Family Foundation or Donor-Advised Fund? Rethinking Modern Family Philanthropy

Do Families Still Need a Foundation to Be Serious About Philanthropy? 

It’s a question that comes up often: Do families need to create a foundation to be serious about philanthropy? 

For many families, that has historically been the path. Foundations were often set up by parents or grandparents who wanted to create a legacy of generosity. In many cases, those structures served families well. 

For some families, they still do. 

But something interesting is happening as the next generation steps into these roles. 

As Tammy Kyte, Executive Director of GiveWise, recently reflected in a LinkedIn post: 

"At GiveWise, we increasingly hear from families who have inherited foundations and are realizing what comes with them — board meetings, annual filings, administration. Many still care deeply about the giving. They just do not want the operational burden that comes with running a foundation.” 

For many families, that realization comes as they begin to step into the responsibilities that come with managing a foundation. 

Board meetings. 

Annual filings. 

Administrative responsibilities. 

The intention behind the foundation may still be deeply meaningful. The family still cares about giving. They still want to support the causes that matter to them. 

But many are realizing that the operational side of running a foundation can become a burden. 

The focus slowly shifts from generosity to administration. 

And that was never really the point. 

 

A Simpler Way to Organize Family Giving: Donor-Advised Funds 

As families explore alternatives, many are discovering donor-advised funds. 

A donor-advised fund allows families to continue giving thoughtfully and strategically, while removing much of the operational complexity. 

Many donor-advised funds also allow families to contribute publicly traded securities, which can be one of the most tax-efficient ways to give. 

Families can still: 

• Involve multiple generations in giving decisions 

• Build a legacy of generosity 

• Support charities consistently over time 

• Create a shared purpose around philanthropy 

• Name their fund and create an online presence  

But without the ongoing administration that comes with managing a private foundation. 

Instead of managing governance and filings, families can focus on what actually matters. Giving. 

Philanthropy Is Evolving 

Philanthropy today looks different than it did a generation ago. 

Families are looking for ways to make generosity more accessible, flexible, and aligned with their lives. 

For many, the question is no longer whether they need a foundation. 

The real question becomes: 

How do we make generosity easier to carry forward? 

For many families, donor-advised funds are becoming one way to answer that question. 

At GiveWise, we work with many families who want to organize their giving in a way that is thoughtful, flexible, and simple to manage. For some, that means opening a Giving Fund that allows them to support charities over time while keeping the focus where it belongs — on generosity.

For Families & Donors

Exploring a simpler way to organize your giving? Open a Giving Fund or connect with our team.

For Advisors

Helping a client think through family philanthropy, legacy giving, or appreciated assets? Book a conversation with GiveWise.