Create a framework for discussing money and philanthropy.

Numerous studies and news reports show that charitable giving has been down in the past few years. For instance, the “2026 Charitable Giving in America” survey found that one in four (25%) of respondents expect to cut back on charitable donations in the year ahead, and another half (48%) said they won’t be increasing their giving from the previous year. The two biggest reasons cited were rising cost of everyday goods and services (61%) and worsening economic conditions or a potential recession (46%).

On the corporate side, a new Conference Board survey found two-thirds of executives (64%) expect the new tax law on corporate charitable deductibility to affect their companies’ 2026 giving budgets. The recent legislation allows corporations to deduct charitable contributions only once their giving exceeds 1% of taxable income, potentially limiting the tax benefit of smaller donations.

But I’m not buying those reasons. I think it has more to do with a lack of accountability on the beneficiary side and a lack of mission and strategy on the donor side, especially as you go higher up the wealth spectrum. That’s a concern when an estimated $124 trillion in U.S. wealth is set to change hands by 2048.

Succession Issues

The Bank of America Family Office Study 2025 found that seven out of eight (87%) family offices haven’t transitioned to the next generation. Three in five (59%) expect succession within 10 years, but many haven’t communicated their plan to the next generation (next Gen). Governance is often overlooked when it comes to giving. Sixty-eight percent of family offices with governance structures in place support the family’s philanthropic mission, compared to 51% that don’t have governance structures, according to BoA research.

The “great succession” is already underway, but most family offices aren’t ready. Heirs aren’t prepared. And the majority of family offices expect the mission to change entirely when control passes to the next generation.

That’s where you come in. Even family offices are more likely to outsource philanthropy services than handle them entirely in-house (53% to 43%.

Demographics are also driving the need for advisors to get up to speed on planned giving and philanthropy. According to the aforementioned BoA study, more than half (51%) of family offices expect philanthropic goals and strategy to become more important when control of the office transitions to the next generation. “Family offices that are led by the 2nd to 5th generations are more likely to measure philanthropy’s success by how it increases the next generation’s confidence,” the report noted. “These generations have likely benefited from seeing how the wealth creator and other previous generations engage in philanthropy and understand its importance to the family’s legacy.”

From where I sit, the younger generations seem to think about philanthropy very differently from older generations. While older generations tend to favor the arts, culture and “the big” causes, younger generations seem more interested in social change and are more hands-on when it comes to giving. They also tend to be more results-driven and impact-driven. Essentially, they want to see a “return” on their charitable money.

As the BoA report stated, most family offices and their clients consider philanthropy successful when they see a long-term impact (54%) or when the program contributes to life satisfaction (51%). Other important metrics are increasing family unity (34%) and public perception (32%). It’s worth noting that increasing donation size and mitigating taxes were not nearly as high on the list of success criteria.

Need for Education

It all comes down to educating families, especially the next generation. In fact, the BoA report found that philanthropy, leadership training and impact investing were the three most important areas out of nearly 20 cited that “are not receiving education but could benefit from it.”

Bottom line: If you want to remain relevant as an advisor, especially with the next Gen, you need to start initiating philanthropic conversations with clients before they even ask you.

Sometimes you can bake it into discussions about investing, tax mitigation or legacy planning. But more often, you must delve into those squishier, harder-to-measure areas like emotion and values, which give clients the most satisfaction. That’s where giving comes in.

As I mentioned in a recent column, we once worked with a family in which both parents were the presidents of boards of different charities. While the family’s charitable endeavors were admirable, the children didn’t know any of the “why” behind their parents’ involvement. Communication about wealth was poor within the family; even poorer when it came to philanthropy before we got involved.

Charitably inclined clients don’t necessarily need return on investment; they need return on clarity. They need to be clear about what they’re trying to accomplish with their giving, what type of philanthropic family they want to become and how decisions are made.

My friend Rory Henry, a director at Arrowroot Family Office in Los Angeles and author of the book Holistic Guide to Wealth Management, to which I contributed, has pioneered the metric return on relationship. That is, how well do you really understand what’s most important to your clients? That needs to be nailed down before you start discussions about giving.

I’ve found that most families lack a framework or process for discussing money in general and philanthropy in particular. There are many tools available, as well as other professionals, that can facilitate the development of family guidelines for both money and philanthropy. These resources allow all voices to be heard and honored across generations.

But when philanthropy lacks structure, family dynamics can become strained and giving resembles an obligatory check-writing campaign rather than a meaningful and intentional extension of family values.

And yet, philanthropy is also one of the few places where families can practice decision-making together, without the same stakes as business or estate planning.

When it’s done well, family philanthropy creates confidence, engagement and joy. When it’s done poorly, it creates friction and stress. Families need to create an environment and process for integrating family philanthropy into their lives. It’s not hard, but it won’t happen by accident. It’s up to you, not the family, to initiate charitable conversations as part of your overall planning for clients and their families. I know you can do it.