Generational philanthropy: Tips for structure, success, and impact
Written by:
Clark Collier, CAP (R), Director of Giving Strategies
At the CICF Collaborative (which includes Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana), we’ve heard from several advisors that they are beginning to observe more instances of conflict in family philanthropy among their clients. In particular, it seems that clients who strive to engage multiple generations in their charitable giving are bumping up against disagreements around questions of purpose, governance, and decision authority.
If this trend is emerging among your estate planning, tax, or wealth management clients, you may find it helpful to check out a recent podcast, “Building Trust and Managing Conflict in Family Philanthropy,” from the Stanford Social Innovation Review. You’ll see that your clients are not alone; conflict can be a very natural part of charitable giving strategies that span multiple generations.
We can help! Here are three tips for working with clients to build a philanthropy plan across the generations.
Put it on the record
Common sources of frustration, especially among younger generations, are unclear roles, power imbalances, and a lack of documented history explaining why past philanthropic choices were made. The team at CICF Collaborative can help your clients be more intentional about sharing stories, values, and governance history (in writing or recording) to provide continuity.
Encourage real involvement
Children and grandchildren will likely be more engaged with the family’s philanthropy if they also have opportunities to give and learn independently. For example, our team can work with you and your clients to establish a modest donor-advised fund when each young child reaches adulthood. We can also help identify volunteer activities together, as well as help arrange and facilitate full family meetings to surface concerns or aspirations.
Formalize a structure
Establishing a fund with the CICF Collaborative, or a series of funds, can be a very effective solution for many of your clients who are launching a multi-generational giving strategy. As Central Indiana’s longtime home for charitable giving, our tools are extremely flexible and can be used to engage an extended family in the process of charitable giving. Donor-advised funds, for example, are popular because they allow your client to name children and grandchildren as successor advisors.
Plan for the future
What’s more, the CICF Collaborative can work with you and your client to develop a charitable giving plan that extends for multiple generations, including providing strategic grantmaking support and sourcing educational opportunities to help all generations of the client’s family gain deep knowledge about local issues and nonprofits making a difference.
Reach out to us anytime! We welcome the opportunity to work with you and any of your philanthropic clients to establish an enduring and rewarding family philanthropy program that is customized to meet each client’s unique purpose.
About the CICF Collaborative
CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unites the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more »
About the Author
Clark Collier is CICF’s director of giving strategies, working with individuals, families, and their advisors to structure meaningful and impactful philanthropy. As a Chartered Advisor in Philanthropy (R), Clark provides gift planning support and counsel to the CICF Collaborative and nonprofit organizations throughout the region. He previously served as a philanthropic advisor for CICF and in development roles for both local and global organizations.