My father exemplified leadership through his actions rather than through words. Although he didn’t often vocalize his lessons on service, he demonstrated them in numerous small ways. I vividly recall a family road trip during my childhood when we stopped at a gas station. Somehow, my father knew a man was in need, so he paid for his gas and got him a cup of coffee before we continued on our journey. He didn’t mention it when he returned to the car, but that moment made a lasting impression on me.
By Ryan Blair | Contributor
Among the valuable teachings that parents wish to impart to their children, the importance of charitable giving—whether it be through time, service, or financial donations—is most effectively learned through experience. Throughout my more than a decade of working with families and now as a parent myself, I have witnessed how engaging in charitable activities greatly benefits everyone involved. Below are several steps to involve your entire family:
Step 1: Establish Your Family’s Giving Objectives
Start by discussing: What do we want to support? Is it education, faith-based endeavors, or health-oriented nonprofits? Perhaps your family has a personal connection to a specific cause, such as a relative battling an illness or a friend affected by a natural disaster. Passion for giving often comes more easily when it relates to something that resonates personally.
Step 2: Create a Family Mission Statement
Stephen Covey, the renowned author and motivational speaker, described a family mission statement as “a unified expression from all family members that encapsulates what your family embodies—what you truly aim to accomplish and the principles that guide your family dynamics.” Families who thrive typically possess a strong sense of identity. When you establish your giving goals, ensure that they mirror your family’s core values.
Step 3: Select a Charity
Identify whom or what you wish to support. Investigate various local, national, and global organizations that are making a positive impact related to your identified cause. Resources like guidestar.org and givewell.org can help you find nonprofits and offer insights into how your contributions are utilized. Local volunteering centers are also excellent for discovering community-oriented initiatives.
Step 4: Decide on the Donation Amount and Choose a Method of Giving
Consider consulting with a financial advisor to ascertain a suitable portion of your income to allocate toward charitable donations. Balancing the tax advantages of giving while achieving your family’s financial goals is something I frequently assist clients with. It can also be a valuable lesson for children to learn how to segment their allowance into spending, saving, and giving categories. Some families provide their children with an allowance that allows for discretionary donations, or they may match their children’s contributions to foster a culture of giving.
For larger donations, think about setting up a donor-advised fund (DAF). This option is ideal for legacy giving, allowing you to accumulate resources over time through a designated foundation which distributes to your chosen charities. Such funds are often well-suited for families aiming for a long-term multi-generational giving strategy, as you can designate your children as successor advisors.
Step 5: Assess Your Charitable Contributions Regularly
As your financial situation and priorities evolve, make it a point to evaluate your giving practices. You might find that you can increase your contributions, or that new causes have captured your family’s interest. There’s always an opportunity to expand your impact.
Engaging in charitable giving nurtures compassion in your children, and doing it as a family reinforces the importance of giving back. While donating money is vital, dedicating time is equally meaningful. Organizing a family volunteer day can also be a rewarding way to bond. Ultimately, making a difference together as a family is an invaluable experience.
Editor’s Note: Ryan Blair is a seasoned wealth manager and financial strategist at SFMG Wealth Management. Contact him at ryan@sfmg.com or 972.960.6460.
