At its best, philanthropy provides an opportunity for family members to come together and identify shared passions and values, work collaboratively to achieve important social change, and leave a family legacy that extends beyond an operating business or investment portfolio. Yet, the reality of family philanthropy is often more complicated. For maximum impact—in the world and for the family—it must be approached with the same thoughtfulness and rigor that drives a family enterprise.

At the same time, family philanthropy also presents some unique challenges. The limitless possibilities afforded by private philanthropy, coupled with the challenges of measuring results in the social sector, means that there can be different—and at times competing—visions for the family’s philanthropy.

Families often first confront these dilemmas with the withdrawal or death of the founding donor or when they hit common inflection points along their journey, such as generational transitions, fluctuations in assets, and leadership changes. When productively addressed, these periods of transition offer families an opportunity to reflect and coalesce around a shared vision for their philanthropy, ensuring its healthy continuity.  But when families are ill-prepared and ill-equipped to face these transitions, they can be destabilizing and surface unproductive dynamics.