Transfer of Wealth
Following the Great Depression and World War II, the United States entered a golden age of business growth and personal prosperity. Americans have created, invested and multiplied unprecedented wealth. By 2045, older Americans will pass down a projected $84 trillion to Millennial and Gen X heirs, with $16 trillion transferring by 2033.
Community foundations across the country have taken a leadership role in quantifying the transfer of wealth in our communities. We achieve our mission by building permanent endowments which benefit local communities not only for today’s needs, but for the needs of the future. By capturing part of this transfer of wealth to create permanent, charitable endowments, we can provide sustainability to our communities for future generations.
What is the Transfer of Wealth?
Transfer of Wealth occurs when assets are passed down from one generation to the next.
The Transfer of Wealth Study details the amount of the state’s assets in the form of homes, businesses, or investments that will transfer between generations within the next 10 and 50 years. The updated study provides a research-based estimate of household wealth that could become available to aid local communities and the state of Illinois and Missouri overall through charitable giving and philanthropic investing.
-56913f0a.jpg)
Takeaways For Our Region
- Our region has assets. Communities regularly struggle to overcome the perception that they lack the capacity, the tools, or the know-how to make a lasting change for the better. Simply understanding the scale or our region's net worth helps dispel that perception and helps us start dreaming about what might be possible.
- Many people have wealth. Families of various incomes have something to contribute to this region. Giving to charitable endowment not only helps express values and create a charitable legacy, collectively, it can make a significant difference on the quality of life for future generations.
- The time for planning is now. Community economic development takes time. Local organizations should be planning now for populations shifts and communities should begin building assets that will support needs and opportunities in the future.
- Our region needs these assets. Healthy and vibrant places take investment - investment in schools, housing, main streets, businesses, hospitals, and much more. The transfer of wealth opportunity in our region likely represents one of the most underdeveloped resources for furthering community-led projects and programs. A concerted effort to leverage just a portion of our region's wealth for charitable endowment will mean that our communities have the resources they need to make investments in their future.
How Can You Help?
We are so much more impactful when we combine our resources to meet the needs of our community. That’s what the Community Foundation does best—matches passions and resources with needs and opportunities. Whether you choose to give in support of our
Community Endowment Fund,
which addresses all of our community’s needs, a particular cause, community, or nonprofit, together we can raise the quality of life for the residents of our county for generations to come. To explore ways to give, click
here.
Schedule a Transfer of Wealth Presentation
The information in this study impacts all of us, as well as future generations living and working on both sides of the river.
Please share with your team, board, and clients and reach out to the Community Foundation to discuss strategies for creating a long-term impact in our community through charitable giving and prudent estate planning.
We welcome the opportunity to speak to your local civic, philanthropic, community, professional, or public organization to discuss this topic in further detail.
