Family philanthropy is a powerful vehicle for impact. But as leadership shifts from one generation to the next, the tension between honoring a legacy and adapting to a changing world often creates hurdles. Bridging the generational gap isn’t about forcing consensus. It requires a delicate balance: honoring the founder’s original intent while empowering the next generation to bring that mission to life in a changing world.
Often, the boardroom table becomes a collision of generations, worldviews and life experiences; sometimes a debate between living wealth holders and their children and other times, a philosophical wrestling match for rising leaders trying to honor the wishes of family members who have passed.
The traditional advice is to “bridge the gap.” For many families, that’s not practical. It’s not always clear where to start, and some gaps cannot be perfectly bridged. Families often have to navigate real tensions; the goal shouldn’t be forced consensus, but rather learning how to navigate those differences.
I’ve helped wealthy families across the country navigate these complex dynamics. Here are five practical strategies that can help.
1. Interpret Founder’s Intent at the Level of Values
A common friction point arises from the interpretation of “Founder’s Intent.” When a foundation is created, its approach often reflects the world as it was understood at that time. Take, for example, a founder who passed away more than 40 years ago and whose charge for the family foundation was to provide school supplies like notebooks and pencils to students in marginalized communities.
An overly rigid interpretation of intent might leave the current generation unable to respond to an evolved understanding of need. By seeing the founders’ intent as a set of values—in this case, helping students to make the most of educational opportunities—the current generation is looking beyond school supplies and leveraging the foundation to help students access meaningful academic support, including tutoring and after-school enrichment.
2. Implement Structured Dialogue
When multiple generations are actively participating in governance, relying on ad-hoc communication is a recipe for resentment. Family philanthropy works better with structured dialogue. By thoughtfully and intentionally discussing values, strategy, and grantmaking, families can separate emotional dynamics from their giving strategy. Younger generations can voice their perspective, while older generations have a structured way to share the family’s history of giving.
3. Gain Clarity on True Priorities
When dealing with intergenerational leadership shifts, there is a challenging reality that legacy donors must confront: Defining their actual priority. Consider a legacy donor who prioritizes a specific political ideology in their giving. They must answer the question: Does adherence to that ideology supersede their desire to bring their children and grandchildren, who might hold differing views, into the fold? If ideological purity is the goal, they must accept that it may alienate the next generation. Conversely, if a donor’s intent is to bring family together through the foundation, they may need to revisit their commitment to a particular ideology.
4. Acknowledge that You Don’t Need to Agree on Everything
Families must accept that philanthropy will not magically erase deep-seated differences. You can share a common charitable vehicle without fully sharing a worldview. Acknowledging the limits of your alignment removes the pressure to agree on everything. It allows families to celebrate the areas where they do overlap, rather than constantly fighting over the areas where they don’t. We have worked with families to creatively structure different ‘funds’ that feature different areas of focus and risk profiles but are part of the same family foundation so that the family’s differences complement one another rather than compete.
5. Continuously Analyze the Landscape (Without the Bureaucracy)
If the founder’s intent is the anchor, the strategy must be the sail. Families must commit to allowing their understanding of the landscape to continually evolve. Next-gen donors need to conduct dynamic landscape analyses on an ongoing basis, marrying an updated understanding of the social context with the long-term values of the original intent. However, there is a trap here: paralyzing bureaucracy. Staying updated on the landscape should not mean drowning the foundation in red tape or endless research. The goal is agile, informed grantmaking that responds to current realities without getting bogged down in institutional friction.
Moving Forward
Whether navigating a living donor’s strong opinions or interpreting the intentions of a founder who has long ago passed, bridging the gap is rarely clean. But by focusing on the founder’s values, committing to dynamic strategies, and getting relentlessly honest about priorities, families can build a philanthropic approach that brings generations together.
