The Family Share: Passing on Your Charitable Spirit to the Next Generation
Charitable giving has the power to create a lasting impact. As individuals, we often strive to make a difference in the world and contribute to causes that align with our values. What if we could extend this philanthropic spirit to future generations? Enter the concept of “the family share” – a structured approach to leaving a charitable legacy by involving children or other family members and leveraging tools like a donor advised fund (DAF) to build your own family foundation.
Philanthropy is a journey to be shared with loved ones, and the family share is a way to emphasize the importance of imparting values, nurturing empathy and instilling a sense of responsibility in the next generation. By involving children in the decision-making process, parents can foster a deeper understanding of charitable giving and empower their children to continue the family’s philanthropic traditions.
One effective way to implement the family share concept is through the use of a donor advised fund. A DAF is a charitable giving vehicle that allows donors to make donations, receive an immediate tax receipt, invest and grow their donations on a tax-free basis and then recommend grants to their favourite charities over time. Parents can allocate an amount from their family fund to each child every year and allow them to select the charities they want to support with their portion.
A popular time to do so is around the holiday season, and it is also a great opportunity for families to share personal stories, values and experiences related to giving with each other. Establishing a DAF allows families to create a central fund that can be accessed by multiple generations, ensuring that the spirit of giving endures long after the original donor.
The family share offers a structured and intentional approach to leaving a charitable legacy. By providing opportunities for active participation, parents can inspire their children and ensure that their spirit of giving endures across generations.
Ready to get started? Reach out to your financial advisor to discuss how best to build your own family’s legacy of giving.
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