A growing number of wealthy families are turning to family offices as a way of managing their philanthropic giving – a move with numerous benefits, but not without challenges, a new study in the US shows
A growing number of wealthy families are turning to family offices as a way of managing their philanthropic giving – a move with numerous benefits, but not without challenges, a new study in the US shows.
The National Center For Family Philanthropy, in collaboration with Family Office Exchange and the multi-family office Threshold Group, explored the relationship between family offices and family philanthropy and found that managing philanthropy via a family office can be a very effective approach, particularly if there are several branches to the family and if they use a number of charitable vehicles. The research is based on a survey of about 400 family offices with foundations, and 15 interviews.
Highlighting how philanthropy is taken seriously by families and family offices, 84 per cent of the study participants said they have paid staff to work on behalf of their foundation, while 60 per cent have active boards of directors overseeing the foundation’s giving, for which about a third (34 per cent) reported that a foundation chief executive serves as the primary decision-maker. By contrast, only 5.7 per cent reported that the family office CEO played this oversight role. Given this, 40 per cent of the family offices surveyed support more than one foundation, while 16 per cent work with two and 22 per cent with three or more.
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