Foundations and Families in Transition

Much of our work in philanthropy begins with a relationship with the donor generation, helping them articulate and implement their philanthropic goals in the family context. However, like all family-based organizations, family foundations undergo predictable, important and demanding transitions, as the family and its enterprise become more complex over time. 

The change process often begins with the death of the founding donor who typically controlled the foundation and the board of directors. Family members—the founder’s spouse, offspring, grandchildren, extended family members and in-laws—are faced with the challenge of defining the founder’s legacy anew, while also developing their own vision for the future and shaping a more inclusive governance structure. 

LGA specializes in working with families as they navigate these transitions -- engaging younger generations in foundation governance and leadership; substantial increases or decreases in foundation assets; the dispersal and engagement of family members into other cities and states; or the retirement of senior trustees or staff. We help families reexamine and evolve their mission and values, governing principles and practices, organizational structure, and grant programming. 

One particularly important challenge occurs if a family transitions from doing all of the grantmaking themselves to relying extensively on a non-family director and/or staff. As the family redefines its role from primarily grantmaking to primarily governance, the focus of the family’s involvement moves to the board of directors. At that point families often worry that they will lose control of their foundations. We have found that family members ensure their direction of philanthropic work over the long haul by meeting four challenges: 

1. actively engaging as members of the foundation’s board, 
   

2. establishing clear expectations about board and staff roles and responsibilities, 
   

3. exercising consistent leadership in developing and maintaining the board’s own effectiveness, and 
   

4. carefully planning for family succession to the board from generation to generation across family branches. 
   

Helping families negotiate this process of redefinition is a major part of our work.

Philanthropy in the Complex Family Enterprise

In our experience, most business-owning families are actively involved in philanthropy in a number of ways, often simultaneously: personal giving, family foundations, donor-advised funds, and corporate philanthropy. We also help business-owning families look at the family’s “human resource allocation” in staffing and governance across all of its structures, including its foundation, operating companies and family offices. 

Our most typical services in support of family philanthropy include:

	Organizing a “design process” for family philanthropy, including private foundations, funds, and giving programs
	Facilitating philanthropy retreats as family members clarify individual and group values and priorities
	Guiding families through choosing and implementing a participative governance structure (e.g. boards, trustees, staffing, committees, next generation boards)
	Helping families manage the interdependence among the parts of the family enterprise: the foundation, operating businesses, family offices, and other collaborative efforts
	Designing a program to educate, involve, and transition to the next generations
	Advising on the most productive relationships between family members and professional staff

Our varied client categories all share a focus on family governance of their business, financial, or philanthropic organizations.