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					Strengthen Your Community.
                 Start the conversation.
Phenomenon is now commonly
known as the ‘wealth transfer.’
Their research projects the
dawn of a new “golden age”
of charitable giving.




                Source: Millionaires and the Millennium: New Estimates of the
                Forthcoming Wealth Transfer and the Prospects for a Golden Age of
                Philanthropy
                           A “Golden Age” of Giving
               Growth in material resources
          Widespread feelings of financial security
            Economic and emotional incentives
Charitable planning now includes conversations about ability
 to give, people and causes we care about, strategies to suit
                          objectives

 Source: Millionaires and the Millennium: New Estimates of the Forthcoming Wealth Transfer and the Prospects for a Golden Age of Philanthropy
What does the ‘wealth
transfer’ mean for
Wisconsin?
Wisconsin’s Certified Community
Foundations commissioned study.
Community Foundation                         Greater Milwaukee Foundation
    for the Fox Valley Region                Kenosha Community Foundation
Community Foundation of Chippewa County      La Crosse Community Foundation
Community Foundation                         M&M Area Community Foundation
    of North Central Wisconsin               Madison Community Foundation
Community Foundation of Portage County       Marshfield Area Community Foundation
Community Foundation of South Wood County    Oshkosh Area Community Foundation
Community Foundation of Southern Wisconsin   Racine Community Foundation
Duluth-Superior Area Community Foundation    St. Croix Valley Community Foundation
Eau Claire Community Foundation              Stateline Community Foundation
Fond du Lac Area Foundation                  Waukesha County Community
Greater Green Bay Community Foundation            Foundation
‘Wealth in Wisconsin’ study
     conducted by the
 Nebraska Center for Rural
    Entrepreneurship.
             Wealth Studies
  Transfer ofNebraska:
       Since




Source: Nebraska Community Foundation/Nebraska Center for Rural Entrepreneurship
Wealth in Wisconsin Report
            Population:
              Study assumes
              Wisconsin will
              receive a share
              of the $41
              Trillion wealth
              transfer
              proportionate to
              its population.
        Wealth in Wisconsin Report
 Income: Income and net worth correlate.
 Wisconsin is more ‘stratified’ than the rest of the
  country.

    Household Income in Wisconsin
    Lower Income Households         More   41.4% vs. 38.8%
    Middle Income Households        Fewer 46.5% vs. 51.75%
    Upper Income Households         More   12.3% vs. 9.4%
         Wealth in Wisconsin Report
 Age: Age and wealth are related. Until age 75, household
  net worth increases with age.
 Wisconsin residents are older than the national average.


     Youth           Ages 1-19 Same   28.6% vs. 28.6%
     Youth Adults    20-44    Less    36.3% vs. 36.9%
     Middle Ages     45-64    More    22.2% vs. 22%
     Elders          65+      More    13.1% vs. 12.4%
       Wealth in Wisconsin Report
 Growth:
  Communities that grow
  are more likely to have
  new wealth created.
Wealth in Wisconsin Report
              Wisconsin Current Net
               Worth is 12% higher than
               the US average.
              Property wealth,
               stocks/bonds/investments
               are slightly higher than US
               averages.
Wealth in Wisconsin

             Current Net Worth
              Average
               “current net worth”
               per household in
               Wisconsin:
               $245,000.
Transfer of Wealth in Wisconsin
                    Factors that affect
                       ‘wealth transfer’:
                     Current net worth
                     Demographic
                       change
                     Wealth formation
                       changes
Wealth in Wisconsin Report

                 Wealth Transfer
                  Average
                   ‘wealth transfer’
                   per household
                   statewide:
                   $302,000
More than $105 Billion will
change hands in Wisconsin
before 2010.




                 Source:Wealth in Wisconsin, 2006
$687 Billion will pass from one
Wisconsin generation to the
next by 2050.




                  Source:Wealth in Wisconsin, 2006
A golden opportunity?
                              Where will the money go?
                    Estates larger than $20 million, 1999
                                    Charity                                                                Heirs
                                     33%                                                                   28%




                                                                                         Taxes
                                                                                          39%
                                               Heirs                         Taxes                          Charity

                    (After 11.3% of overall estate directed to fees/surviving spouse)
Source: Calculated by John Havens, Boston College, Social Welfare Research Institute, based on data available on the Statistics of Income Division of IRS
                     Web page, reported in Gifts and Bequests: Family or Organizations? by Paul G. Schervish and John J. Havens.
                                Where will the money go?
                    Estates $5-$10 million, 1999
                                                        Charity
                                                         12%

                                                                                                                         Heirs
                                                                                                                         47%




                        Taxes
                         41%



                                               Heirs                         Taxes                          Charity
                    (After 12.1% of overall estate directed to fees/surviving spouse)
Source: Calculated by John Havens, Boston College, Social Welfare Research Institute, based on data available on the Statistics of Income Division of IRS
                     Web page, reported in Gifts and Bequests: Family or Organizations? by Paul G. Schervish and John J. Havens.
                              Where will the money go?
                    Estates $1 Million-$2.5 Million, 1999
                                                            Charity, 6%
                                     Taxes, 17%




                                                                                                         Heirs, 77%




                                                         Heirs          Taxes           Charity

                    (After 18.3% of overall estate is directed to fees/surviving spouse)
Source: Calculated by John Havens, Boston College, Social Welfare Research Institute, based on data available on the Statistics of Income Division of IRS
                     Web page, reported in Gifts and Bequests: Family or Organizations? by Paul G. Schervish and John J. Havens.
                              Where will the money go?
                    Estates $600,000-$1 million, 1999
                                                              Charity, 4%
                                                      Taxes, 4%




