How to Navigate the ‘Great Wealth Transfer’

That finding is included in the 2023 Missouri Transfer of Wealth Study, released Wednesday, June 14th, 2023 by the Alliance of Missouri Community Foundations. The goal of the Alliance is to encourage Missouri residents to consider allocating at least 5% of the assets they will pass on after their lifetimes to benefit their communities and favorite charitable causes.

If that happened, Missouri’s nonprofit and philanthropic organizations would receive more than $7.6 billion over the next 10 years to supplement other public and private funding sources that support areas like human services, education, the arts, community amenities, recreation and the environment, faith, youth, animal welfare and more. Even if all that money were endowed, meaning a portion is spendable while the principal stays intact to grow over time, a payout of 5% would create $383 million in added resources annually.

The 2023 Transfer of Wealth Study was conducted for the Alliance by the Center for Civic Research and Innovation in St. Louis, Missouri. It uses a variety of data sources and demographic trends to estimate Missourians’ current net worth and the potential wealth to be transferred based on household size, life expectancy and wealth distribution. The full study is available at: www.mycommunityfoundation.org/transferofwealth. 

“The potential benefits to our communities and nonprofit sector would be staggering if Missourians adopted the ‘5% Solution’ to include their charitable intentions in their estate and financial planning,” said Catherine Meckes, CEO of the Community Foundation Serving West Central Illinois and Northeast Missouri. “Missourians are known for their ‘show-me’ determination. This study shows us what is possible if we all give a little to support the greater good.”

The 2023 study updates the original study from 2013. It notes demographic trends, including Missouri’s aging population with a larger proportion of the population reaching retirement age, which increases the amount of wealth being transferred between generations. Missouri is also experiencing population loss in some areas, particularly rural counties. 

The AMCF encourages Missourians to talk to their families and financial advisors about their charitable intentions during their estate planning. Members of the Alliance work with donors and their advisors on how to achieve their intentions through the wide variety of fund types and other charitable tools available to fulfill their goals.

The Community Foundation Serving West Central Illinois & Northeast Missouri is available to present to local civic groups and organizations about the transfer of wealth study and opportunity in Clark, Lewis, Knox, Marion, Monroe, Pike, Ralls, and Shelby Counties in Missouri. To schedule a presentation or to learn more about transfer of wealth in Northeast Missouri, contact the Community Foundation at info@mycommunityfoundation.org or 217-222-1237. 

The Alliance of Missouri Community Foundations was founded in 2012 to serve as a networking and collaboration resource for Missouri’s community foundations, which are regional public charitable foundations serving specific geographic areas. The members and where they are based are: Chariton County Community Foundation (Keytesville); Community Foundation of Central Missouri (Columbia); The Community Foundation of Northwest Missouri (St. Joseph); Community Foundation of the Ozarks (Springfield); Community Foundation serving West Central Illinois and Northeast Missouri (Quincy, IL); Greater Kansas City Community Foundation; Truman Heartland Community Foundation (Independence); St. Louis Community Foundation; and YouthBridge Community Foundation (St. Louis).

The Community Foundation Serving West Central Illinois & Northeast Missouri builds permanent charitable funds to assist area nonprofits and communities. Its mission, “connecting people who care with causes that matter,” is achieved by gathering funds, growing them through investments, then granting to nonprofit organizations, causes or communities that mean the most to its donors.   

Since 1997, the Community Foundation has made more than $15 million in grants. It serves 12-counties: Adams, Brown, Hancock and Pike in Illinois and Clark, Lewis, Marion, Ralls, Pike, Knox, Shelby and Monroe in Missouri. The Community Foundation has IRS 501(c)(3) status, and contributions made to the Community Foundation generally qualify for the maximum allowable deductions for income and estate tax purposes. For more information, call 217-222-1237, email info@mycommunityfoundation.org or go to mycommunityfoundation.org or www.facebook.com/mycommunityfoundation.