Giving Compass' Take:
- Here are three steps to help push family philanthropy forward by ensuring that charitable giving values move across generations.
- What are some of the generational gaps that exist in philanthropy?
- Take a look at the next generation of philanthropists.
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Charitable giving is deeply woven into the fabric of wealth planning for most affluent individuals. According to BNY Mellon Wealth Management’s recent Charitable Giving Study, 91 percent of survey participants agree that a charitable giving strategy was part of their overall wealth strategy. That figure jumped to 100 percent for Gen X.
While all generations are committed to philanthropy, each generation favors different causes and has a distinct vision of the best way to support those organizations. According to Cerulli Associates, the Great Wealth Transfer is projected to pass $68 trillion to the next generation over the next 25 years.
Preparing for this massive shift, it’s important to ensure that wealth and family values are preserved and transferred responsibly across generations. These three steps can put families on the right path:
- Start the conversation: The first step is to open the lines of communication and speak frankly about philanthropy as a family. Be proactive about discussing legacy and values.
- Identify common threads: A Bridgeworks study found that Baby Boomers are inclined to donate to churches, local social services, children’s charities and animal rescues; while Millennials tend to gravitate toward health charities, human rights and international development. Rather than focusing on differences, families should coalesce around commonalities.
- Put a plan in place: Once a family has identified shared beliefs and learned about various approaches to giving, the next step is to meet with their wealth advisor and create a plan. While nearly all affluent individuals agree that philanthropic planning is essential to wealth planning, roughly half currently have a charitable giving strategy, according to our recent HNW study.
Read the full article about family philanthropy by Crystal Thompkins at Worth.