Shared giving can do more than support good causes. It can bring families closer together.
In recent years, more families have recognized giving as both a legacy and a learning opportunity. U.S. charitable giving reached $592.5 billion in 2024, up 6.3% from the previous year, with individual giving totaling $392.45 billion[i]. Much of this generosity is increasingly being expressed through family vehicles like donor-advised funds (DAFs) and private foundations, where collaboration among family members becomes as valuable as the dollars being given.
Philanthropy creates an opportunity for connection, especially when giving is intentional and structured. Research shows that families engaged in joint charitable decision-making report a stronger connection and reduced internal conflict. Multi-generational philanthropic families experience higher levels of unity when philanthropy is treated as a collaborative process, not a top-down activity[ii].
A shared giving mission provides family members with a common goal beyond wealth preservation. It creates space to talk about values, to learn from one another and to build empathy through shared action. This process is particularly valuable for high-net-worth families, where wealth can sometimes create distance between generations rather than connection.
Philanthropy also provides a forum for putting values into action. When families come together to support causes, like addressing local needs or funding global initiatives, they reinforce what matters most to them. It can be an especially powerful experience for younger generations, who learn that wealth can be a force for good and a force for change.
Practical Ways to Use Philanthropy for Connection
A successful family giving strategy starts with a shared mission statement. Defining the “why” behind your philanthropy, whether that means expanding educational opportunity, strengthening local communities, protecting natural resources, advancing medical research or addressing another cause that reflects your family’s values. The mission statement is crucial in guiding future decision-making, and it can prevent disagreements about where to direct funds. The mission should evolve as the family grows, allowing each generation to have a voice.
For families looking for an accessible starting point, establishing a donor-advised fund (DAF) can be an ideal option. DAFs allow families to make contributions, receive immediate tax deductions and then recommend grants together over time. They also provide flexibility for younger members to research and nominate charities that align with family priorities. For families with substantial philanthropic goals, private foundations can provide additional structure and opportunities for governance, though they come with greater administrative responsibility.
Another effective practice is to hold annual family giving meetings, where members come together to review impact, set new goals and share ideas. These gatherings can range from formal board-style meetings to informal discussions over a holiday weekend. The goal is consistency, which can create a ‘rhythm’ that keeps philanthropy as part of the family dialogue.
Data indicates that satisfaction with family philanthropy is more strongly linked to collaboration and shared experiences than to individual preferences or geography[iii]. Families who engage in collective giving report feeling closer and more fulfilled, especially when the process includes joint decision-making and opportunities for younger generations to contribute.
Supporting causes that span generations can also help maintain connection. A family might fund scholarships, community programs or conservation efforts that reflect shared experiences or family history. When the cause reaches across generations, giving becomes more personal and more lasting.
Involving the Next Generation
Philanthropy offers one of the best opportunities to prepare younger family members for stewardship as they learn responsibility, gratitude and a sense of purpose through shared experience. When philanthropy includes educational experiences such as site visits, presentations or project management, families report higher levels of stewardship and accountability among younger members[iv]. These hands-on activities help the next generation understand the impact of giving and develop the skills to continue that legacy.
Encourage participation by giving younger family members a voice in decisions. Allowing them to nominate causes or present funding proposals promotes ownership and deepens their understanding of the family’s mission.
It should be said, however, that with any family endeavor, philanthropy can create tension if not handled thoughtfully. Imposing a single agenda can stifle engagement, especially when younger generations feel unheard. Flexibility is key, allowing values to evolve together as new voices join the table. Some family members may want to take an active role, while others prefer to observe. Just be sure to establish clear expectations about involvement to avoid misunderstandings.
Another issue that can occur is a lack of follow-through, which can cause enthusiasm to fizzle. Without structure or regular touchpoints, good intentions can fade quickly. Families can avoid this by building in accountability through annual reviews, documented goals and professional oversight.
At the end of the day, philanthropy can do more than create impact beyond your family—it can create meaning within it. Structured, intentional giving has the power to unite generations around shared purpose and enduring values. Families who embrace philanthropy not just as an act of generosity, but as an act of connection, tend to preserve their wealth and their sense of unity across time.
Research into multi-generational giving consistently finds that families who approach philanthropy collaboratively experience stronger trust, better communication and greater long-term cohesion[v]. With guidance from your financial advisor, you can design a giving framework that encourages family inclusion, aligns with your wealth strategy and reflects your family’s unique story.
IMPORTANT DISCLOSURES:
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. In addition, information presented in this presentation is believed to be factual and up to date, but Newport Capital Group, LLC does not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.
This presentation includes forward-looking statements and opinions, including descriptions of anticipated market changes and expectations of future activity. Forward-looking statements and opinions are inherently uncertain, and actual events or results may differ materially from those reflected in the forward-looking statements. In addition, all expressions of opinion are subject to change without notice in reaction to shifting market conditions. Therefore, undue reliance should not be placed on such forward-looking statements and opinions.
The tax and estate planning information offered by Newport Capital Group is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Past performance is no guarantee of future performance.
Sources:
1 Source: https://givingusa.org/giving-usa-2025-u-s-charitable-giving-grew-to-592-50-billion-in-2024-lifted-by-stock-market-gains/
2 Source: https://lga.global/philanthropy-research-lga-ncfp/
3 Source: https://www.fidelitycharitable.org/articles/family-giving-traditions-study.html
4 Source: https://lga.global/philanthropy-research-lga-ncfp/
5 Source: https://lga.global/philanthropy-research-lga-ncfp/