Where does philanthropy fit in a family governance structure?

Where does philanthropy fit in a family governance structure? 1) Every family mission statement should have a section dealing with the family's responsibility to the outside world and a section on how it will interact with the outside world. How can a family derive a statement of family values that does not include the importance of giving to others less fortunate than itself, or that does not define philanthropy as one of the values the family will project into the world as a symbol of its strength, its "differentness"? 2) Every family balance sheet should reflect the portion of the family's human assets, intellectual assets, and financial assets devoted to philanthropy. How can a family measure the growth of its overall wealth without also showing the growth of the portion of its wealth dedicated to philanthropy? 3) Every family with financial assets in excess of $2 million should create a formal organization to support its philanthropy. The form of organization should be determined in consultation with skilled advisers but, at a minimum, should include a broad structure that will allow participation in decision making by all family members. Families with less than $2 million in financial assets can organize themselves to do philanthropy together without incurring the administrative costs of a formal organization by using a form of philanthropic organization called a donor advised fund.

— from The Flight Plan (Purpose/Wisdom/Risk)

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