Advisors should encourage clients to be intentional about plans for engaging the next generation.  A deliberate approach is more likely to ensure continuity throughout the generations. However, there is no one "right" approach.
The paths to multi-generational involvement are as different and numerous as the families themselves. Therefore, strategies should be customized to reflect the particular personalities, skills, and life experiences that families bring to discussions about their wealth and values.

There are many ways to engage clients in multi-generational planning. Often, bringing in a professional philanthropic advisor to work with clients expands your team of experts and provides clients with the information and support they will need as they move forward. It also allows advisors to build a knowledge base around philanthropic planning and to solidify client relationships.

Several activities can facilitate a more effective and meaningful multi-generation experience, such as: 

Finding ways to effectively communicate with younger generations. Encourage clients to share family history, describe the motivations behind the philanthropy and define the goals they hope to achieve with their charitable investments. Letters can serve as a record of the family's history while also providing a mechanism to formally invite the younger family members to participate in the family philanthropy.  Conversations about values and vision foster meaningful dialogue across generations and help guide the next generation in carrying on the family philanthropy.

Creating opportunities to meaningfully involve heirs in hands-on learning. For example, clients can set up "mini foundations" or donor-advised funds with smaller amounts of money for heirs to manage. Or, a family can establish a junior board of directors or set aside a pool of discretionary funds over which the next generation has spending authority. These structures can serve as training grounds, helping the next cohort of trustees learn and practice the governance and grant-making skills they will need to serve in leadership positions.

Providing a budget that allows next generation members to create their own learning plans. This is based on the assumption that they will be most interested in the activities they choose for themselves. Members can use the funds to attend conferences, purchase resource materials, and participate in peer networks. This training will help the next generation make better use of the family's charitable assets and provide valuable lessons for managing family wealth.

Drafting a formal succession plan that outlines how multiple branches of the family will be represented. This should include how spouses will be involved in the philanthropic leadership structure. The succession plan should also include specific criteria (in terms of age, education, volunteer service, etc.) that would make family members eligible to serve as trustees. Geographic requirements should also be taken into account. For instance, do family members need to live in the same geographical region where the funding is directed? If the family is spread out in several regions, do they all need to be represented? Finally, a succession plan should clearly articulate the responsibilities of trustees. Developing "job descriptions" often helps families decide what qualities and skills they think are most important for trustees to possess.  If requirements for leadership are made clear from the start, there will be less room for conflict later on.

Many of these activities can be undertaken in the context of family meetings or retreats. Philanthropic advisors can help to plan and facilitate such events, allowing all generations the chance to collaborate around creating a shared vision for their philanthropy. If these family gatherings are convened on a regular basis, it can increase the likelihood that the founding generations' values will be passed down to the next generation in a way that adheres to family tradition while remaining flexible to the divergent interests of subsequent generations.

However, as with any exercise in family collaboration, the philanthropic planning process will inevitably involve a certain degree of conflict. Clients should develop a conflict management plan to establish guidelines for managing disagreements. For example, while some families require consensus before making a decision, others develop a compromise strategy in which the "losers" of one decision are ensured a "win" in another decision.

A Process, Not an Event
Philanthropic planning is a process, not an event. Working with a philanthropic advisor not only can strengthen a family's philanthropic program in the long term, but it can also lead to a strong relationship between financial advisors and clients. Helping clients prepare for and implement leadership transitions enables advisors to form multi-generational relationships with clients' families and ensures that assets remain under management for years to come.