Retiring Into Philanthropy Strategies For Business Owners

As you would do with a company mission statement, take the time to understand what you want to do through philanthropy and why. Being able to articulate your expectations, goals, and strategy will help you focus your own efforts, and assist in engaging and gaining the ongoing commitment of others, including family members, to sustain the legacy you are creating.

The personal and business relationships and networks you built over the years are likely to include individuals who are similarly inclined toward giving. Just as in business, these acquaintances can help you identify meaningful opportunities you can support and introduce you to leaders of the nonprofits that would most benefit from your experience and resources.

You need not limit your charitable pursuits to those you have supported in the past. Just as companies often adapt to changing economic opportunities and operational realities, your giving strategies should have the flexibility to evolve with your interests and the needs of the communities and causes you support.

As with a company, incorporate the advice of your team of professionals. Involve your tax, investment and legal advisors in your decision on how best to structure and fund your charitable activities. From which assets to use, to the legal or operational requirements and the tax benefits of the various charitable giving vehicles, the choices you make in structuring and establishing your philanthropic endeavors can help you give wisely. Also, the more efficient you are in managing the tax implications to you, your family and the causes you support, the more effective your philanthropic efforts will be.

Charitable giving can be the “glue” that encourages family engagement and participation after selling a family business. It creates the opportunity to work together toward shared goals and purposes, which can improve and strengthen the bond within and across generations, especially if the family’s philanthropy is facilitated through a permanent giving vehicle such as a private foundation. For younger family members, involvement in managing a family foundation has the added benefit of helping them develop business acumen and leadership skills.