How family offices are reshaping philanthropy

Family offices and philanthropy

Family offices, once focused almost exclusively on investments and estate planning, are increasingly becoming hubs for philanthropy. Pictet estimates that 17,000 family offices worldwide now control more than $10tn in assets, and almost three quarters are managing the philanthropy and impact aspirations of the families they serve.

This structural shift is transforming not only how wealth is stewarded, but also how legacy is defined.

The great wealth transfer

A considerable shift in wealth ownership – dubbed the Great Wealth Transfer and projected to reach an estimated $70tn by 2045 – is intensifying these dynamics. A Cerulli Associates study projects that by 2048 around $18tn of that wealth transfer will be directed to philanthropic causes. 

The desire of younger generations to invest in a way that reflects their values is an important part of this story, says Christoph Courth, Global Head of Philanthropy Services at Pictet Wealth Management.

“This transfer will be inherited by a generation keenly aware of global challenges and conscious of limitations in the more traditional methods of addressing societal issues,” he says. “Indeed, younger wealth holders today take various approaches to achieving social impact, even beyond philanthropy, including through their family businesses and investments.”

In this context, families are increasingly relying on their family offices to manage their impact aspirations, seeking better coordination and professionalisation.

Purposeful planning

It reflects a global family office trend towards smarter giving. Research shows that 86 per cent of Asia-Pacific family offices are engaged in philanthropy, as are 76 per cent in North America and 67 per cent in Europe. Traditionally, philanthropy was handled separately from investments, often through foundations or informal charitable giving.

Today, family offices are consolidating these activities under one roof. BNY Mellon reports that almost three quarters now manage philanthropic and impact activities together, reflecting a desire to apply the same professionalism to social good as they do to financial returns.

For families, the benefits are clear: coordination, consistency and succession. Embedding philanthropy in the family office ensures that values and strategy are codified, enabling continuity across generations. It also allows younger heirs to gain hands-on experience in analysis, reporting and decision-making – skills that prepare them for stewardship of the broader family wealth.

Running due diligence and impact reports on donations to particular causes, for example, can be a useful testbed for a next-gen inheritor who is keen to prove their business nous.

Building consensus across generations

This professionalisation is not always straightforward. The experience of PFC, an office established in 2016 to manage the wealth of a branch of Italy’s Marzotto textile family, illustrates the challenge of aligning diverse views. In 2018, the family office adopted a new mandate to prioritise social and environmental impact, with a focus on issues such as social inequality and climate emergency.

Consensus-building proved vital. “The family flipped the script, putting impact objectives at the top of their goals,” says Urszula Swierczynska, Impact and Philanthropy Director at PFC. The family created a constitution to codify shared values, providing a foundation for continuity across three generations. This reflects a broader trend in which families develop “impact roadmaps” to formalise goals and align activities. 

Many are adopting family charters that institutionalise philanthropic values, ensuring that they are transmitted alongside financial capital. Insights from research at IMD bear this out. Business families that introduce philanthropic literacy early – encouraging children to engage with causes and governance – are more likely to sustain their values over time.

Philanthropy also provides families with a platform for dialogue. “If you can create a safe and trusted space, you can have much richer conversations and push people to greater challenges and collaboration,” says Marie-Louise Gourlay, Global Director of Forward Global, a network of philanthropic funders across 22 countries.

Younger members of families are especially keen to participate. Few are comfortable with having separate philanthropic and investment portfolios governed by entirely different values. Family offices are well positioned to facilitate these conversations, whether through curated workshops or structured family meetings.

Specialist guidance in demand

Despite the growing role of family offices, many of those managing family wealth come from backgrounds in banking, law or corporate management rather than philanthropy. As Courth points out, they often need support in navigating the complexities of structuring and measuring impact.

“It’s important to gather input from all family members, facilitating discussion to ensure all voices are heard with common goals agreed. You can establish a vision for what you want to achieve and a mission for how you will get there,” he says.

Advisers such as Pictet’s philanthropy team are increasingly sought after to provide that expertise – designing governance frameworks, recommending vehicles and helping families evaluate partners and measure outcomes.

As family offices move philanthropy into the mainstream of their operations, the definition of legacy itself is shifting. For many families, wealth is no longer simply a resource to preserve but a tool to generate enduring purpose. Professionalising philanthropy within the family office ensures that values, as well as assets, are transmitted across generations – a legacy measured not only in capital, but in contribution.