If it’s one thing family offices members agree on, it’s this: It can be lonely working at a family office. Family members and staff value the opportunity to come together to meet peers, share and exchange ideas, gain a support system and learn from each other’s experiences—all in a comfortable environment where they aren’t being sold to.
It was this insight and feedback from family offices that led Vahe Vartanian to found the U.K.-based Global Family Office Community, as well as the online resource Family Office Recruitment, an information hub of family office news and supplier directories. Each year, the community organizes private dinners and seminars for family offices throughout various cities around the world, as well as a flagship Global Family Office Conference.
I first met Vahe in 2014 just before the 1st Annual Global Family Office Conference in London. Our shared interest in serving the needs of family offices prompted a collaboration and co-production of the recent white paper Philanthropy in the Family Office: A Global Perspective (click here to request a copy).
We spoke with Vahe to learn more about his work with family offices and the growing interest he sees in his members toward philanthropy.
H&A: What do you appreciate most about working with family offices and the field as a whole? What strikes you as some of the biggest trends in family offices right now?
VV: Each family office is unique, and often follows the interests and personality of the Principal(s). The diversity of interests and required services provides great variety. It may be fairly obvious to say, but the ultimate ‘need’ or in fact, purpose, of a family office is the preservation of wealth, and the successful transition of that to the next generation. No matter what trends are happening in the world, that doesn’t change.
H&A: What was the response among your membership to the white paper Philanthropy in the Family Office: A Global Perspective?
VV: We produced this overview in partnership with Hammer & Associates because of demand from our membership. They wanted to find out more about how family offices conduct their philanthropy, differences in perceptions towards philanthropy based on geography and culture, as well as some useful resources that family offices can use.
The white paper was well received when it was launched at our 2015 Global Family Office Conference in front of more than 200 delegates sparking much debate and interest. The paper has also been downloaded more than 1,300 times so far from our website, demonstrating there is a real interest in this topic.
H&A: Why is there a growing opportunity for family office professionals to guide their families toward intentional philanthropy? In your opinion, where does this increased interest in philanthropy come from?
VV: There are many factors why family offices become involved with philanthropy, emotional, financial, personal and so on. Ultimately, with their level of wealth, they want to make a difference. It is important that families do more than blindly choose causes, but that the passions and interests of the family drive their decision making. This is where good advisors can guide them. The commitment should not just be financial, but one where family members can become actively involved.
Philanthropy is also a tool that helps bring on the next generation. It can be a way to provide them with board level experience, in addition to providing purpose and direction.
Impact investing has also become a very popular concept. Making a difference in the world, making an impact, but at the same time, receiving a return on investment is a win for everyone.
H&A: What challenges do family offices face in finding proper guidance and resources on philanthropy?
VV: Quite often, the person tasked with looking into philanthropic strategy will not know where or how to begin. This is why online resources and reports are a good starting point for them to gain some initial information before contacting a philanthropy advisor for further advice.
Well noted, Vahe!
Like Vahe, we too have heard it’s a challenge for family offices to find good resources on philanthropy. That’s why Hammer & Associates is producing a toolkit that will help families and the professionals who serve them get started with philanthropy. Look for it this spring!
What ideas or resources have your family or clients used as they approached their philanthropy? Drop me a line in the comments below or email me at Suzanne@SuzanneHammer.com and I’ll include them in our toolkit.
