Most wealthy parents do not discuss philanthropy with their children, much less agree with them on which charitable causes to support, Key Private Bank reported this week.
In a survey fielded this summer among some 125 financial advisors, 82% of respondents said few of their clients involved offspring in family philanthropy.
Not surprisingly, they noted that parents and children disagreed on the worthiest causes. Whereas 59% said the next generation supported environmental/sustainability causes, only 3% said parents did so.
Opinions flipped when it came to religious and faith-based causes, with 73% saying parents and 3% saying children supported them.
Fifty-seven percent of advisors put the generational differences down to a lack of conversation and/or participation in giving discussions between parents and children.
A third of advisors cited children’s absence in giving conversations, while one-quarter pointed to a lack of parental transparency around giving strategy.
“Nearly half of advisors said the biggest mistake they’ve seen among clients is not factoring philanthropy into their overall estate and legacy plans,” Anne Marie Levin, national director of family wealth legacy planning services at Key Private Bank, said in a statement.
“There’s a clear opportunity for parents and children to overcome generational differences and work together to find common ground and set a family mission for giving. These conversations should center how families can get on the same page.”
The advisor survey found that doing good in the world was a top priority for clients. Two-thirds of advisors said clients were motivated to donate to philanthropic causes by a desire to make the world a better place.