Family Constitution
A family constitution is a formal governance framework defining rights, responsibilities, and decision-making across generations.
Definition
Definition A family constitution is a more formal version of a charter, typically used in complex or multi-branch families. It may include governance roles, voting rules, succession plans, definitions of family membership participation, and long-term principles for how wealth is stewarded. Allocator Context For managers, the relevance is procedural: families with constitutions often require more structured approvals and clearer alignment with stated principles. It can also reduce “whiplash” decision-making when leadership transitions happen. Decision Authority The constitution usually informs who must be consulted and what requires formal sign-off. It may increase process steps but improve predictability. Why It Matters for Fundraising A constitution-driven family office will respond better to clear documentation, crisp risk framing, and patience with governance steps. Key Takeaways More formal than a charter Often appears in multi-branch, multi-generation wealth Increases predictability but may slow timelines Helps explain approvals and veto thresholds