Family Business Matters

Due to the current financial crisis, some families in business are now voicing concerns about continuing their charitable outreach to the community. Even though their sales may be declining, and there is a constant litany of negative financial news, looking for innovative ways to continue to support philanthropic efforts of the family with time and talents might be a good approach.

In times of financial stress, maintaining even greater communication with family members becomes vital to a family business. Rumors about the financial status of the business can result in unspoken worries about whether or not the family can continue to underwrite fundraisers, make grants from the family foundation or even make contributions to their favorite charities. (And, of course, there is generally the unspoken concern about whether or not dividends and distributions will continue as well!)

Rather than wringing their hands or constantly fretting, creative families have decided to focus on time and talent, versus treasure for their philanthropic efforts in the coming months. Instead of sending a check, one family has made a commitment to work at soup kitchens, participate in projects such as Habitat for Humanity and members of the third generation are planning to volunteer to read to blind children.

Another family held a "philanthropy summit" and with input from all four generations represented, the group made a decision to hold a giant family garage sale at the grandparents' home before the December holidays. There was a printed ballot that listed favorite charities of the family and each member voted for their three favorite nonprofits. Once tabulated, the three nonprofits with the greatest number of notes would share in the proceeds from the garage sale!

The family decided that each member of the family would bring used (or, in some cases, never used) toys, clothing, kitchen gadgets and garden equipment to the family homestead for the weekend sale. Even the youngest of the family could help and each family could work a table at the garage sale.

I am anxious to hear how this wonderful use of time and talent turns out. I suspect the family will learn a lot about sharing; managing with just a few less toys; that less is more in some ways; that it is rewarding to help others using a hands-on approach; that it is fun to work on a project together outside of the business; and that it just feels good to give time and talent together!

Another benefit is that the older family members are setting an example of philanthropy in action. I recall attending a panel of philanthropists years ago. One of the moderator's initial questions put to the group of panelists was, "How did you become involved with philanthropy and how did you learn about sharing your family's wealth?"

Without exception, in all cases, it was a strong parental model of philanthropy that shaped these folks' giving patterns. In each case, their parents spoke about giving, volunteering and service to others and demonstrated each in a generous manner.

In their book, "Inspired Philanthropy," authors Tracy Gary and Melissa Kohner expand the definition of philanthropists as "all people who exert themselves for the well being of others ... who donate money and time to causes they believe in so that the world may become a better place."

There were stirring examples of how the panelists became aware of others who were less fortunate than they. For example, one panel member recounted, "When we were little, my mom would often drive us to Tijuana and point out how lucky we were to have a house made of bricks. We would collect toys and blankets to share with folks in Tijuana and not just at the holidays, either. We were frequently told that we had a responsibility to help those who had less than we and that we needed to be good stewards of our wealth as it could all disappear some day!"

On a less formalized basis, one audience member related how she and her husband hold a family meeting at the beginning of each year to discuss the family giving plan over the next 12 months. There is a discussion of time, talent, treasure and being thankful for their blessings. Even her youngest child, who is only 5, participates in this planning meeting. Concerned that their children may not all have highly remunerative careers, she and her husband have come up with a policy of donating $5 for each hour of volunteer work their children perform. The children select a charity of their choice and receive acknowledgement of the cash gift from the charity. It is their hope that this will encourage their children to give of themselves in whatever form they can as they move into adulthood.

Impressive as the panelists were in addressing how they handle their family's wealth and how involved they are in philanthropic endeavors, what was most moving was how thankful each of them was for the good fortune they enjoyed. Each of these individuals expressed deep appreciation for their comfortable lives. Each of them were committed to raising children who were polite, kind, concerned community citizens who would share of their time, talent and treasures in their own unique way.

At this time of Thanksgiving, developing an "attitude of gratitude" in light of the recent financial crisis might be appropriate for a family in business. Families in business can adopt this attitude and be grateful that there still is a family and, even if hard decisions have been made to reduce the business' work force or for family owner-employees to reduce their salaries, the business will survive.

For families in business who still enjoy reasonable financial well-being -- give thanks for your remaining good fortune, for the legacy you are perpetuating and plan how you and your family can become even better philanthropists, using your family's time and talent until the economy rebounds.