The Power of Family Legacy + Philanthropy
In a world that often prioritizes individual success, the concept of family legacy and philanthropy stands as a beacon of inspiration. By embracing philanthropy as a core element of their legacy, families can create a ripple effect of positive change that spans generations. Spending time to define what your legacy is and means to you proves invaluable to the future generations of your family.
Understanding Family Legacy
Family legacy is more than just the wealth or possessions passed down through generations; it encompasses the values, rituals, and principles that define a family’s identity. A strong family legacy reflects the collective story, achievements, and contributions of its members. It’s about preserving the essence of what the family stands for and ensuring that future generations continue to build upon that foundation.
The Role of Philanthropy in Family Legacy
For many families, philanthropy is a way to honor their ancestors’ values and extend their legacy beyond personal achievements. By investing in causes that align with their values, families can address critical issues such as education, healthcare, economic mobility, environmental sustainability, and more. This act of giving not only improves the lives of others but also reinforces the family’s commitment to making the world a better place.
Benefits of Philanthropic Legacy Planning
Spending time to create a family legacy and sharing that process with family members serves as a guide post for future generations and proves invaluable to family decision making.
1. Inspiring Future Generations: Philanthropy instills a sense of purpose and responsibility in younger family members. Witnessing the impact of their family’s charitable efforts motivates them to continue the tradition of giving back and become compassionate, socially-conscious individuals. Generosity is baked in a family’s DNA.
2. Strengthening Family Bonds: Engaging in philanthropic activities together fosters a sense of unity and shared purpose within the family. It provides opportunities for meaningful conversations, collaborative decision-making, and collective problem-solving. Having a legacy and shared values to point to makes challenging conversations and decisions easier.
3. Creating a Lasting Impact: A philanthropic family legacy extends beyond the immediate beneficiaries of charitable actions. By addressing systemic issues and supporting sustainable solutions, families can create a legacy that positively influences communities for generations to come. Thoughtful legacy planning can tie a family to a particular community for generations to come even if no family member lives in that community. Legacy can reinforce the power of place and a family’s impact there.
4. Enhancing Reputation and Influence: Families known for their philanthropic efforts often gain respect and admiration within their communities. This positive reputation can enhance their influence and open doors to further opportunities for meaningful contributions. Sharing the responsibility of fostering the family legacy is an important lesson for next generations to understand.
Five Steps to Building a Philanthropic Family Legacy
Taking the time to consider family legacy and what family members should value upon the matriarch’s and/or patriarch’s death does not have to be complicated. Many clients have an ethical will–this TedX Talk highlights the importance of one.
Additionally, GPA works with clients at inflection points and bringing the next generation into the fold of family legacy planning certainly falls into that category. Read more about the timing of hiring a philanthropic advisor in GPA’s blog Timing is Everything | When to Engage a Philanthropic Advisor.
The Legacy in Family Philanthropy Framework from Fidelity Charitable and the National Center for Family Philanthropy is also a helpful resource. Below are the five major steps to creating a family legacy.
1. Define Core Values: Identifying the values and principles that the family holds dear is the first step. These will serve as the foundation for the family’s philanthropic endeavors and guide decisions on which causes to support. This is where GPA always begins their work with clients using motivational values cards from our partner 21/64.
2. Engage All Generations: Involve family members of all ages in discussions about philanthropy. Encourage them to share their passions and ideas, fostering a sense of ownership and commitment to the family’s legacy. The GPA team likes the Grandparent Legacy Project from 21/64.
3. Set Clear Goals: Establish specific, measurable goals for all philanthropic efforts. Whether it’s funding scholarships, supporting local nonprofits, committing to a particular community or advocating for policy changes, having clear objectives will help track progress and maintain focus. Philanthropists can also use data as a guide to creating a baseline for past giving to better plan for future giving. Check out GPA’s blog Navigating Philanthropy | Let Data be Your Compass for more details on the role of philanthropic data analysis.
4. Create a Giving Plan: Develop a strategic plan that outlines how the family will allocate resources, both financial and non-financial, to support chosen causes. Consider establishing a family foundation or donor-advised fund to facilitate organized giving. For more help on how to choose the right giving vehicle, check out our blog Choosing the Right Giving Vehicle.
5. Celebrate Achievements: Recognize and celebrate the impact of the family’s philanthropic efforts. Sharing stories of success, gratitude from beneficiaries, and lessons learned will inspire continued commitment and growth among the family. Make sure everyone in the family has a copy of this legacy document, whether it’s a letter, strategic plan and/or ethical will. Future generations will celebrate the contributions and ultimately have a North Star based on this family legacy.
Conclusion
A well-crafted family legacy fosters a sense of belonging, pride, and responsibility among its members. It encourages them to uphold the family’s values, strive for excellence, and contribute positively to their communities. This legacy becomes a guiding light, inspiring each generation to leave their mark on the world in meaningful ways.
About Grant Philanthropic Advisors:
We’re an independent, Charleston-based 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. Our team has a combined 100 years of experience working in the field of philanthropy.
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. We work with philanthropies that grant $1 million to $40 million annually. Our clients span the Southeast with a concentration in Charleston, Atlanta and Charlotte.