Recently, we’ve heard from several advisors that they are beginning to observe more instances of conflict in family philanthropy among their clients. In particular, it seems that clients who strive to engage multiple generations in their charitable giving are bumping up against disagreements around questions of purpose, governance, and decision authority. 

If this trend is emerging among your estate planning, tax, or wealth management clients, you may find it helpful to check out a recent podcast, “Building Trust and Managing Conflict in Family Philanthropy,” from the Stanford Social Innovation Review. You’ll see that your clients are not alone; conflict can be a very natural part of charitable giving strategies that span multiple generations. 

The community foundation can help! Here are three tips for working with clients to build a philanthropy plan across multiple generations.

Put it on the record

Common sources of frustration, especially among younger generations, are unclear roles, power imbalances, and a lack of documented history explaining why past philanthropic choices were made. The team at the community foundation can help your clients be more intentional about sharing stories, values, and governance history (in writing or recording) to provide continuity. 

Encourage real involvement 

Children and grandchildren will likely be more engaged with the family’s philanthropy if they also have opportunities to give and learn independently. For example, our team can work with you and your clients to establish a modest donor-advised fund when each young child reaches adulthood. We can also help identify volunteer activities together, as well as help arrange and facilitate full family meetings to surface concerns or aspirations.

Formalize a structure

Establishing a fund, or series of funds, at the community foundation can be a very effective solution for many of your clients who are launching a multi-generational giving strategy. As our region’s home for charitable giving, the community foundation’s tools are extremely flexible and can be used to engage an extended family in the process of charitable giving. Donor-advised funds, for example, are popular because they allow your client to name children and grandchildren as successor advisors. 

Plan for the future

What’s more, the community foundation can work with you and your client to develop a charitable giving plan that extends for multiple future generations, including providing strategic grantmaking support and sourcing educational opportunities to help all generations of the client’s family gain deep knowledge about local issues and nonprofits making a difference.

Reach out to the community foundation at [email protected] anytime! We welcome the opportunity to work with you and any of your philanthropic clients to establish an enduring and rewarding family philanthropy program that is customized to meet each client’s unique purpose.