Endowment is more than just a responsibility. It is justice done to the legacy of the previous generations.
Like succession planning must begin at the right time, family endowment should not be done at the occurrence of any event but a proactive measure to protect the overall family’s interests.
Many wealthy families are including a Family Endowment in their wealth transfer plans. This helps them to provide the successors with a financial resource.
In many ways, the Family Endowment acts like a charitable organizationexcept that the Family Endowment generally has private rather than charitable purposes only.
Family Endowment –Carrying forward the commitments of family legacy
Simply put, family endowment are private foundations set up, funded and governed by families of family businesses who make certain commitments to different organisations (causes they believe in) as per the family mission. Endowment allows family businesses to carry on the commitments for generations.
A family constitution system carves out the principles of endowment while a family governance system who participates in larger cause priorities, welfare recommendations, foundation goals and mission and ways to educate and incorporate younger family members over time.