The 2023 Transfer of Wealth Study uses a variety of data sources and demographic trends to estimate Missourians’ current net worth and the potential wealth to be transferred based on household size, life expectancy, and wealth distribution.
For Immediate Release
Alliance of Missouri Community Foundations Releases 2023 Transfer of Wealth Study
INDEPENDENCE, MO (June 14, 2023) - When individuals and families decide how to pass on their financial and physical assets, they are participating in the national transfer of wealth that, in Missouri alone, will amount to more than $114 billion over the next ten years. That finding is included in the 2023 Missouri Transfer of Wealth Study, released today by the Alliance of Missouri Community Foundations, of which Truman Heartland Community Foundation (THCF) is a member. The goal of the Alliance is to encourage Missouri residents to consider allocating at least 5% of the assets they will pass on after their lifetimes to benefit their communities and favorite charitable causes.
If that happened, Missouri’s nonprofit and philanthropic organizations would receive more than $7.6 billion over the next ten years to supplement other public and private funding sources that support areas like human services, education, the arts, community amenities, historic preservation, and the environment, faith, youth, animal welfare, and more. Even if all that money were endowed, meaning a portion is spendable while the principal stays intact to grow over time, a payout of just 5% would create $383 million in new resources annually.
The 2023 Transfer of Wealth Study was conducted for the Alliance by the Center for Civic Research and Innovation in St. Louis, Missouri. It uses a variety of data sources and demographic trends to estimate Missourians’ current net worth and the potential wealth to be transferred based on household size, life expectancy, and wealth distribution. The full study is available at https://www.thcf.org/news/2023-tow-study.
“The potential benefits to our communities and nonprofit sector would be staggering if Missourians adopted the ‘5% Solution’ to include their charitable intentions in their estate and financial planning,” Mary Hinde, leader of the AMCF and President and CEO of the Community Foundation of Northwest Missouri, based in St. Joseph, remarked. “Missourians are known for their ‘show-me’ determination. This study shows us what’s possible if we all give a little to support the greater good.”
The 2023 study updates the original study from 2013. It notes demographic trends, including Missouri’s aging population, with a larger proportion of the population reaching retirement age, which increases the amount of wealth being transferred between generations. Missouri also is experiencing population loss in some areas, particularly rural counties.
“Our Foundation serves suburban Jackson, Cass, and Lafayette County communities, where we are seeing slow but steady population growth,” Phil Hanson, President and CEO of Truman Heartland Community Foundation noted upon review of the report. “Over the next decade, THCF's service area has the potential to receive a $49.2 Million investment. Imagine what an investment like that could do to enhance local education, arts, social services, and more. Just 5% set aside for philanthropy would significantly enhance the quality of life for all individuals living, working, and serving in the region.”
The AMCF encourages Missourians to talk to their families and financial advisors about their charitable intentions during their estate planning. Members of the Alliance work with donors and their advisors on how to achieve their intentions through the wide variety of fund types and other charitable tools available to fulfill their goals.
About the AMCF
The Alliance of Missouri Community Foundations was founded in 2012 to serve as a networking and collaboration resource for Missouri’s community foundations, which are regional public charitable foundations serving specific geographic areas. The members and where they are based are Chariton County Community Foundation (Keytesville); Community Foundation of Central Missouri (Columbia); Community Foundation of Northwest Missouri (St. Joseph); Community Foundation of the Ozarks (Springfield); Community Foundation serving West Central Illinois and Northeast Missouri (Quincy, IL); Greater Kansas City Community Foundation; Truman Heartland Community Foundation (Independence); St. Louis Community Foundation; and YouthBridge Community Foundation (St. Louis).
Truman Heartland Community Foundation is a public charity committed to improving area communities by promoting and serving private giving for the public good. Founded in 1982, THCF serves individuals who, through their private giving, wish to support the public good in the most tax-wise and effective manner. Through THCF, donors can set up their own family foundations, scholarship funds, field of interest funds, endowment funds, charitable gift annuities, and many other charitable vehicles that utilize the foundation's shared resources to maximize the impact of their philanthropic dollars. In addition to donor services, THCF provides asset development for nonprofit organizations, offers competitive grant opportunities to nonprofits, assists organizations in planned giving, and serves as a
change leader in addressing community issues. For more information, visit www.thcf.org or call 816-836-8189.