Investing with Faith / Jim Laudick

Sharing your philanthropic priorities with your adult children

Do your children know what is important to you? Many parents want their children to be philanthropic, but are uncomfortable discussing values and money. Philanthropy is a deeply personal act, and you may be reluctant to discuss your motivations. However, nothing can be more rewarding than sharing some of your most fulfilling activities and building the next generation of givers.

A deliberate approach to engaging your family members is more likely to ensure the continuity of a family’s philanthropic goals and teach financial stewardship. A family meeting to discuss your philanthropic priorities is a good way to begin the discussion. This can be a formal meeting, or simply a discussion around the family dinner table. You can begin by explaining from where your spirit of generosity comes. The reasons for giving may be varied such as spiritual, thankfulness, ensuring continuation of organizations you care about, joy from helping others, etc.

By sharing details about your giving, your family will begin to understand your values and motivation. In addition, it can help build a shared vision and create a family legacy. You may also share the organizations you support and why. Talk about what you hope to achieve with your charitable contributions. Personal stories of how an organization has affected you are helpful and can inspire your children.

Once children understand their parents’ values and motivation, some families create opportunities for shared giving. Families can set up formal charitable giving vehicles such as a family foundation or a donor advised fund.

A donor advised fund is an account established at a sponsoring public charity, such as the Catholic Community Foundation (CCF), used to facilitate giving to qualified charitable organizations. Donors can name their account and recommend grants to be made from the account. A donor advised account provides donors with flexibility in the amount, frequency and timing of grants to qualified charities, while providing an immediate tax benefit to the donor when the contribution is made to the fund.

This account can be funded by the older generation, and the family can decide where to distribute the funds. A family can determine jointly where the annual contributions should be made or alternatively, you could have each member recommend a charity.

As with any exercise in family collaboration, there may be conflicts on where contributions should be made. However, this can be a great learning experience and an appreciation of other thoughts.

By meeting as a family to decide where the charitable contributions will be made, you can build a shared legacy. CCF can assist with the implementation and operation of a donor advised fund. For more information, contact Kim Pohovey at kpohovey@archindy.org.
 

(Jim Laudick, who serves as president of the Catholic Community Foundation’s Advisory Board of Directors, is a member of St. Pius X Parish in Indianapolis. Tax information or legal information provided herein is not intended as tax or legal advice and cannot be relied on to avoid statutory penalties. Always check with your legal, tax and financial advisors before implementing any gift plan.) †