TRANSFER OF WEALTH COMMUNITY FOUNDATION OF COLLIER COUNTY

BOSTON COLLEGE STUDY In 1999, Boston College researchers projected $41 Trillion would shift from one generation to the next before 2052 Source: Millionaires and the Millennium: New Estimates of the Forthcoming Wealth Transfer and the Prospects for a Golden Age of Philanthropy

PHENOMENON IS COMMONLY KNOWN AS THE TRANSFER OF WEALTH

ORGANIZATIONS FUNDING THE 2012 FLORIDA TOW STUDY COMMISSIONED BY THE FLORIDA PHILANTHROPIC NETWORK ▪Community Foundation of Collier County ▪Community Foundation of Broward ▪Community Foundation of Central Florida ▪The Community Foundation of Sarasota County ▪Community Foundation of Tampa Bay ▪The Community Foundation of Northeast Florida ▪Community Foundation for Palm Beach & Martin Counties ▪Edyth Bush Charitable Foundation ▪Gulf Coast Community Foundation ▪The Miami Foundation ▪Southwest Florida Community Foundation

WHAT DOES THE TRANSFER OF WEALTH MEAN FOR FLORIDA AND COLLIER COUNTY?

TRANSFER OF WEALTH CONTRIBUTING FACTORS

TRANSFER OF WEALTH CONTRIBUTING FACTORS ▪POPULATION ▪CURRENT NET WORTH/INCOME ▪AGE ▪GROWTH

POPULATION Study assumes Florida will receive a share of the $41 Trillion wealth transfer proportionate to its population

INCOME MEDIAN HOUSEHOLD INCOME COLLIER COUNTY FLORIDA UNITED STATES $56,876$47,827$27,915

AGE COLLIER COUNTY FLORIDA UNITED STATES Under 18 19%21%24% %61%63% %17%13%

GROWTH Communities that grow are more likely to have new wealth created

STATE OF FLORIDA TRANSFER OF WEALTH

FLORIDA Current Net Worth $1.4 Trillion Average CNW per Household $194,000 Average 10 year Wealth Transfer per Household $43,000

IN FLORIDA, OF THE $1.4 TRILLION IT IS EXPECTED MORE THAN $322 BILLION WILL CHANGE HANDS BY 2020

5% CHARITABLE GOAL GOLDEN OPPORTUNITY

IN FLORIDA, IF 5% OF $322 BILLION IS CAPTURED TO CHARITABLE ENDOWMENTS MORE THAN $16 BILLION WOULD BE COLLECTED OVER 10 YEARS

IN FLORIDA, IF $16 BILLION IS ENDOWED, $806 MILLION WOULD BE AVAILABLE EACH YEAR FOR COMMUNITY IMPROVEMENTS FOREVER

COLLIER COUNTY TRANSFER OF WEALTH

COLLIER COUNTY Current Net Worth $52 Billion Average CNW per Household $393,200 Average 10 year Wealth Transfer per Household $110,400

IN COLLIER COUNTY, OF THE $52 BILLION IT IS EXPECTED $14.7 BILLION WILL CHANGE HANDS BY 2020

5% CHARITABLE GOAL GOLDEN OPPORTUNITY

IN COLLIER COUNTY, 5% OF $14.7 BILLION WOULD TRANSLATE INTO $734 MILLION FOR CHARITY OVER THE NEXT 10 YEARS

IN COLLIER COUNTY, IF $734 MILLION IS ENDOWED, $34 MILLION WOULD BE AVAILABLE EACH YEAR FOR COMMUNITY IMPROVEMENTS FOREVER

THIS IS OUR BEST CHANCE TO STRENGTHEN COMMUNITIES FOR FUTURE GENERATIONS

COLLIER COUNTY NEEDS Even though we live in an area with great wealth, there is great need. CFCC developed Vital Signs to track these needs and the success of our grantmaking. ▪BASIC NEEDS ▪COMMUNITY, ARTS & ENVIRONMENT ▪EDUCATION & TRAINING ▪HEALTHCARE SERVICES ▪WOMEN & GIRLS

SOME STATS TO CONSIDER

BASIC NEEDS: 31% OF CHILDREN UNDER THE AGE OF 18 ARE LIVING AT OR BELOW THE POVERTY LEVEL IN COLLIER COUNTY COMPARED TO 25% STATEWIDE

WOMEN & GIRLS: THE TEEN BIRTH RATE PER 1000 GIRLS AGE IN COLLIER COUNTY IS 48 VS 40 STATEWIDE

EDUCATION & TRAINING: 49% OF COLLIER COUNTY STUDENTS LIVE IN NON-ENGLISH SPEAKING HOMES

HEALTHCARE: 24% OF COLLIER COUNTY RESIDENTS DO NOT CARRY HEALTH INSURANCE COMPARED TO 21% STATEWIDE

COMMUNITY, ARTS & ENVIRONMENT: LOCAL ARTS AND CULTURAL INSTITUTIONS REACH 1,000,000 VISITORS EACH YEAR, AND “CULTURAL TOURISTS” SPEND MORE MONEY PER DAY WHEN THEY VISIT

NOW CONSIDER Only 1.3% of Collier County Government Budget goes towards Human Services. Compared to 9.1% state average. Therefore significant needs fall on each community.

LET’S START THE CONVERSATION

STORY OF ORD, NEBRASKA ▪Located in Valley County, Nebraska ▪Population 2,200 ▪Small town challenges: school-funding cuts, declining home values, methamphetamine problems

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 a farmer ▪Surpassed 5% goal, setting new goal

Marketing campaign and new website to attract past, present and new residents COME HOME TO ORD, NEBRASKA

GIVING USA REPORT Overall, US donations to bolster the arts, health, religion and other services totaled $316.2 Billion in That’s a 3.5% increase from $305.5 Billion in That was just 1.5% increase when adjusted for inflation.

Let’s start the conversation LET’S TAP THE CHARITABLE GENE AND SPIRITUAL CONVICTIONS OF OUR COLLIER COUNTY RESIDENTS

LET’S START THE CONVERSATION 6-10% of individuals include a nonprofit organization in their wills or estate plans

LET’S START THE CONVERSATION ▪Professional Advisors talk with clients about charitable giving ▪Nonprofits talk with supporters ▪Residents count this community among their heirs

LET’S START THE CONVERSATION 80% of donors expect advisors to bring up charitable giving Who Actually Does? ▪5.7% CPA’s ▪8.0% Wealth Advisors ▪6.3% Attorneys ▪15.5% Nonprofits

Consider 5%, 10%, or more CHARITABLE INVESTMENTS CAN BE MADE NOW OR THROUGH YOUR WILL

Let’s start the conversation WE HAVE THE OPPORTUNITY TO TURN GOOD COMMUNITIES INTO GREAT COMMUNITIES THAT WILL SURVIVE AND THRIVE

WHAT DOES THIS COMMUNITY MEAN TO YOU?

I GREW UP HERE

WE FELL IN LOVE HERE

I RAISED A FAMILY HERE

I BUILT A BUSINESS HERE

I RETIRED HERE

WHETHER THIS IS YOUR HOMETOWN OR THE PLACE YOU NOW CALL HOME YOU HAVE A LOT INVESTED HERE

Eileen Connolly-Keesler President/CEO Community Foundation of Collier County