Strengthen Your Community. Start the conversation.

Phenomenon is now commonly known as the ‘wealth transfer.’

Source: Millionaires and the Millennium: New Estimates of the Forthcoming Wealth Transfer and the Prospects for a Golden Age of Philanthropy Their research projects the dawn of a new “golden age” of charitable giving.

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 for the Fox Valley Region Community Foundation of Chippewa County Community Foundation of North Central Wisconsin Community Foundation of Portage County Community Foundation of South Wood County Community Foundation of Southern Wisconsin Duluth-Superior Area Community Foundation Eau Claire Community Foundation Fond du Lac Area Foundation Greater Green Bay Community Foundation Greater Milwaukee Foundation Kenosha Community Foundation La Crosse Community Foundation M&M Area Community Foundation Madison Community Foundation Marshfield Area Community Foundation Oshkosh Area Community Foundation Racine Community Foundation St. Croix Valley Community Foundation Stateline Community Foundation Waukesha County Community Foundation

‘Wealth in Wisconsin’ study conducted by the Nebraska Center for Rural Entrepreneurship.

Transfer of Wealth Studies 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 % 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 20-44Less 36.3% vs. 36.9% Middle Ages 45-64More 22.2% vs. 22% Elders65+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

Source: Wealth in Wisconsin, 2006 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.

A golden opportunity?

Where will the money go? Estates larger than $20 million, 1999 (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.

Estates $5-$10 million, 1999 (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 (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 (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. Where will the money go?

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. Source: State of Wisconsin, Dept. of Administration

We’re losing college graduates to other states. Estimated Number of Persons 25+ with Bachelors Degree Estimated Change in Bachelor’s Degree Stock Number of Bachelor’s Degrees Produced Estimated Net Brain Drain or Brain Gain Minnesota577,920953,920376,000234,945141,055 Montana106,977134,16027,18342,976-15,793 North Dakota 89,24489, ,022-46,066 South Dakota 79,672110,84831,17640, Wisconsin571,725790,600218,875269,647-50,772 * 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. 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 Source: “Nebraska Charities Hope Local Wealth Will Help Revive Main Street,” Chronicle of Philanthropy, December 11, 2003  $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

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 39 th 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.”

“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.” What does Chippewa County mean to you?

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 For more information on the Community Foundation of Chippewa County, visit