This video is part of our October special report on managing family businesses and family offices across the generations. To see all the articles, click here.
For family offices, philanthropy is typically a core function and a significant concern for their families. For thousands of Canada’s wealthy, giving plays a fundamental role in their lives and how they ultimately view their legacy. And a large part of that legacy depends on how their children view philanthropy. Does the second or third generation care about the same causes? How can the first gen bequeath not just their wealth, but also their commitment to giving? And how may the great intergenerational wealth transfer affect the broader philanthropic landscape in Canada?
Canadian Family Offices recently had the opportunity to sit down with Bruce MacDonald, president & CEO of Imagine Canada. A thought leader in the philanthropic world, MacDonald shared some successful strategies he’s seeing firsthand when it comes to G1 and G2 sharing philanthropic pursuits and passing down their passions.
*This transcript is provided for convenience and is based on the audio recording of the video. While efforts have been made to ensure accuracy, minor errors are possible.
AR: My name is Ashley Redmond for Canadian Family Offices and I’m here with Bruce MacDonald, President & CEO of Imagine Canada.
Bruce, thanks for being here. Succession is a wildy popular topic on our website, and I’m hoping you can share some insight on the importance of engaging the next gen of donors in the philanthropic process.
BM: Absolutely and thanks for inviting me here. It’s a critically important topic, in part because of the demographic shift with over half of individual donors being over the age of 60, and half being over the age of 70.
The wealth transfer, the foundation of philanthropy is changing. At the other end, we hear from young people who want to be engaged with the community, but their financial starting point is fundamentally different than their parents of grandparents.
As those grandparents are ageing out and engaging their kids/ grandkids in the process, some of those dollars stay in the philanthropic community and aren’t used for other things- will be important re: how services are delivered in the future. This is a critical time with the wealth transfer coming up.
AR: Bruce, what are you hearing from other organizations? What do they say when it’s been successful bringing next gen in?
BM: First and foremost it’s about intentionality, and not just focusing on the donor, but the full family. We’re hearing that organizations are starting to change their practices. With donor recognition they don’t just invite Mom and Dad. They invite the middle-aged kids and the grandkids to come be part of the celebration.
If they’re touring a facility, or showing the impact of a program, they make sure the whole family is there. Sometimes bringing in family without the donors for conversations.
Because let’s face it, it’s the parents cause not the kids. How do they start to build an affinity to the cause? So when Mom and Dad are gone, those middle-aged kids who are inheriting the wealth also feel connected to the cause. How can they tell the story of the different they’re making in communities to the children and grandchildren of the donors, so they feel connected to the cause?
AR: Thank you Bruce.
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