Study reveals Iowans’ giving potential

More than $30B in assets will change hands in next 10 years

The Gazette

Iowa communities could lose billions of dollars in assets over the next decade, according to a recent study.

The “Transfer of Wealth Opportunity State of Iowa” study estimates that more than $30.4 billion in Iowa assets will change hands in the next 10 years with the death of older residents.

Over 40 years, the figure swells to $128 billion.

If heirs and successors live out of state, those assets — from agricultural land to stock dividends — may leave the community where they were generated.

The study “illuminates a significant shift on the horizon that could challenge communities across the state,” said Kari McCann Boutell, president of the Iowa Council of Foundations, which commissioned the study.

“This data also presents exciting potential for Iowa small towns and cities that inspire locals to include hometown causes in their charitable giving plans.”

The study suggests $1.8 billion will transfer in Linn County within the next decade.

Planned endowment giving can help protect, grow and spread resources that might otherwise disappear from our community, said Karla Twedt-Ball, president & CEO of the Greater Cedar Rapids Community Foundation. “The Community Foundation is here to support the long-term health and well-being of Linn County through philanthropy,' she said. “We work with individuals and families to create a giving plan that works for them and their community.

“By leaving permanent gifts to their hometowns, Iowans can help the next generation respond to the challenges and opportunities of tomorrow.”

Iowa Community Foundations recently launched a coordinated effort to encourage donors across the state to commit 5 percent of their assets to local charitable giving.

The philanthropic initiative, “5 for the Future,” provides information about the implications of wealth transfer and provides simple steps individuals can take to help communities retain and reinvest local funds.

“Iowans are hardworking and humble, and many of us don’t feel we fit the label of ‘wealthy philanthropist,’ ” McCann Boutell said. “This campaign is about empowering families to make a lasting impact by sharing a slice of their assets. It’s more about potluck-style philanthropy than relying on a few major donors to make a difference.”

Donating 5 percent of the $1.8 billion expected to transfer in Linn County would create over $90.9 million in new endowments, according to the research conducted by the University of Minnesota Extension.

Over 20 years, those funds could support grants of more than $75 million for local projects, which could include workforce housing, art and cultural experiences and innovative programming.

“We don’t know what the future will bring,” Twedt-Ball said. “But by investing in endowed funds, we can help ensure that Linn County remains a vibrant and thriving place to call home.”

The Greater Cedar Rapids Community Foundation, founded in 1949, manages more than $212 million in charitable assets and has more than 1,000 charitable funds established by individuals, families, nonprofits and businesses.