GAINING PERSPECTIVE by
Dr. Lee Hausner Former Foundation trustee and family wealth consultant
What Does “Wealth” Really Mean? The concept of wealth is not just a number on a bank statement, as people feel wealthy in ways that have little relationship to financial resources. Our strong Jewish tradition of tikkun olam, which is typically translated as “repair the world,” is a core value of philanthropy and leads to a sense of spiritual wealth and well-being. When working with families, I like to use the concept of philanthropy as a framework for “healing or enriching the family” as well as our greater society.
How do we define these capital accounts? It’s useful to look at wealth as being the total of four important capital accounts:
• Social Capital • Human Capital • Intellectual Capital • Financial Capital
Successful families work to build up the accounts in each of these areas.
12 jewishfoundationla.org
Social Capital not only refers to financial contributions, but to volunteerism, public service, and leadership in the nonprofit community. Social Capital plays a role in not only fulfilling the goals of tikkun olam but also provides opportunities to enhance the strength of the other three important capital accounts. Human Capital consists of effective parenting and grand-parenting, collaborating, conflict resolution, team building, communication, shared values, morals and ethics, and spirituality. When a family works together on their philanthropic activities, when everyone contributes to joint decisions, there are opportunities for collaborating, understanding family values, communicating in a productive non-judgmental manner, and building the family team. When multiple generations
