Considering the disruption brought on by the COVID-19 crisis, philanthropy by private businesses is now more important than ever. Beyond finding the right business response, this is also a time for family enterprises to reflect and look at ways to make a lasting impact. As families across the country reach out to support communities, we look at how the right approach to giving matters.
“With so many different avenues for making a difference, the process of philanthropy can be complicated. Asking the right questions from the beginning is key for greater impact”
Andra Ilie, Senior Manager, Family Office and Private Client Services
I’ve always found that an admirable feature of family business owners is their desire to give back – perhaps even more so than others. This isn’t just anecdotal evidence: the STEP 2019 Global Family Business Survey revealed that family-owned businesses show a greater tendency towards philanthropy (particularly those led by millennial leaders in the Middle East and Africa).
The same survey found that about 52 percent of global family business leaders are planning to spend their retirement years on non-business activities, including philanthropy. Naturally, attitudes differ between generations and geographies, but the underlying message is clear: charity matters.
Although many families and individual members gift frequently and generously, finding the best way to donate isn’t an easy task. All too often, donors struggle to find the right charities or causes and the most efficient ways to support them. Many people want to do more than just make a financial donation, perhaps by rolling up their sleeves and getting hands-on, but they’re not sure about how to proceed. There are also those who wish to contribute in their wills or with lifetime giving and don’t want their endeavours to be wasted.
Considering this, we talk with families and individual clients about the best way to give back, helping to bring clarity and purpose to their philanthropic goals right from the start. Asking some (occasionally challenging) questions is what helps family businesses through their journey of giving.