In 2011, SWIF helped fund the Minnesota Generational Transfer of Wealth Study. At the time it was estimated that between 2011 and 2030, $3.8 billion would be transferred from one generation to the next in the 18 counties of southwest Minnesota.
Using demographic information, along with Federal Reserve wealth studies, the study’s authors created county-by-county estimates for each five-year period. They predicted what it would look like if just 5 percent of that wealth transfer went to local nonprofits through estate or planned gifts. In Nobles County alone, 5 percent would add up to $2.7 million in charitable giving for the five-year period between 2016-2020. In Renville County it would be $3 million.
What would this look like for your county? What can your community foundation do to create opportunities for those dollars to remain local? The work of community foundations is about giving. Giving out grants yes, but also giving donors a meaningful place to express their generosity.
The transfer of wealth study showed the rate of wealth transfer is increasing, peaking in the final 5-year period between 2026 and 2030. If your community foundation wants to learn more about developing a planned giving campaign, you’ll find a lot of resources at swifoundation.org/legacy, or reach out to us with any questions you might have.
Visit the Minnesota Council on Foundations’ website to learn more about what the Minnesota Generational Transfer of Wealth Study has to say about your county.
About the Author: Jeff Vetsch serves as Community Philanthropy Officer at Southwest Initiative Foundation.