Philanthropy has evolved beyond individual generosity into a shared family journey, uniting values, resources, and passions.

This article explores how families can collaborate across generations, structure their giving effectively, and create a lasting legacy in their communities.

The Landscape of Family Philanthropy

In 2024, total U.S. charitable giving reached $592.50 billion, growing 6.3% in current dollars (3.3% inflation-adjusted). Households and family-controlled vehicles—direct donations, foundations, donor-advised funds (DAFs), and bequests—account for the majority of this generosity.

Experts estimate that family-driven sources represent about 83% of total giving, underscoring the vital role of families in shaping philanthropic trends.

Defining Family Philanthropy

Family philanthropy encompasses a spectrum of giving approaches, from spontaneous checkbook donations to structured legacy vehicles. Each model offers unique benefits and governance considerations.

• Direct giving by individuals and families (online donations, major gifts)
• Family foundations under perpetual governance or limited-life structures
• Family-controlled donor-advised funds (DAFs) at community or national sponsors
• Family offices and impact funds for ultra-high-net-worth households

These vehicles allow families to align their wealth with shared goals, ensuring their efforts reflect collective values.

Growing Trends in Family Foundations

Recent surveys highlight significant shifts in how family foundations operate. From 2015 to 2025, the proportion of foundations giving over $1 million annually increased from 23% to 36%, while those distributing below $100,000 also tripled, indicating a rise in boutique philanthropies.

Moreover, 71% of family foundations now exceed the 5% required minimum payout, up from 55% in 2015, reflecting a commitment to transformative family giving experiences.

Decisions around perpetuity vs. spend-down are also evolving. In 2025, 13% of foundations opted to limit their lifespan, up from 9% in prior years, signaling a strategic shift toward concentrated impact.

Geographic and thematic focuses are shaped by founder intent (64%), family connections (48%), and impact goals (44%). Notably, attention to race, ethnicity, and culture tripled to 12%, while faith-based giving emerged at 11%.

Governance, Engagement, and the Next Generation

Maintaining cohesion across generations can be challenging. While 56% of foundations still involve the founding donor, the percentage of families reporting smooth collaboration fell from 90% in 2020 to 73% in 2025.

Intergenerational collaboration and trust require intentional governance structures, clear decision-making processes, and opportunities for younger members to contribute meaningfully.

Professionalization varies: 69% of family foundations employ staff, with 39% hiring full-time family-related employees and 42% appointing family members as CEOs or administrators. This blend of personal involvement and expertise supports robust operations.

Strategies for Meaningful Impact

To maximize their collective power, families can adopt these best practices:

• Establish clear mission statements and grantmaking guidelines
• Create inclusive decision-making forums that engage all generations
• Balance professional management with personal values and founder’s original vision and intent
• Leverage structured giving vehicles like DAFs for flexibility and tax efficiency
• Implement strategic impact planning and evaluation to measure outcomes

Building meaningful long-term community partnerships amplifies impact and fosters trust with grantees, ensuring support extends beyond funding to include advocacy, volunteering, and capacity-building.

Aligning philanthropy with broader trends enhances effectiveness. Stock market gains and GDP growth fuel asset appreciation, while advisories suggest 37% of foundations plan to increase giving in 2025, and 54% will maintain current levels.

Affluent households (income ≥ $200k) remain highly engaged: 81% made contributions in 2024, blending monetary gifts with volunteerism—a dual approach that nurtures empathy and connection.

Building a Shared Legacy

Philanthropy as a family affair is more than writing checks; it’s a journey of shared discovery, values transmission, and collective empowerment. When families unite, they transform individual resources into a tapestry of positive change.

By embracing transformative family giving experiences, fostering cross-generational dialogue, and adopting strategic frameworks, families can ensure their legacy endures, continuing to uplift communities for generations to come.

Ultimately, giving back together not only amplifies social impact but also strengthens family bonds, weaving gratitude and purpose into the very fabric of shared heritage.