How can I deal with family issues?
Philanthropy provides an excellent way for members of wealthy families to remain connected with the world and as well as to one another. Charitable foundations can also be an excellent tool for teaching younger family members the responsibilities and good management of wealth. They can bring the family together, instil family values in the next generation, and teach life skills.
At the same time, successful family philanthropy requires careful planning, as well as the commitment and active participation of all involved. It is a long-term, thoughtful and thought-provoking process.
Family dynamics influence the whole of wealth management, not just philanthropy. But philanthropy, because it is so personal, may raise particular issues. Some points to consider are the following.
- Families may welcome having an objective outsider who can help them explore the values they share and jointly express through giving.
- Be prepared to start exploring family values early on, when you first come to ask the giving question.
- In family discussions, remember to encourage everyone to speak so that no one member dominates – or consider holding individual conversations.
- Not every question about how the family is going to be giving needs to be answered before they decide that they want to give and to explore the matter further.
- The issues thrown up by such discussions can go deep, relating to power balances, expectations of inheritance, personal relationships and so on, and you may wish to consider working with a family systems expert or a family psychologist.
And see here for new research into trends in family foundation giving. Among other things, this reveals that UK family foundations give more than in the US.
We have also compiled a reading list for individual and family philanthropy.
