When families think about the future, their minds often turn to how their wealth will be treated through inheritance. But increasingly, families are asking a deeper question: How can we ensure our values, not just our assets, are passed down to future generations?
Philanthropy offers a powerful way to create a family legacy that transcends material wealth. By making thoughtful, strategic gifts, families can preserve what they stand for, strengthen community ties, and inspire the next generation to continue their impact. One of the greatest benefits of discussing your family values and what causes move you is that the process of discovery often brings families closer together.
While there are many ways to approach legacy giving, one of the most effective partners in this journey are community foundations. At the Orange County Community Foundation (OCCF), we specialize in strategic philanthropy that helps families align their values with their giving, build a strong legacy plan, and ensure their impact endures for years to come.
The Role of Community Foundations in Legacy Planning
Community foundations are uniquely positioned to guide families through the complexities of philanthropy. Unlike private foundations or one-off charitable donations, community foundations provide:
- Expertise in Strategic Philanthropy: Families don’t always know where to start. A community foundation brings decades of experience in vetting nonprofits, structuring funds, and maximizing the impact of gifts.
- Flexibility with Giving Vehicles: From donor-advised funds (DAFs) to named legacy funds, community foundations offer structures that align with each family’s goals and capacity.
- Local Knowledge with Global Reach: While OCCF is rooted in the local community with strong ties to nonprofits and deep knowledge of the most pressing issues in the community, OCCF also connects donors to national and international opportunities, ensuring families can give in ways that matter most to them.
- Stewardship for Generations: Families can trust that their philanthropic vision will be honored—even after they are gone—because community foundations are designed to provide oversight and continuity. At OCCF our Legacy Oversight Committee meets regularly to review legacy giving and ensure we are following our donors’ wishes.
Defining Your Family’s Core Values
The first step in building a philanthropic legacy is asking: What do we stand for?
Defining your family’s core values creates the foundation for all future giving. This exercise often involves gathering family members across generations and discussing:
- Which issues or causes inspire passion? (e.g., education, healthcare, the arts, environmental protection, youth mental health, etc.)
- What shared life experiences shape our perspective? (e.g., surviving a health crisis, starting a business, volunteering abroad, etc.)
- What do we want our community—and the world—to remember about us?
A written statement of values acts as a guiding compass. For example: “Our family is committed to advancing educational opportunities for underserved youth and protecting the natural beauty of Orange County for future generations.”
Once identified, these values will serve as the North Star for every philanthropic decision, from small annual grants to the structure of a legacy endowment.
Choosing the Right Charitable Structure for Your Goals
Families have many options when it comes to structuring their giving. Choosing the right vehicle depends on your philanthropic goals, desired level of involvement, and tax considerations.
- Donor-Advised Funds (DAFs):
A flexible, efficient option where you make contributions today, receive an immediate tax deduction, and recommend grants over time. OCCF manages the administrative work, leaving your family free to focus on impact. - Private Foundations:
Best suited for families seeking significant control and visibility. However, private foundations come with legal, tax, and reporting requirements that can be burdensome. Many families choose a DAF instead to avoid the complexity. - Named Legacy Funds:
These funds are established to carry out your philanthropic vision in perpetuity or on a timeline of your choosing. They can be endowed (ensuring your fund grows and lasts forever) or non-endowed (allowing for spending down over a defined period). - Field-of-Interest Funds:
Families can designate a focus area—such as women’s health, education, or the environment—while OCCF stewards grants to the most effective nonprofits in that field.
Choosing the right structure ensures your charitable goals are met in a way that matches your family’s vision and values.
A charitable fund created to provide long-term, reliable support for a specific nonprofit. The donor selects the organization(s) at the start, and the community foundation invests and manages the fund. Each year, the nonprofit receives distributions from the fund’s earnings, creating a steady stream of support for its mission. If the nonprofit ever sunsets, OCCF follows the donor’s specific instructions or redirects support to an organization with a similar mission depending on the donor’s preference. It’s a simple way to ensure a favorite cause is supported in perpetuity.
- Donor intent is fixed: When you establish the fund, you choose the nonprofit (or nonprofits) you want to support. Once the fund is in place, the community foundation ensures that distributions are made to those organizations on an ongoing basis.
- Financial sustainability for nonprofits: The fund provides the organization with a reliable stream of income from the fund’s investment earnings. This allows nonprofits to plan ahead and build capacity.
- Stewardship and oversight: The community foundation manages the fund’s investments, handles all administrative work, and ensures the designated nonprofit receives the distributions as intended. If the named nonprofit ever ceases to exist, OCCF can redirect the funds to an organization with a similar mission, preserving the donor’s charitable intent.
- Options for endowment or spend-down: A designated fund can be endowed (principal invested in perpetuity with only a portion of earnings distributed annually) or non-endowed (allowing for spending down the full amount over time).
Involving the Next Generation in Your Giving
Philanthropy becomes most meaningful when it brings generations together. Engaging children and grandchildren early helps them understand both the responsibility and joy of giving.
Ways to involve NextGen family members include:
- Family Grantmaking Committees: Invite younger generations to research nonprofits, present their findings, and make grant recommendations.
- Annual Family Meetings: Set aside time each year to review your giving priorities and celebrate impact stories together.
- Matching Gifts: Encourage participation by matching donations made by younger family members.
- Mentorship in Philanthropy: Share stories about why you give and how your values connect to your charitable interests.
This involvement not only builds stronger family bonds but also instills a sense of purpose in younger members, ensuring your legacy continues.
Telling Your Family’s Story Through Meaningful Grants
Every grant your family makes tells a story. It signals to the community what you care about, what values you hold, and how you want to make a difference.
For example, a family whose legacy is rooted in entrepreneurship might fund programs that help underrepresented entrepreneurs build businesses. A family with deep ties to the arts might support local theaters, museums, and creative programs for youth.
OCCF helps families connect their stories to meaningful impact by:
- Identifying nonprofits aligned with your values.
- Ensuring your giving creates meaningful outcomes.
- Providing reports and narratives that capture the human side of your giving.
When your giving reflects your unique story, your legacy becomes more than a financial contribution—it becomes a living narrative of your family’s values.
Preserving Your Legacy Through an Endowment Fund
An endowment fund is one of the most powerful ways to ensure your philanthropy continues long after your lifetime.
Here’s how it works:
- You establish a fund in your family’s name (or honor a loved one).
- The principal investment remains intact, while earnings fuel annual grantmaking.
- Because the principal is preserved, the fund generates perpetual support for the causes you care about.
This structure provides both stability and visibility. Your family name becomes forever tied to the causes you champion, leaving a lasting imprint on the community.
At OCCF, we manage more than 100 legacy funds and steward them with the utmost care—ensuring that each donor’s vision is honored exactly as intended.
Making Your Philanthropic Vision Last for Generations
Building a family legacy requires intention, planning, and trusted guidance. By:
- Defining your values,
- Choosing the right charitable structure,
- Engaging the next generation,
- Telling your story through strategic grants, and
- Preserving your legacy with an endowment fund,
—you set in motion a cycle of generosity that endures far beyond your lifetime.
The true gift of legacy philanthropy is not just the financial resources you leave behind—it’s the values, compassion, and sense of responsibility you pass down to your children and grandchildren.
Start Building Your Legacy Today
Every family has a story. Every family has values. And every family has the power to make a difference that lasts for generations to come.
At the Orange County Community Foundation, we are here to help you define your vision, structure your giving, and steward your legacy with the expertise of strategic philanthropy. Together, we can ensure your philanthropic story lives on—improving lives, strengthening communities, and shaping a better future.
Your legacy can begin today.
