Justin Miller, National Wealth Strategist, BNY Mellon, writes about how to create a family philanthropy program on WealthManagement.com.
Mr. Miller notes that 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 with the entire family—ideally, one where each member of the family proactively participates. He notes that research has shown that: (1) conversations between parents and children about charity have a greater positive impact on children than parents simply serving as a silent role model through their own philanthropic activity; and (2) talking about charity is equally effective regardless of a parent’s income level or a child’s gender, race and age.
To maintain a strong family philanthropy program over time, the program should have the following four components:
1. Philanthropic projects should be chosen based on shared family values.
2. Family members should proactively participate in shared decision making.
3. Results should be reviewed and successes should be measured and evaluated.
4. The family should continually learn from experience in order to improve in the future.