April 12, 2015 5:00 pm
Published by Michael
The Tracy Family Foundation encourages all generations of family members to volunteer at organizations such as Share the Harvest Food Pantry in Camdenton, Mo. Younger family members may be reluctant to step up, however, if they don’t feel a connection to the charities the foundation supports, are overshadowed by overbearing parents or lack the time and skill needed to run a nonprofit organization.
Here are five things foundations can do to empower the next generation of leaders and ensure that the family’s philanthropic flame won’t burn out:
Share the History
Passing down the story of how and why the foundation was formed can inspire younger family members to want to be a part of it.
Consider the Siragusa Foundation, which was established in 1950 and is meant to exist in perpetuity.
The publication has been crucial in helping the younger family members feel connected to the founder, Ms.
“Although I never met my great-grandfather, I can better understand why he started the foundation and what his intentions were,” says Caitlyn Hicks, age 23, who works at the foundation. A foundation board member mentors the children.
The family also holds regular group discussions with younger children on issues such as transportation, housing and hunger to help them understand how different another young person’s day-to-day experience may be from their own and why the foundation’s work is important.
When “children/young adults develop the habit of giving early in life, it provides a huge advantage later on because they’re already in a pattern of discernment about who, what, when, how and why to give,” Mr. Dungan says.
Thomas Blaney, director of foundation services at accounting and advisory firm O’Connor Davies in New York, says the grooming of future leaders should be a gradual process.
He suggests having younger family members serve on foundation committees before joining the board. He also advises encouraging them to shadow veteran members to gain knowledge and once elected to the board, giving them time to learn the ropes before putting them in leadership roles.
Training programs such as Exponent Philanthropy’s Next Gen Fellows program also can help prepare younger family members for leadership roles within family foundations, says Marguerite Griffin, national director of philanthropic services at Northern Trust
Give them a voice and a vote
Without a voice and a vote, younger family members may lose interest in the family’s philanthropic work, says Scott Winget, senior managing director of wealth impact planning for Ascent Private Capital Management, a unit of U.S. Dungan.
To avoid that kind of disconnect, the Tracy Family Foundation in Mount Sterling, Ill., says it has made it a point to give younger family members a real say in the organization’s business.
The foundation’s bylaws require that three of the organization’s 10 board seats go to third-generation family members. Two of those three seats are just one-year terms, providing more opportunity for younger family members to get involved, says Jean Tracy Buckley, the foundation’s president.
“You must give them meaningful work for them to remain engaged,” Ms.
The family also hosts an annual “next gen” meeting during their family vacation at the Lake of the Ozarks in Missouri, and has a grant program that empowers younger family members to make grants to charities they like and gives them incentives to volunteer.
“Every family member’s contribution feels valued and appreciated,” says 33-year-old Rob Tracy, who served as the treasurer of the foundation from ages 25 to 31.
Be open to change
When the time comes for younger heirs to carry on the family’s philanthropic legacy, older family members need to be open to fresh ideas, says Sapphira Goradia, executive director of the Goradia Foundation in Houston.
Ms. “When involving the next generation, don’t assume that they will continue doing things the way you have.”
Give them time
Becoming a philanthropist is an “evolution” that often takes time, so it’s important not to pressure younger family members into taking on big foundation roles before they are ready, says Northern Trust’s Ms.
Some younger heirs may show little interest in participating in the family’s philanthropic work, especially if they are building careers of their own or raising small children, she says, but that can easily change.
Foundations should provide enough flexibility to allow younger family members to stay involved with whatever level of commitment they’re capable of giving, she says.
“Over time, things can change and the pressure to participate should be minimized,” says Ms.