The author of this article points out that philanthropy is undoubtedly becoming increasingly integrated as part of a family's overall wealth and governance strategy, and explores some of the ways this plays out.

Family philanthropic efforts are becoming more professional, more sophisticated and more targeted – and there are good reasons for this evolution, writes Tony Hind (pictured below), executive director, Crestbridge Family Office Services. The editors are pleased to share these insights; the usual editorial disclaimers apply. Email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

Tony Hind

Over recent years, families have undoubtedly shown a greater tendency to embed philanthropic structures within their holistic wealth planning, as they have become increasingly sophisticated in their approach.

Today, overall philanthropic giving is estimated to stand at around $1.3 trillion, including financial and volunteer time, representing around 1 per cent of global GDP (Global Giving, Citi, 2024). Families are alive to the economic significance of this dynamic and are increasingly playing their part – 71 per cent of family offices are currently engaged in philanthropy whilst in the US nearly half of all private foundations are family-run (National Center for Family Philanthropy, 2025) – and this trend is expected to continue to persist.

Previously, approaches to philanthropy have perhaps been more ad hoc, and emotively driven by senior family members with particular interests and passions.

But the emergence in recent years of tools to help measure and evidence impact combined with the greater complexity of the family make-up itself have given rise to new, more strategic approaches to philanthropy, whereby families are more focused on the change they want to create as a collective, family unit. There is greater understanding amongst family offices that integrating philanthropic giving into their overall strategy is deeply tied to their legacy and values.

Philanthropy is increasingly being embraced by families to reinforce shared values and promote unity. In fact, 60 per cent of families agree that philanthropy helps strengthen family values and cohesion (Campden Wealth, 2023), offering a unifying force amid the growing challenges of wealth and succession planning.

Consequently, while the external benefits of family-led philanthropy – such as its positive impact on society and the planet – are well recognised, families are also increasingly aware of the internal rewards it can bring, from strengthening relationships to fostering a shared sense of purpose. And as families face up to both the challenges and opportunities posted by mass wealth transfer in the years ahead, philanthropy is now seen as a critical element in bridging the gap with the next generation.

Practical benefits
Building strong family cohesion through philanthropy can be a powerful process bringing several practical benefits, from enhancing governance and oversight frameworks, to driving greater efficiencies in structuring, to supporting long-term multi-generational legacy and succession planning.

-- Governance and oversight: First is the opportunity philanthropy provides to revisit governance frameworks and family charters, to ensure that documentation is clear and aligned with purpose-driven values, and that roles and expertise are well understood through a family structure. Roles such as head of philanthropy are increasingly common within family offices, giving them a more formal organizational model to help develop and implement bespoke strategies professionally and with confidence. By determining their goals and values, family offices can better dedicate resources toward targeted areas and issues.

In turn, this is helping families undertake robust reviews on how they structure their philanthropic activities. How can they differentiate between different types of philanthropic activity, such as charitable giving, impact investing and seed investing, for instance?

-- Efficient structuring: A more sophisticated approach to philanthropy can prompt families to assess the structures they are using, to help them realise their objectives effectively and efficiently. Establishing foundations, charitable trusts, donor-advised funds or endowments that support specific causes a family cares about, for instance, are increasingly attractive. Seed funding or “venture philanthropy” to support startups or higher risk innovation-driven social benefit projects, however, might require different structuring options from the more straightforward ‘pure giving’ options.

There is also the question of active and direct involvement, which is becoming increasingly popular amongst families. Sixty per cent of global high net worth families, for instance, now report having a strong or partially developed plan to support their specific philanthropic objectives through a combination of self-directed activities, investments and family engagement, reflecting how firmly fixed wealthy families are on the long-term purpose of their wealth.

-- Greater impact through networks: Meanwhile, co-projects with other families are also on the rise, as families consider pooling resources where values, objectives and approaches are complementary, with a view to achieving greater impact. Families are also integrating philanthropy more with their wider wealth, business and investment activities, and this is having an impact on structuring options. There is growing understanding that philanthropy needs to permeate all other areas of a family’s affairs if it is to be authentic and have the desired measurable impact.

-- Succession and future-proofing expertise: Crucially, as the next generation assumes greater responsibility for managing family wealth and setting the long-term agenda, philanthropy is also playing an increasingly important educational role. A well-defined, shared philanthropic strategy offers a “ring-fenced” space in which younger family members can learn and grow. With the right balance of autonomy and structure, philanthropy can serve as a powerful training ground – helping the next generation develop critical financial and governance skills, understand the broader social and economic context they operate in, and connect with causes they genuinely care about, thereby future-proofing a family’s long-term philanthropic vision and galvanising its wider succession planning.

Alignment
Philanthropy is undoubtedly becoming increasingly integrated as part of a family's overall wealth and governance strategy, particularly as they seek to build more strategic, data-driven approaches.

There are challenges of course, notably balancing altruistic family values with financial strategies, as well as aligning the philanthropic vision among multiple generations – but an objective, more systematic approach to philanthropy can be helpful in resolving these issues.

And while this greater level of sophistication is positive in terms of driving greater social and environmental impact, the benefits to the family itself should not be underestimated. There is strong alignment between efficient, robust philanthropic strategy and long-term succession and legacy planning.

By embracing a more sophisticated and strategic approach to philanthropy, families can create a lasting impact on the causes they support, on the cohesion and capability of the next generation and on the legacy they leave behind.