Written by Julie Goldstein

My parents sought to be shining examples on how a philanthropic foundation should work. It was a model of their 1980s generation: Start a family foundation, choose some charities you like, and write annual checks to support them. They did an impressive job of imparting values-driven philanthropy to the generations after them—myself, my two siblings, and our kids.

Many years later, as the sole director of my own foundation, I have taken their basic model and tweaked it to focus on larger impact giving and investing with fewer resources available. As the mother of an activist teenager adopted into wealth, I take very seriously my responsibility to pass along the values of my parents-her grandparents- as she begins to contemplate her passions and her role in the giving world.

My child is busy preparing for college and not necessarily on the verge of tackling the complexity of giving money away. Yet, I have had extensive conversations about how she and others in her position might make an impact with their family wealth, and I realize that the next generation has a whole lot of ideas on how to do philanthropy their way. They are amazingly informed about the issues of the day, and want to dig deep into the systemic, cultural, and historical contexts that cause the injustices of the world. As rising activists and emerging philanthropists, this next generation is seeking to identify organizations of their own to support which may be very different than the ones near and dear to their parents.  And, excitingly, they are willing to consider different funding models.

One big shift I’ve observed among the next generation of givers is that they want to be involved at the grassroots level of an organization where they can get to know who is doing the work and trust that the money is being spent wisely. Giving capital to the top tier of an organization and then expecting it to trickle down is not what they feel works in an effective or timely fashion. Many of them will look to deploy capital in more direct ways by putting more money into the investment side of giving through social entrepreneurship and B-Corps. I’m not here to predict the end of foundations, but because of the legal restrictions of giving to individuals, the next generation may decide to deploy more capital directly to those innovators and visionaries who are working to develop solutions on the ground. The capital pass-through of foundations adds a layer that seems unnecessary to these younger rising philanthropists.  

I strive to teach my teenager that having money in a world where there is so much injustice offers a unique life opportunity to make a positive change in people’s lives. My teenager and her peers are deeply aware of the political, social, and environmental challenges facing the world, and so many of them are prepared to do the hard work of identifying and supporting people who are developing sustainable solutions on the ground. It likely means deploying capital in newer and more innovative ways than their parents or grandparents ever dreamed of. I’m all for smarter philanthropy, and if that means the next generations throw out our current models, I couldn’t be prouder.