How can philanthropy prepare children to inherit family wealth?
Short answer: Robert connected family philanthropy to a practical gap: children may inherit real estate wealth without knowing how it works. Foundation work can give them experience before that handoff.
Robert described using philanthropy to involve the next generation in family wealth.
Robert on bringing family into philanthropy
A family foundation has financial statements, tax returns, investments to manage, causes to research, and a management team. That work can bring the family around the table and help parents hear what the children are doing and which ones want to be involved. (at 13:27)
Robert on learning through foundation work
Robert called philanthropy a platform for real life experiences. It can teach the next generation the difference between a mutual fund and a checking account. (at 13:55)
Robert on seeing who takes part
Parents can watch which children respond to the work. Robert said that gives them a good idea of which children may rise to the occasion on the for-profit side of the family office. (at 13:27)
"So now you have an opportunity to bring the whole family around the table and to open up."
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Anu Aga: Check before you give. Study the work of an NGO, ask more questions, and visit it if you can. This leads to an informed decision.
- Tim Draper: Make your customers your sales force. Hotmail put a message at the bottom of the screen inviting people to get free email. It spread to 11 million users.
- Don Wenner: Commit to scale. Don's major turning point came when he decided to build a great company that makes an impact. Making money and being successful was not enough for him.
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Frequently asked questions
How can philanthropy prepare children to inherit family wealth?
Robert connected family philanthropy to a practical gap: children may inherit real estate wealth without knowing how it works. Foundation work can give them experience before that handoff.
Can this approach use a donor advised fund?
Yes. Robert said he was speaking generically about a family foundation, and that it could also be a donor advised fund.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.