Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation of oundation s 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/

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 transfer in the U.S. Urgency of capturing a portion of this transfer to benefit Kansas and our communities. flickr.com/photos/preciouskhyatt/

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/ /

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/

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/

The opportunity in our community In Riley County… 12-year TOW Estimate (2020) $843 Million Implications? flickr.com/photos/freeparking/ /

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/

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 oundation s ommunity

Kansas Transfer of Wealth TOW for your county Tom Fryer ansas ssociation of oundation s ommunity

Kansas Transfer of Wealth Thank you Tom Fryer Greater Manhattan Community Foundation ansas ssociation of oundation s ommunity