New research commissioned by community foundations in the Midwest, including The Dayton Foundation, and sponsored by the W.K. Kellogg Foundation, carries a projection of an unprecedented transfer of wealth from the World War II generation to baby boomers, and then from baby boomers to the next generation.

Projected to change hands within the next 50 years in the five-county primary service area of The Dayton Foundation—Montgomery, Greene, Warren, Darke and Preble—is $90.84 billion. After just 10 years, an estimated $13.13 billion is projected to have transferred from one generation to the next in these five counties alone.

“This is the first time we have had specific projections for the transfer of wealth for our state and counties of service. This gives us a much better picture of what to expect and what the possibilities are,” said Michael M. Parks, president of The Dayton Foundation. “With most estates in the U.S., the vast majority of assets go to heirs. For generations, people lived their entire lives close to their birthplace and as wealth passed from one generation to the next, most stayed in the same county. This is no longer true…and once the wealth leaves our communities, it may never return.”

“Just think for a minute what it would mean for charity in the Greater Dayton Region,” Parks continued, “if our region’s residents would consider designating even 5% of their estates, 401(k) and IRA accounts, or life insurance policies to support their favorite local charities. By 2015, for example, that could translate to over $650 million in our five-county primary service area. If these went into endowments for charity, at the end of 10 years, this could mean over $30 million in new dollars each and every year being available in our community for charitable purposes. And held as endowments, that support could continue to grow and go on providing charitable resources in perpetuity. Furthermore, it’s projected that by 2055, the number of new dollars this could translate to could be as high as $4.5 billion for charity. The possibilities for charity and our region are huge and so important for people to consider.”

“There are many options for people,” Parks said, “whether they give directly to their favorite charities or use their community foundation. A community foundation like The Dayton Foundation offers a range of options, from family named endowed funds to benefit favorite charities, to contributing to the Emerging Community Needs Fund, an endowment at The Dayton Foundation set up to meet changing needs of and to realize opportunities for the Greater Dayton Region. However a person chooses to make their charitable designation, the important thing is to keep support coming to this community and maintain its vitality for future generations.”

“If residents in the Greater Dayton Region would do this, together we could build funds that conceivably could distribute tens of millions of additional dollars in cumulative grants by 2015 and in the hundreds of millions over the next 50 years,” he said. “Think about what millions of new dollars each year could do for our community. Within a decade, it could mean improved health and human services, new arts and cultural endeavors, better educational alternatives, increased recreational attractions and entrepreneurial investment—resulting in a better quality of life for everyone.”

Retirement accounts and insurance policies, Parks noted, can be excellent vehicles for planned giving. Both can be designated to charity without modifying an existing estate plan. IRAs and 401(k)s may be the best asset to earmark for estate giving, he said, since they can be highly taxed when given to heirs, losing up to 70% of their value in some cases.

The Dayton Foundation is the regional community foundation, providing donors a simple, powerful and highly personal approach to giving—so their gifts do good works within the community, now and in the future.