Building a Legacy of Purpose through Multi-Generational Giving
Tuesday, Mar 10, 2026
A Blueprint for Multi-Generational Giving
As Baby Boomers pass wealth onto their heirs, we will enter a period often referred to as the Great Wealth Transfer. During this event, trillions of dollars are expected to change hands, with an estimated total of roughly $18 trillion to be earmarked for philanthropy. For families seeking a multi-generational giving strategy, the coming years represent a period of action, marking a shift from the accumulation of capital toward the intentional distribution and stewardship of a legacy.
Integrating these strategies into a comprehensive estate plan requires an understanding of how different structures can bridge the gap between generational perspectives. A thoughtful approach to tax-efficient charitable giving can serve as a foundation for family cohesion. Our latest white paper examines these dynamics in detail, offering a guide to the structural tools and family governance models that support a lasting impact of multi-generational giving.
Download Whitepaper for Expert Insights
Inside the guide:
▪︎ The transition from ownership to stewardship
▪︎ Approaches to bridging the generational values gap
▪︎ Methods for meaningful family engagement
▪︎ A comparison of Private Foundations, DAFs, and Charitable Trusts
▪︎ The role of objective advice in philanthropic planning
The Inflection Point of Wealth Transfer
The movement of wealth often prompts a shift in perspective. While the founding generation frequently focuses on the discipline of building assets, subsequent generations are tasked with the responsibility of managing that capital for broader impact. This creates a moment where families often choose between individuation and collaboration.
Individuation provides heirs the freedom to pursue personal interests independently, whereas collaboration invites the family to unite around a collective purpose. Without a deliberate strategy, this transition can become a source of friction, potentially leading to missed opportunities for tax efficiency or the dilution of the founder’s original philanthropic intent. A unifying framework helps prevent a decline in family connectedness, ensuring that the transfer of wealth strengthens rather than strains internal bonds.
Strategic Architectures for Family Stewardship
Families seeking to give together often find success in a hybrid model that combines individuation with collaboration. This structure addresses diverse interests by pairing a central legacy foundation with satellite funds. The foundation serves as the anchor for the family’s collective mission, while the satellite funds grant younger members the agency to support causes that align with their personal passions.
Selecting the appropriate charitable vehicles involves a careful assessment of several specialized tools. Some popular options include:
▪︎ Private Foundations can offer a structured arena for collaborative governance and direct control over grantmaking. Private foundations can provide a platform for training the next generation in fiscal responsibility, though they come with higher administrative requirements and a mandatory annual payout of 5%.
▪︎ Donor-Advised Funds provide simplicity and privacy. Starting a DAF may be suitable for individual family members who value ease of use. Please keep in mind that contributions to a DAF are irrevocable, as the donor transfers legal ownership of the assets to the sponsoring organization.
▪︎ Charitable Trusts, such as Charitable Remainder Trusts, can provide an income stream for beneficiaries while securing a future gift for a chosen cause. These require meticulous legal drafting to help align with specific financial and philanthropic objectives.
When coordinated effectively, these tools can help frame the wealth transfer as a practical learning system. This environment is intended to provide an opportunity for the next generation to gain experience in financial oversight and governance within a controlled, purposeful setting.
Guidance for Intentional Generosity
Developing a multi-generational giving plan is an endeavor where legal structures, tax considerations, and complex family relationships intersect. At 5280 Associates, we aim to act as a coordinator for your broader professional team, working alongside your CPA and estate attorney to help you form a cohesive plan.
Traditional fee structures based on assets under management can create a subtle disincentive for advisors to recommend large charitable gifts, but our flat-fee model is designed to prioritize objective guidance. Because our compensation is not tied to the size of your portfolio, our recommendations are intended to support your family’s goals.
Disclaimer
Some donor-advised funds are considered mutual funds and are sold only by prospectus. The prospectus will provide information on charges, risks, expenses, and investment objectives and should be reviewed carefully before investing. Investment companies can provide a prospectus, or you may prefer to ask your financial professional. Please read it carefully before you invest or send money.
Notice: The concepts in this blog are intended for educational purposes only. They may not be suitable for your particular situation. The suitability of any specific product or strategy will be dependent upon your particular situation. Thrivent Advisor Network and its advisory persons do not provide legal advice, accounting or tax advice. You should consult with your attorney, tax advisor or accountant before implementing any strategy covered in this blog.