Family Charter
A family charter is a guiding document that outlines a family’s shared values, purpose, and principles for wealth stewardship and decision-making.
Allocator relevance: Signals governance maturity and helps explain mandate, risk posture, and decision behavior inside a family office.
Expanded Definition
A family charter is often a values-first document: why the family manages wealth the way it does, what outcomes matter (preservation, impact, entrepreneurship), and what behaviors are expected across generations. It may be non-binding but still operationally influential because it shapes how investment decisions are filtered and how conflicts are handled.
In allocator contexts, charter clarity often correlates with long-term consistency and lower governance friction.
How It Works in Practice
Families create charters through facilitated governance processes, then use the charter as a reference for investment policy decisions, philanthropic posture, and succession planning. It may be reviewed periodically as the family grows or leadership shifts.
Decision Authority and Governance
The charter supports governance by clarifying decision rights and expectations. It often works alongside a family council or constitution and can influence how authority is delegated to investment teams or external advisors.
Common Misconceptions
- A charter replaces formal legal documents.
- Families with charters never have disputes.
- A charter automatically defines investment strategy.
Key Takeaways
- A charter is values + decision principles, not a portfolio plan.
- It improves consistency across generations.
- It provides context for mandate fit and risk tolerance.