People usually remember about 20% of what they hear, 50% of what they hear and see, and 90% of what they do. We work with families to develop ways to prepare the next generation by applying all three forms of learning. Whether it is through family activities to educate the younger generation, sharing information about family wealth, or multigenerational collaboration to give the next generation vital experience, we can do it all.

One of the most impactful ways of helping the next generation gain hands-on experience is through philanthropy.  Consider the following scenario:

You sit down with your children and grandchildren and you announce that you have opened and funded a donor-advised fund with $100,000.  You call it the “Smith Family Fund to Change the World.”  While you get the tax advantage, you tell the family that it is a family responsibility to manage and decide how it is used.

This is where the real work begins.  You start off by helping each family member identify the values that are the most meaningful to them at this time in their lives.  As you discuss each member’s values, you create a vin diagram to find some common themes that resonate with the entire family.

Next you help your family picture the impact that they would like to make in the world.  We use these cards from 21/64.  There are over 50 pictures that will help each member of the family identify themes that are meaningful to them in how they want to make a difference within their community. 

As with the values discussion, you will find common threads across the family of causes that they entire family can support.  Once you have the common values and causes, you are prepared to make a Philanthropic Mission Statement.  This mission statement will act as a filter to help identify causes that your family will choose to support.

The next step is where the rubber meets the road. You send your family back to research on their own the different organizations and causes they’d like to support.  Their job would be to research the different organizations, understand their mission and gather the financials of the non-profits to better understand how much of an impact a donation would make.

The family would then return and report their findings.  The kids and grandkids would make their presentations to the family and then the family would vote on the organizations that the family can support that year.  Once the budget is decided upon for that year, the family can choose dollar amounts to gift to each organization.

The family can visit these non-profits and donate their time to these causes.  The money that is invested in the donor advised fund can also be tracked.  Reviewing investment performance and current market conditions with the family will give them an opportunity to learn and experience the ups and downs of the market, they will gain valuable experience making investment decisions, and learn how to budget and safeguard an investment portfolio.

The benefits of this experience is enormous.  The intergenerational connection and collaboration helps the family maintain a close bond.  The unity and the culture of giving that is fostered can carry on for many generations.  The hands-on experience with family governance, making proposals, managing investment portfolios, and understanding the world around them will prepare the next generations in a safe and positive environment.  The impact that the family will make in the community and in the lives of each family member will be substantial.  Wealth, used appropriately, can truly be a tool to change the world.

 

Give us a call! tell us what you want to accomplish!  We’d love to help.