How to Help Your Clients Make Philanthropy a Family Affair

Family philanthropy provides a powerful way to connect generations and enables them to work together on supporting causes important to them. Giving as a family can help strengthen family ties, encourage responsibility among different generations, and create the potential for long-term legacy. As a trusted advisor, you can help your clients explore the best ways to make family philanthropy part of their long-term wealth and legacy planning.

 

Choosing a philanthropic vehicle

Families have many options for structuring their giving, but one of the most accessible and effective is a donor-advised fund (DAF). DAFs offer a streamlined, flexible approach to philanthropy with a cost-effective and easy-to-use structure. They allow families to focus on charitable goals while the DAF provider, such as NPT UK, handles the administrative and compliance responsibilities. This simplicity enables families to give strategically, respond quickly to emerging needs, and remain engaged with the causes that inspire them.

 

Involving the whole family

DAFs make it easier to support the causes families care about while also involving all family members in the decision-making process. Families can collectively decide on which causes to support, fostering a shared sense of purpose and teaching younger generations about the importance of giving back.

There are different ways to engage family members in family philanthropy, such as family meetings or site visits to charity projects. Different generations of a family may want to support different causes, all while reinforcing the importance of upholding family values and philanthropic intentions, making charitable giving a shared family journey. With a clear succession plan, the next generation can take on a leadership role, ensuring the family’s values continue into the future.

 

Getting started

Advisors are uniquely positioned to help families encourage giving by integrating philanthropy into family wealth planning. You can guide both parents and children on the benefits of strategic giving, tax implications, and the importance of philanthropy as part of a holistic approach to wealth and legacy planning. You can also help families understand the benefits of choosing a DAF for family philanthropy. As advisors, you can work with your clients to create a platform for giving that not only supports current family interests but can continue beyond a single lifetime and start a legacy of family donors.

Family philanthropy can be a deeply rewarding experience for your clients, with each generation of the family involved in a conversation about their values, goals, and interests.

NPT UK can support you and your clients with family philanthropy. To learn more, visit nptuk.org or contact us.