This is an excerpt from The NCFP Guide to Demystifying Decision-Making in Family Philanthropy.
People accustomed to making their own decisions in a business setting may bring unilateral decision-making to the family philanthropy, often using it
inappropriately. For example, founders may think of the philanthropy as “theirs” and feel impatient with or dismissive of group decision-making. At the same time, they genuinely want family members to be engaged in and feel a part of the philanthropy. This situation may be difficult to shift, but members of the decision-making group have options for dealing with strong voices, including:
- Decide and articulate what is an acceptable degree of authority you need to make it worth your while to serve on the board. If the person with the strong voice does not agree, you can choose to step down.
- Negotiate lines of authority for certain types or categories of decisions so that the person with a strong voice can relinquish authority on certain issues and must require input for others. For example, a family philanthropy may decide that a founder controls the largest share of the grants budget.
- Agree to the founder having final say on most issues, as long as they are willing to consider the views of other stakeholders first.
- Develop a persuasive argument for including board members in decision-making, such as the need to teach children and grandchildren how to make good decisions so they can effectively steward the philanthropy’s assets in the future.
- Encourage the founder or person with a strong voice to attend professional meetings with others where they can talk to about these situations. Alternatively, provide them with a copy of this guide and ask them to have a conversation about the value of other decision-making methods.
Often just raising these issues can make those with strong voices more aware of other group members’ desire to participate in decisions, especially when the hope is to create a legacy of philanthropy for their family. These discussions may help build awareness that the way family members are included in decision-making today can shape the family’s involvement for generations to come.