Philanthropy: Cultivating the Art of Serving One’s Community.
Every philanthropic strategy should be as unique as the family behind it. Indeed, while the motivations behind charitable giving are many, families who embark on this important journey by taking the time to clearly define their intentions and goals, in alignment with their family values and the purpose of their wealth, tend to reap greater benefits.
By combining tax optimization with tangible impact, they can create a positive legacy while managing their assets responsibly.
Philanthropic Triggers
Every family has a unique story that can become the foundation of its philanthropy. This purpose may stem from:
- Life experiences: Families that have overcome challenges often express a desire to help people facing similar struggles, whether related to illness, mental health issues, or economic hardship.
- Inherited values: Principles passed down from previous generations or drawn from defining moments in the lives of the current generation can shape philanthropic priorities. These values, ranging from solidarity to social justice, and from environmental responsibility to education, can guide a family’s philanthropic journey.
- Gratitude: Recognizing the opportunities one has received, whether personal or financial, can inspire a desire to make the resources that enabled one’s personal growth, family success, or entrepreneurial achievement more accessible to others. For some, these take the form of scholarships, research grants, or investments in startups.
- Worldview: Some families recognize their interdependence with their community and choose to act accordingly to have a positive impact on those around them. By choosing to redistribute a portion of their wealth to support interest groups or communities, they provide resources that help further their worldview.
- Corporate citizenship is a philanthropic approach adopted by many family-owned businesses, based on professionalism, strategic partnerships with nonprofit organizations, and varying levels of family involvement. Donations, whether one-time or structured, are supported by clear objectives, rigorous monitoring, and impact assessment.
Beyond these foundations, pivotal moments can also transform a latent intention into a concrete commitment:
- Financial success: A liquidity event or reaching a wealth threshold where material needs are met frees up energy for concerns beyond the family.
- Life events and cycles: The beginnings and endings of life chapters, such as illness, bereavement, or the birth of a child, serve as reminders of life’s fragility and can heighten a sense of collective responsibility.
- Generational transition: As the next generation assumes positions of responsibility, opportunities may arise to leave the rising generation’s mark through social impact that extends beyond the company.
- Awakening: A life-changing experience, such as a trip, an encounter, or a documentary, can open one’s eyes to a new perspective on social realities and spark a desire to take action.
- Collective crisis: Empathy for victims during a tragic event, such as a pandemic, a natural disaster, or an economic crisis, can reveal societal vulnerabilities and spur a family to act.
Different paths, the same intention
Regardless of their motivation, once an entrepreneurial family decides to give back, several options are available to them: donating to one or more charities, dedicating themselves to a single cause dear to the family, creating a foundation, or giving through a third party such as donor-advised funds.
For some families, the strategy stems from a generous intention, while for others, it is rooted in the tangible tax benefits offered by establishing a foundation. The starting point matters less than what is built from there.
Signs of a clear intention:
- A sincere curiosity about the causes being supported
- A desire to understand the real impact, beyond annual reports
- A willingness to learn from beneficiaries, not just to give to them
- Passing on a culture of giving to future generations
- Contributing time, talent, and networks, beyond financial support
This individual perspective does not always align with that of the family. Priorities may differ from one person or generation to another, and a cause that resonates with some may leave others indifferent. It is within this space of disagreement that a clear philanthropic intention can help accommodate and reconcile these differences.
Developing Your Philanthropic Intent
Depending on your family structure and your intentions, you can develop your philanthropic identity and purpose.
What kind of donor are you? Use the four pillars of our philanthropic journey to clarify what your philanthropy aims to address, with what approach, and by mobilizing what resources:
| Legacy | Beliefs | Passions | Capabilities |
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What are the pivotal moments that have shaped your family? What challenges have you overcome? Who helped you along the way? Are you more short-term or long-term oriented? |
What values guide your choices? What kind of world do you want to leave for your children and grandchildren? Identify the guiding principles that fuel your vision What are your non-negotiable principles? Identify the ethical boundaries your philanthropy will never cross How do you view your duty within your community and society? Describe your vision of your role and your social responsibilities |
What impact do you hope to make? What causes resonate with you? Articulate the impact you hope to create through your contribution What injustices and issues demand your attention? Identify the gaps, shortcomings, or causes that require your attention What energizes and motivates you? Specify the areas or themes you can commit to over time |
Beyond money, what skills do you have? How much time can you commit? What network can you mobilize? How long are you willing to remain committed? How directly do you want to be involved? What risks are you willing to accept? |
A clear intention does not mean a unanimous vision. Family discussions about strategy, governance, and philanthropic choices are therefore more important than the choice of causes or the size of donations. Families that identify and find ways to address their different priorities, rather than avoiding them, generally emerge more aligned and develop a clarity that is passed down through generations.
Building a Family Philanthropic Identity
Philanthropy has the potential to be a powerful vehicle for transmitting family values, introducing principles of governance, fostering awareness, and creating rich learning experiences.
To perpetuate this philanthropic vision, it is important to integrate it into the lives and education of future generations. Conveying this conviction is far more effective through lived experience than through lofty speeches. Moreover, it is never too early to cultivate it, since each stage of development calls for its own approach:
- For young children aged 3 to 10, empathy is fostered through concrete actions.
- Between the ages of 10 and 15, habits are formed and awareness begins to take root.
- During adolescence, the ability to make decisions based on available resources and potential impact becomes more firmly established.
- Finally, young adults chart their own course.
These stages, which should be tailored to each child’s development, can enable multigenerational families to pass on not only a financial legacy but also a legacy of commitment and social responsibility, one that can endure and adapt across generations.
They also serve as an excellent pathway for integrating future generations into the various ways of getting involved and contributing within the family business, whether in the company’s day-to-day operations or in its ownership governance.
Over the years, these activities can evolve into cherished rituals that weave a family culture from shared experiences. Philanthropy can then become a key aspect of family identity, one that is dear to the next generation, rather than a peripheral activity.
Philanthropy as a Path to Transformation
Philanthropy can benefit the giver just as much as the recipient.
Whether the starting point is tax planning or a commitment to values, the question that distinguishes vibrant philanthropy from an administrative structure remains the same: what is the intention behind it? For entrepreneurial families, clarifying this intention helps give meaning to accumulated wealth, pass on values to future generations, and leave a legacy that goes beyond mere numbers.
Cultivating empathy and social responsibility from a young age means investing in adults for whom success is measured by the impact they make, rather than by what they accumulate.
Beyond asking, “How much can we and do we want to give back?” ask yourself, “What purpose do we want to embody?” Once the answer is clearly articulated, the means and avenues will follow naturally.
This intention, once articulated, does not stop at a series of spontaneous donations or a mission statement on paper. It helps build a shared vision, a way for all generations to learn to align and make decisions together, before being called upon to do so in other circles. This is how a sustainable philanthropic vision begins.