Greater Manhattan Community Foundation Announces Wealth Transfer Research Nearly $5.9 Billion Potential in Riley County
MANHATTAN, KS, May 12, 2008 . . . Research results announced today by the Kansas Association of Community Foundations, including the Greater Manhattan Community Foundation, projects that over the next 50 years, more than $5,886,779,953 will transfer from one generation to the next in Riley County. When considering a 12-year time frame, this wealth transfer is estimated at $843,824,700.
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. Over the next 50 years, this capital - a conservative estimate of $41 trillion nationwide - will change hands. Most will go to heirs and taxes, but Kansas community foundations are leading an effort to ensure that a portion is preserved and invested in communities across the state.
"For generations, people lived their entire lives close to their birthplace and as wealth passed from one generation to the next, most stayed in the same county. This is no longer true," states Sarah Saueressig, Executive Director. "Once the wealth leaves our community, it may never return, so we hope to encourage residents to designate a portion of their estates, 401(k) and IRA accounts or life insurance policies to the community foundation."
"Our conservative goal is to secure 5 percent of the total amount transferred in the greater Manhattan area by encouraging every resident to give together to our community foundation endowment or to local nonprofits. Through this generosity, we have the potential to add 5 percent to our community foundation endowment in the next 12 years, which would help us provide grants to local nonprofits and ultimately strengthening our community," states S. Lee Taylor, Board President.
The Greater Manhattan Community Foundation is an endowment that will ensure the greater Manhattan area enjoys the long-term benefits of this transfer of wealth opportunity. By definition, community foundations are tax exempt, public charities created by and for the people of a local area, such as the Greater Manhattan Community Foundation. Community foundations have a long history as experts in identifying and supporting the long-term needs of communities, as well as acting as knowledge leaders in the area of philanthropy, assisting individuals, families and businesses with their charitable giving decisions.
The Transfer of Wealth study was commissioned by the Kansas Health Foundation and conducted by the Center for Economic Development and Business Research at Wichita State University. Future intergenerational wealth transfer for each county in Kansas was estimated based on a model initially created by Boston College. For more detailed information about the study, please visit www.kansascfs.org.
According to the study, a statewide total of $598 billion will transfer from one generation to the next by 2060 and $66 billion will transfer by 2020. Five percent of this 12-year transfer would bring $3.3 billion to community foundations or local nonprofits across Kansas.
"We would invest the dollars and then use the earnings each year for community betterment projects and programs undertaken by our local nonprofits. Within a decade we would be able to address the challenges facing our community and enhance the quality of life for our residents," states Saueressig.
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