News
Galesburg Community Foundation Campaigns to Translate
$5 billion Wealth Transfer into Charitable Good at Home
Galesburg, IL November 07 New research commissioned by community foundations projects an unprecedented transfer of wealth from the World War II generation to the baby boomers and then from the baby boomers to the next generation. $5 billion is projected to change hands within the next 50 years in Knox County alone. In the state of Illinois, the transfer of assets is expected to peak from 2027 to 2037 .
With most estates in the U.S., the vast majority of assets go to heirs. For generations, people lived their entire lives close to their birthplace and as wealth passed from one generation to the next, most stayed in the same Knox County. This is no longer true… and once the wealth leaves our communities, it may never return. The Galesburg Community Foundation urges residents to consider designating a portion of their estates, 401(k) and IRA accounts or life insurance policies to the GCF Fund, an endowment that will ensure Knox County enjoys the long-term benefits of this one-time opportunity.
The Galesburg Community Foundation hopes to secure 5% of the total amount transferred in Knox County by encouraging every resident to feel the power of giving together. After just ten years, the fund could hold a $1.8 million investment from charitable gifts of $36 million.
Charitable endowments are carefully invested to last forever and grow over time. The principal is never spent. A portion of the earnings from the fund is paid out in grants to address the most pressing community needs. Each year, an endowment of this size could generate millions of dollars for community projects and priorities—forever.
If the community is behind this, generous donors could build funds that would invest $720 million in cumulative grants by 2017 and $5 billion over the next 50 years. Think about what millions of dollars each year could do for our community. Within a decade, it could mean improved health and human services, new arts and cultural endeavors, increased recreational attractions and entrepreneurial investment—resulting in a better quality of life for everyone.
After 50 years, an estimated $5 billion will have transferred from one generation to the next in Knox County.
Statewide, $182 billion will transfer from one generation to the next by 2017. By 2057, $1.35 trillion will have transferred.
Retirement accounts and insurance policies, says the Community Foundation, are excellent vehicles for planned giving. Both can be designated to charity without modifying an existing estate plan. IRAs and 401(k)s may be the best asset to earmark for estate giving since they can be highly taxed when given to heirs, losing up to 70% of their value in some cases.
Galesburg Community Foundation is a local nonprofit organization providing donors a simple, powerful and highly personal approach to giving—so their gifts do good works within the community, forever.
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