Multi-Generational Giving
Differing views within families is nothing new. For generations, common topics of disagreement have included popular culture, politics, religion, and parenting, just to name a few. Frequently outranking all is money—how it’s made, spent, and saved—or not.
The topic of how benevolent families share money has never been more relevant. Some of the current realities – up to four generations living simultaneously; longer lifespans; more willingness to discuss family finances; differing social views; and the desire of older generations to set a good philanthropic example while retaining some control of assets built over many years – mean the “share” discussion will likely continue for decades.
Our team enjoyed digging into the latest study on family philanthropy, particularly because it reinforced so many of the best practices we already deploy here at the community foundation as we work alongside you to help your clients and their families make a difference in the lives of others for generations to come.
Talking with Your Clients About Multi-Generational Giving
According to figures cited in a May 2023 New York Times article, total U.S. family wealth of $38 trillion in 1989 more than tripled to $140 trillion in 2022, with Baby Boomers and Generation X holding 90% of that. By 2045, older Americans will pass down a projected $84 trillion to Millennial and Gen X heirs, with $16 trillion transferring by 2033. With evermore wealth circulating, both ideas and conflicts about its use will likely result.
As you talk with your clients about charitable giving, do you only think about tax benefits? Defer mentioning philanthropy until November? If so, you may want to rethink your approach, according to a recent article.
As an advisor, it is your responsibility to help your clients achieve their goals for their estate plans, financial plans, and charitable objectives. As you work with your multi-generational philanthropic clients, you have no doubt noticed that even a subject as uplifting as philanthropy can lead to lively discussions and sometimes even disagreements. To fulfill your role, you will need to lean on strategies to navigate conversations about charitable priorities when not everyone is on the same page.
You can also lean on the Community Foundation – and we encourage you to do so! In addition to understanding the needs of the community, the nonprofits and programs that are addressing those needs, and the ins and outs of the tax vehicles best suited for your clients to help meet those needs, our team is also deeply experienced in facilitating productive dialogue among people who bring valuable, diverse viewpoints to the table.
How CFHZ Can Help
As a trusted partner to help families achieve their charitable goals, the community foundation can help you work with your multi-generational philanthropic clients in a variety of ways:
- The CFHZ team focuses on listening to understand the cross-generational and intra-generational values of a family.
- We ask a lot of questions about what causes matter to your clients and the origins of those preferences, both historically and now.
- Our team seeks to understand a family’s values, and then we research and suggest potential grantee organizations or causes if the family is seeking input. We can also deeply research organizations that the family is already supporting.
- CFHZ offers to educate the various generations about the tactical opportunities including donor-advised funds, field-of-interest funds, unrestricted funds, designated funds, and anonymous giving, among others.
- Our team is happy to develop options for multi-cause allocations that peacefully meet the needs of all involved.
- We are here for you and the philanthropic families you serve. As the needs, capabilities and opinions around wealth expand, CFHZ can be a facilitator of conversations, connection, and contributions among well-intended but independently-minded families and help you carry out your professional responsibilities.
We look forward to working together on practical solutions to engage your clients, their children, and their grandchildren in comprehensive philanthropy planning that moves the needle for the organizations and causes they care about.
We always encourage donors to first seek the advice of their legal, financial, or tax advisors when considering a gift of non-cash assets. While our team does not offer tax advice, we stay knowledgeable on charitable giving strategies. Please contact Colleen Hill, Vice President of Development & Donor Services, at chill@cfhz.org or by calling 616–994–8853 if we can help you serve your clients.
