Philanthropy’s hidden dividend
Our research shows that philanthropy can help families develop shared values, align across generations and make better wealth decisions.

A survey of more than 300 ultra-high-net-worth (UHNW) individuals and family office professionals reveals that philanthropy can be a way for families to refine their decision-making processes.
A strategic training ground
Market volatility is making it harder for wealthy families to agree on their investment strategy, according to 74 per cent of family office professionals surveyed. Debate is an important part of decision-making, but hardline disputes and gridlocks can undermine strategy and create costly delays.
Philanthropy provides families with a low-stakes training ground where they can work out their values and stress-test their collective decision-making skills in preparation for higher-stakes decisions. The research finds that UHNW families who achieve greater alignment in their philanthropic decisions are more likely to achieve desirable wealth management performance.
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UHNW families who strongly agree on their philanthropy decisions are 11 percentage points more likely to be satisfied with their overall wealth management performance than the average UHNW family.
This suggests that habits families build during the giving process, such as setting clear criteria, encouraging open debate and practising measured risk-taking, can transfer to other areas of decision-making, including capital allocation and inheritance planning.

“Philanthropy decisions are a canary in the coal mine. They give families the opportunity to learn about how and why they disagree, and to build muscle memory for finding common ground. By putting in the groundwork to reach a clear alignment on philanthropic activities, families gain a stable reference point that they can lean on when opinions diverge on higher-stakes, more stressful decisions.”
—Scott Chang, Head of Philanthropy, Asia, Wealth Planning and Family Advisory, Standard Chartered Global Private Bank
And philanthropy decisions are far from trivial. Families must comply with regulations and take measures to ensure that donations are not misused. These are lessons that can be particularly valuable in developing the financial literacy of younger family members as they prepare to take on greater responsibility.
What builds alignment, and what breaks it?
UHNW families do not always naturally agree on philanthropic matters. Generational differences can be a root cause. In our research, older generations (Baby Boomers and the Silent Generation) are about 5 percentage points less likely than Millennials to say their family is aligned on philanthropy.
Scale also has an effect. Families with more than USD2 bn in investable assets are 12 percentage points more likely than those with less than USD2 bn to report agreement on philanthropy. This reflects not only their greater financial flexibility but also the fact that families with more capital are more likely to have formal structures in place to support dispute resolution.
The basis of philanthropy moves from instinct to infrastructure
When it comes to making decisions around wealth management, which of the below best describes the approach that your family/client adopts?
Philanthropic giving typically falls outside the remit of family offices as these decisions are often viewed as a value play for UHNW families. Most report taking an informal approach to altruism; however, a sizeable number of families are open to insights from external sources.
57%
of UHNW families surveyed say decisions about philanthropy are based on experience and personal observation.
As families seek to deploy their donations more effectively, the research identifies an emerging shift: families are coordinating more closely with their family offices to develop stronger governance around philanthropic giving.
“Our family members are very aligned internally on our philanthropic activities,” says one next-gen family member with a family office based in Singapore. “We have had the family office establish a formal philanthropy support function to help instil discipline in our activities in this area. As a result, our gifting programme is growing at about 20 per cent a year.”
43%
say they welcome professional advice for their philanthropic decisions.
This disciplined approach can be particularly helpful when it comes to measuring impact, addressing misalignment and ensuring regulatory compliance. “In many jurisdictions, there are rules governing philanthropic activity that can limit flexibility when it comes to supporting cross-border causes,” says Zac Lucas, Partner at law firm Spencer West. “Donors also need to make sure their capital is serving its intended purpose and not being diverted or misused.”
Philanthropic giving can yield both outward and inward benefits. Externally, it channels resources towards worthy causes. Internally, it gives UHNW families a platform to hone decision-making, practise collaboration and resolve conflicts. Supported by more formal structures, philanthropy can help to bring generations together and strengthen decision-making processes, enabling faster and more resilient high-stakes decisions.
This article is produced in collaboration with FT Longitude, the specialist research and content marketing division of the Financial Times Group.
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