The Power of Intentional Family Philanthropy

As a family, you’ve built a legacy that extends beyond your lifetime. But have you considered how to engage the generations that come after you? Greater Houston Community Foundation’s structured philanthropy approach can help you give with clarity. 

Our team of Philanthropic Advisors is dedicated to helping families and their network of advisors navigate the complex world of philanthropy. We provide guidance and technical expertise to help with even the most complicated situations and family structures. We believe intentional planning is essential for successful giving–and it’s not just about the money.

Giving philanthropic families clarity through structure

By being part of the discussion–whether formally or informally, at the table or behind the scenes–our team at the Community Foundation can help families resolve issues and smooth out the edges around common intra-family challenges, including communication, decision-making, next-generation preparation and engagement, and charitable giving.  A customized framework can then be created to align with your family’s values and goals.

What is family philanthropy?

Family philanthropy involves multiple generations of a family working together to create meaningful social impact through coordinated charitable giving. Unlike individual giving, family philanthropy emphasizes shared values, collective decision-making, and the intentional engagement of family members across generations. Approaching philanthropy in this way helps families create lasting change and a family legacy, while building stronger family bonds through shared purpose and community involvement.

Social impact case study: the Marshall family legacy

When the Marshall family started working with the Community Foundation, they didn’t have a structure in place for their giving. Ava and Ethan Marshall had always been generous with their time and resources but did not have a plan in place or a formal giving vehicle. While they demonstrated a strong commitment to philanthropy, their efforts were somewhat scattered and lacked a clear focus. 

Upon the recommendation of their financial advisor, the couple decided to leverage their retirement assets and appreciated public or privately held stocks to establish a fund at the Community Foundation. This strategic decision allowed them to transition from making annual, ad hoc philanthropic choices to a more structured approach. Working closely with their Philanthropic Advisor, they managed their investments at the Community Foundation and built an enduring endowment that would support the charities they had long supported during their lifetime. By granting a portion of their funds each year while preserving the remainder for future growth, they created a charitable legacy that would continue to benefit their cherished causes.  

Over time, they made meaningful, long-term commitments to their alma maters and local organizations, including endowed scholarships and initiatives that preserve green spaces for future generations of Houstonians. As they settled into this philanthropic routine, they subsequently engaged their daughters in the process, involving them in the decision-making and fostering a sense of family involvement and responsibility in their philanthropic endeavors. 

To prepare their daughters for the future, the couple encouraged them to enroll in the Community Foundation’s Next Gen Donor Institute. This comprehensive program fosters peer-to-peer learning, engagement with Community Foundation staff, and the opportunity to develop their own philanthropic identities and interests. Upon completion, they were invited to participate in the fund’s annual meetings and were empowered to make informed grant recommendations. The family’s eldest daughter was subsequently appointed Chair of their fund, leveraging her local roots, artistic passion, and teaching background. She also became active in the Community Foundation’s Family Giving Circle and donor programming. Despite differing opinions on politics and cause support, the family has established a structured approach, guided by their philanthropic advisor, which facilitates fruitful discussions and fosters collective growth. 

The Marshalls have cultivated a long-standing commitment to philanthropy with their family and in partnership with the Community Foundation, spanning over a decade. With confidence, they believe that their endowment will continue to align with their wishes long after they are gone. Moreover, the Marshalls have successfully instilled in their children and grandchildren the importance of community engagement, as they are all actively involved with local boards, engaged with the Community Foundation, and have established donor advised funds of their own, ensuring a legacy of philanthropic stewardship. 

*Learn more about why donating appreciated stock makes financial sense

How family philanthropy organizations bring families together

Here are a few ways the Community Foundation can help with your philanthropy: 

• Facilitate meaningful conversations about your family’s values, interests, and goals. 
• Structure your family’s charitable giving to achieve a lasting impact. 
• Help your family identify and overcome common challenges like communication, decision-making, and intergenerational differences. 
• Connect you and your family with a valuable peer network.

The case study presented in this blog is a fictionalized account of real-world business scenarios, created for educational purposes only.

A range of options 

We understand that every family is unique and has “dynamics.” The Community Foundation can work with your family no matter what type of giving vehicles you use or are considering using. You may choose to: 

• Use a private foundation in conjunction with a donor advised fund at the Community Foundation 
• Leverage our donor advised fund as a standalone solution for your charitable giving 
• Utilize our full suite of charitable giving services, including grantmaking/grant administration, consulting, tax expertise, and administrative support

By consulting with the Community Foundation’s Philanthropic Advisors and creating a structured philanthropy plan, you can ensure that your family’s legacy giving is continued, and that your legacy endures for generations to come. Our experts will help you navigate the complexities of philanthropy so you can focus on what matters most: making a meaningful impact in your community. 

Continue reading: What is a donor advised fund?

What is an example of family philanthropy?

Further examples of successful family philanthropy might be when family members establish a donor advised fund or a private family foundation to support an issue area in their community. The founding generation might seed the fund with appreciated assets, while children and grandchildren participate in grant-making decisions, volunteer at supported organizations, and eventually contribute their own resources. 

Collaboration between generations can help make sure your family’s charitable mission evolves with each generation while maintaining core values and creating sustained community impact.

Continue reading about the many family foundation benefits

What is the 5% rule for private family foundations?

The 5% rule requires private foundations to distribute at least 5% of their average net investment assets annually for charitable purposes. This IRS requirement helps ensure that foundation assets actively support charitable causes rather than remaining dormant. Family foundation consulting can help families understand how this rule affects their giving strategy and ensure compliance while maximizing impact.

Preserve your legacy, achieve peace of mind 

As you consider your family’s philanthropic legacy, you may be worried about how to ensure that your philanthropic intent is carried on, even after you’re gone. You may be concerned about the potential for conflict or confusion among family members. 

By working with the Community Foundation, you can create a structured plan that addresses these concerns and helps you achieve your goals. Our team of philanthropic advisors will help you: 

• Clarify your values and goals for your philanthropic efforts 
• Develop a customized plan for achieving your objectives 
• Create a clear and transparent process for making decisions and allocating resources 

With our guidance, you’ll be able to: 

• Ensure that your family’s legacy is preserved for generations to come 
• Reduce the risk of conflict or confusion among family members 
• Achieve peace of mind, knowing that your philanthropic efforts are aligned with your values and goals 

Achieve a sense of fulfillment and purpose, knowing that your philanthropic efforts are making a meaningful difference. Don’t let uncertainty and disorganization hold you back from achieving your philanthropic goals. Ultra-high-net-worth family planning particularly benefits from structured approaches and professional advisors that know how to preserve generational wealth while maintaining philanthropic impact. 

Contact us today at 713-333-2210 or reach out directly to learn about how we can help you build a legacy through structured philanthropy.

More Helpful Articles by Greater Houston Community Foundation: 

• What is the Great Wealth Transfer?
• The Power of Collective Giving
• What to Do with an Inheritance
• The Future Is Now: What Is Next-Gen Philanthropy?
• Power of Volunteering: Harnessing the Spirit of Service and Partnership 

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