Family Values, Philanthropy and the Next Generation

Family Values, Philanthropy
and the Next Generation

Understanding the Family BusinessTM
November 1996 Volume I, Number Four

by Joanie Bronfman, Ph.D.
Genus Resources Inc.

Philanthropy has a long tradition in family business as a way to make a contribution to the community while at the same time bringing tax benefits and enhancing the company’s image.However, at a time when many parents are seeking ways to transmit their values to the next generation, philanthropy can present unique opportunities to the family itself.It can function as a vehicle to teach and share family values and an opportunity for family members to work and make decisions together.

Transmitting values to children when they are very young is most effective.Responsibilityto their community can be a lesson taught when allocating the child’s first allowance. When my father first gave me my allowance, he gave me two dimes (that was a long time ago!)–ten cents was for me and ten cents was for charity.I quickly learned the value my father placed on giving to others.Other parents I know give their children money in three pots–money to save and invest; money to spend; and money to give to charity. More…