Generational Philanthropy
People often find philanthropy a most rewarding and fulfilling experience. Providing our children and grandchildren the gift of philanthropy allows them to connect to the wider world, understand their impact, and instills a spirit of giving throughout their lives.
Philanthropy provides families a gateway to pass a legacy of shared values and beliefs to last for generations.
Each family has its own unique history. Simply sharing family stories helps connect one generation to the next and opens a door through which one can pass cherished family values. Such values help to build a framework around which families might shape their own unique legacy of giving. Personalizing these stories with treasured childhood memories, impactful lifetime experiences and wisdom acquired throughout life allows each family member to learn more about each other and build bonds that last a lifetime.
Family conversations and activities around philanthropy inspire younger generations to help others and learn financial responsibility.
How do we open the conversation about money and financial responsibility? For some, this can be an uncomfortable topic. However, it is essential that children learn how money impacts lives and how to manage it responsibly. Philanthropy allows us to gently broach the topic and teach the next generation about money and finances, including how to spend money responsibly, the value of saving, and ways to overcome discomfort about wealth.
One way to open the conversation is to ask each person about what needs they see in their own community and then discuss how a gift might fulfill the need and improve someone else’s circumstances. Share how you came to care about the causes you support, your experiences as a volunteer and donor. Perhaps, share what you have learned from the experience and continue to learn and suggest ways in which they can share their abilities to make a difference.
Private Foundations exist in perpetuity allowing philanthropy to be handed from one generation to the next.
Many families find the Private Foundation as the ideal vehicle to engage multiple generations in philanthropy. A private foundation is a not-for-profit entity a single individual, family, or business controls and provides its funding. The foundation is a tax-exempt entity. It provides donors with significant control over the assets and charitable giving. Further, donors receive a current-year tax deduction for charitable gifts they make in the future. Most importantly, donors also can control the foundation’s structure and can even create a junior board to allow younger generations to play a role. Over time, children and grandchildren can learn important skills like leadership, teamwork, and social awareness. Further, a private foundation can provide an opportunity to learn investment management and even career development.
Tresp, Day & Associates provides charitable planning, we can consult with you on the best way to preserve philanthropy through generations. We offer in-person appointments and face-to-face consultations utilizing video conferencing technologies such as FaceTime, Duo, and Zoom.