Many families want to set up foundations intended to bring families together in order to contribute back to the community but without good planning it can spark disagreements.
The identified traits include:
- Mission – Foundations that work have clear missions so everyone knows what the purpose of the foundation is and they can all work towards it.
- Decision-Making – It is important to recognize that family members will not always agree. A clear and fair decision-making process should be put in place so those disagreements do not fester and spoil the foundation.
- Dialogue Across Generations – It is important that younger generations be brought into the process when they are capable so they can learn from experienced family members.
- Personal Passions – Different family members will be passionate about different charitable works. Allowing family members some freedom to pursue their passions keeps them involved and excited about the foundation.
- Outside Experience – It is important to be open to professional advice about foundation operations and the best ways to carry out the mission.
An estate planning attorney can guide you through the process that will help your family foundation be a source to bring the family together through the generations.
Reference: Wealth Management (May 13, 2016) "Top Five Traits of Effective Family Philanthropy."