December 2, 2021 – Why Some Families Fail at Philanthropy, and How to Help Them Succeed

Why Some Families Fail at Philanthropy, and How to Help Them Succeed

Amy E. Szostak

December 2, 2021

Research shows that the majority of generational wealth transfers fail by the third generation – not due to poor wealth planning or an investment portfolio missing its benchmark, but due to lack of trust, transparency and, on the part of the succeeding generation, lack of preparedness. Additionally, communications are often complicated by the extremely diverse views and communication styles of different generations. The philanthropic components of a family’s plan can break down for the same reasons. One solution is a disciplined process of communication and trust-building that gets everyone on the same page about the family’s values and goals. In this session, we’ll examine what could be going on when a gift discussion is derailed by “the family,” and learn what a gift planner might do to help get a gift with multi-generational impact back on track.

Amy E. Szostak is Director, Family Education and Governance for Northern Trust. Working with Northern Trust’s wealthiest client base, she has gained insights into how families successfully navigate sustainable intergenerational wealth. She works with families to identify their goals, develop a common purpose, create a framework for decision making, execute succession plans, deliver financial literacy curriculum and cultivate a growing appreciation for the impact of wealth beyond the balance sheet. All of this empowers clients to successfully manage their wealth today, and to develop the stewardship skills to flourish long into the future. Prior to her current role, Amy served as the Chief Fiduciary Officer for the Global Family and Private Investment Office Group. She is an attorney and a Senior Vice President who is an active member of STEP (Society of Estate and Trust Practitioners), a Certified Trust and Financial Advisor (CTFA), a Certified Investment Management Analysis (CIMA), and obtained her STEP Certification in International Trust Management (2017). Amy graduated from Chicago-Kent College of law with a Certification in International and Comparative Law. She was admitted to the Illinois Bar in 1997. She is a past President of the fundraising organization for her local school and serves on the advisory board of a local theater and educational organization.