Second volume of the digital magazine explores ways to establish a family culture of stewardship and philanthropy
TORONTO, ON–Anticipating a $1 trillion transfer of wealth over the next decade – the largest 10-year wealth transfer in Canadian history (see “A Sudden Windfall”, BMO Wealth Insights, 2018) – BMO Private Wealth is helping families preserve and advance their family’s legacy by establishing a culture of stewardship and philanthropy for the next generation.
Articles from the second volume of the BMO Wealth Insights magazine explore how families can engage their children in charitable giving and philanthropy. In addition to advice on how to prepare heirs for the responsibilities involved with inheriting wealth, BMO Private Wealth provides guidance for teaching children how to use this wealth to improve the lives of others, while supporting the causes important to their family.
“When discussing successful transfers of wealth, it is important for families to consider the responsibilities involved with inheriting the family legacy and how to build a framework that will advance the family’s philanthropic commitments,” said Marvi Ricker, Vice-President and Director, Philanthropic Advisory Services (Strategic Granting), BMO Private Wealth. “Building an enduring legacy starts with establishing and maintaining a family culture of wealth stewardship and philanthropy. BMO Private Wealth’s team of professionals has the experience and resources to help Canadians and their families identify the causes that align with their values and develop strategies to make a meaningful impact now and for future generations.”
Tips for teaching children the role of wealth stewardship
Cultivating a lasting culture of wealth stewardship and philanthropy begins with engaging the next generation in charitable giving habits that will define how they will steward their time and wealth. BMO Private Wealth encourages Canadians and their families to consider these suggested strategies when preparing their children and grandchildren for a lifetime of charitable giving:
Look for teachable moments: Whether it is a discussion at the dinner table, volunteering at a shelter or attending a granting meeting, there are plenty of opportunities to introduce and explain the value of philanthropy and charity to children of all ages. If possible, try teaching children at an early age that one of the most precious commodities a family can give is their time. Encouraging children to volunteer their time can help build their self-esteem and confidence, while exposing them to their community and its diversity.
Create a legacy account: Consider allocating a portion of the household budget towards specific charitable causes by opening a designated bank account or establishing a donor-advised fund. Demonstrating the cumulative potential of small sacrifices and how it can amount to a significant contribution in the future can encourage children to adopt these habits and continue these traditions as they become financially independent.
Encourage children to take initiative in the process of family philanthropy: After witnessing the potential of dedicating the family’s time and resources to a cause, children may be interested in choosing a worthwhile initiative of their own. Asking children to research and submit a formal proposal or a presentation on the charities they believe will benefit from their support will enrichen the child’s personal experience and connection to the giving process, as well as encourage future giving.
“Building an enduring culture of wealth stewardship and philanthropy starts with habits. By encouraging family members of all ages to participate in acts of charitable giving and responsible wealth management, these habits will develop into a framework of philanthropic family traditions and values that can be passed down to succeeding generations,” said Lydia Potocnik, Vice-President and National Director, Philanthropic Advisory Services, BMO Private Wealth.
BMO Private Wealth is a brand name for a business group consisting of Bank of Montreal and certain of its affiliates in providing private wealth management products and services. Not all products and services are offered by all legal entities within BMO Private Wealth.