We make a living by what we get. We make a life by what we give.– Winston Churchill
As we enter the age of the great wealth transfer, baby boomers are poised to pass down trillions of dollars to their children and grandchildren. This monumental shift in wealth has the potential to reshape economies, redefine family legacies, and drive philanthropic change on an unprecedented scale. For business families, the question isn’t merely about transferring wealth; it is about preparing the next generation to use it responsibly.
But how do today’s wealth owners ensure their wealth continues to make a difference and land in the hands of equipped, emotionally intelligent, and empathetic leaders? Here we outline the dos and don’ts of raising the next generation of givers.
While many business families proactively invest in preparing the next generation for success – through internships in the family business, formal management education, or exposure to networks – far less attention is placed on cultivating next-generation philanthropic leaders. Without the right education and preparation, business families risk falling short of their potential to make a meaningful impact on society, and their concern is not unfounded.
Many families recognize that, without careful preparation, the next generation may lack the confidence, knowledge, or desire to continue the philanthropic legacy their predecessors worked so hard to build.
Developing a future generation of givers begins early by cultivating character, empathy, and a sense of shared responsibility. Wealth owners must raise children to be attuned to the needs of others and see their eventual wealth as a means to act on their values. This perspective, however, does not emerge automatically with inheritance. It takes intention, exposure, guidance, and practice over the years.
For business families, cultivating a philanthropic mindset in the next generation requires an intentional, long-term approach, grounded in values, empathy, and lived experience. Drawing on research, practice, and the compiled insights and cases from the Family Philanthropy Navigator, these are the dos and don’ts of raising the next generation of philanthropists:
“Ask yourself: What does wealth mean to our family?”
Defining and sharing your family’s values around wealth and philanthropy helps ensure that both parents and children align on the deeper purpose behind giving, creating a lasting legacy grounded in shared principles. In the Navigator framework, this purpose pillar looks at the deeper motivation of giving (why you give), the focus (what you give to), and the ambition (how bold you want to be). A first step is self-reflection.
Ask yourself: What does wealth mean to our family? To what extent and in what ways is philanthropy integrated into our lives? What are our current practices? And what do I/ we want to support, expand, or change? Then engage your family members in dialogue about these questions and your family values.
Discuss the causes you care about with your children. These conversations lay the groundwork for a deeper understanding of the purpose of philanthropy in general, and the meaning of philanthropy to your family. Invite your children to challenge you. This can deepen your relationship and foster engagement.
While empathy and prosocial behavior have biological roots, their development is deeply shaped by parenting style.
Intentional parenting that combines warmth, empathy, and active involvement in philanthropy sets a strong example for children, helping them internalize prosocial behaviors and understand the true impact of their actions.
While empathy and prosocial behavior have biological roots, their development is deeply shaped by parenting style. Research shows that the intergenerational transmission of values is important in determining whether philanthropic attitudes and behaviors persist, evolve, or diminish over generations. Therefore, it’s crucial that families start early through intentional parenting.
Exposure is a simple but effective way to start. Highlight philanthropic work in your community or the work you or someone you know is doing, and inspire the next generation through role modeling. Showing your interest and commitment is a great way to show how charitable living fits into your life. If your philanthropic activities are perceived as competitive to parental love and attention, the effect can be negative, so if you can’t bring them along, take time to explain what you are doing and why it is important. Be transparent about choices, trade-offs, and the impact of your activities.
Fostering empathy in the next generation equips them with the emotional intelligence to connect with others’ needs, a crucial foundation for understanding and engaging in meaningful charitable work.
Psychological research underscores the power of warmth, sensitivity, and responsiveness in promoting empathy. Rewarding prosocial behaviors and healthy assertiveness develops sensitivity to others’ needs.
Demonstrate empathy in your daily interactions, showing kindness to strangers, being patient with others, or actively listening when someone shares their feelings. Praise helping behaviors; when your child lends a hand to a sibling or performs an act of kindness, explain how their actions had a positive impact on someone else. Expose children to a range of perspectives and experiences through travel, community involvement, or learning about different cultures and backgrounds. Diversity fosters empathy, which helps children understand and appreciate experiences that may be different from their own. These experiences cultivate compassion and awareness.
