An impressive 79% of families say they have at least one family foundation. 

That's what we found in the 2014 FOX Family Office Benchmarking™ survey, our comprehensive biannual benchmarking study among single family offices. This 79% number is consistent with the 80% of families that reported having foundations back in 1996. First- and second-generation family offices (81%) are also just as likely later-generation family offices (77%) to have a foundation, as philanthropy is often the glue that binds generations of family members together for the long-term.

Foundations are prevalent across families of varying asset size, particularly once their investable assets exceed $100 million (see chart):

This prevalence makes sense when you when you consider that philanthropy provides families with a collective mission beyond their wealth. When asked about the most impactful aspect of their philanthropic work, one of the participants said it provides “a means for the family to get together and interact in a thoughtful way and determine the best organizations deserving of funding.” This notion of bolstering family unity via coordinated philanthropy is common. Another survey participant noted that their family foundation helped foster “a high level of family engagement in the work of the foundation, while at the same time addressing needs and providing leadership in community initiatives.”

Beyond unity, the family foundation is also an important training ground for future family leaders. More than a third of participants (36%) identified serving on the foundation board as a way for next generation family members to be involved in the family enterprise, another example of how philanthropy serves as the glue that binds families together across generations.

You can learn more about philanthropy in today’s family offices, and several other critical issues, in the 2014 FOX Family Office Benchmarking Report, which is available exclusively to FOX members.