Securing the Future of Giving: The Power of a Next Gen Committee in Family Philanthropy

By: Kaky Grant, Principal and Founder

For philanthropic families, ensuring the continuity and vitality of their giving is a profound responsibility. It’s not just about assets; it’s about sustaining and translating a legacy of impact and shared values across generations. In this critical endeavor, one of the most effective succession planning tools is the creation of a NextGen Committee.

Why a NextGen Committee is Essential for Succession

Succession planning in family philanthropy is defined by the National Center for Family Philanthropy (NCFP) as the strategic process of identifying and developing future leaders to ensure a seamless transfer of family values, donor intent, know-how, and institutional memory. A NextGen Committee directly addresses these needs by:

• Cultivating Expertise and Shared Purpose: The committee serves as a training ground where younger family members can gain hands-on experience in the fundamentals of philanthropy—from governance and grantmaking to understanding financial policies and nonprofit due diligence. This practical experience is far more valuable than simply observing from the sidelines, and they can bring what they learn in their family foundation to boards of other civic organizations.
• Fostering Family Harmony: Bringing the next generation together to work toward a shared philanthropic goal strengthens family bonds and promotes intergenerational understanding. It provides a neutral, high-purpose platform for communication, negotiation, and collaborative decision-making. Families that thrive across multiple generations often prioritize a shared purpose over individual interests.
• Infusing Fresh Perspectives: Younger generations often bring new insights, technological fluency, and a focus on emerging social issues or innovative funding models, such as impact investing. A NextGen Committee allows the core foundation to benefit from these fresh perspectives while maintaining guardrails established by the founders.
• Testing and Onboarding: It allows the family to assess the interests, commitment, and skills of potential future board members without immediately placing them in a full fiduciary role. It’s a crucial stepping stone that prepares successors for their future responsibilities, ensuring continuity is both planned and successful.

Real-World Examples in Action

Families are finding creative ways to structure these committees to suit their unique needs:

• The Learning Ladder Approach: A sophisticated strategy is to develop a phased “learning ladder” or pathway to board service. For example, some foundations like the Sartain Lanier Family Foundation distinguish engagement activities by age group:
  • Ages 15+: Focus on education, site visits, and volunteer activities.
  • Ages 25+: Formalized service on a NextGen Committee with a small, independent grantmaking budget and education requirements that help transition members to board service.
  • Ages 30+: Eligibility for consideration for a full board seat, leveraging the experience gained.

A Dedicated Grant Fund: Many NextGen Committees are given a specific, independent grantmaking fund (e.g., 5-10% of the annual grant budget) to manage entirely on their own or with Board approval. This gives them full autonomy to define their mission, establish criteria, and make final decisions. The Laird Norton Family Foundation’s Sapling Fund is a great example, where participants select an issue area to fund each year, giving them a sense of ownership and practice in collective decision-making.

Guidance from the National Center for Family Philanthropy

NCFP provides invaluable resources for families embarking on this journey, emphasizing that thoughtful engagement is key. Their work, including resources like the Navigating Family Philanthropy: Planning for Legacy and Succession guide, highlights essential steps that align perfectly with the function of a NextGen Committee:

1. Start Early and Be Proactive: Don’t wait for a crisis or an imminent retirement. The best time to plan is when the current leadership is stable.
2. Identify Guardrails and Open Gates: Before inviting the next generation, the current generation must clarify what is rigid (the foundation’s core values, mission, or specific policies) and what is flexible (new areas of focus, grantmaking strategies, or methods of engagement). This transparency ensures the incoming generation respects the founder’s intent while having the freedom to innovate.
3. Provide Structured Education and Training: A NextGen Committee is the perfect venue for providing formal learning opportunities in governance, finance, and programmatic areas. NCFP frequently offers conferences and webinars geared toward rising leaders, which committees can utilize.

At Grant Philanthropic Advisors, we consistently advise our clients that preparing future family leaders is not a passive event, but a strategic, long-term commitment. A NextGen Committee is a structured, low-stakes environment that builds the capacity, confidence, and cohesion necessary for a successful transition. The next generations of families have the opportunity to practice governance among themselves and also have a window into how the older generations make decisions and shape the work of the foundation.

About Grant Philanthropic Advisors:
We’re an independent firm helping clients to focus and maximize their philanthropy—in turn, strengthening the fabric of our communities. Founded in 2019, we help donors move from responsive patterns of giving by assisting clients to identify values and become more strategic in their philanthropy. Our goal is to help donors to become more effective as change-makers.

We work with foundations (large and small staff teams), donor advised fund holders, multi generational families, individuals, philanthropy supporting organizations and corporations to design philanthropic strategies.