Strategic Giving for Business Owners
- Clarifying the distinction between family and corporate giving can enhance both philanthropic impact and engagement across generations.
- Strategic planning ahead of a business transition can help preserve philanthropic intentions and operational flexibility.
Bessemer has a long history of partnering with business-owning families to navigate the complex intersection of family, enterprise, and legacy.
Family businesses provide economic opportunity within their communities — and many owners seek to extend their impact through thoughtful philanthropy. Over time, however, personal, family, and business-driven philanthropy often become intertwined.
With decades of experience advising business-owning families through this evolution, Bessemer can help clarify the purpose of personal and family philanthropy versus corporate giving — whether pursued independently or together. We work with families to align their charitable strategies with their financial objectives and the mission of the business to support a cohesive and enduring legacy.
Benefits of Family Philanthropy
Engaging rising family leaders. Keeping family philanthropy distinct from business philanthropy allows family members who work outside the business to participate in giving. We have seen families establish multigenerational grantmaking committees to partner with charities that align with the family’s values and interests.
Access to flexible collaborative giving. Donor-advised funds (DAFs) can foster family engagement. They allow families to anchor giving around shared values and goals, offer flexibility in giving amounts, enable anonymity, and are easier to administer than private foundations.
Ability to plan ahead for a potential exit. If the family business is approaching an inflection point — such as a business sale — separating philanthropic efforts in advance is often simpler than doing so after the exit.
Benefits of Corporate Giving
Improved employee engagement and company culture. Corporate giving and volunteer programs can strengthen recruitment, retention, and workplace culture. Some companies create employee giving committees, offer paid volunteer time, sponsorship of charity walks/runs, or employee matching campaigns.
Enhanced customer engagement. Cause-based campaigns can help companies connect with customers and enhance brand reputation while giving back, e.g., donating a portion of proceeds to charities after natural disasters or running “shop for a cause” promotions.
Positive visibility in local communities. Investing pretax profits in local institutions — such as children’s hospitals, museums, or universities — is not only a civic contribution but also helps elevate the brand and reputation of the company.
At Bessemer, we have long separated personal and family philanthropy from corporate giving because we are a privately owned, family-founded firm. Today, we also emphasize employee-driven impact — encouraging our team members to support causes they care about through the firm’s giving programs.
No matter where you are on your philanthropy journey, Bessemer’s experts are here to help you navigate opportunities and strategies that align with your goals.
This material is for your general information. It does not take into account the particular investment objectives, financial situation, or needs of individual clients. This material is based upon information obtained from various sources that Bessemer Trust believes to be reliable, but Bessemer makes no representation or warranty with respect to the accuracy or completeness of such information. The views expressed herein do not constitute legal or tax advice; are current only as of the date indicated; and are subject to change without notice. Forecasts may not be realized due to a variety of factors, including changes in economic growth, corporate profitability, geopolitical conditions, and inflation. Bessemer Trust or its clients may have investments in the securities discussed herein, and this material does not constitute an investment recommendation by Bessemer Trust or an offering of such securities, and our view of these holdings may change at any time based on stock price movements, new research conclusions, or changes in risk preference.
