Affluent families possess a unique opportunity to shape society’s future through their philanthropic goals and endeavours. The ability to deploy significant funds towards causes you care about is a powerful tool for change. However, the landscape of philanthropy is shifting. Gone are the days when simply writing a check to a favourite charity was enough. Today’s philanthropists are expected to be active participants in driving social change, leveraging their financial resources, influence, networks, and expertise.
To maximise the impact of your family’s philanthropic endeavours, it’s crucial to develop a clear vision of the change you want to see in the world. This vision should be rooted in your family’s values and informed by a deep understanding of the complex issues you aim to address. It should also be flexible enough to adapt to changing circumstances and emerging opportunities.
Building a Lasting Philanthropic Legacy
Creating a lasting impact through your philanthropy starts with clearly identifying your family’s “why” and understanding your core values and how you want to contribute to shaping the world. Start by asking yourselves: What change do we want to see in the world? What values drive our decision-making? How do we want our family to be remembered? Your answers to these questions will shape both the “what” of your giving and the “how.”
For instance, if your core value is empowering others, you might choose to focus on education. But more than that, you might structure your giving to prioritise initiatives that give beneficiaries a voice in program design and implementation. Once you’ve identified your “why,” consider how to engage future generations in your philanthropic efforts. This ensures that your impact continues long after you’re gone.
To build your philanthropic legacy, spend time reflecting on and articulating your family’s core values and philanthropic goals. Involve younger family members in your philanthropy from an early age, allowing them to develop their own philanthropic identities. Document your philanthropic journey, including successes, failures, and lessons learned, to guide future generations.
Embracing Failure and Uncertainty in Philanthropy
One crucial shift in modern philanthropy is the recognition that failure is inevitable while also being valuable. As a philanthropic family, you must be willing to take calculated risks and learn from setbacks. This approach allows for innovation and the discovery of truly transformative solutions. Consider the case of the Gates Foundation’s initial efforts in education reform. Their first attempts at improving U.S. public schools didn’t yield the expected results. However, instead of abandoning the cause, they used these experiences to refine their approach, leading to more effective programs in the long run.
Embracing uncertainty also means being flexible in your giving strategy. The world is constantly changing, and new challenges emerge regularly. By remaining adaptable and open to new ideas, you can respond more effectively to evolving needs and opportunities. To incorporate this mindset into your family’s philanthropy, set aside a portion of your philanthropic budget for high-risk, high-reward initiatives. Establish clear metrics for success, but be willing to adjust them as you learn. Create a culture of transparency and learning within your family foundation or philanthropic organisation.
Aligning Giving with Family Values
For ultra-high-net-worth (UHNW) families, philanthropy is about creating a lasting legacy that reflects your family’s values and vision for the world. Strategic philanthropy involves aligning your giving with your family’s core beliefs and long-term goals. Start by engaging in meaningful conversations with your family members about what matters most to you collectively. What issues resonate with your family history or personal experiences? What kind of impact do you want to have on the world?
Once you’ve identified your family’s philanthropic priorities, consider how to maximize your impact in these areas. This could entail conducting extensive research to understand the root causes of the issues you care about, identifying gaps in current funding or approaches that your family is uniquely positioned to address, and developing a long-term strategy that transcends annual giving to achieve long-term impact.
The Power of Collaborative Philanthropy
In recent years, a transformative shift has occurred in the world of philanthropy. Forward-thinking families and foundations are increasingly recognizing that even with substantial resources, tackling complex global challenges requires a collaborative approach. This new paradigm of philanthropy emphasises joining forces with other donors, nonprofits, governments, and businesses to amplify impact and drive systemic change.
Consider the success of initiatives like Co-Impact, a collaborative philanthropy platform that brings together donors from around the world to support large-scale social change. By pooling resources and expertise, Co-Impact has been able to make significant strides in areas such as education and healthcare in developing countries. This approach allows individual families to contribute to efforts far larger than what they might achieve alone.
Another example is the Blue Meridian Partners, a partnership of philanthropists working to improve the lives of young people and families in poverty. By collaborating, they’re able to make larger, more targeted investments and provide comprehensive support to high-performance nonprofits.
For your family, embracing collaborative philanthropy might mean:
- Seeking out philanthropic networks or giving circles aligned with your values and goals.
- Exploring opportunities to co-fund initiatives with other families or foundations.
- Using your influence to convene diverse stakeholders around issues you care about.
- Invest in building the capacity of your nonprofit partners to collaborate effectively.
By adopting a collaborative approach, your family can leverage its resources more effectively, learn from others, and contribute to solutions that address the root causes of complex social issues. This strategy not only amplifies your impact but also positions your family as a catalyst for collective action in the philanthropic community.
As your family embarks on this philanthropic journey, remember this: As UHNW individuals, you are uniquely positioned to shape our society’s future through your philanthropy. But with this comes a profound responsibility. The question is: How can your family best leverage its resources and influence to create meaningful, lasting change? Are you fully equipped to navigate these challenges and maximise your impact?
ABOUT THE AUTHOR
As the Senior Wealth Advisor at Beacon Family Office at Assante, Cory Gagnon has supported successful family enterprises to preserve, protect and transition their wealth since 2011.
Cory’s personal objective as a Wealth Advisor is simple. He is committed to supporting families to take control of the areas of their lives that truly matter to them. This commitment revolves around using specific tools and strategies that enable families to take action with confidence which will support them through life’s critical transitions.
ABOUT THE AUTHOR
As the Senior Wealth Advisor at Beacon Family Office at Assante, Cory Gagnon has supported successful family enterprises to preserve, protect and transition their wealth since 2011.
Cory’s personal objective as a Wealth Advisor is simple. He is committed to supporting families to take control of the areas of their lives that truly matter to them. This commitment revolves around using specific tools and strategies that enable families to take action with confidence which will support them through life’s critical transitions.
