by: Jeff M. Brandon, Senior Wealth Planner
For many successful families, there comes a point when the conversation shifts from building wealth to considering what happens next. Family charitable giving — the practice of involving children and grandchildren in philanthropic decisions during your lifetime — offers a meaningful way to prepare the next generation for the legacy they will one day carry forward.
Estate plans, trusts, and wealth transfer strategies are all important pieces of the legacy planning process. But many families eventually realize their biggest concern isn’t how wealth will transfer — it’s whether the next generation will be prepared to steward it responsibly. By involving children in giving decisions today, you create opportunities to discuss values, develop financial judgment, and establish traditions that extend well beyond the balance sheet.
This guide covers how to start, how to structure the process, and how to connect family charitable giving to your broader legacy plan.
What is family charitable giving?
Family charitable giving is a coordinated, multi-generational approach to philanthropy in which parents, children, and sometimes grandchildren participate together in charitable decisions. It typically includes shared conversations about causes, joint research on organizations, structured annual giving, and — for larger families — vehicles like donor-advised funds or private foundations that create a durable giving framework.
The purpose is twofold: to make meaningful charitable impact, and to prepare the next generation for the responsibilities that come with inherited wealth.
Why should family charitable giving start with values, not dollar amounts?
Effective family giving starts with values, not budgets. Before discussing donation amounts, charitable vehicles, or specific organizations, families should identify the causes that matter most, the experiences that shaped their perspective, and the kind of impact they hope to have over time.
These early conversations reframe philanthropy for children. Charitable decisions stop feeling like financial transactions and start feeling like reflections of family identity — priorities, purpose, and responsibility. They also create a foundation for broader discussions about wealth and stewardship as children mature.
How do you involve children in family charitable giving?
One of the most effective ways to teach stewardship is through participation. Depending on their age and maturity, children can help research organizations, evaluate causes, attend volunteer opportunities, or take part in discussions about charitable priorities. Older children and young adults can take on a more active role — reviewing charitable requests, weighing in on annual giving goals, or helping determine how charitable dollars are allocated.
The objective isn’t to transfer responsibility all at once. It’s to create meaningful opportunities for learning and engagement over time. When children participate in family charitable giving, they begin developing skills that extend well beyond philanthropy — critical thinking, financial judgment, communication, and evaluating the real-world impact of financial choices.
This gradual approach builds both confidence and capability. By the time the next generation is called on to lead the family’s giving strategy, they have had years of preparation, not a hand-off.
How do you make family charitable giving a lasting tradition?
For charitable giving to become part of the family legacy, it needs structure and consistency — not year-end reactivity. Families who treat giving as a recurring practice, rather than an occasional gesture, are far more likely to see it endure across generations.
Practical ways to build that structure include:
An advisor can help integrate this framework into a broader wealth and legacy plan. The goal is not to formalize giving for its own sake — it’s to build a rhythm the next generation can grow into and eventually lead.
How does charitable giving fit into a broader legacy plan?
Charitable giving is most impactful when it is aligned with a family’s full financial and legacy strategy. Wealth transfer, estate planning, tax planning, and philanthropic goals are deeply connected. Families who view these decisions collectively unlock opportunities they would miss looking at each in isolation.
For example, gifting appreciated stock rather than cash can be significantly more tax-efficient. Timing gifts around business exits, liquidity events, or high-income years can produce meaningful tax benefits while advancing the family’s philanthropic mission. Donor-advised funds and charitable trusts can serve as flexible tools for both.
At Smith + Howard Wealth Management, we help families coordinate these decisions across tax, planning, and investments — the kind of integrated approach that is difficult to achieve with siloed advisors.
Building a Legacy During Your Lifetime
One of the most meaningful aspects of family charitable giving is the opportunity to witness its impact firsthand. Instead of hoping future generations embrace your values after you’re gone, you can involve them in the process today — sharing the experiences that shaped you, guiding important conversations, and helping them develop the judgment that thoughtful stewardship requires.
Building a legacy isn’t only about what you leave behind. It’s about the values, habits, and sense of responsibility you cultivate along the way.
Frequently Asked Questions
When should we start involving our children in family charitable giving?
Earlier than most families think. Age-appropriate exposure can begin around age 6 through volunteering or simple family conversations about giving. Formal decision-making involvement is typically appropriate starting in the mid-teens, expanding into full participation by early adulthood.
What’s the difference between a donor-advised fund and a private foundation?
A donor-advised fund (DAF) is a charitable investment account administered by a sponsoring organization. It is low-cost, tax-efficient, and simple to establish. A private foundation is a separate legal entity that gives families more control and flexibility, but comes with higher administrative and legal costs. DAFs suit most families; foundations tend to make sense for Ultra High Net Worth who have a taxable estate and when significant control is required.
Is it better to give cash or appreciated assets to charity?
For families with taxable investment accounts, gifting appreciated stock is often significantly more tax-efficient than giving cash. It can eliminate capital gains tax on the appreciation while still providing a fair-market-value charitable deduction. Coordinating this decision with a tax advisor and wealth manager helps ensure it aligns with your broader plan.
How do we start a family giving conversation if we’ve never had one?
Start with a values discussion rather than dollar amounts. Ask each family member what causes matter to them and why. Share the experiences that shaped your own perspective. The first conversation doesn’t need to produce a plan — it just needs to open the door.
Can family charitable giving reduce estate taxes?
Yes, in many cases. Giving during your lifetime and through your estate plan can reduce what’s ultimately taxable. Donor-advised funds are a flexible way to give more in high-income years, while supporting charities over time. And if you’re 70½ or older, you can give directly from an IRA to charity, which can count toward your required minimum distribution without adding to your taxable income. An advisor can help you weigh the right approach.
Talk with an Advisor
To discuss family charitable giving, legacy planning, or multi-generational wealth strategies, contact us today or call 404-874-6244.
Disclosures
Unless stated otherwise, any estimates or projections (including performance and risk) given in this presentation are intended to be forward-looking statements. Such estimates are subject to actual known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those projected. The securities described within this presentation do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in such securities was or will be profitable. Past performance does not indicate future results.
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