In the next 12 years, the wealth transfer estimate for Catholics living in our 31 county diocese is $980,527,730. Using the conservative goal of capturing just five percent of the likely transfer of wealth between now and 2020, $49,026,386 could be realized for The Catholic Community Foundation and local parishes. Using our five percent payout rate, a remarkable $2,451,319 would be available for the ministries and programs of the diocese and that number would continue to grow over time, providing sustainable resources for many generations to come.
We encourage individuals, families and businesses in our community to give together.
The Kansas Association of Community Foundations collaborated with the Kansas Health Foundation to analyze transfer of wealth statistics for the purpose of enhancing statewide philanthropic giving.
Social science researchers tell us that in the next 50 years, the largest mass of wealth in history will transfer from the World War II generation to Baby Boomers, then from Baby Boomers to the next generation. This transfer is estimated at $41 trillion nationwide.
Over the next 50 years, more than $598 billion is estimated to transfer from one generation to the next in Kansas. When considering a 12-year time frame, the transfer is estimated at $66 billion.
This is significant as community foundations in Kansas prepare to secure a portion of this wealth for the future sustainability of their local communities. If we simply used a conservative goal of capturing just 5 percent of the likely transfer of wealth between now and 2020, $3.3 billion for local Kansas charities or community foundation endowments could be realized across Kansas. With a conservative 5 percent payout rate on these endowments a remarkable $165 million would be available for community betterment projects.
The five percent goal is being used across America. It is conservative and very achievable. It is a place to start building the future of Kansas communities.
The Center for Economic Development and Business Research at Wichita State University was commissioned by Kansas Health Foundation (KHF) to estimate future intergenerational wealth transfer for each county in Kansas. A model initially created by Boston College was used to determine a value for total wealth in Kansas. default See the complete study here.
To assure a full consensus and comfort level with the resulting statistics, a review process was conducted by a technical team consisting of Kansas based economists, wealth holding experts, demographers and regional economy experts reviewed and gave input on original data. Don Macke with the RUPRI Center for Rural Entrepreneurship provided input based on his experience with transfer of wealth in other states. Feedback from the technical team was incorporated into transfer of wealth results.
A User Advisory Team, consisting of Kansas community leaders representing the various typologies and areas of the state, who reflected a wide range of community audiences such as trust officers, estate planner, legislators and community foundation leaders, reviewed and agreed with the technical team's conclusions.
It is important to note that the estimation of Transfer of Wealth is considered a possible future scenario for communities to consider; it is not a prediction or an absolute number about the future. We acknowledge that things could change in the next decade or 50 years, but these figures show the potential opportunity. However, we recommend that you download the complete report from the Kansas Association of Community Foundations Web site for details on how the figures were estimated.
Community foundations across the country have taken a leadership role in quantifying the transfer for our communities. We have a long history of meeting the current and long term needs of communities with proven, effective results. The Catholic Community Foundation hopes to ensure that a portion of the transfer of wealth is preserved and invested in our diocese. We have an opportunity to help secure our future and strengthen and sustain our community for this and future generations.
The experts tell us that the transfer will cross state lines like never before. For generations, most people lived entire lives close to their birthplace. Today, that's no longer true. Many of the next generations no longer live in Kansas, and once the wealth leaves, it will never return.
We are pleased that all communities in Kansas can participate in this wealth transfer capture because of the leadership of our community foundation colleagues throughout the state. Community foundations are leading the effort to ensure that a portion of the transfer is preserved and invested in communities across Kansas. Again, for more details on how the transfer of wealth figures were estimated, please visit the Kansas Association of Community Foundations Web site where you will find contact information for the individuals who conducted the research.