As we experience the greatest transfer of generational wealth in the history of our country, the tension between the generations and their ideological, philosophical, and sometimes political guideposts is real. This is especially true in family foundations that are now planning for the next generation to lead their families’ philanthropic decisions. 

I have had the privilege of walking with families in the succession planning process for their family foundation as they prepare to transfer leadership roles. Here is what I have learned. 

The interplay between familial relationships, personal values, and diverse philanthropic goals can introduce distinctive challenges in succession of family foundation boards. Yet, when carried out thoughtfully, succession can be an expression of trust and an opportunity to cultivate resilience, foster innovation and ensure the foundation’s ongoing capacity to do good. At their best family foundations provide an opportunity to articulate the core values that guide the family’s philanthropy. Succession planning provides an opportunity to ensure that those values encompass the shared values of the family, not just the ones identified by the first generation. 

Of course, family structure and power dynamics can affect succession planning. Family ties—such as those between children, siblings, spouses, and in-laws—can complicate transferring responsibility across generations. The most effective transitions occur when families are dedicated to a structured process, willing to let go of some control, and engage in open discussions. Sometimes that requires the help of someone beyond the family—ideally someone who does not have a close relationship with an individual family member. 

Active listening, withholding judgment, and the leaders’ ability to relinquish control help ensure all voices are heard and respected. Surveying board and family members before succession planning can be valuable, giving each family member an opportunity to individually answer questions separate from the dynamics of group conversation. 

If you are preparing for generational change in a family foundation board, I encourage you to consider the following key questions. 

1. What are the expectations for the future of the foundation? Will the foundation exist in perpetuity, or will you spend out your assets? What are the current strengths, opportunities, challenges, and threats? How will you intentionally plan to meet the opportunities and address the challenges? 
2. Does the foundation’s mission define, guide, and set values for its actions? Do your current programs or grant partners fully align to your shared mission, vision, and values? Are you willing to alter historic giving relationships to achieve stronger alignment with your mission?
3. Do all board members understand their roles and responsibilities as individuals and as a collective? Do you have a written job description for board members? Are the foundation’s organizational documents, financial records, governance policies, historical background, and other relevant information readily available, and accessible to board members to help them fulfill their responsibilities? 
4. What will board members need for success? Do you have plans for board orientation and ongoing training? Have longer-term members been asked how they want to participate in the foundation’s future? Are newer members or those who are not part of the family empowered to lead? 
5. Is there a strategic plan in place that addresses not only giving priorities and guidelines, but also provides guidelines on board leadership and transitions? And does the board hold the foundation and one another accountable to the plan? 

Succession planning enables a family foundation to transfer responsibilities, prepare future leaders, and support long-term goals. Though demanding, the process preserves the family’s vision and desired impact. Passing on knowledge and values ensures continuity, even as future generations bring change.