Family Philanthropy: Preparing the Next Generation for Success.

• Author: Miller, Justin

for parents and grandparents looking to transfer values to future generations and create a lasting legacy, family philanthropy can't be beat. The benefits of philanthropy are extraordinary and well-documented. Giving can boost happiness and satisfaction, increase life expectancy, reduce stress and ease depression (Dunn EW, Aknin LB, Norton MI, "Spending Money on Others Promotes Happiness," Science, Vol. 319, Issue 5870, March 21, 2008; Harbaugh W, Mayr U, Burghart D, "Neural Responses to Taxation and Voluntary Giving Reveal Motives for Charitable Donations," Science, Vol. 316, Issue 5831, June 15,2007).

However, family philanthropy isn't just about giving to others; it's about giving together. Collective, communal and cooperative giving helps to create stronger family bonds and solidify family values. By helping clients make gifting decisions as a family, we can empower clients' younger family members to develop a variety of skills including communication, negotiation, shared decision-making, leadership, accountability, investing, financial literacy and responsibility to help others.

As an added benefit, family philanthropy leaches the same skills that are necessary to prepare the younger generation to manage and expand the family's wealth in the future.

Establishing a Family Philanthropy Program Family philanthropy is not limited to the wealthiest families with private foundations. Donor-advised funds serve as a great cost-efficienl resource for parents or grandparents to begin family philanthropy programs for younger members of their families. Because these funds typically offer user-friendly online platforms without the expense and administrative burdens of a private foundation, they are often the ideal charitable vehicle to help the younger generation become a part of a family philanthropy program.

Before engaging in family philanthropy, it's important for the elder generation to first facilitate a family meeting. which should include a meaningful discussion about philanthropy ideally, one where each member of the family proactively participates. Research has shown that conversations between parents and children about charity have an even greater positive impact on children than parents serving as silent role models through their own philanthropic activity ("Women Give 2013: New Research on Charitable Giving by Girls and Boys," Lilly School of Philanthropy, Indiana University, Women's Philanthropy Institute, Dec. 2013).

With the help of...