Entrepreneurial families: Young generation brings a breath of fresh air to philanthropy!

Entrepreneurial families: Young generation brings a breath of fresh air to philanthropy!

More and more entrepreneurial families are recognizing the urgency of taking responsibility for social challenges. The new practical guide “Philanthropy in Transition”, published by the WIFU Foundation at the University of Witten/Herdecke, addresses these developments comprehensively. The authors are Andreas Schiemenz from SINNGEBER gGmbH and Tom Rüsen from the WIFU Foundation. The guide offers a deep insight into modern philanthropic engagements, ranging from donations and endowments to impact investing and social business. His focus is particularly on the NextGen – the young family members who want to contribute their own values ​​but often encounter various hurdles.

The practical guide not only contains practical case studies, but also a self-check for entrepreneurial families. It offers impulses for the strategic orientation, implementation, optimization and impact measurement of philanthropic initiatives. The (tax) law aspects in particular are presented in an understandable manner so that the entrepreneurial families can assume their social responsibility professionally. It is available online for free at www.wifu.de/bibliothek. For further information, those interested can contact Dr. Contact Ruth Orenstrat at ruth.orenstrat@wifu-stiftung.de or by phone at +49 2302 8898303.

Commitment of the NextGen

Interest in philanthropic engagement is growing, particularly among the next generation of family businesses. Young people from owner families are actively involved in social and societal issues, often privately, through the family, the family business or through their charitable foundations. The commitment includes the voluntary donation of resources such as time, money and knowledge for social, social and ecological purposes.

According to a 2022 study by Phineo gAG and WHU, NextGen's commitment is often intrinsically motivated. The successors want to use their privileged situation to bring about positive social and environmental changes. Family and company values ​​play a crucial role here. A certain sense of social pressure and personal experiences also contribute to motivation.

Strategic Philanthropy

The NextGens, such as Nicolaus Gallenkamp from the NOSTA Group or Anne Wedel-Klein from MB Holding, are trying to leave a lasting positive footprint through their philanthropic commitments. Her focus is often on education, climate, environment and systemic change. Through philanthropic commitment, many in this generation have the opportunity to bring about long-term improvements in the company and develop integrative strategies.

In addition, the youngest network, UNICEF NextGen, has been promoting exchange and further training for young philanthropists in Germany since the end of 2022. Members choose supported projects, such as “Restoring Childhood in Ukraine”, and benefit from regular exchanges that support innovative approaches to development cooperation.

Philanthropy and social responsibility

Philanthropy is not just voluntary support, but plays a central role in companies' corporate social responsibility (CSR). CSR has transformed from simply complying with legal requirements to a holistic business approach. Companies must consider the impact of their business activities on society and the environment. Philanthropic initiatives, viewed as strategic investments, promote trust, improve brand image and attract talent.

A structured approach to philanthropy, including collaboration with nonprofit organizations, is critical to significantly amplify the impact of these initiatives. Trends such as impact investing and technology-enabled giving are becoming increasingly important. Companies that are committed to social impact and adapt to such trends can not only help combat social inequalities but also promote sustainable development.