By Sarah K. Miner

It would be a good guess to assume that most children are unaware of the donations their parents or grandparents make to nonprofits and educational organizations, other than those to their schools, teams, or troops. However, something inspiring happens when children are included in philanthropic activities: family giving. The Oregon Community Foundation has been helping families become philanthropists for three decades through its unique system of pooling individual family funds and making grants to improve Oregon communities. The family establishes a fund and all the members, even the children, can be named as advisors who collaborate for grantmaking. No longer bystanders, these children become philanthropists.

When it comes to establishing a fund, the family members can share a singular focus for their philanthropy or, more likely, will each have different projects in mind. “They often don’t share a focus, but we work with them to come up with a values statement, which works well to help find common ground,” Vallejo says. Donor relations officers at OCF help guide families to narrow down their interests. They ask what the family members’ interests are, what they know about community needs, and what prior donations they have made. “The next step,” says Vallejo, “is a set of goals that will guide their grantmaking.”

Family members work together, along with the donor relations officers, to structure the administrative side of their fund and create a set of operating procedures. It is important to build consensus about how the grants will be made: what type of organizations will benefit, the amount of the grants, and how they will make these decisions. OCF speeds the process along through its considerable resources and research on each nonprofit organization, Vallejo says. “We also research community needs and issues, hold presentations by experts working in the nonprofit sector, as well as offering due diligence on grant proposals.”

While the process of creating a values statement can focus a family’s philanthropic activity, it is important to consider that different generations may have unique perspectives about family giving both when the fund is established and in subsequent years. Vallejo notes that several families have been participating since OCF’s early years. “We’ve seen second and third generations. The Swindells, an OCF founding family, has three generations involved, as have others.” Through their example, parents establish a legacy of philanthropy for their children and grandchildren. Children who grow up in a family actively involved in philanthropy and community service can pass on the tradition to their children. “Most of multigenerational families stay in Oregon and remain committed to improving Oregon,” says Donna Arasin, the OCF administrative officer for advised funds.

Sometimes children start participating in family giving by parental request, and grow into active involvement. By learning from their parents or grandparents and by being included in the process of supporting the community, even young children are prepared to take on an active role in the family’s philanthropy. “In one case, a donor set up a fund and named his twenty-something children, nieces and nephews as the advisors,” Vallejo says. “Initially they didn’t feel ready to take this on, but after participating in a values discussion and learning more about nonprofits and needs, they were ready. They continue to learn from each other.”

The donor relations officers work with family members individually or as a group. Some parents ask the donor relations officers to work directly with the children to help involve them in the process. OCF can arrange site visits for children to nonprofits of interest to see how the organization works and get a feel for what it is like to be there. Volunteering offers a unique opportunity for children to experience the needs of others in addition to giving their time or money. Some charities and organizations have a mission that is more of interest to children and OCF provides child-friendly material to educate young donors about those community needs, such as animal shelters or hungry children. This is part of the process of matching a family with giving opportunities that spark their excitement and passion.

Children can also be involved in small ways or by donating their own money. It doesn’t have to be a huge commitment or hefty sum added to the family’s donation. Any amount of volunteering or donation is a great start, and they can do and give more in time. Children often need a tangible way see the effects of their contribution, Arasin says. She helps make this connection between the child’s participation and what it means to the nonprofit they helped. “We try to give them updates. For some families, we forward a thank-you note from the organization.”

While each family member may be involved with a particular project or nonprofit, there are numerous opportunities for collective giving. “Due to the recession, many are interested in turning their attention to basic needs such as food and shelter,” Vallejo says. “Other multi-generational fund advisors are interested in education and the environment.” Holiday giving remains a high priority. The needs of the community are so great and it is going to be another hard holiday for many. The recession isn’t a short-term giving project; Arasin expects the economic effects to last for several years. There is a strong need for family-to-family support, which provides a positive element of compassion in difficult times.

Collective family giving through OCF weaves through generations and socioeconomic categories, economic hardships and upswings. As more families come together to help their communities, the spirit of philanthropy spreads. OCF was established 35 years ago with one family fund; now OCF manages 1500 family funds and over a billion dollars in this permanent, state-wide community improvement endowment. “Family giving is a reflection of family values and provides a vehicle for continuing those values.” Vallejo says. “The values are then realized according to the times they’re being exercised. And that’s exciting and gratifying.” With each new generation of givers, families inspire each other and strengthen Oregon’s communities.

Sarah Miner and her husband live near Portland where she writes, knits and home educates their two daughters. Connect with her at sarahminer.com.

this article originally appeared in the December 2009 issue of Portland Family Magazine.