Family philanthropy refers to the intentional and strategic use of a family’s resources—financial, social, and human—to make a positive impact on society. It often reflects the family’s values, purpose, and long-term vision for giving back to the community. More than a charitable activity, family philanthropy is a vehicle for legacy- building, purpose-driven leadership, and cross-generational unity.
For family-owned businesses, philanthropy offers a unique opportunity to integrate business success with societal contribution, turning wealth into a force for good.
Philanthropy is deeply rooted in the DNA of many family businesses. It goes beyond corporate social responsibility by being a personal commitment that aligns business values with community development. Family businesses are uniquely positioned to be philanthropic leaders because their long-term vision, deep community roots, and shared values often foster a culture of stewardship.
From funding education programs and healthcare initiatives to supporting local arts and environmental conservation, family businesses often channel their success toward causes that resonate with their identity and impact.
Philanthropy provides a platform for collaboration across generations, promoting shared values and unity.
It allows families to leave a lasting social legacy that transcends business achievements.
Purpose-driven businesses earn trust, loyalty, and respect in the communities they serve.
Involving family members in philanthropic decision-making cultivates leadership, empathy, and responsibility.
Philanthropy can be a tool for managing wealth with intentionality, aligning financial planning with meaningful societal impact.
Family philanthropy can take various forms, depending on the size of the business, values of the family, and the level of involvement:
Donations to nonprofits or causes without an intermediary.
Often the simplest and most common form of giving.
Example: The family behind Pirojsha Godrej Foundation (the Godrej Group family) handed over ~1,000 acres of mangroves in Mumbai to the trust, and the foundation supports education, health, environment and disaster relief.
Integrating charitable giving into the business strategy (e.g., corporate foundations, community engagement initiatives).
Example: IKEA Group (Sweden/Global) –Through the IKEA Foundation which is supported by the business and focuses on children, education, refugee families.
Structured entities that formalize giving through grants and long-term funding strategies. Allows strategic planning, transparency, and governance.
Allows strategic planning, transparency, and governance.
Example: Thomas Schmidheiny / Family Office (Switzerland) — The Schmidheiny family has a strong philanthropic tradition with formal foundations focussed on learning, leadership and next-generation
Flexible giving vehicles that offer tax advantages while allowing the family to direct funds over time.
Investments made in businesses or ventures that generate social or environmental impact alongside financial returns.
Example: Bertarelli family (Switzerland) via the Bertarelli Foundation focusing on marine protection, health & life sciences, and engaging in investing with social/environmental return.
Contributions through time, expertise, or products/services rather than money.
Example: Haggar Foundation (Africa) — The Haggar family business operates in multiple African countries and its foundation provides in-kind support: medical equipment, literacy tools, disaster relief, etc.
Engaging younger family members is key to sustaining long-term philanthropic impact. It helps instill a sense of purpose and responsibility, while allowing the next generation to shape giving in ways relevant to contemporary challenges.
Education & Exposure: Involve them in site visits, board meetings, or nonprofit events to witness impact firsthand.
Start Early: Encourage giving from a young age through family projects, allowances for charity, or youth-focused foundations.
Shared Decision-Making: Empower them to lead initiatives or select causes they are passionate about.
Intergenerational Conversations: Use philanthropy to facilitate dialogue around values, identity, and legacy.
Mentorship & Leadership Development: Pair younger members with mentors in the philanthropic or nonprofit sector.
Family philanthropy is more than just giving—it is a reflection of a family’s identity, values, and vision. In the context of a family business, it acts as a bridge between success and significance. As societal expectations shift and global challenges grow, family businesses that embrace philanthropy stand not only to leave a lasting legacy, but also to shape a more equitable and sustainable future.