More entrepreneurs making charitable giving part of their financial plans. Charitably inclined business owners tend to view philanthropy as a family matter and as an aspect of long-term financial planning, according to a survey sponsored by SunTrust Bank Private Wealth Management (SunTrust PWM). As a result, many of them are looking to establish foundations in support of family missions in preference to one-off gifting.

Of the 200 or so wealth holders with businesses throwing off at least $10 million in annual revenue SunTrust PWM surveyed, seven in 10 say they participate with their family in charitable activities, and two in three say their families make collective decisions on the causes or non-profit organizations they support.

"The business owners we surveyed appear grounded in a circle of trust that influences their philanthropic decisions," says SunTrust PWM senior v.p. Dave Johnston. "Outside of satisfying their own aspirations to do right by the community at large, these business owners want validation from their family."

ROI

As significant outside influencers on philanthropy, business owns cite spouses (81%), "gut" feelings (76%), friends and colleagues (73%), family members (67%) and business partners (67%).

More than a third of the business owners surveyed say their families have supported the same cause or causes for more than a generation and more than 20% say their families established family foundations.

"Many of our business-owner clients are looking to put their personal passions and family finances to work through establishing foundations," according to Johnston. "The days of one-time donations have given way to an age of corporate social responsibility, marked by a more strategic, consistent and targeted approach to overall giving."

Philanthropy is woven into the financial plans of 36% of those surveyed. Among this group, 53% have written non-profit organizations into their wills, 45% have giving plans and 44% have established family foundations. Of this group, business founders (57%) are more likely to establish foundations than those who have inherited businesses (33%).

"We see more business owners incorporating charitable giving into their formal financial planning as a way to ensure a lasting legacy," says Johnston. "In doing so, they want to know about an organization's track record and how successful the organization has been in achieving its goals."

SunTrust PWM is a unit of Atlanta-based SunTrust Banks. -FWR

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