Saturday, February 9, 2013
Wealthy families usually try to encourage interdependence among their children by creating a family foundation, a nonprofit organization meant to give away money to charitable organizations. When these plans work out, they can serve as an example to families who are not as wealthy who can pass down other shared assets.
One issue that some families have encountered when setting up a family foundation is that later generations may not favor the same charities as the prior generation. If that is not addressed, it can cause conflict later. 21/64, a philanthropic consultancy, and the Johnson Center for Philanthropy conducted a study that examined how younger generations felt about philanthropy. It found that those who followed the baby boomers wanted to give to charities in ways that produced measurable change and wanted to be more hands-on with the groups that they give to.
See Paul Sullivan, Family Foundations Prepare for the next Generation, The New York Times, Feb. 9, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.