Kansas Association of Community Foundations Announces Wealth Transfer Research
HUTCHINSON, KANSAS -- May 12, 2008 ... Research results announced by the Kansas Association of Community Foundations (KACF) projects a wealth transfer estimated at $598 billion over a 50-year time frame. Most of this wealth will be transferred to heirs or taxes, but Kansas community foundations are leading an effort to ensure that a portion is preserved and invested in communities across the state.
The Transfer of Wealth study was commissioned by the Kansas Health Foundation for the KACF and conducted by the Center for Economic Development and Business Research at Wichita State University. Future intergenerational wealth transfer for the state and for each county in Kansas was estimated based on a model initially created by Boston College.
Community Foundations have set a conservative goal to secure five percent of the total amount transferred by encouraging individuals, families and businesses to give together to community foundation endowments or to local nonprofits.
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.
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. 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, life insurance policies or land to community foundation endowments. Community foundations are prepared to do their part to strengthen communities across Kansas.
By definition, community foundations are tax exempt, public charities created by and for the people of a local area. Community foundations have a long history as experts in identifying and supporting a full range of community needs. Community foundations also act as trusted knowledge leaders in the area of philanthropy, assisting individuals, families and businesses with their charitable giving decisions.
Community Foundations will invest the dollars each year for community betterment projects and programs undertaken by our local nonprofits. For more detailed information about the data for local counties, please visit the KACF Web site at www.kansascfs.org.