Philanthropy is increasingly becoming a meaningful part of how families think about wealth, legacy and responsibility. Beyond its financial dimension, charitable giving can provide a framework for families to articulate their values, strengthen relationships across generations and cultivate a shared sense of purpose.
For many first‑generation wealth creators, an important question often arises: how can financial success be passed on without losing the principles that helped build it? Family philanthropy can offer a powerful answer. By involving family members in thoughtful, collaborative giving, wealth becomes not only a resource but also a vehicle for responsibility and stewardship.
When philanthropy is integrated into long‑term wealth planning, it can play a role far beyond charitable donations. It becomes a way for families to communicate the beliefs and values that shape their identity.
Discussions about giving encourage families to reflect on the causes that matter most and the impact they hope to achieve. They can also bridge generational perspectives, creating a shared space to explore purpose, legacy and social responsibility. These conversations often open up broader questions: What does success mean for us as a family? How do we want to use our resources and networks? What responsibilities come with our position?
While every family approach philanthropy differently, successful efforts often share common qualities: openness, curiosity and a willingness to explore motivations together. Some families start with simple activities – such as supporting a local organisation or a cause tied to a personal story – and gradually develop more structured strategies over time.
Cerulli1 projects that wealth transferred in the United States through 2048 will total USD 124 trillion. Of this, USD 105 trillion is expected to flow to heirs, while USD 18 trillion will go to charity. Nearly USD 100 trillion will be transferred from Baby Boomers and older generations, representing 81% of all transfers. Projections suggest that nearly half of this will first be transferred between spouses before ultimately passing to heirs and charities. Of this, nearly USD 40 trillion is expected to go to widowed women in the Baby Boomer and older generations.
Against this backdrop, a central theme in many discussions about modern philanthropy is the importance of engaging younger generations early in the process. Rather than simply observing decisions made by older family members, younger individuals benefit from participating actively in conversations and initiatives.
As younger family members grow more involved, their participation may expand. They might research charitable organisations, present their findings during family discussions or help evaluate potential philanthropic partnerships. In some cases, families allocate a portion of the giving budget for younger members to manage independently, giving them the opportunity to develop decision-making skills and confidence.
Family philanthropy is not without its challenges; each family must find its own approach to decision‑making.
Some families keep philanthropic discussions within the immediate household, while others involve a wider circle of relatives and even non‑family advisers.
While initiatives often start with senior members, long‑term engagement relies on empowering younger generations and distributing responsibility across the family. Questions of structure and power are therefore central.
These challenges are often part of the collaborative process. Building a shared philanthropic strategy requires patience, dialogue and a willingness to adapt. Rather than expecting perfect alignment, many families find that continued conversation and reflection help them move forward constructively and deepen mutual understanding.
High‑net‑worth philanthropists have the power to drive meaningful change, but even the most committed donors benefit from expert guidance to maximise their impact. Skilled advisers can help identify effective causes, determine appropriate giving levels and structure donations efficiently, taking into account considerations such as taxation, legal frameworks and governance.
In addition, external expertise can bring objectivity and global perspective. Advisers can support families in articulating their philanthropic goals, developing criteria for selecting partners and setting up mechanisms to monitor outcomes. This can help ensure that generosity is matched by effectiveness, and that enthusiasm is supported by robust structures.
For next‑generation families, effective stewardship goes beyond managing wealth – it is about shaping a legacy of purpose and impact. LGT believes that stewardship offers investors an additional avenue to maximise risk‑adjusted returns and a powerful lens through which to assess companies’ sustainability commitments.
The responsibility of long‑term stewards includes:
Through our own stewardship activities, we aim to shape outcomes that safeguard economic systems and foster positive social and environmental results.
Environmental philanthropy, in particular, provides a powerful avenue to address urgent global challenges such as climate change, biodiversity loss and sustainable resource use. By combining evidence‑based strategies with personal values, families can make meaningful contributions while modelling responsible stewardship for future generations.
Aligning financial strategies with environmental purpose allows next‑generation families to see the direct impact of their engagement while maintaining long‑term sustainability. After all good governance of assets is as crucial for financial returns as it is for environmental and sustainable purposes. It also encourages intergenerational dialogue, bridging differing perspectives and priorities, and ensuring that philanthropic efforts evolve in line with both family values and emerging global needs.
A key lesson for families exploring philanthropy is that while evidence and analysis provide valuable guidance, it is personal values that give giving its true meaning.
Philanthropy offers more than a way to give back: it connects wealth with purpose, engages younger generations in responsible stewardship and contributes to solutions that reach far beyond the family itself. When guided by intention and collaboration, it helps build a legacy defined not only by financial success but also by lasting, positive impact.
To find out more speak to your wealth manager or the LGT Wealth Management US team here.
[1] Source: Cerulli Anticipates USD 124 Trillion in Wealth Will… | Cerulli Associates
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