Post on 05-Jan-2016
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