transfer of wealth capacity for growth: creating & building wealth may 20, 2009 tom fryer kansas...
TRANSCRIPT
Transfer of Wealth
Capacity for Growth:Creating & Building Wealth
May 20, 2009
Tom FryerKansas Association of Community
Foundations
ansas
ssociation of
oundations
ommunity
Transfer of Wealth
What is a Community Foundation?
• A 501© 3 non-profit• Emphasis on permanent endowments that
last forever• In Kansas, there are 78 Community
Foundations with total assets over $274 million. (See me after for names)
• Their primary purpose is to enhance the quality of life in their local areas
• Decisions on grants are made by local citizens, not someone in Topeka or Washington, DC
flickr.com/photos/preciouskhyatt/2396870548
Transfer of Wealth
T.O.W. in the United States
• Largest wealth transfer in history in the
next 50 years
• $41 TRILLION is the conservative estimate of the wealth transferin the U.S.
• Urgency of capturing a portion of this transfer to benefit Kansas and our communities.
flickr.com/photos/preciouskhyatt/2396870548
Kansas Transfer of Wealth
Kansas Transfer of Wealth Study
• Conducted by the Center for Economic Development and Business Research, Wichita State University in 2008
• Estimated $545 billion in net worth for the state as of 2004 (Benchmark)
• Allocated total wealth to all 105 counties
• Review process conducted by Kansas-based technical team and user advisory team
flickr.com/photos/preciouskhyatt/2396904228/
The opportunity in Kansas
50-year TOW* Estimate (2060)
$ 598 Billion
12-year TOW Estimate (2020)
$66 Billion
*Transfer of Wealth: TOW amounts reflect estate amounts most likely to be readily transferred at estate creation.
flickr.com/photos/preciouskhyatt/2396097069
The opportunity in Kansas
In the next 12 years, at 5% capture
rate by community endowments
$ 3.3 billion across the state
At 5% annual payout rate
$165 million each year
flickr.com/photos/preciouskhyatt/2397642200
The opportunity in our community
In Riley County…
12-year TOW Estimate (2020)
$843 Million
Implications?
flickr.com/photos/freeparking/2302666460/
The opportunity in our community
At 5% capture rate by Riley county
non-profits
$42.2 Million
At 5% annual payout rate
$2.1 Million
flickr.com/photos/freeparking/2089449997
The opportunity in our community
Grant Opportunities?
An Opportunity to Help Secure our Future
• Community Development• Access to Health Care• Care for the Elderly• Youth Education & Leadership• Child Care (Manhattan initiative)
The opportunity in our community
Networking with Other States(Nebraska Initiative)
Home Town Competitiveness
• Developing Leadership• Energizing Entrepreneurs• Engaging Youth• CHARITABLE GIVING• Public Initiatives
Ways YOU Can Participate
Will or Trust
Legacy Clubs
401K and IRA accounts
Life insurance policies
The opportunity in our community
A Significant Opportunity
• $ 66 BILLION transferred in 11 years in Kansas (By 2020)
• If $ 3.3 Billion added to our community endowments (5%)…
• Then $ 165 Million (5%) could be available for community betterment projects EVERY year!
• An URGENT call to action to build SUSTAINABILITY in Kansas communities.
The opportunity in our community
Why a Community Foundation vs Other non-profit?
• Focus: Broad vs narrow
• Time Horizon: Long term vs Annual
• Emphasis on permanent endowment vs expendable funds
• Other?
Closing Thought
We can secure our future and give residents of Kansas
the opportunity to contribute and make their communities
sustainable and a better place to live, work, raise families, and retire by
participating.
Kansas Transfer of Wealth
Questions?
ansas
ssociation of
oundations
ommunity
Kansas Transfer of Wealth
TOW for your county http://www.kansascfs.org/
Tom Fryer
785-537-7146
ansas
ssociation of
oundations
ommunity
Kansas Transfer of Wealth
Thank you
Tom Fryer
Greater Manhattan Community Foundation
ansas
ssociation of
oundations
ommunity