Giving Compass’ Take:
• The author shares important benefits that can come from family philanthropy foundations and the importance of discussing the intricacies of charitable giving with family members.
• How do family philanthropist dynamics differ from others?
• Read the Giving Compass Guide on Family Philanthropy to learn more.
Although you may not know it, you likely began to learn about money at a young age. If you’re like most people, you had a piggy bank when you were young. Your parents probably encouraged you to only break into it to buy something special. Fortunately, the piggy bank concept has changed to include sharing. Some of the new banks have three compartments for categorizing money labeled: save, spend and share.
While saving to buy something isn’t such a new concept for kids, I think it’s great idea to start them early thinking about a portion of their allowance money going to help others.
Conversations would follow about the reasons for the different categories, providing balanced ideas about money.
What philanthropic causes are you interested in? Since children follow what they see us modeling, talk to them about why you give to these causes. It can be a natural springboard for discussions around family values. Being intentional about including the whole family gives everyone an opportunity to take part in making a difference.
A family foundation is a private foundation funded by the family’s assets and can be run by family members following IRS guidelines. It can continue as long as you wish and can be adapted as your family’s interests change. There can be tax advantages, but many people like the idea largely because control remains within the family.
The Foundation Source talks about the family foundation as an opportunity for making philanthropy a family affair. They mention five important immaterial benefits of a private foundation for families:
- Help instill values and traditions
- Maintain family ties
- Deepen social consciousness
- Increase personal fulfillment
- Develop “real-world” skills
Read the full article about family philanthropy by Judy Hulsey at Investopedia
If you are looking for more articles and resources for Family Philanthropy, take a look at these Giving Compass selections related to impact giving and Family Philanthropy.
Are you ready to give?
If you are interested in Family Philanthropy, please see these relevant Issue Funds, Charitable Organizations or Projects where you can get involved.