Turning Philanthropy into a Family Tradition: Engaging the Next Generation in Giving Back

As a financial advisor, I often speak with clients about the legacy they want to leave—not just in terms of wealth but also in the values they hope to pass down to their children and grandchildren. One of the most meaningful ways to create a lasting impact is by making philanthropy a family tradition. When families approach giving with intentionality, they strengthen their bond and instill a sense of responsibility and purpose in the next generation.

Why Family Philanthropy Matters

Studies show that children and young adults who engage in philanthropic activities are more likely to develop empathy, leadership skills, and a deeper understanding of financial stewardship. According to the National Center for Family Philanthropy (NCFP), 91% of family foundations involve multiple generations in making decisions, fostering continuity and shared purpose. Additionally, Fidelity Charitable reports that 81% of donors believe passing down philanthropic values is just as important as passing down financial assets.

By incorporating philanthropy into family discussions, parents and grandparents can teach younger generations how to allocate resources effectively, evaluate charitable organizations, and think strategically about social impact. More importantly, giving back together strengthens the family’s shared identity and sense of mission.

Strategies for Engaging the Next Generation

1. Start Early with Age-Appropriate Giving

Teaching children about generosity can begin at a young age, bringing joy and inspiration to the family. Many families encourage children to divide their allowance into three categories: spending, saving, and giving. The Indiana University Lilly Family School of Philanthropy found that children whose parents discuss charitable giving with them are 20% more likely to become donors as adults.

2. Create a Family Giving Plan

Setting up a structured giving plan—whether through a donor-advised fund (DAF), a family foundation, or direct charitable donations—allows family members to participate in discussions about which causes align with their values. A DAF is a philanthropic vehicle that allows donors to make a charitable contribution, receive an immediate tax benefit, and then recommend grants from the fund over time. According to The Philanthropy Roundtable, families that engage younger generations in structured giving report stronger long-term commitment to charitable causes.

3. Make Giving a Hands-On Experience

Rather than donating money, involving children and young adults in volunteer work can make philanthropy more tangible. The Chronicle of Philanthropy highlights that younger generations are more likely to engage in philanthropy when they see the direct impact of their contributions. Volunteering at a local shelter, participating in fundraising events, or visiting a nonprofit organization as a family can deepen their connection to charitable work.

4. Leverage Investment Strategies for Long-Term Impact

Charitable giving is not just about writing a check—it can also involve strategic investment choices. Families may consider impact investing, where they allocate assets to funds that generate financial returns and positive social outcomes. According to The Global Impact Investing Network (GIIN), the impact investing market has grown to over $1 trillion, reflecting a shift toward more intentional giving strategies.

5. Encourage Individual Philanthropic Interests

While a family may share overarching values, it’s important to give younger members the autonomy to support causes they are passionate about. The 21/64 Foundation specializes in next-generation philanthropy and suggests allowing each family member to direct a portion of the family’s charitable giving. This approach fosters engagement and ensures that the philanthropic tradition remains relevant across generations.

Building a Lasting Legacy

Families that integrate philanthropy into their financial planning not only make a difference in their communities but also create a shared sense of purpose that strengthens generational bonds. By educating, engaging, and empowering the next generation, philanthropy can become more than just a financial decision—it can be a defining part of a family’s legacy.

At Duncan Williams Asset Management, we help families incorporate charitable giving into their broader wealth management strategies, ensuring their generosity aligns with their long-term financial goals. If you’re interested in developing a family giving plan, I’d be happy to discuss how we can structure your charitable contributions to benefit both your family and the causes you care about.

Disclosure:

This article is for informational purposes only and does not constitute legal, tax, or financial advice. Charitable giving strategies should be discussed with a qualified financial advisor and tax professional. Investment strategies, including donor-advised funds and impact investing, involve risk, and past performance is not indicative of future results. Duncan Williams Asset Management is a registered investment advisor.

Sources

National Center for Family Philanthropy (NCFP): "Philanthropy in Complex, Multi-Generational Families"
https://www.ncfp.org/knowledge/philanthropy-in-complex-multi-generational-families/​ncfp.org+4ncfp.org+4ncfp.org+4

Fidelity Charitable: "Parenting and Philanthropy: Growing the Next Generation of Givers"
https://www.fidelitycharitable.org/content/dam/fc-public/docs/insights/parenting-and-philanthropy-growing-the-next-generation-of-givers.pdf​fidelitycharitable.org+2fidelitycharitable.org+2fidelitycharitable.org+2

Indiana University Lilly Family School of Philanthropy: "Generosity for Life"
https://philanthropy.iupui.edu/research/highlights/generosity-for-life.html​

The Philanthropy Roundtable: "Engaging the Next Generation in Family Philanthropy"
https://www.philanthropyroundtable.org/resource/engaging-the-next-generation-in-family-philanthropy/​

The Chronicle of Philanthropy: "Family Foundations Are Bigger, and Some Are Giving More"
https://www.philanthropy.com/article/family-foundations-are-bigger-and-some-are-giving-more​philanthropy.com

The Global Impact Investing Network (GIIN): "Annual Impact Investor Survey"
https://thegiin.org/research/publication/impinv-market-size​fidelitycharitable.org+3fidelitycharitable.org+3marketwatch.com+3

21/64 Foundation: "Engaging the Next Generation in Family Philanthropy"
https://2164.net/resources/engaging-the-next-generation-in-family-philanthropy/​

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