A good insight for many family business owners to take on board as philanthropy and charitable endeavours is often see as a great way to engage the next generation in a specific aspect of the family business.
Bespoke projects provide a good platform to learn skills that will stand the next generation in good stead for their future role in the family business but there are risks, not least when emotions get involved and one of the reasons for engaging in philanthropy in the first place is family legacy.
It all comes back to planning, reality in terms of what you can do with the amount of money involved and having processes in place to manage the giving too and to effectively run the programme just as you would do a business venture.
Philanthropy is by its very nature altruistic but that does not mean that a professional approach should be ignored and by putting in procedures and managing the activities properly there is a greater chance that it will be around for the long term, and achieve the purpose for which it was intended too.
One of the common mistakes families make with philanthropy is to allow emotion and wishful thinking to override logic and thoughtful analysis. Michael Finnigan takes a look at some of the pitfalls that regularly catch families off-guard.