NORTHERN TRUST
INVESTING IN FUTURE GENERATIONS OF PHILANTHROPY
American Bar Association, Section of Real Property, Trust & Estate Law
Charitable Planning and Exempt Organizations Group
Thursday, May 3, 2012
Marguerite Griffin
National Director of Philanthropic Services
Northern Trust
50 S. LaSalle, Suite B-4
Chicago, IL 60603
312-630-0677
[email protected]
northerntrust.com
© 2012 Northern Trust Corporation
Planning for “Next Generation” Philanthropy
Goal 1:
Identify
Family Values
and Priorities
Goal 5:
Provide
Education
and Training
Opportunities
Next
Generation
Philanthropy
Strategic
Goal 4:
Create a
Succession
Plan
2
Goal 2:
Develop a
Mission
Statement
Goal 3:
Set Realistic
Expectations
for
Participation
Investing in Future Generations of Philanthropy
NORTHERN TRUST
INVESTING IN FUTURE GENERATIONS OF PHILANTHROPY
FAMILY VALUES AND PRIORITIES
© 2012 Northern Trust Corporation
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Family Values and Priorities
Key Considerations for Families and their Advisors
 Facilitate discussion (come to terms with) regarding influence, power and
money.
 Manage family dynamics.
 Build consensus or establish process to achieve collective actions.
 Decide “who is family” and how they will participate (current and future
participation).
 Find balance between personal and family philanthropy.
 Hire a philanthropic consultant and/or family governance advisor to facilitate
family discussion relating to values, goals and priorities.
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Investing in Future Generations of Philanthropy
NORTHERN TRUST
INVESTING IN FUTURE GENERATIONS OF PHILANTHROPY
MISSION STATEMENTS
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Mission Statements
Why Write a Mission Statement?*
 Clarifies what the family hopes to accomplish and the areas of focus.
 Helps the family set a course that transcends generations.
 Enables the charitable organization to be more strategic.
 Helps identify where expectations and goals are missing targets.
 Strengthens the role of the family in philanthropy.
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Mission Statements – Drafting Considerations
Elements of a Mission Statement*
 History of the family: its origins, values, patriarchs and matriarchs, business interests, public
service, traditions of philanthropy, etc.
 History of the foundation: founder, when founded, funding source, etc.
 The field of interest of the foundation (education, environment, etc.) and what the foundation
intends to accomplish;
 Program focus and specifics of where grants are targeted; and
 Key goals and desired outcomes.
Additional Drafting Considerations
 Consider using the “trust” form for private (family) foundations where
donor/founder intent is paramount.
 Include the mission statement or statement of purpose in all governing
documents.
 Provide for periodic review of mission statement by the appropriate governing
entity.
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Investing in Future Generations of Philanthropy
NORTHERN TRUST
INVESTING IN FUTURE GENERATIONS OF PHILANTHROPY
SUCCESSION PLANNING
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Succession Planning
Succession Planning – Key Questions
 Are the charitable objectives clear? Does the governing document allow
donor(s) or successive generations to change the mission of the
foundation without court approval?
 Is it likely that the donor’s charitable objectives will evolve during the
donor’s lifetime?
 Will subsequent generations and/or successors on the board of the
foundation want to pursue the donors’ charitable objective?
 Is it likely that the purpose(s) of the foundation will become obsolete or
unnecessary?
 Is the foundation adequately funded?
 Has the donor provided enough flexibility in mission and governance to
minimize family discord?
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Succession Planning
Succession Planning - Key Considerations for Advisors
 Determine family financial resources that will be earmarked for
inheritance and philanthropy.
 Discuss core values and priorities with family members.
 Identify family members who are interested in participating in family
philanthropy.
 Prepare a philanthropic mission statement.
 Define policies, procedures, and outline expectations for participation and
responsibilities.
 Develop short- and long-term structures for governance and succession
planning.
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Investing in Future Generations of Philanthropy
NORTHERN TRUST
INVESTING IN FUTURE GENERATIONS OF PHILANTHROPY
EDUCATING THE NEXT GENERATION
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Educating (and Empowering) the Next Generation
Best Practices for Families
 Create formal (junior boards) and/or informal structures for participation.
 Promote individual engagement with charitable giving and volunteerism.
 Address issues/areas upon which all members agree, whenever
practicable.
 Make small contributions and grants; establish special savings or gift
accounts.
 Commit to their interests (“next generation”).
 Encourage participation in service learning projects.
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NORTHERN TRUST
INVESTING IN FUTURE GENERATIONS OF PHILANTHROPY
RESOURCES FOR ADVISORS
Marguerite Griffin
National Director of Philanthropic Services
Northern Trust
50 S. LaSalle, Suite B-4
Chicago, IL 60603
312-630-0677
[email protected]
northerntrust.com
© 2012 Northern Trust Corporation
Resources for Advisors and Charitably-inclined Clients
Acri, Sue, “Passing the Torch: Attracting and Cultivating the Next Generation of Philanthropists,” Advancing Philanthropy,
May/June, 2008.
Association of Small Foundations, “Engage the Next Generation in Giving”, 2011.
Collier, Wealth in Families, 2d Ed., Harvard University, 2006.
*Esposito, Virginia, editor, Splendid Legacy: The Guide to Creating Your Family Foundation, National Center for Family
Philanthropy, Washington, D.C., 2002
Malone, David, “Tomorrow’s Donors – Engaging the Next Generation of Family Philanthropists,” Institute for Philanthropy, May,
2010.
Price, The Giving Family – Raising Our Children to Help Others, Council on Foundations, 2005.
Siska, Growing to Give: Instilling Philanthropic Values in teens and Pre-Teens in Philanthropy, National Center for Family
Philanthropy, 2004.
Williams, Roy and Vic Preisser, Philanthropy, Heirs & Values: How Successful Families Are Using Philanthropy to Prepare Their
Heirs for Post-Transition Responsibilities, Robert Reed Publishers, Brandon, OR, 2010.
21/64 – www.2164.net
Forum of Regional Associations of Grantmakers – www.givingforum.org
National Center for Family Philanthropy – www.ncfp.org
Resource Generation - www.resourcegeneration.org
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Investing in Future Generations of Philanthropy
~ Senior Vice President
National Director of Philanthropic Services
Marguerite H. Griffin
Marguerite H. Griffin is a Senior Vice President at The Northern Trust Company,
Chicago. As National Director of Philanthropic Services, Marguerite is responsible for
the delivery and growth of Northern Trust's philanthropic services to Personal
Financial Services clients. She specializes in administering charitable trusts and
private foundations and counsels clients regarding charitable giving, grant-making
practices and philanthropic strategies.
Marguerite was most recently a Senior Trust Administrator and Relationship Manager
in the Personal Trust Administration Department where she was responsible for the
administration of large, complex trusts for individuals and families, including
irrevocable trusts, charitable trusts and supporting organizations. Her duties involved
working with sophisticated estate plans, sensitive family situations and complex
property transfers.
Prior to joining Northern Trust as a Vice President in November 1999, Marguerite was a Vice President and Trust
Administrator within the Private Clients Division of First Chicago, Bank One. Before joining First Chicago, Bank One, she
practiced law as an Associate with Vedder, Price, Kaufman & Kammholz where she specialized in estate planning,
nonprofit organization law, charitable trusts and private foundations.
Marguerite received a B.A. degree from Washington University in St. Louis and a J.D. degree from Northwestern
University School of Law. She is a member of the Chicago Bar Association and the Chicago Estate Planning Council.
Marguerite is admitted to practice before the Illinois Supreme Court. She is a frequent speaker at industry programs
addressing topics such as microfinance, nonprofit board responsibilities, strategic giving and trends in philanthropy.
Marguerite is an active volunteer, advisor and board member with several charitable and cultural institutions, including the
Art Institute of Chicago, The Chicago Symphony Orchestra, The Chicago Community Trust, Donors Forum of Illinois, The
Museum of Science and Industry, The Ravinia Festival and WFMT/WTTW.
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© 2009 by Northern Trust Corporation
Disclosures

