Wealth in Indiana…Opportunities for Impact

In 2006, the Indiana Grantmakers Alliance commissioned a study on the transfer of wealth in Indiana. This report contained county-by-county projections showing the transfer of wealth from one generation to the next. The numbers are staggering and the potential benefit for our communities is unprecedented.

To help understand this phenomenon, let's review the history in America. The Dust Bowl hit in the 1920s and by the 1930s America was in an economic depression. In addition to the Great Depression, the massive struggle of World War II added to the hard times Americans were enduring.

The expanse of World War II led to massive spending creating economic revitalization and near full-employment, laying the foundation for prosperity. The 50-year period following World War II witnessed some of the best economic times in American history. Americans bought homes, built businesses, purchased second homes, invested, acquired life insurance and built retirement funds.

This history defines the starting point for our community's transfer of wealth opportunity. In our three counties alone, the opportunity for an additional $1.8 million annually for human services, recreation, education, arts and culture, health and many other charitable causes would create a profound impact.

The net worth of our counties in 2005 was estimated as follows:

Over the next 10 years it is estimated that $730 million will be transferred in our three counties. If only 5% of this wealth transfer was captured in endowment funds, it would create an additional $36.5 million in permanent assets for the benefit of our communities. A conservative annual distribution would equate to the $1.8 million available annually to enhance the quality of life in our communities.

Our counties are facing swiftly changing demographics, an aging population and the majority of the youth of our communities moving out of the area. This study enables us to start conversations with individuals about what is important to them and how they can make a lasting impact. The Community Foundation is here to invest and sustain the assets given to us by our donors.

We encourage families to have conversations about what is important to them and how they would like to make a lasting difference in their communities. Talk to your professional advisors about putting your favorite charity in your will or estate plan. Together a little can add up to a much brighter tomorrow.