1)   Should we engage a professional advisor to start the conversation? While most advisors believe that discussions on family philanthropy are important, statistics show that as few as one-sixth of advisors initiate these discussions with their clients. Families with charitable objectives shouldn’t hesitate to open this important conversation.

2)  Should we involve the next generation? Families should involve children and grandchildren in their philanthropy. This can establish family traditions, personal values and promote cooperation among family members. Charitable planning can also be part of a wealth transfer plan between generations, so educating family members on the estate planning tools being used can lay the groundwork for the next generation of philanthropists.

3)  Should we incorporate estate planning tools into our philanthropy?  Sometimes the outright giving of cash or appreciated assets is the simplest way for donors to make a lasting impact. However, families should consider planned gifts—those that incorporate financial or estate planning. Some planned giving options include partnering with a foundation or establishing charitable gift annuities, a donor advised fund or a split-interest charitable trust. 

Establishing a relationship with a local foundation that has a mission in alignment with your family’s philanthropic goals can make planned giving easy. Foundation staff will match your interests with appropriate giving opportunities and manage all the work for you, providing regular updates on the impact of your gift, and allowing the family to be as involved or hands-off as they want to be.