Families and the Transformative Power of Philanthropy: Part I

In our work we have learned families of wealth want harmony, unity and healthy relationships across generations.  Paradoxically, wealth is often the catalyst that can make these outcomes challenging, or impossible.

In this series of articles, we will explore the potential of employing philanthropy to bring about positive change in families of wealth.  Because of the deep nature of the philanthropic process, when a family intentionally explores its shared ideas and interests concerning charitable giving, something transformative often occurs. We have found the simple act of discussing the theory and practice of philanthropy activates family and individual values, deepens thinking and facilitates unique communication dynamics.

For many families this is nothing new.  Many families have engaged philanthropic dialogues for generations, alone or with advisors present. The results often reveal values and vision previously unknown within individual family members and the family as a whole. Philanthropy is foundational for families of generosity.  Families of generosity impact society for the better.

In addition, when these dialogues are initiated and become part of ongoing family meetings and retreats they become a part of the family culture and mature into a legacy building process; establishing and refining family traditions and inter-generational relationships.

In this series it is our intention to encourage families and their advisors to incorporate values oriented, philanthro-centic conversations as a part of the estate and financial planning discussions that occur as part of the ongoing work of wealth management.

This series will discuss how philanthropy has the capacity to:

• become the glue that holds a family together in good times and bad.

• open deeper conversations about values and what matters most to individual members.

• become a conduit for conversations about wealth / money and its meaning in the lives of all family members.

• resolve longstanding conflicts in the family’s dynamics; particularly regarding money and wealth.

• help families discover how they may have a positive effect in the world together.

• teach younger generations money and wealth management skills, decision making and responsibility for themselves and the global community.

• create healthy dialogues about money and its meaning and power in the family.

• become a bridge between generations.

• become a gift to the next generation to nurture their values and vision.

Experience has shown us that trust is the bedrock of all good and effective family relationships, including relationships with advisors. When client families and advisors genuinely feel heard and validated, trust is built. From trust comes creativity, innovation and constructive action. Transformative change through philanthropy can create positive influences previously unknown.  Many families consider this to be their “true wealth.”

In the articles that follow we will include clear action steps that advisors and families can take to begin the endeavor of incorporating meaningful conversations about wealth and philanthropy into the family dialogue. Through these simple and powerful actions advisors will deepen their relationships with families of wealth and families will experience a deepening and richer family culture.

Gary Shunk consults with families in business, families of wealth and the advisors who serve them on the non-financial issues of inter-generational relationship dynamics, communication and trust building.  His website is www.familywealthdynamics.com

Randy Fox is a founding principal of InKnowVision, LLC, a national consulting firm that works with professional advisors and their high net worth clients.

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