Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas...
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![Page 1: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/1.jpg)
Transfer of Wealth
Capacity for Growth:Creating & Building Wealth
May 20, 2009
Tom FryerKansas Association of Community
Foundations
ansas
ssociation of
oundations
ommunity
![Page 2: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/2.jpg)
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/2396870548
![Page 3: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/3.jpg)
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 transferin the U.S.
• Urgency of capturing a portion of this transfer to benefit Kansas and our communities.
flickr.com/photos/preciouskhyatt/2396870548
![Page 4: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/4.jpg)
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/2396904228/
![Page 5: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/5.jpg)
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/2396097069
![Page 6: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/6.jpg)
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/2397642200
![Page 7: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/7.jpg)
The opportunity in our community
In Riley County…
12-year TOW Estimate (2020)
$843 Million
Implications?
flickr.com/photos/freeparking/2302666460/
![Page 8: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/8.jpg)
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/2089449997
![Page 9: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/9.jpg)
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)
![Page 10: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/10.jpg)
The opportunity in our community
Networking with Other States(Nebraska Initiative)
Home Town Competitiveness
• Developing Leadership• Energizing Entrepreneurs• Engaging Youth• CHARITABLE GIVING• Public Initiatives
![Page 11: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/11.jpg)
Ways YOU Can Participate
Will or Trust
Legacy Clubs
401K and IRA accounts
Life insurance policies
![Page 12: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/12.jpg)
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.
![Page 13: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/13.jpg)
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?
![Page 14: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/14.jpg)
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.
![Page 15: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/15.jpg)
Kansas Transfer of Wealth
Questions?
ansas
ssociation of
oundations
ommunity
![Page 16: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/16.jpg)
Kansas Transfer of Wealth
TOW for your county http://www.kansascfs.org/
Tom Fryer
785-537-7146
ansas
ssociation of
oundations
ommunity
![Page 17: Transfer of Wealth Capacity for Growth: Creating & Building Wealth May 20, 2009 Tom Fryer Kansas Association of Community Foundations ansas ssociation.](https://reader036.fdocuments.in/reader036/viewer/2022062804/56649f0d5503460f94c212db/html5/thumbnails/17.jpg)
Kansas Transfer of Wealth
Thank you
Tom Fryer
Greater Manhattan Community Foundation
ansas
ssociation of
oundations
ommunity