Study: Families turning to family offices for philanthropy management
November 06, 2012
A recent study by The National Center for Family Philanthropy revealed that an increasing number of families are turning to single-family offices to manage their giving efforts. The report found that when families entrust their philanthropic efforts to offices, they can align their values and increase efficiency.
"We found that managing philanthropy through the family office can be a very effective approach for families, particularly if there are multiple branches to the family and if they are using a number of charitable vehicles,” said Virginia Esposito, president of the National Center for Family Philanthropy.
The report also noted the challenges that can arise when families choose officers for their philanthropic efforts. It cites miscommunication surrounding the best ways to measure giving efforts and manage business decisions as some of the key stumbling blocks. These issues can crop up because individuals and professional use different terminology and scales to plan and track charitable efforts.
Aside from family offices, foundations and organizations that provide annual funding might benefit from nonprofit accounting
software, which can help board members audit funds and ensure the correct amounts are being distributed to various programs each year.