Beyond Reactive Giving: The Strategic Imperative
Most business families begin their philanthropic journey reactively, responding to constant requests from community organizations. "They're feeling a little overwhelmed," Burrows observes. "They're giving directly. And often we'll have a mission through their business, and that's partly a management plan as well, to reduce the noise."
This reactive approach mirrors the challenges faced by ABFI's audience segments. Medium-sized families like Davidson Estates often find themselves pulled between competing values and community expectations, while larger families like Parkland Development Group face the complexity of coordinating philanthropic decisions across multiple generations and business units.
The solution lies in recognizing two distinct "pockets" for giving: the cash flow pocket for ongoing operational giving, and the asset pocket for transformative, legacy-building donations. "The major donations, the really transformative donations that end up in the community, come from the asset pocket," Burrows explains.
Structural Options: Finding the Right Fit
Business families have three primary vehicles for strategic philanthropy, each suited to different circumstances and objectives:
Private Foundations offer complete control through separate legal entities where family members serve on boards. Historical examples like Calgary's Max Bell Foundation and Edmonton's Muttart Foundation demonstrate how these structures can create 70-year legacies of community impact.
Donor Advised Funds provide professional management through established public foundations while maintaining family direction over grants. This approach works particularly well for "exceptional donations" exceeding $250,000, offering immediate expert support and administrative infrastructure.
Corporate Foundations serve as dedicated giving arms of family businesses, often sharing the company name and integrating customer and supplier engagement alongside family philanthropy.
The Family Harmony Myth: A Critical Warning
One of the most dangerous misconceptions Burrows encounters is the belief that philanthropy will automatically resolve family tensions. "Don't think of foundation is somehow going to sprinkle magic pixie dust and make everybody happy and get along," he cautions.
This warning proves particularly relevant for families facing succession challenges or multi-generational disputes. Rather than solving existing problems, philanthropic structures can amplify them if proper governance isn't established first.
Successful family philanthropy requires intentional governance design, including discrete granting budgets that allow different generations to express their values autonomously. "I'm a huge believer in making sure that there's reasons for all members of the family to come to the table, and that translates into the structure of discretionary granting budgets," Burrows explains.
Governance Frameworks That Actually Work
Effective philanthropic governance mirrors successful business family governance—it requires clear roles, structured decision-making, and respect for both shared values and individual perspectives. Burrows recommends practical approaches that prevent the "never, never plan" syndrome that creates ongoing tension.
The key insight is creating "separate together" structures. In one case, three siblings who weren't speaking were each given separate philanthropic budgets. Over time, this autonomy allowed them to find areas of shared interest organically, ultimately strengthening both their relationships and their collective impact.
This approach recognizes that philanthropy, like family business, involves complex emotional and relational dynamics that require careful navigation rather than wishful thinking.
Next-Generation Engagement: Building Capacity Through Action
The rise in charitable giving among Canadians under 25 signals an opportunity for business families to engage next generations meaningfully. Rather than waiting for perfect alignment, Burrows advocates for experiential learning through actual giving.
"People learn experientially, and so creating that direction, and having people dive in and giving them enough autonomy to implement" proves far more effective than theoretical planning sessions.
This approach addresses succession challenges by giving emerging leaders real responsibility and decision-making authority within structured frameworks, building both philanthropic and leadership capacity simultaneously.
Strategic Implications for Family Continuity
Strategic philanthropy serves multiple functions beyond community impact. It provides governance training grounds for next generations, creates forums for values-based discussions, and offers practical experience in complex decision-making—all essential elements for successful family enterprise continuity.
For families navigating transitions, philanthropy can serve as a bridge between generations, providing shared purpose while respecting individual perspectives. The key lies in starting with clear intentions and building appropriate structures rather than hoping good intentions alone will suffice.
Implementation: Moving From Intention to Impact
Business families ready to move beyond reactive giving should begin with fundamental questions about purpose and structure rather than focusing immediately on tax implications or legal vehicles. As Burrows emphasizes: "Tell me what you want to achieve. What's your timing? Who do you want to be involved?"
The most successful family philanthropic initiatives combine business discipline with authentic family values, creating structured yet flexible frameworks that can evolve with changing circumstances and growing family complexity.
The message for business families is clear: strategic philanthropy requires the same thoughtful planning, governance attention, and structural design as any other significant family enterprise initiative. When done well, it becomes a powerful tool for both community impact and family development.
Ready to explore how strategic philanthropy might strengthen your family enterprise? The ABFI Executive Certificate program includes comprehensive modules on governance and strategic decision-making that can help you build the frameworks necessary for effective family philanthropy.
Content Index: Strategic Philanthropy: How Business Families Can Transform Wealth Into Purpose, Business Family Insights Team, September 2025, Podcast, Philanthropy, Succession, Governance, Strategy, Leadership, Family Dynamics, Burrows, M. (Host). (2025, May 5). ABFI Table Talk S1EP14 [Audio podcast]. Alberta Business Family Institute.
