‘How do I involve our family in philanthropy and structured giving?'
In family businesses, success is often measured not just by financial returns but by the legacy left behind. For many families, that legacy includes giving back, supporting causes that reflect their values, strengthening communities, and fostering a culture of generosity across generations.
But how do you move from good intentions to a structured, inclusive approach to philanthropy that engages the whole family?
Start with Shared Values
Every family business has a story. Often, it’s a story of resilience, hard work, and a deep commitment to community. These stories are fertile ground for identifying shared values – whether it’s education, health, the environment, or the arts.
Start by gathering your family to talk about what matters most. What causes have touched your lives? What kind of impact do you want to have? These conversations can be powerful, not just for shaping your giving strategy, but for strengthening family bonds.
Make It a Family Affair
Philanthropy is most meaningful when everyone has a seat at the table. Involving multiple generations; parents, children, even grandchildren, creates a sense of ownership and continuity.
Here are some examples of how to achieve that:
- Family Giving Councils: Create a formal or informal group that meets regularly to discuss charitable goals, review opportunities, and make decisions together.
- Generational Projects: Encourage younger family members to research causes they care about and present them to the group. It’s a great way to build leadership skills and foster empathy.
- Volunteer Together: Sometimes, giving time is just as impactful as giving money. Volunteering as a family can be a powerful way to connect with each other and your community.
Structure for Impact
While spontaneous giving has its place, structured philanthropy allows your family to be more strategic and sustainable in its impact.
Options to consider include:
- Establishing a Private Ancillary Fund (PAF): A PAF can provide a tax-effective way to manage charitable giving over time. It also creates a formal structure for family involvement and governance.
- Creating a Giving Policy: Document your family’s philanthropic mission, focus areas, and decision-making process. This helps ensure consistency and clarity, especially as the family grows.
- Measuring Impact: Develop simple ways to track the outcomes of your giving. This not only ensures accountability but also helps the family see the tangible results of their generosity.
Embrace the Journey
Philanthropy isn’t a destination, it’s a journey, and like any journey, it’s richer when shared. By involving your whole family in giving, you’re not just supporting worthy causes, you’re nurturing a culture of purpose, empathy, and unity that can last for generations.
Family businesses are uniquely positioned to lead the future of philanthropy. If you’re ready to explore structured giving or want to learn how other families are making an impact, we’re here to help.
By South Australian based Family Business Accredited Advisor
Mark Lane
Director, Jaquillard Minns Chartered Accountants