Philanthropy is best learned by doing. Experiential learning provides opportunities for next-generation family members to connect abstract concepts to the real world and prepares them for future leadership in charitable endeavors.
Invite your children or grandchildren to join you when you volunteer. Encourage their involvement in efforts both inside and outside of your philanthropic spheres. This enables the next generation to connect with you in the context of your family’s initiatives, while allowing them to build their own identity around causes that interest them. Seemingly simple actions, such as helping decide on causes to donate to or attending events, help build confidence and capability.
Expose them to philanthropic management, too. This could be as simple as having them participate in family meetings where philanthropic goals are discussed or attending foundation board meetings as an observer. Providing opportunities to participate in formal governance structures is valuable preparation for future roles. It enables valuable learning around key aspects of strategic philanthropy, like aligning values with causes, setting impact goals, assessing success, and discussing funding strategies.
For business families, the opportunity to shape the future of giving is now. Start early, engage the next generation in values-driven discussions, and provide them with hands-on experiences to foster a lasting culture of family giving. You can give your children a seat at the table at established philanthropic activities or allocate a philanthropic budget to allow them to develop their own competencies and confidence in giving.
Stories like this remind us that philanthropy does not begin with a foundation or grant.
While some families may struggle to instill philanthropic commitment across generations, others model it through deeply personal, sustained efforts. One powerful example comes from a couple who lived their values long before they had great wealth or formal philanthropic structures. Their story demonstrates how lived experience can lay the groundwork for a lasting culture of giving.
A young entrepreneurial couple travels to Egypt for business. While there, they have a chance encounter with a family who have just received the news that their baby has incurable cancer. The story resonates with the couple who have a baby the same age. They immediately make the necessary arrangements (visa, travel, etc.) for medical treatment at a specialized clinic abroad. They continue to care for the child, providing all associated costs over several years, through the child’s recovery and beyond. This long-term connection inspires a lifetime of giving, where they continue to support children’s causes, act as foster parents to over 40 children, and serve as members of UNICEF’s International Council. Their children have followed suit and are active philanthropists in their own right.
Stories like this remind us that philanthropy does not begin with a foundation or grant. It starts with the development of generosity, empathy, and responsibility. Preparing the next generation for future philanthropic roles starts with everyday family practices, conversations, and experiences.
Philanthropy is not just about giving money; it is about giving meaning.
For business families, philanthropy can be a tool for transmitting values, building unity, and cultivating responsibility in the next generation. Effective giving requires purpose, relationships, organization, and learning.
Philanthropy is not just about giving money; it is about giving meaning. By starting early, living your values, and engaging the next generation, families can ensure that their wealth becomes not only a financial inheritance but a moral one.
| Do | Don’t |
|---|---|
| Start early with age-appropriate exposure. | Over-engineer the process with bureaucracy. |
| Use tools (like values cards or the SDGs) to spark conversations. | Treat young family members as token “youth representatives” in your existing activities without listening to them. |
| Give next-gen decision rights and budgets. | Assume values will transfer automatically at inheritance. |
| Model trust-based, flexible giving. | Separate philanthropy from everyday family life. |
| Integrate philanthropy with investing (impact funds, mission-related investments). | Focus solely on metrics - listen to grantees’ definitions of success. |
| Reflect together after each grant cycle. |
$124tn is being passed down to the next generation, prompting a profound succession dilemma in family enterprises. Here are six steps families should take to identify and engage the next generation of...
Is your family firm experiencing conflict? Is a breakdown of a sibling relationship putting a strain on business dynamics? Are board members struggling to find a unanimous way to perform a task?...
Good governance is critical to success in the family enterprise ecosystem, but family involvement in these mechanisms could be doing more harm than good. ...
The blurring of work and personal lives is creating stress, exhaustion, and confusion for leaders. We explore how enterprising families create healthy boundaries between the two worlds and thrive....
Explore first person business intelligence from top minds curated for a global executive audience