                                                                                    Heirs, 92%



                                                       Heirs          Taxes            Charity

                    (After 7.3% of overall estate is directed to fees/surviving spouse)
Source: Calculated by John Havens, Boston College, Social Welfare Research Institute, based on data available on the Statistics of Income Division of IRS
                     Web page, reported in Gifts and Bequests: Family or Organizations? by Paul G. Schervish and John J. Havens.
The 5% Charitable Goal
Charitable Opportunities
                  If just 5% is
                   pledged to any
                   charitable
                   endowment
                   funds, $5.3
                   Billion would
                   be collected in
                   the next 10
                   years.
                  Source:Wealth in Wisconsin, 2006
Charitable Opportunities

        If $5.3 Billion is placed
         into endowed funds,
         $263 Million would be
         available in communities
         across Wisconsin for
         community betterment
         each year. Forever.

           Source:Wealth in Wisconsin, 2006
It’s our ‘best chance’ to
strengthen communities
for future generations.
It comes at just the right time.
Wisconsin is changing.
Statewide, our population is getting older.
                  Wisconsin Population (2000-2030)

 900,000
 800,000
 700,000
 600,000
 500,000
 400,000
 300,000
 200,000
 100,000
      0
           2000   2005    2010          2015           2020           2025           2030
                                 Under 19          20-39           40-59            60+



                                               Source: State of Wisconsin, Dept. of Administration
     We’re losing college graduates to other
                     states.
                     Estimated Number of Persons            Estimated           Number of          Estimated Net
                     25+ with Bachelors Degree              Change in           Bachelor’s         Brain Drain or
                                                            Bachelor’s          Degrees            Brain Gain
                                                            Degree Stock        Produced
                                1989                1999         1989-1999          1989-1999           1989-1999

  Minnesota                   577,920            953,920             376,000            234,945             141,055

  Montana                     106,977            134,160              27,183              42,976            -15,793

  North Dakota                 89,244             89,200                  -44             45,022            -46,066

  South Dakota                 79,672            110,848              31,176              40,669              -9493

  Wisconsin                   571,725            790,600             218,875            269,647             -50,772

                           * Population data revised by the Federal Reserve Bank of Minneapolis.
Source: Integrated Postsecondary Education System, National Center for Education Statistics, U.S. Department of Education
              We’re not attracting as many college
                  graduates as other states.
                                               COLLEGE GRADUATES MOVING IN

        0.9                            0.816             0.796                                                  0.802
                                                                           0.748
        0.8                                                                                                                       0.691             0.713
        0.7                                                                                  0.616
                     0.578
        0.6
        0.5
        0.4
        0.3
        0.2
        0.1
          0
                    Indiana           Illinois         Michigan              Ohio          Wisconsin          Kentucky             North         US Average
                                                                                                                                 Carolina

Source: Indiana Fiscal Policy Institute, Baccalaureate and Beyond Longitudinal Study, as reported in Wisconsin’s Workforce, the Foundation of the Economy, November 2000
Families are increasingly spread out.
This gives us the opportunity to have
     community conversations.
The Story of Ord, Nebraska
            Located in Valley
             County, NE
            Population: 2,200
            Small-town challenges:
             school-funding cuts,
             declining home values,
             methamphetamine
             problems
            Source:“Nebraska Charities Hope Local Wealth Will Help Revive
            Main Street,” Chronicle of Philanthropy, December 11, 2003
The Story of ORD, Nebraska
     $600 Million wealth transfer projected
     $1.2 Million bequest (1999)
     County affiliate fund started
     5 large gifts, including $1.5 Million from farmer
     Today: Surpassed 5% goal, setting new goal
                            Source:“Nebraska Charities Hope Local Wealth Will Help Revive
                            Main Street,” Chronicle of Philanthropy, December 11, 2003
Come Home to ORD, Nebraska
    Community Progress Initiative



 Community Foundation of South Wood County, Heart of
  Wisconsin Business and Economic Alliance
 Focus is developing entrepreneurs, community
  leaders and encouraging residents to invest in the
  community’s quality of life
 In Wisconsin, we hope to tap the
‘charitable gene’ of our residents.
Nationally, Wisconsin residents rank
     39th for charitable giving.


                                               ”
       Source:“Ranking Generosity in the States, Chronicle of
       Philanthropy, November 24, 2005.
6-10% include a non-profit organization in
       their wills or estate plans.



                 Source: Leave a Legacy
Our goal: Start the conversation.
Start the conversation.
    Inspire professional
     advisors to talk with clients
     about charitable giving.
    Encourage nonprofits to
     talk with supporters.
    Motivate residents to count
     the community among
     their heirs.
Charitable investments can be made now
          or through your will.

                    Consider 5%, 10%
                    or more.
              Example:

   If a non-profit organization needs
$15,000 to run a program, a $300,000
 endowment would fund that. Forever.
We have the opportunity to
turn good communities into
great communities that will
survive and thrive.
Let’s start the conversation.
What does Chippewa County mean to you?




“I grew up here.”
What does Chippewa County mean to you?




“We fell in love
here.”
What does Chippewa County mean to you?




“I raised my family here.”
What does Chippewa County mean to you?




“I built a
company here.”
Whether this is your hometown or the
    place you now call home…




   You have a lot invested here.
‘Wealth in Wisconsin’ study conducted by
     the Nebraska Center for Rural
           Entrepreneurship.
  For conversation-starting tips, visit
       www.WisconsinGives.org

For more information on the Community
 Foundation of Chippewa County, visit
      www.yourlegacyforever.org

				
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posted:9/19/2012
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