One of our clients recently approached us with a unique family: three generations with a shared desire to make an impact through philanthropy. They recently sold their family business and now have the resources to pursue philanthropy more directly.
They had heard about our client’s recently established Legacy Planning Program and decided to learn how it may help them pursue their philanthropic desires.
Initial Meeting
In our initial meeting, we were able to quickly identify the Thompsons as ideal candidates for the Legacy Planning Program. Here’s why:
- They have additional resources from the family business sale, now available for philanthropic purposes.
- They are deeply committed to supporting causes close to their hearts and have expressed interest in long-term giving strategies.
- They value family cohesion and want their philanthropic efforts to bring their generations closer together.
The Thompsons consist of:
- Grandparents in their late 70s, deeply invested in supporting their local community and healthcare initiatives.
- Parents in their 50s, focused on education and community development.
- Grandchildren in their 20s and 30s, passionate about environmental sustainability.
Identifying Next Steps
Our first step was to help the family articulate their goals, both individually and together as a family. Over several conversations, we guided them in identifying shared values and interests while respecting the unique perspectives of each generation.
Some of the questions we asked were:
- How do you want your family name to be remembered?
- What do you stand for or value most as a family?
- How can you create a cohesive legacy that reflects everyone’s passions?
Introducing Opportunities
We talked through potential tools to maximize their impact, including:
- Donor-Advised Funds (DAFs): To provide flexibility for family members to make grants individually or collectively.
- Charitable Remainder Trusts (CRTs): To generate income for the grandparents while supporting healthcare causes after their lifetime.
- Endowments: To establish sustainable, long-term funding for their shared priorities.
Key Outcomes
The Entire Family:
- Established a family Donor-Advised Fund (DAF) as a central hub for their charitable giving. It’s structured to support various causes—healthcare, education, sustainability—and provide a platform for family members to be involved in where funds are allocated.
- Created an advisory board with individuals from each generation, ensuring the DAF remains flexible and responsive to evolving funding needs and new opportunities. The board will also mentor future family members in effective giving strategies, enabling them to carry forward the family’s philanthropic efforts.
- Set up an endowment with the host organization, Green Horizons, a non-profit community garden focusing on sustainable farming and environmental education–a cause that touches each generation’s focuses.
Grandparents:
- Funded an endowment with a local hospital to establish ongoing financial support for patient services and health education programs.
- Create a field-of-interest fund targeting community development projects. This fund provides grants to local nonprofits addressing housing, food security, and other critical needs.
Parents:
- A portion of their assets was contributed to a Donor-Advised Fund (DAF), allowing them to recommend grants to scholarship programs and educational nonprofits over time.
- Set up a designated scholarship fund at their alma mater to support students from underserved communities with a focus on leadership potential.
Grandchildren:
- Allocated funds from the family’s DAF to launch an environmental grant program supporting renewable energy projects and reforestation efforts.
- Established a 10-year endowed fund with a local organization that provides 10% of the assets each year to support young innovators pursuing environmental science careers.
The Thompsons established long-term support for their family and created a long-term impact in their community in ways that reflected each family member.