Facilitating Multigenerational Charitable Giving: The Strategic Approach of Professional Advisors

Multigenerational charitable giving has become a cornerstone of many families’ philanthropic strategies. Professional advisors can be pivotal in guiding families through the complexities of this process.

Professional advisors can also help chart a course that aligns with their client’s goals by fostering meaningful conversations among family members. At Greater Horizons, we partner with hundreds of financial advisors, CPAs, attorneys, and their clients and families to ensure a legacy of generosity and social impact.

Right now, so much information is available that it can be challenging for clients to understand and navigate the complexities around taxes and investment options. We can share tips to help you and your clients confidently make informed decisions.

The Significance of Multigenerational Giving

At the heart of navigating the intricacies of any financial plan lies the ability to facilitate meaningful conversations. As trusted advisors, you are uniquely positioned to guide these discussions because of the relationship you have built with your clients. Engaging multiple generations within a family in philanthropy leverages each generation’s diverse perspectives, experiences, and values to create a comprehensive and impactful giving plan. Being able to connect on a deeper level to ensure the desired vision is the driving force behind their plan. An open and honest dialogue is essential so that all family members feel heard and valued. These conversations provide a platform for family members to express their passions and concerns, cultivating a sense of unity and shared purpose to align their values and develop a plan for their giving.

Facilitating Meaningful Conversations

To initiate these conversations, Danielle Oristian York, executive director and president of 21/64, recommends discussing the family’s philanthropic history and the causes that have been most important to them using active listening techniques. Throughout her 24-year career, Danielle has successfully engaged in these challenging conversations with organizations, communities, and families, and she has trained our staff to hone our skills as 21/64 certified advisors. As your partner, we aim to help you create a better listening experience, cultivating a stronger, more personalized relationship with your clients. Rather than starting with solutions, consider demonstrating your clear understanding of their goals and then work alongside your client to create a tailored plan. Listening can be transformational because it is rare to be truly present. Empathetic listening is the most engaged way of listening. Consider these five building blocks of active listening to facilitate important conversations:

1. Silence the Voice, Mind and Body: Advisors must create a space where everyone can speak freely without interruption. This means actively silencing your own thoughts and focusing entirely on the speaker. By doing so, advisors demonstrate respect and genuine interest in the speaker’s perspective.
2. Encourage Nonverbal and Audible Communication: Nonverbal cues such as nodding, maintaining eye contact, and leaning forward can significantly enhance communication. Audible confirmations also encourage the speaker to continue sharing.
3. Use Footprinting: This technique involves reusing the speaker’s own words, which helps validate their feelings and ensure clear understanding.
4. Use Open-Ended Questions: Open-ended questions invite deeper reflection and discussion. This approach encourages family members to explore their values and motivations more thoroughly.
5. Listen for the Whole Picture: Advisors should strive to understand the broader context of the speaker’s words. This means paying attention to what is being said and the emotions and intentions behind the words. By doing so, advisors can help families align their charitable giving with their core values and long-term goals.

Charting the Course for the Future

At Greater Horizons, we understand that multigenerational charitable giving is a powerful way to create a lasting legacy of generosity and social impact. Your clients depend on you to play a vital role in helping them chart and shape a philanthropic vision toward a rich, fulfilling future that engages their family while positively impacting the broader community.

One of the most effective tools in this endeavor is the donor-advised fund (DAF), which offers flexibility, immediate tax benefits and ease of setup, making it ideal for charitable giving. Due to their simplicity and efficiency, DAFs are a preferred choice for many families. Unlike private foundations, DAFs require less administrative load and offer more flexibility. This flexibility is especially advantageous for families aiming to involve multiple generations in the giving process, as it facilitates continuous engagement and decision-making for all fund advisors. This charitable vehicle offers a structured yet adaptable approach to giving. It can empower younger family members to assume leadership roles and gain valuable experience in philanthropy.

Greater Horizons’ philanthropic advisors are on hand to offer guidance and inspiration to you for your clients who might be exploring their options and are interested in connecting with an organization that truly hears and resonates with them.

Authored by: Annie Burndrett, Business Development Advisor