You should advise your clients to be mindful of these actions , whatever they are , because the family is laying the groundwork for its legacy — not to mention the next stage of its philanthropic work — and defining what it wants its messaging to the world to be .
When you help your philanthropic clients involve children , grandchildren , etc ., in the planning , you ’ ve become instrumental in helping them build a lasting legacy .
HANNAH SHAW GROVE is chief marketing officer for Foundation Source , the nation ’ s largest provider of specialized support services for private and family foundations .
22 | FINANCIAL ADVISOR MAGAZINE | JULY / AUGUST 2023 WWW . FA-MAG . COM