Maintaining the Foundation’s Values In a Generational Transition

For many family foundations, the greatest challenge to perpetuity isn’t financial — it’s generational. As leadership passes from parents to children and grandchildren and on, questions inevitably arise about how to balance legacy with innovation, and continuity with change. Without intentional planning, even well-meaning heirs can lose sight of the founders’ vision or misinterpret the values that once guided the foundation’s giving.

One effective way to navigate this handoff is through a Legacy Letter, something I recently helped a JFN Consulting client create. A Legacy Letter captures the story and spirit of a foundation, offering future board members a clear understanding of what matters most: the founders’ values and principles, lessons learned, and which elements are open to evolution.

A thoughtful Legacy Letter can include:

• The family’s history
• The founders’ values and philanthropic philosophy
• The foundation’s mission or statement of purpose
• Examples of meaningful grants and lessons learned
• Expectations for governance and board structure
• Operational considerations, such as spending rate, investment policies, and whether the foundation should exist in perpetuity or spend down
• Grantmaking guidelines, including focus areas, openness to multi-year or collaborative funding, and red lines to identify organizations that do not align with core values

By clarifying which of these elements are fixed and which may adapt over time, the Legacy Letter helps future board members honor the founders’ intent while continuing to respond to changing circumstances.

Some families also choose to include a living section, such as a family tree or a running list of successful grants, that can evolve as the foundation’s story continues to unfold.

Developing a Legacy Letter should not be a one-way exercise. It is best used to spark cross-generational conversations and structured board training for the next generation. Done well, the process creates clarity, transparency, and a shared sense of purpose that ensures the foundation’s values continue midor l’dor (from generation to generation).

If your foundation is beginning a generational transition, Yossi Prager can help guide the process and craft a Legacy Letter that reflects your family’s unique mission and values. Reach him at yossi@jfunders.org.

Foundations in Focus: Guidance from JFN Consulting

Foundations in Focus: Guidance from JFN Consulting