Billions of dollars in assets will be reallocated across the state of Iowa in 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 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 or had been focused in the past.
“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, President of ICoF. “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 anticipates $330 million will transfer in Muscatine County within the next decade. Planned legacy giving can help protect, grow, and spread resources that may otherwise lose roots in communities across the state.
“We see so many in our local community ‘giving while they are living’ and recognizing the power they have in designing a better future for our community, neighbors, and children. And we have a growing number of neighbors choosing to leave a “tip” for their community as they plan their legacy, having both their heirs and their community at the forefront of their personal wealth transfer planning. The Community Foundation of Greater Muscatine has been and continues to be a first choice for these funds, due to our expertise, flexibility, vast charitable portfolio, and pulse on ever-evolving community needs and priorities,” noted Charla Schafer, President of the Community Foundation of Greater Muscatine.
Iowa Community Foundations, an initiative of ICoF, recently launched a coordinated effort to encourage donors across Iowa to commit five percent of their assets to local charitable giving. A new coordinated philanthropic initiative, ‘5 for the Future,’ educates Iowans about the power of wealth transfer and provides simple steps individuals can take to help communities retain and reinvest local funds through their local community foundation.
“We believe the ‘5 for the Future’ program will encourage others to add local giving through the Community Foundation to their actions and directives,” Schafer added.
“Iowans are hardworking and humble, and many of us don’t feel we fit the label of ‘wealthy philanthropist,’” Boutell 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 $30 billion expected to transfer would create over $1.5 billion in new charitable endowments, according to the research, which was conducted by the University of Minnesota Extension. Over 20 years, those funds could support grantmaking of more than $1.8 billion toward local projects, which might include adding accessible workforce housing, feeding the hungry, developing art and cultural experiences, and strengthening hubs for innovative programming.
“If each of us chose to invest five percent of our assets in community causes, imagine how Iowa dreams could flourish,” Boutell said. “Our Iowa Community Foundations network is working to cultivate hometown generosity and secure vibrant futures in places like Muscatine County.”
More about Iowa Council of Foundations: https://iowacounciloffoundations.org/our-work/
More about the 2024 Iowa Transfer of Wealth Study: Detailed Report, Summary
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