Family offices are increasingly embracing strategic philanthropy, moving beyond traditional giving to fund initiatives that drive long-term, systemic change. Instead of simply donating to causes, families are applying data-driven strategies to maximize impact.
In this week’s newsletter, Marcus Baram explores how family offices can sharpen their philanthropic focus, leverage technology and collaborate with strategic partners to make a lasting difference.
We also examine the Broccoli family’s venture with Amazon MGM Studios, a high-profile deal that shifts some creative control over the James Bond franchise while allowing the family to retain an ownership stake. With new generations taking the reins, families are seeking ways to monetize legacy assets without completely giving up control. Experts weigh in on the key considerations for structuring joint ventures, from governance and decision-making to protecting a family’s reputation and long-term financial interests — because, after all, even 007 needs a well-executed strategy.
As family offices evolve, maximizing impact — whether through philanthropy or smart asset management — requires careful planning and execution.
We always appreciate your thoughts, feedback and ideas to make this newsletter even more valuable. I look forward to continuing to grow this family office community together. Feel free to reach out at [email protected].
Fred Gabriel, Executive Editor
HANDPICKED: How a family can maximize the impact of strategic philanthropy
By MARCUS BARAM
A growing number of family offices are shifting away from traditional charity and embracing strategic philanthropy — an approach designed to create long-term, systemic change.
Instead of simply donating to causes, they’re funding programs that build lasting solutions. The focus is moving beyond personal legacy or boardroom preferences to what truly benefits communities and delivers measurable impact.
When Katherine Lorenz recently took over her family’s Cynthia and George Mitchell Foundation, she had just taken a course in strategic philanthropy, and those lessons inspired her giving.
“I had learned that giving away money is easy but having an impact can be hard, especially in a family foundation where there are lots of different opinions,” she said.
Lorenz focuses the Mitchell Foundation’s $20 million in grantmaking on her native Texas because doing so can make a greater impact by going “narrow and deep,” she said. “It’s better than being on the surface across many areas.”
Unlike traditional charity — which focuses on immediate relief, such as donating food to a shelter — strategic philanthropy aims to address root causes and create long-term solutions, like funding job training programs to reduce homelessness. It also differs from impact investing, which seeks both financial returns and social good.
“It's about getting the job done efficiently and maximizing impact,” said Tom Hall, UBS’ global head of social impact and philanthropy.
The approach has its critics, who contend that it can be donor-focused, creating a power imbalance with grantees, said Michael Moody, a professor of philanthropic studies at the Lilly Family School of Philanthropy at Indiana University.
The strategic philanthropy approach has been around for decades, but its focus has sharpened in recent years as families seek to heighten the impact of their giving. As trillions of dollars shift to younger generations amid the great wealth transfer and causes proliferate in an increasingly complex world, donors seek ways to get the most bang for their buck.
How can donors maximize the impact of their giving? Philanthropy advisers have some suggestions:
Doing your homework: “If cancer research is important to you, you’d like to know that money goes to the right organizations,” said Brett Bernstein, CEO and co-founder of Bethesda, Maryland-based XML Financial Group. “You have to develop a keen understanding of what they’re trying to accomplish, get into the details of how much of that money goes to research,” said Bernstein, who also serves as the board chair of So What Else, a grassroots charity in the Baltimore-Washington area that helps at-risk youths with after-school and summer programs.
Give with purpose, not just pockets: “Families are looking to align their philanthropic activities with their mission, and those activities go beyond giving money but also to aligning their talents, whether that’s board service or volunteer service,” said Betty Pettine, the director of philanthropy at the Radnor, Pennsylvania-based Callan Family Office.
Teaming up for the greater good: Family offices are increasing their philanthropic impact with strategic partners. “Whether that’s other nonprofits, other funders, other for-profit corporations or some government agencies,” families can create a greater social impact, Pettine said.
Focus: In the past 10 years, the Washington-based National Center for Family Philanthropy has noticed a “sharp increase in families reporting that what's shaping their grantmaking is focused on a particular issue,” said the group’s chief impact officer, Miki Akimoto. “That number has jumped from 54% to 74%.”
What you’re seeing, Akimoto said, are trends in families “sharpening their focus” and not just writing checks to multiple charities or causes without a clear strategy.
Technology: Very often driven by next-generation members, family offices are using technology to be more efficient and keep records on activities like program-related investments and recoverable grants. Unlike previous generations, they have the tools to administer and monitor their giving, Pettine said.
