This week, we’re focusing on philanthropic trends for 2025. Family offices and high-net-worth individuals are increasingly taking a strategic approach to philanthropy, with donor-advised funds (DAFs) leading the way. Experts predict significant shifts in charitable giving next year, driven primarily by rising generations and women. Read on to explore what’s ahead.
Family office veterans Sara Hamilton and Margaret Vaughan Cox have joined forces to help multi-generational families navigate the complexities of preserving collective wealth and shared values. In their latest book, Build an Enterprise Family to Last: Proven Strategies to Thrive Across Generations, they introduce the concept of the “enterprise family,” positioning it as a cornerstone of the evolving family office landscape.
As always, we appreciate any comments, ideas and insights that would make this newsletter more useful. I look forward to growing this family office community with your help. Please email me at [email protected].
Philanthropy in 2025: Emerging trends shaping the future of giving
By MARCUS BARAM
Family offices and high-net-worth individuals are increasingly adopting strategic approaches to philanthropy, with donor-advised funds (DAFs) at the forefront.
Experts predict that 2025 will bring significant shifts in charitable giving, driven by the rising influence of women and younger generations; an increasing reliance on digital platforms; and a focus on local charities and causes such as climate change, child care and reproductive rights — issues that could face funding challenges under the incoming Trump administration.
While charitable giving remains robust — 91% of individuals with $3 million or more in investable assets reported making donations last year, according to a Bank of America survey — the landscape may be complicated if Trump’s 2017 tax cuts are extended. Such a move could diminish the tax incentives for giving, potentially dampening philanthropic contributions.
DAFs and QCDs
“Now is a great opportunity to add to donor-advised funds” since the standard deduction is still quite high and at a time when the market is still strong, said Luke B. Neumann, director and wealth manager at Boston-based Crestwood Advisors. “You get a tax deduction, avoid some capital gains taxes and do some good in the world,” he said.
Qualified charitable distributions (QCDs) are also quite popular, Neumann said, particularly for his clients whose individual retirement accounts have grown a lot. They’re also establishing DAFs with their pretax IRA money. When that totals in the millions of dollars, he said, “it starts to be a generational charitable vehicle and is a great way to promote good values and start interesting conversations among family members.”
The spike in funding for DAFs is being driven by growth in the stock market, said Jayne Smith, a wealth adviser and partner at San Carlos, California-based Adero Partners. Smith said she sees family foundations being wound down and converted into DAFs. “As they get older, some clients are looking to simplify, and they want more time for themselves,” she said. “They still want to make donations but not have it be such a complex process.”
Women and younger generations take charge
The donor class is changing as well, and “younger people and women will become decision-makers when it comes to philanthropy because they control the wealth,” said Karen Kardos, head of philanthropic advisory at Citi Private Bank, pointing to the massive amount of money being passed down as part of the great wealth transfer from family matriarch and patriarchs.
Donors also tend to be more inclined to be collaborative with their giving, more interested in sustainable investing and in giving to women’s and girls’ causes. “Studies show that when women are lifted, their entire family is lifted,” Kardos said.
Post-election bump
In the wake of the election, some wealthy donors will increase their giving to causes such as immigration and climate, Neumann said. “Obviously, 50% of the country is unhappy with the results, and you will see that portion of the electorate is going to donate to their values,” he said. “They see the objectives of the Biden administration being rolled back and hope to make that up with charitable contributions.”
Smith is already seeing an uptick in conversations about charitable giving to climate nonprofits among her clients with environmental concerns, as well as gender care and “those hot topics that might be a bit polarizing.”
“You don’t always win elections,” she noted. “And if you want to help, here is what you can do.”
Greater use of digital platforms and tech
Technology will play even more of a role in the donor experience, Smith said, with charities using data and digital platforms to offer personalized giving experiences such as tailored donation plans, exclusive updates and opportunities to visit projects or meet beneficiaries. She is working with Schwab as a custodian, and “they are revamping their platforms to make giving easier and tailoring it to the younger generations.”
Already, 68% of Americans believe that the majority of future monetary donations will be direct transfers solicited through digital platforms such as Venmo and GoFundMe, according to a Vanguard Charitable survey.
It may seem paradoxical, but more money “doesn’t necessarily lead to increased philanthropy,” said Justin Flach, managing director of wealth strategy for the Ascent Private Capital Management unit of U.S. Bank. That could be the result when Trump’s tax cuts — enacted under the Tax Cuts and Jobs Act (TCJA) — are likely extended in the spring of next year.
