Frequently Asked Questions

What is transfer of wealth?

In 1999, Boston College researchers conservatively projected $41 trillion would shift from one generation to the next in the United States by 2052. Their study, Millionaires and the Millennium, called this shift of funds “transfer of wealth,” or TOW. Their research projected a new “golden age” of charitable giving. The Boston College study was brought to the local level by the Nebraska Community Foundation and the RUPRI Center for Rural Entrepreneurship in their study of TOW in Nebraska.

How much potential Transfer of Wealth is there in Nevada?

According to the Wealth Transfer in Nevada study conducted by the RUPRI Center, Nevada’s current net worth in 2005 is $273.99 billion. The study researchers estimate the 50-year TOW for Nevada to be $383.33 billion. During the decade of 2005 to 2015, the estimated TOW will be $32.37 billion. If just five percent of the 10-year TOW were captured into charitable community endowments across Nevada, an estimated $1.6 billion fund would be realized. Potentially, if a conservative 5% payout rate on the $1.6 billion was realized, an estimated $81 million would be available annually for community betterment projects - statewide - Forever.

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What does TOW mean to Nevada communities?

TOW captured into community endowments helps communities in Nevada thrive and survive. Endowments through community foundations help distribute funds locally to improve the quality of live for current and future generations. Funds are used for all kinds of community projects and help ensure a better tomorrow for Nevadans.

How do we know the wealth transfer numbers are right?

Simply put, we don’t. The wealth transfer is a scenario, not a precise prediction. It tells us there will be a significant wealth transfer in Nevada. The RUPRI study uses the best data and analysis available and was continuously reviewed by a 16 member technical advisory committee of local experts throughout Nevada. Remember, the wealth transfer scenario is based on conservative estimates of growth. Even if the numbers are off, we are still seeing a sizable wealth transfer. We do know this is happening and will continue to happen, which is why we need to start conversations about it and prepare for TOW locally.

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Where else has this research been done?

The Nebraska RUPRI Center for Rural Entrepreneurship has completed TOW research in Nebraska, Wyoming, Wisconsin, Montana, Indiana, Ohio, Illinois, Michigan, South Dakota, Northeastern New York and parts of North Dakota. They are currently conducting and planning research in Pennsylvania and Kansas.

How does Nevada compare to other states?

Nevada has experienced its ups and downs over the years but on the whole has been very prosperous during the last 50 years. Nevadans have worked hard and saved hard, positioning us well. As our state reinvents itself, as our demographics and economy change, the rate of new wealth creation will be affected. These are the challenges and opportunities we will address for the future.

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Do I have to give?

Giving is always a personal decision. If you feel passionately about the work of a community organization, we hope you will consider supporting that group now and/or in your will or estate plan. Charitable investments will help assure our communities and state offer the best living conditions possible. You can make a difference and help enhance the quality of life in your community. Talk about it with others.

How can I contribute?

If you are passionate about your community and the survival and success of the Silver State, consider donating to a community foundation. Charitable investments will help sustain your community and enhance the quality of life for you, your children, your grandchildren and beyond. Choosing to give back to your community also keeps your wealth within the state, giving back to the community that has given so much to you. When planning for the future or even adding to your list of donors, consider Nevada’s communities one of your heirs or charities.

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Why give through Community Foundations?

Community Foundations are non-profit, local organizations with deep roots in the communities they serve. Governed by a voluntary board of directors and staffed by knowledgeable professionals, community foundations are an important mechanism that receive charitable funds from individuals and corporations and in turn make grants to meet current and future community needs.

Who determines how the grants are awarded?

Those who live and work in Nevada’s communities help determine where and how monies are spent. Donors also play a role in directing funds for specific community needs such as children’s programs, small business development and others.

How can a community start a foundation?

Most of the communities in Nevada have yet to create charitable community foundations. In this case, communities might opt to establish an Affiliate program with an existing community foundation.

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What are Affiliate programs?

Affiliates are local area advisory boards that are components of an existing community foundation created through a working agreement. Affiliate boards are established to assess community needs and opportunities, to implement their own asset fund development, determine grant making and program priorities, encourage program partnerships and to initiate and sponsor activities and programs to enhance the community in their service area. Though many decisions are made locally, the existing community foundation handles administrative functions such as fund accounting, investment management, tax reporting, non-profit organization compliance and other affiliate support services. Funds generated through an affiliate program are only used by the affiliate program.

What is HTC and how does TOW relate?

Capturing transfer of wealth, or TOW, is one of the four pillars of the Hometown Competitiveness Program (HTC). HTC encourages communities to take immediate action in four strategic areas (i.e. the four pillars): Mobilize Local Leaders, Energize Entrepreneurship, Capture Wealth Transfer and Attract Young People. HTC asks rural communities to invest in local human resources and to build and retain local wealth. TOW assists in future community and economic development efforts.

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