Creating a Family Giving Council with a Donor-Advised Fund
It is a new year and with it come resolutions to do and be better, making it the perfect opportunity to align any new charitable goals with savvy financial strategies. By using your donor-advised fund to engage the next generation in philanthropy while maximizing your impact you can create a family tradition that brings the family and community together in a powerful way.
How It Works: Establish a "family giving council" by bringing together children, grandchildren, and other relatives this year. Each family member can research a cause or charity that resonates with them, then present their findings during a family gathering. Together, the family votes on which organizations to support, using funds already allocated to your donor advised fund.
By leveraging a donor-advised fund, your family can focus on meaningful decision-making without worrying about the logistical complexities of distributing donations. Appreciated securities used to fund the account can provide an added layer of financial efficiency, ensuring that more of your contribution goes directly to the causes that matter most.
Why It’s Valuable: This practice not only instills the importance of generosity but also creates an opportunity to pass down family values. Young family members learn about the impact of giving, financial stewardship, and collaboration in a tangible, impactful way. Tying this activity to the holidays can make it both memorable and meaningful.
Top Tips:
- Set the Scene: Plan a festive family meeting, perhaps after a big event like a wedding, Birthday, reunion or Holiday. Use this time to reflect on the causes your family values most.
- Assign Roles: Encourage younger family members to take leadership roles by researching charities, while older members guide discussions about impact and alignment with family values.
- Utilize the Fund: Once the family decides on recipients, use the donor-advised fund to seamlessly distribute donations, preserving the spirit of giving while keeping financial management simple.
- Celebrate Impact: After the donations are made, share updates from the supported charities during future family gatherings, reinforcing the tradition and its long-term value.
What could be better than gathering with family to help serve and benefit the causes you value? Your family giving council not only amplifies your reunion giving but helps ensure that philanthropy becomes a core part of your family's identity for generations to come.
