For wealthy families, there is arguably no better way to manifest their legacy than through philanthropy. With the right planning and strategy, family foundations can create a lasting impact on their communities while strengthening inter-familial relationships.
So how can family offices build foundations that leave legacies? It all starts with the “why.” Developing a strategy to help define a family foundation’s mission — and understand and tap into their purpose — is essential to the impact of their funding.
A thoughtful framework and plan can provide the foundation guiding principles and focus for their philanthropic initiatives, while enabling families to come together to align their goals and values. This strategic approach ensures that the foundation leaves a lasting impact and establishes an enduring legacy.
However, while family foundations are increasingly common in the United States (an estimated 40,000 are currently in operation) only 56% of high-net-worth investors have a philanthropic giving strategy, according to a recent BNY Mellon study.
As the philanthropic adviser to the Berman Family Foundation, it’s my pleasure to share a snippet of their story about how they’ve utilized philanthropy to create a legacy.
COMING TOGETHER TO FIND THEIR ‘WHY’
Established by Muriel and Philip Berman in 1960, the foundation did not become active until 2004. It was only then that the second generation began to develop the foundation, guided by the legacy and example of the Bermans in their lifetime of personal giving. Its work is grounded in the founders’ belief in the Jewish value of "tikun olam," which calls for actively “repairing the world” — encompassing the Earth and its inhabitants. The foundation initially directed its initiatives toward funding the arts, education and Jewish causes while supporting underresourced communities.
Despite having given millions to partner with and help uplift communities, no formal, professional strategy work had been undertaken until they enlisted an external philanthropic adviser. This collaboration allowed both the foundation and family to embark on a journey aimed at discovering their “why” — their shared purpose, mission and vision. In pursuit of their philanthropic goals, the Berman Family collaborated with us to foster open dialogue and ignite passion across generations, as well as codify its road map for the future.
Through meaningful, facilitated conversations, the family aligned their values and developed a shared plan for the next iteration of their philanthropic work. This inclusive approach ensured that multiple family members’ voices were heard, inspiring a sense of leadership and ownership in the next generation. Through this process, the family strengthened their philanthropic strategy, setting the stage for impactful giving.
The foundation's commitment toward advancing equity, celebrating diverse cultures and preserving nature through strategic investments in social justice and the arts has always been unwavering — and now the entire family is enthusiastically on the same page. The issues the Bermans address are intersectional and woven together quite beautifully, taking each family member’s perspectives into consideration.
AN INTENTIONAL MISSION TO RESTORE THE EARTH
By involving multiple generations and engaging in thought-provoking conversations, the foundation successfully established a plan that reflects their collective values and embraces the causes that hold special significance. This joint effort enabled them to prioritize issues that also resonate with the younger generation, directing their philanthropic efforts accordingly.
By carefully assessing the impact of their giving on both beneficiaries and the wider community, they found themselves creating a significant and enduring legacy, built upon their previous decades of engaged funding. Consequently, the foundation has continued to direct and hone its funding toward community initiatives that promote social justice, provide access to art and support youth development.
By putting a strategy around their giving, the Bermans have been able to achieve meaningful and lasting change while aligning their philanthropic vision with the evolving needs of the community and establishing a positive legacy for future generations. Since their strategy sessions, the foundation has been a regular touchstone of conversation for the family and has become an important outlet to share the impact of their passions, ethos and activism.
Embarking on this journey together, involving multiple generations — all with a seat at the table — has empowered the founders’ descendants to build and deepen connections within their family. Adding further meaning to their work in restoring the Earth helps ensure that their legacy will last generations.