A New Paradigm for Family Giving
Self-made billionaires are more likely to become philanthropists who give away a large part of their wealth than are those who inherit. With the number of new billionaires who inherited their wealth now exceeding that of those who made their own way, this poses a challenge to global family giving. But the emphasis of younger generations on proactively making an impact in the world helps thread this needle, argues Wingspan founder Christina Wing in this article for Crain Currency.
The answer may be an approach to philanthropy and family giving that’s more directly tied to the activities of family offices, where philanthropic efforts are intertwined with the concept of social investment rather than being classified as charitable initiatives. In the article, Christina explores how two Turkish families – Sabanci and Ӧzyeğin – devised a strategy for family giving that focused on specific goals related to advancing education in their home country, a cause that also helped their own businesses in the long-term as it increased labor market skills and participation.
In the case of both the Sabanci and Özyeğin families, philanthropy has depended on making giving an arm of the family office, subject to the same discipline as any investment enterprise. As the next generation comes into its own in the West and more traditional charitable giving becomes less in favor, examples from Turkey and elsewhere could be key for showcasing an approach that unites investment and family under the umbrella of the family office — and creates a paradigm for marrying social impact with long-term interest.
Click below to read the full article in Crain Currency.
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