Foundation for the Tri-State Community Campaigns to Translate
$4 Billion Wealth Transfer into Charitable Good at Home
Ironton, Ohio (December 14, 2007) – New research commissioned by community foundations projects an unprecedented transfer of wealth from the World War II generation to the baby boomers and then from the baby boomers to the next generation. More than $4 billion is projected to change hands within the next 50 years in Lawrence County alone.
Statewide, in Ohio, $160 billion will transfer from one generation to the next by 2017. By 2057, $1.07 trillion will have transferred.
With most estates in the U.S., the vast majority of assets go to heirs. 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 — and once the wealth leaves our communities, it may never return. The Foundation for the Tri-State Community urges residents to consider designating a portion of their estates, 401(k) and IRA accounts or life insurance policies to establish funds at the Foundation to support their charitable goals. Those wishing to make flexible gifts to meet the future needs of the county can make their designations to the Foundation’s 21st Century Endowment Fund, which provides discretionary grants to meet the ever-changing needs of Lawrence County.
The Foundation for the Tri-State Community hopes to secure five percent of the total amount transferred in Lawrence County by encouraging every resident to feel the power of giving together. After just 10 years, the fund could hold a $39 million investment from charitable gifts of $33.5 million.
Charitable endowments are carefully invested to last forever and grow over time. The principal is never spent. A portion of the earnings from an endowed fund is paid out in grants to address community needs. Each year, an endowment of this size could generate millions of dollars for community projects and priorities — forever.
“If the community is behind this, generous donors could build funds that would invest more than $8 million in cumulative grants by 2017 and $452 million over the next 50 years,” says Mary Witten Wiseman, president of the Foundation for the Tri-State Community. “Think about what millions of dollars each year could do for our community. Within a decade, it could mean improved health and human services, new arts and cultural endeavors, increased recreational attractions and entrepreneurial investment — resulting in a better quality of life for everyone.”
An excellent example of this is the late Emma Edith Arundel, who made a significant and lasting gift through her will that has positively impacted Lawrence County. Established in 1995 with a bequest of $30,000, the Emma Edith Arundel Endowment Fund provides funds to spay cats sheltered by the Lawrence County Humane Society. Over the years, this endowment has grown to almost $46,000, while hundreds of cats have been spayed through grants to the Humane Society totaling more than $19,000.
Don Edwards, Arundel’s cousin and executor of her estate, has observed the impact of this gift over the past 12 years. “Em’Edith loved cats — and her gift to the Foundation will benefit cats in Lawrence County for years to come. I encourage everyone to give to the community where they were raised and enjoyed community life. Small gifts from many people will add up to big benefits for the community we call home.”
Retirement accounts and insurance policies, says Wiseman, are excellent vehicles for planned giving. Both can be designated to charity without modifying an existing estate plan. IRAs and 401(k)s may be the best asset to earmark for estate giving since they can be highly taxed when given to heirs, losing up to 70 percent of their value in some cases.
The Foundation for the Tri-State Community is a local nonprofit organization providing donors a simple, powerful and highly personal approach to giving — so their gifts do good works within the community, forever.