Compardo, Wienstroer & Janes at Moneta –
Family philanthropy offers a unique opportunity to strengthen bonds, instill shared values, and create a lasting legacy of giving. When done thoughtfully, it can amplify the positive impact a family has on society and future generations. However, like any long-term endeavor, navigating family philanthropy requires strategy and foresight. The good news? By understanding some common challenges and proactively addressing them, families can avoid pitfalls and set themselves up for success.
Here are five key considerations to keep your family’s philanthropy aligned, impactful, and rewarding:
Embrace Different Timelines, Celebrate Different Contributions
One of the strengths of family philanthropy is the diversity of its participants—each member brings unique experiences, skills, and perspectives. However, not everyone will engage at the same stage of life. Some may dive into philanthropy early, while others may become more involved later, once they’ve established their careers or families. Instead of expecting everyone to contribute at the same time or in the same way, create flexible opportunities for involvement. When you allow family members to engage on their own timelines, you foster a sustainable and inclusive culture of giving that grows over generations.
Focus on Shared Values, Not Uniform Causes
It’s natural for family members to have different passions and interests, especially when it comes to charitable causes. Instead of seeking consensus on every issue, focus on the underlying values that unite the family. What drives your collective desire to give? Whether it’s a commitment to education, social justice, or environmental sustainability, anchoring your philanthropy in shared values allows room for individual expression while maintaining cohesion. This approach promotes harmony and ensures that the family’s philanthropic efforts are both broad-reaching and deeply personal.
Set Clear Ground Rules to Foster Collaboration
While the spirit of giving often feels informal and personal, having clear processes in place can prevent misunderstandings and foster collaboration. By agreeing on key principles, such as decision-making structures, the family’s overarching mission, and success metrics, you create a framework that everyone can trust. Ground rules don’t need to stifle creativity—they provide the foundation for thoughtful, respectful engagement. When everyone understands their role and responsibilities, it allows the family to work together more effectively and minimizes the potential for conflict.
Protect Your Legacy with Accountability and Transparency
Philanthropy comes with great responsibility, and managing the family’s charitable resources requires careful stewardship. Missteps in the application of funds, even if unintentional, can have lasting consequences. To ensure the longevity and integrity of your family’s philanthropic efforts, it’s crucial to maintain transparency and adhere to ethical standards. Regular audits, clear reporting, and external oversight can safeguard your family’s legacy, ensuring that your generosity continues to benefit the community for years to come.
Prioritize Open, Ongoing Communication
Family philanthropy thrives on strong communication. Without it, even the most well-intentioned efforts can lead to misunderstandings or frustration. Regular, open discussions about goals, progress, and challenges keep everyone aligned and engaged. Create a space where all voices are heard and valued—this not only strengthens relationships but also fosters innovation and shared commitment. Whether it’s through annual family meetings or casual check-ins, nurturing a culture of respectful dialogue will help your philanthropy flourish.
Charting a Path to Enduring Impact
Family philanthropy is an exciting, lifelong journey with the power to create profound, lasting change both within your family and in the broader world. By taking a strategic approach—embracing flexibility, focusing on shared values, setting ground rules, ensuring transparency, and prioritizing communication—you can unlock your family’s full philanthropic potential.
Are you ready to build a legacy that endures for generations? Our advisors at Moneta can help you craft a tailored strategy that aligns with your family’s unique vision and values. Connect with us today at thecwjteam@monetagroup.com to explore how we can support your philanthropic goals and elevate your giving journey.
© 2024 Advisory services offered by Moneta Group Investment Advisors, LLC, (“MGIA”) an investment adviser registered with the Securities and Exchange Commission (“SEC”). MGIA is a wholly owned subsidiary of Moneta Group, LLC. Registration as an investment advisor does not imply a certain level of skill or training. The information contained herein is for informational purposes only, is not intended to be comprehensive or exclusive, and is based on materials deemed reliable, but the accuracy of which has not been verified. Trademarks and copyrights of materials referenced herein are the property of their respective owners. Examples contained herein are for illustrative purposes only based on generic assumptions. Given the dynamic nature of the subject matter and the environment in which this communication was written, the information contained herein is subject to change. This is not an offer to sell or buy securities, nor does it represent any specific recommendation. You should consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. Past performance is not indicative of future returns. All investments are subject to a risk of loss. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. These materials do not take into consideration your personal circumstances, financial or otherwise.
