Donor advised funds (DAFs) are one way that community foundations support family philanthropies.
Family philanthropy is the collective effort of family members uniting around shared values to engage in charitable giving and volunteer work. It’s more than just giving back, it’s about creating a lasting legacy of compassion and service that echoes the values shared by loved ones.
Why Family Philanthropy is Important
The importance of family philanthropy lies in its ability to instill a culture of giving and service, promoting empathy, social responsibility and a commitment to making a positive impact in the community. It can foster a sense of unity, purpose and shared priorities within a family, while supporting causes that are meaningful to them.
Some examples of successful family philanthropy initiatives include funding scholarships for students who might not otherwise continue their education, supporting local food banks or shelters, sponsoring community development projects such as affordable housing or infrastructure improvements and investing in social entrepreneurship or sustainable development initiatives.
How to Get Started
Families can start their philanthropic journey by discussing their values, interests and goals together, and identifying causes or organizations they are passionate about supporting. Community foundations can play a crucial role in facilitating this process by providing expertise on local needs and charitable organizations, handling administrative tasks, creating networking and learning opportunities, pooling resources with other donors and assisting with legacy planning. By leveraging the knowledge, resources and networks of community foundations, families engaged in philanthropy can enhance the effectiveness and impact of their charitable efforts, ultimately contributing to positive change for their communities.
Donor advised funds (DAFs) are one way that community foundations support family philanthropies. Families can establish DAFs with a community foundation to invest their charitable assets, facilitate grantmaking and leverage the foundation’s insights into local needs. DAFs simplify giving, offer tax advantages and can serve as a vehicle for involving multiple generations, as families can pass down the fund’s stewardship to children and grandchildren, ensuring a lasting legacy of giving.
What to Expect from the Next Generation of Donors
While the core values of family philanthropy remain constant, the methods and approaches to educating future generations about giving have evolved to reflect changing societal norms, values and priorities. In earlier generations, philanthropic efforts were often driven by traditional values and personal connections to causes. The next generation of donors cares deeply about outcomes, accountability and equity. This has already begun to create a new energy around addressing core issues, strengthening communities and reaffirming the importance of philanthropy.
Best Practices to Keep the Giving Going
Some best practices for involving multiple generations in decision-making and governance include creating opportunities for open and inclusive dialogue; respecting diverse perspectives and experiences; providing education and training on philanthropy; and establishing clear roles, responsibilities and decision-making processes. It’s also important to understand that giving can include more than just monetary donations. Families may want to give back in other ways, by volunteering their time or skills, organizing campaigns, fundraising, donating goods and advocating for causes.
Overall, family philanthropy provides opportunities for experiential learning, strengthens family bonds and empowers younger generations to become active contributors to positive social change. By investing in the education and development of younger generations as philanthropists, families can ensure that their legacy of giving continues to make a lasting impact on their community for generations to come. FBN
By Lisa Sahady
For more information on charitable giving, including family philanthropy, visit azfoundation.org/legacygiving or call one of the Arizona Community Foundation’s offices serving northern Arizona: ACF of Yavapai County at 928-583-7815, ACF of Sedona at 928-399-7218 or ACF of Flagstaff at 928-526-1956.
Lisa Sahady is the regional director for the Arizona Community Foundation of Yavapai County. She can be reached at 928-583-7815.