“With technology comes the availability and access to data — to make informed decisions and to measure impact,” she said. As an example, Pettine pointed to the third generation of a family she works with in the Midwest that is adopting new tools to “gain efficiencies and improve their decision-making process.”
The access to data is also increasing the transparency within families or to the community about where a family’s support is going.
Less top-down and more bottom-up: Akimoto sees a widespread decline in the influence of individual board members and single voices. “Rather, you’re listening to and really thinking about the needs of the community, the voices of your grantees,” she said. “The solutions really are often done by the people most proximate to the issue. How does the community define the problem; and, equally, how do they define success?”
When it comes to having the most impact, it’s key to think long-term, Akimoto said. “None of these problems developed in one year, so you’re not going to solve them with a one-year grant.” Rather, a multiyear commitment allows a philanthropist to learn what works; to collaborate with the grantee, build that relationship; and help onboard the next generation, she said.
“How are you involving that next generation in shaping your strategy and shaping your approach so that you can successfully engage their interest in an authentic way, and you can do the most good?”
What family offices can learn from the Broccolis’ James Bond deal with Amazon
By MARCUS BARAM
The Broccoli family’s recent joint venture agreement with Amazon MGM Studios to cede creative control of the James Bond franchise but retain an ownership interest is being cited as a smart way to monetize a valuable asset.
Half-siblings Barbara Broccoli and Michael G. Wilson had exerted substantial control over the movie franchise they’d inherited from Albert “Cubby” Broccoli in 1995 — shaping Bond’s makeover in recent decades with the selection of actors Pierce Brosnan and Daniel Craig.
Though joint ventures can be risky and often fail — with 31% of large deals being terminated within the first five years — they can be an option for family offices sitting on a legacy asset, joint venture experts say.
“Ideally, it can be a win-win, where you get two parties with assets or things that they’re bringing to the table in terms of resources or expertise or capital or access to distribution channels,” said Peter Shelton, a partner at the Cleveland-based law firm Benesch Friedlander Coplan & Aronoff.
Family offices are likely to have plenty of reasons to pursue such a deal, especially as newer generations take the helm and make decisions about legacy assets that ensure a future revenue stream. It’s similar to musicians selling the rights to their music, said DJ Van Keuren, the Denver-based co-founder of the real estate investment firm Evergreen Property Partners, who has worked with prominent families including the Giorgios and the Marriotts.
The first questions they should ask: What’s the objective? Why pursue a joint venture rather than outright selling it?
Next, it’s key to choose the right partner to meet that objective, said Shelton.
Then, the family should consider the governance and management of this newly formed entity. “Who will have the decision-making power, and will everything be jointly decided?” he said. “Or will there be some form of a board, and who will control the board?”
Shelton cautions against 50-50 joint ventures because they can often lead to deadlocks over key decisions. “It helps to have somebody who’s ultimately making the decisions or has the ability to play that role so you can move forward,” he said.
Family offices can take a longer-term perspective, especially when preserving their legacy, so they should concentrate on protecting their interest, said Van Keuren. For them, it’s important to focus on the joint venture operating agreement — “where they can ask for greater control or board seats or veto rights,” he said.
Even if families give up creative control, they can ask for restrictions about the use of the brand in the agreement. “You don’t want James Bond acting inappropriately — that’s gonna come off bad on the family,” said Van Keuren. “They need to make sure they’re protecting their legacy and reputation.”
To minimize their capital gains for tax planning, Van Keuren said, family offices should put the asset into a trust before entering the joint venture agreement.
Finally, it’s important to consider the lifespan of the agreement and for families to think about their exit strategy. “It will be split up based on some agreed percentage, and it will have to be liquidated either through a sale process or some other means,” Shelton said. Or families could have an agreement in which each side has the opportunity to propose a buyout.
Said Shelton, “It’s key to think about it on the front end rather than getting into it and just saying, ‘Oh, we'll figure that out down the road.’ ”
LOOSE CHANGE
Family office buys first auto dealership: The Lavin family office, William Gabriel Capital, along with business partner Bobby Ward, purchased the Texas dealership in December and has $90 million to $100 million in capital liquidity available for automotive acquisitions.
Middle East attracts investors’ eyes: Ambitious economic development plans, the growth of private credit markets and sovereign wealth funds are putting the region’s capital markets on the global investment map, Moody’s Ratings says.
Feud plunges Singapore’s richest family into crisis: Even by the standards of Asian succession drama, the family feud raging at the Kwek family dynasty stands out.