Sharilyn Hale explores the dynamic and creative role of governance for family foundations in her article for Philanthropic Foundations Canada (PFC).
Sharilyn unpacks common challenges related to family dynamics, continuity planning, and engaging the rising generation. Here are the key takeaways:
Reimagining Governance Governance is often mistakenly equated with compliance and routine board meetings. Instead, Hale frames it as the set of promises families make to navigate decisions, honor shared purposes, and welcome new voices. It is a generative process that sits at the very heart of family engagement and philanthropic impact.
The Power of ‘Familiness’ Family foundations must actively attend to the family’s wellbeing alongside the foundation’s objectives. Researchers use the term ‘familiness’ to describe the experience of strong ties, shared identity, and mutual accountability within a family system. Just as ‘familiness’ provides a competitive advantage in business, it serves as a powerful, cultivable asset that enhances a family’s collective philanthropy.
Fit-for-Purpose Solutions Because every family is unique, governance models must adapt to the foundation’s specific developmental stage. Hale highlights three predictable phases of evolution:
Founder-Centric: The original founder holds the vision and makes most decisions, keeping governance largely informal.
Sibling Partnership: As the second generation engages, governance must adapt to manage diverse opinions and shared decision-making across multiple households.
Cousin Consortium: With the involvement of a third generation and beyond, the foundation often becomes family-governed but staff-managed. Formal governance, structured policies, and clear communication become critical to maintaining cohesion across a dispersed group of relatives.
Collective vs. Individuated Giving Governance must align with a family’s decision-making spectrum. Families may pool funds for collective grant-making—which requires strong consensus-building skills—or adopt an individuated approach where different branches direct funds autonomously according to their own interests. As family systems grow more complex across generations, the required governance becomes proportionally more robust.
The Promise of Inquiry and Dialogue Effective governance cannot be extracted from a generic template. It is co-created through open dialogue, inquiry, and generative capacity-building. Engaging an independent advisor often provides the objective perspective and safe space needed for difficult conversations, helping families build the shared understanding necessary to experience the profound joy of giving together.
To read the full piece, visit Philanthropic Foundations Canada: Family + Philanthropy: Unpacking Great Governance for Generous Families
