Take nonprofits for example. Right now, we’re seeing organizations struggle to stay up-and-running as they deal with a greater demand for services coupled with increased financial strain. For those who are inclined, partnering with the non-profit by committing multi-year grants is helpful to make sure the impact of their work continues. At Tiedemann Advisors, we encourage families to discuss their interest in partnering with organizations and to define when and how the family will commit to multi-year gifting.
On the succession-planning front, we know many families strive to pass down the value of generosity to the rising generations and shared family philanthropy is an opportunity to accomplish that. We encourage families to engage children starting at a young age in volunteering and learning about the power of philanthropy. All too often, we see wealthy individuals who are incredibly passionate about the charities in their lives or those that have set up a foundation but have not taken the time to integrate their families into the process. Early engagement allowing family members an opportunity to learn from their elders and practice before they take the reins is critical to multigenerational sustainability.
With 2020 behind us, we must remember that one person and one donation—no matter the size—cannot solve all of society’s problems. And while there's no one size fits all approach to giving, integrating consistent and sustainable philanthropic considerations into financial planning is one way to create actionable change moving forward. We remain encouraged to see so many inclined to use their wealth in ways to positively impact the community and world. To ensure lasting impact, be sure to work with an advisor to choose the right giving option that is best for you and your family.
Jill Shipley is head of family governance and education at Tiedemann Advisors LLC.