For example, when the bill was passed in 2017, it may have increased the money available to taxpayers, but it played a role in decreasing the amount given to charity — since the tax incentives to make those contributions also decreased.
In addition, “fewer people also gave to charity as part of their estate plans, in part because of changes in estate and gift tax laws made by the TCJA,” Flach said.
Inflationary pressures could also play a role. They helped decrease charitable contributions in 2022 and 2023, he said. And since Trump’s policies are anticipated to have an inflationary effect, “this could create funding pressure on charities,” Flach said.
Rise of the enterprise family: Hamilton, Vaughan Cox on the launch of new book
By KRISTEN OLIVERI
For two decades, Sara Hamilton and Margaret Vaughan Cox have collaborated to guide multi-generational families through the complexities of sustaining collective wealth and shared values. Now the two family office veterans have co-written Build an Enterprise Family to Last: Proven Strategies to Thrive Across Generations.
As Hamilton transitioned from CEO to chairman of the Family Office Exchange (FOX), she reflected on the chronic issues that often trip up enterprising families. “The time was right for me to step back and synthesize the lessons we’ve learned,” she said.
Together, Hamilton and Vaughan Cox have created a tool that can guide families for years to come. “This book isn’t just for the current generation,” Vaughan Cox said. “It’s a legacy families can pass on, empowering each generation to navigate complexity with confidence and clarity.”
Defining an enterprise family
The guide provides a road map for families navigating the intersection of shared ownership and individual growth, offering actionable strategies for maintaining harmony and productivity within family enterprises.
“Enterprise families are unique,” Hamilton said. “They share collective ownership of assets — operating businesses, investment portfolios, vacation properties, foundations, even planes. But as their assets and family units grow, the challenges compound. Our book helps them identify the friction points and align their goals to thrive across generations.”
The book is structured into three comprehensive sections — the family journey, the enterprise journey and the personal journey — framing each around past, present and future milestones. This approach encourages families to separate discussions about their personal dynamics from conversations about the enterprise’s operational needs.
“Families often struggle when these conversations take place in the same room,” Hamilton said. “By distinguishing between the family and enterprise journeys, we help families avoid misunderstandings and misaligned priorities.”
A shared vision
Hamilton’s experience at the helm of FOX and Vaughan Cox’s decades of consulting shined through in the book’s practical, accessible writing style. “We wanted a resource that speaks to sophisticated wealth owners but is also approachable for younger generations,” Vaughan Cox said. “The book is visually rich and written in a way that rising-generation family members can grasp immediately, sparking their curiosity to engage further.”
Beyond financial capital, the authors emphasize the importance of human and intellectual capital. The emphasis on personal and developmental journeys can resonate with individuals grappling with questions about their role in the family enterprise, Vaughan Cox said.
“The rising generation often asks: ‘Where do I fit in? Do I want to engage with this legacy?’ ” she said. “The personal journey section provides a foundation for them to explore those questions.”
Changing the conversation
Hamilton and Vaughan Cox’s work aims to redefine the language of family enterprises. Their book introduces 33 key terms, each explained with the goal of fostering shared understanding and deeper discussions.
“Our goal is to equip families with a common vocabulary,” Hamilton said. “When every family member understands the terms the same way, discussions become more productive, and misunderstandings diminish.”
The authors hope the book inspires more than just dialogue — it’s a call to action for families and their advisers. “We envision entire training modules and programs springing from this framework,” Vaughan Cox said.
LOOSE CHANGE
Study: Family office turn to new investment approaches: Family offices are increasingly adapting holding-company and evergreen-fund structures for investing in private markets, according to a survey from Bastiat Partners and Kharis Capital.
Brown Advisory hires CIO for endowments, foundations: Sargent McGowan is the Baltimore-based investment management firm’s new chief investment officer for endowments and foundations. He has also been named a partner.
Crane Club restaurant opens in New York: The Tao Group Hospitality restarurant in Manhattan’s Chelsea neighborhood features chef Melissa Rodriguez and a wood-fired grill menu with more than 1,000 international wines.
Help us with a story: We’re working on a story about trust and estate planning trends for the year ahead. If you have any comments on the topic, reach out to [email protected].