Building the Capacity for the Money’s Purpose
It isn’t about the money, but what is the money about? Ten of the wealthiest people in the world plan on leaving their fortune to charity. This now includes Jeff Bezos, founder of Amazon. Many of the wealthiest people have signed the Giving Pledge, promising to leave their fortunes to a philanthropic cause rather than to their heirs. Why?
Successful millionaires and billionaires don’t want to burden their children with their fortune. Money is the central reason for the collapse and ruin of family relationships. Why destroy a family by giving the next generation a windfall? Besides destroying relationships, they will most likely waste money if they aren’t prepared for their wealth. Like lottery winners who lose their millions within 5 years, heirs will quickly deplete the patriarch’s hard-earned money. No wealth has an infinite pool of funds.
So, the solution is to give it away, right? Giving money to causes you care about seems to be the answer. In the case of Jeff Bezos, he plans on giving billions to fight climate change and address political and social divisiveness. But if there is no structure to prepare the organizations for the money, the result will be the same. A drained coffer of life’s built worth.
The actual answer to the money problem is to do the work to prepare for the capacity of its purpose. Just as how the fortune was built, there is an effort to be put in to realize and structure its intent. Should heirs become stewards of the money, or are charities more capable? Figuring out how to determine the money’s objective is the first challenge of the process before deciding whether to give it away or not.
What is the money’s purpose? Do you want to build a dream destination home for you and future generations to enjoy? Buy a Plane to travel the world with or without extended family? Or to give back to the community for the advancement of science, scholarships, or social issues?
To find the purpose of the wealth that has been accumulated, it must begin with your reason why. It is about your story. Did you scratch and claw your way to success? Or inherit the seed money to start a new venture? Did striving for success leave a broken family, or did it flourish? Write down your purpose using our Individual Purpose eBook.
From looking at your story, you will flesh out your core values. What do you stand for? Do you value achievement or humility? Courage or empathy? Integrity or ingenuity? Use those values as your guiding light. To assist in the process, use the core values exercise to determine your top 5 values. Find the definitions of the values and other people’s stories with the book Riveted: 44 Values that Changed the World.
Once you reflect on where you came from and your values, look toward where you want the money to go. What are your hopes and dreams for the family? Is family harmony your core focus? Is giving the money away the best answer, or should it be to develop the next generation of stewards? How can the rest of the family be involved?
If it is philanthropic causes or family stewardship, what education and development are needed? How do you expand their capacity? Will family members head the foundation or manage the funds with their advisors? What assessments are in place to determine their constraints? What types of knowledge are needed?
Armed with this information, you can plan. If you invest in the work that needs to be done, the journey toward a legacy will become clear. Are you ready?
