Iowa Transfer of Wealth Study Reveals Community Giving Potential
Iowa communities could lose billions of dollars in assets over the next decade, according to “Transfer of Wealth Opportunity State of Iowa,” a recent study commissioned by the Iowa Council of Foundations (ICoF). The study estimates that more than $30.4 billion in Iowa assets will change hands in the next 10 years with the passing of older residents. Over 40 years, the figure swells to $128 billion. If heirs and successors live out of state, those assets—from agricultural land to stock dividends—may leave the community where they were generated.
“The 2024 Iowa Transfer of Wealth study illuminates a significant shift on the horizon that could challenge communities across the state,” said Kari McCann Boutell, ICoF president. “This data also presents exciting potential for Iowa small towns and cities that inspire locals to include hometown causes in their charitable giving plans.”
Localized data from the study suggests $1.8 billion will transfer in Linn County within the next decade. Planned endowment giving can help protect, grow, and spread resources that might otherwise disappear from our community.
“The Community Foundation is here to support the long-term health and wellbeing of Linn County through philanthropy,” said Karla Twedt-Ball, President & CEO of the Greater Cedar Rapids Community Foundation. “We work with individuals and families to create a giving plan that works for them and their community. By leaving permanent gifts to their hometowns, Iowans can help the next generation respond to the challenges and opportunities of tomorrow.”
Iowa Community Foundations, an initiative of ICoF, recently launched a coordinated effort to encourage donors across the state to commit five percent of their assets to local charitable giving. A new coordinated philanthropic initiative, ‘5 for the Future,’ educates Iowans about the implications of wealth transfer and provides simple steps individuals can take to help communities retain and reinvest local funds.
“Iowans are hardworking and humble, and many of us don’t feel we fit the label of ‘wealthy philanthropist,’” Kari said. “This campaign is about empowering families to make a lasting impact by sharing a slice of their assets. It’s more about potluck-style philanthropy than relying on a few major donors to make a difference.”
Donating just 5% of the $1.8 billion expected to transfer in Linn County would create over $90.9 million in new endowments, according to the research conducted by the University of Minnesota Extension. Over 20 years, those funds could support grantmaking of more than $75 million toward local projects, which could include adding accessible workforce housing, developing art and cultural experiences, and strengthening hubs for innovative programming.
“We don’t know what the future will bring,” Karla said. “But by investing in endowed funds, we can help ensure that Linn County remains a vibrant and thriving place to call home.”
More about Iowa Council of Foundations: https://iowacounciloffoundations.org/our-work/