Minnesota Generational

Transfer of Wealth

Study

SM

Kim Embretson CFREKim Embretson CFRE Andrea Lubov Andrea Lubov

Growth in personal wealth

74%74% first generation high net worthfirst generation high net worth

276276 billionairesbillionaires

350,000350,000 deca-millionairesdeca-millionaires

Growth in giving

i n v e s t i n g i n c o m m u n i t yi n v e s t i n g i n c o m m u n i t y

Midwestern State Studies

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The Study

$41 trillion$41 trillionTransfer of wealth Nationwide through 2050:Transfer of wealth Nationwide through 2050:

The Study

$41 trillion$41 trillionTransfer of wealth Nationwide through 2050:Transfer of wealth Nationwide through 2050:

Transfer of wealth for all counties in Minnesota Transfer of wealth for all counties in Minnesota 2011 - 2030:2011 - 2030:

$47.9 billion$47.9 billion

2000 census by counties

Selected sample wealth survey

Boston College Transfer of Wealth study

Andrea Lubov of Anton, Lubov, and Assoc.

Bob Bunger of HBH and Assoc.

Transfer of Wealth Study© 2006 West Central Initiative

Key demographics

Last surviving spouse in family age 65 and older.

Total estate value of financial and non financial assets.

Average gift to charity through estates is 15%

Target goal of 5% of assets to CF or WCI

Transfer of Wealth Study © 2006 West Central Initiative

Important data by county

Long time residents

Advisors for a local component fund

Professional advisors, such as lawyers, accountants, financial planners

Board members and staff of non-profits

People with a vision for their communities

Transfer of Wealth Study © 2006 West Central Initiative

Transfer of Wealth Study © 2006 West Central Initiative

Transfer of Wealth in West Central Minnesota

Becker County goal of donations to community fund or local charities in $ millions

Years Transfer 5% goal

2011-2015 $35.9 $1.8

2016-2020 $47.1 $2.4

2021-2025 $59.3 $3.0

2026-2030 $72.5 $3.6

Transfer of Wealth Study © 2006 West Central Initiative

Transfer of Wealth in Southwest Minnesota

Kandiyohi County goal of donations to community fund or local charities in $ millions

Years Transfer 5% goal

2011-2015 $95.8 $4.8

2016-2020 $117.1 $5.9

2021-2025 $148.2 $7.4

2026-2030 $194 $9.7

Transfer of Wealth Study © 2006 West Central Initiative

Transfer of Wealth in Northwest Minnesota

Lake of the Woods County goal of donations to community fund or local charities in $ millions

Years Transfer 5% goal

2011-2015 $8.4 $0.4

2016-2020 $9.3 $0.5

2021-2025 $10.8 $0.5

2026-2030 $12.8 $0.6

Transfer of Wealth Study © 2006 West Central Initiative

Transfer of Wealth in Central Minnesota

Stearns County goal of donations to community fund or local charities in $ millions

Years Transfer 5% goal

2011-2015 $192.6 $9.6

2016-2020 $225.6 $11.3

2021-2025 $272.2 $13.6

2026-2030 $334.8 $16.7

Transfer of Wealth Study © 2006 West Central Initiative

Transfer of Wealth in Northeast Minnesota

Koochiching County goal of donations to community fund or local charities in $ millions

Years Transfer 5% goal

2011-2015 $27.4 $1.4

2016-2020 $30.1 $1.5

2021-2025 $34 $1.7

2026-2030 $38.7 $1.9

Transfer of Wealth Study © 2006 West Central Initiative

Transfer of Wealth in Southern Minnesota

Fillmore County goal of donations to community fund or local charities in $ millions

Years Transfer 5% goal

2011-2015 $50.5 $2.5

2016-2020 $53.9 $2.7

2021-2025 $61.9 $3.1

2026-2030 $73.1 $3.7

Transfer of Wealth Study © 2006 West Central Initiative

Transfer of Wealth in Southern Minnesota

Olmsted County goal of donations to community fund or local charities in $ millions

Years Transfer 5% goal

2011-2015 $229.3 $11.5

2016-2020 $274 $13.7

2021-2025 $339.6 $17

2026-2030 $433.8 $21.7

Transfer of Wealth Study © 2006 West Central Initiative

Transfer of Wealth in Metro Minnesota

Ramsey County goal of donations to community fund or local charities in $ millions

Years Transfer 5% goal

2011-2015 $1,037 $51.9

2016-2020 $1,164.4 $58.2

2021-2025 $1,396 $69.8

2026-2030 $1,705.2 $85.3

One family’s story

TeachingTeachingcharitable givingcharitable giving

› Opportunity to make charitable decisionsas a family

› Hands-on experience for each child to express giving preferences

› Teach financial and community responsibility

› Passing along family “giving values”to next generation

Philanthropic goals:

giving back

people Teaching Charitable Giving

› 1994: set up with a gift of $200,000

› 1999: fund has grown to $250,000

› Two times each year the family meets to recommend charitable distributions

› 1998: during the year, distributed more than $12,000 in grants to local community

Philanthropic goals:

giving back

people Teaching Charitable Giving

How can it help you How can it help you promote philanthropy?promote philanthropy?

Minnesota Generational

Transfer of Wealth

Study