Guest Posts Family + Philanthropy: Unpacking Great Governance for Generous Families Sharilyn Hale Guest Posts 5 mins read August 25, 2025 News & Insights Guest Posts Family + Philanthropy: Unpacking Great Governance for Generous Families By Dr. Sharilyn Hale, Watermark Philanthropic Counsel For families involved in philanthropy, governance is how they organize themselves to make decisions about their giving and demonstrate accountability to themselves and their community. While governance is too often equated with compliance and boring board meetings, it is, in fact, a dynamic and creative process at the heart of family engagement and impact. This Spring, I delivered a 6-week governance education program through Philanthropic Foundations Canada (PFC) specifically geared to generous families and family foundations. Participants wanted to increase their governance knowledge, and many were facing common challenges related to family dynamics, continuity planning, the engagement of the rising generation, the involvement of non-family directors, and the relationship between family and paid staff. Using the framework of People, Purpose, Policies, and Procedures, we explored these and other issues, integrating principles of corporate and family governance to govern the corporation (i.e., the foundation) and govern the family. “This program was a great opportunity to think about how to unlock the governance potential within our foundation.” Participant The Power of ‘Familiness’ in Philanthropy Why did the program focus on the ‘family’ in foundation governance? Frankly, family foundations often wrestle with family considerations, especially during times of change and transition. These can have a significant impact on the wellbeing of the family and the foundation. We cannot focus on the foundation without attending to the family. ‘Familiness’ was coined by researchers to describe the experience within families of strong and enduring ties, a shared identity and goals, and a sense of collective responsibility and mutual accountability. The degree of this social capital can ebb and flow, but it can be cultivated and strengthened over time through intentional practices. In business, this capacity within families has been described as a competitive advantage and a key factor in why family firms consistently outperform their non-family peers. I suggest that ‘familiness’ can also be a powerful asset that enhances their philanthropy. Governance Considerations for Families: The “It Depends” Principle Governance is the set of promises you make to each other about how you will navigate decisions, honor your shared purpose, and welcome new voices. During the program, we reviewed a range of governance practices that help families do this work together: clarifying purpose and alignment, establishing principles for eligibility and participation, identifying roles and responsibilities, supporting leadership development, exploring decision-making models, and creating right-sized approaches to policy and transparency. Yet, the challenge of teaching (and learning) governance is that the most frequent answer to any question is, “it depends.” This is especially true for family foundations. Families are as unique as fingerprints, and their philanthropies vary in size, approach, objectives, and developmental stage. Governance options beneficial for one family may be awkward for another. So, how do families decide? They must craft solutions that are fit for purpose, taking into account several key factors: Stages of Foundation Development: Kelin Gersick has advanced that as families evolve, so do their foundations (or philanthropies). Governance needs to adapt as a foundation moves through predictable stages: Stage 1: Founder-centric: The founder or founding couple holds the vision and makes most decisions. Governance is often informal. Stage 2: Sibling Partnership: The second generation is engaged, and eventually takes over. Governance must adapt to manage multiple households, diverse opinions, and shared decision-making. Stage 3: Cousin Consortium: The third generation and beyond become involved, creating a large, geographically dispersed group of relatives, many of whom did not grow up together. These foundations tend to be family governed and staff managed. Formal governance, clear communication, and structured policies become even more essential for cohesion and effectiveness. Collective vs. Individuated Approaches: Governance must also be designed to support where a family falls on the spectrum of philanthropic decision-making. A collective approach involves the entire family making grants from a single, shared pool of funds, which requires strong alignment and consensus-building skills. An individuated approach might allow different family branches or individuals to direct a portion of the funds according to their own interests, promoting autonomy. Other families adopt a hybrid model, while even other families empower staff to make all granting decisions. Reflecting on their own experiences, program participants gained insight into how each stage and approach requires a relevant governance model. And, the more complex the family system—across generations, branches, and philanthropic interests—the more robust the governance required to support its success. “This governance program will give you common languageand concepts to reflect on, refresh, renew, reinvigorate yourfoundation’s governance!” Participant The Promise of Inquiry and Dialogue If good governance is the answer, how do families get there? The process itself is as important as the outcome. Effective governance does not come from a template. It is born from dialogue, inquiry and co-creation. It is a generative and capacity-building process that strengthens the family’s social capital and their ability to work together over time. By engaging in open conversations, families build shared understanding and buy-in. This is where the role of an independent advisor can be critical. A skilled facilitator can create a safe space for difficult conversations, offer objective perspectives, introduce best practices, and guide the family through a structured process of discovery and decision-making. When designed with intention and care, governance provides the clarity and structure that allow families to experience the profound joy of giving, and giving together. Learning about governance is an act of care for your family and your foundation, and I honour the investment of those who participated in the first offering of the program. By prioritizing your governance as an essential and dynamic tool, you safeguard your family’s relationships, amplify the impact of every dollar granted, and build a resilient foundation capable of navigating any future. Share This Article Facebook Twitter LinkedIn Email
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