IRS CIRCULAR 230 NOTICE: To the extent that this communication or any attachment concerns tax matters, it is not
intended to be used, and cannot be used by a taxpayer, for the purpose of avoiding any penalties that may be
imposed by law. For more information about this notice, see http://www.northerntrust.com/circular230.

LEGAL, INVESTMENT AND TAX NOTICE: This information is not intended to be and should not be treated as legal
advice, investment advice or tax advice. Readers, including professionals, should under no circumstances rely upon
this information as a substitute for their own research or for obtaining specific legal or tax advice from their own
counsel.

OTHER IMPORTANT INFORMATION: This presentation is for your private information and is intended for one-onone use only. The information is intended for illustrative purposes only and should not be relied upon as investment
advice or an investment solution. Opinions expressed are current only as of the date appearing in this material and
are subject to change without notice.

There are risks involved in investing including possible loss of principal. There is no guarantee that the investment
objectives or any fund or strategy will be met. Risk controls and asset allocation models do not promise any level of
performance or guarantee against loss of principal. All material has been obtained from sources believed to be
reliable, but the accuracy, completeness and interpretation cannot be guaranteed.

Securities products and brokerage services are sold by registered representatives of Northern Trust Securities, Inc.
(member FINRA, SIPC), a registered investment adviser and wholly owned subsidiary of Northern Trust Corporation.
Investments, securities products and brokerage services are: Not FDIC Insured | No Bank Guarantee | May Lose Value
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© 2009 by Northern Trust Corporation