The Great Transfer of Wealth
Become part of the transformative power of endowing Collier County's future and sustaining its dedicated charities
Baby boomers make up the wealthiest generation in American history, and they are passing down that wealth to their children and grandchildren during the next 25 years. How much? A staggering $68 trillion in homes, businesses, and investments.
This remarkable, intergenerational phenomenon is playing out in communities
across the nation. In Collier County, $34.8 billion is expected to change hands over the next ten years. These sums may be mind-boggling, but the Collier Community Foundation (CCF) is starting a conversation with the community to raise awareness about the transfer of wealth and the importance of including a philanthropic element in estate plans. Just three percent of that transferred $34.8 billion could result in a $1 billion endowment at CCF that could generate $50 million to address community needs annually.
"One billion sounds scary, but three percent doesn't," said Rob Bulloch, a partner and fourth-generation estate planner at Bulloch Taylor PLLC in Naples. Many community foundations in the United States have $1 billion in endowments. Collier County—where the current household net worth is $302 billion—certainly has the same capacity to build this endowment to meet significant local needs. "There is literally unlimited charitable capacity here," he said.
CCF addresses issues as they arise without hassling with bureaucratic red tape. CCF often helps fill in local gaps where the government lacks funding by supporting projects such as partnering with other organizations on a local workforce housing development. CCF has repeatedly pivoted to disaster relief by activating the Collier Comes Together emergency fund for hurricanes Irma and Ian, wildfires, red tide, and the Covid-19 pandemic. Unrestricted funds allow CCF "to adjust in real-time for needs in the community,” Bulloch said.
In Collier County, the government sets aside only 5.6% of its annual budget for human services. "Even if the county budget were larger, we know how to serve the community better than anyone because we are in touch with local needs and can act quickly to distribute funds where they are needed most," said CCF President/CEO Eileen Connolly-Keesler.
The Immokalee Foundation's endowment safeguards the future of vital programs such as the CCF supported Career Pathways Learning Lab program that provides students with real-world, hands-on training by building 18 homes on eight acres in Immokalee.
There are several tax-advantaged strategies for donating to charity during one's lifetime, such as a qualified charitable distribution from a retirement account, making charitable giving a win-win for the donor and the organization they support. "Increasingly clients are eager to see the direct impact of their donations during their lifetime and not wait until they are gone to do so," said Bulloch.
Estate plans are key in life and death for everyone, no matter your walk in life. They ensure your assets are distributed in accordance with your wishes and are protected from probate and are crucial if you become incapacitated and can no longer handle your financial affairs. They are also a wealth-preservation strategy. Uncle Sam levies a 40 percent estate tax, Bulloch explained. "What goes to CCF escapes taxes during your lifetime and when you die."
The Collier Community Foundation is encouraging wealth and estate advisors to have this conversation with their clients, too. A BOA/Merrill Lynch HNW Philanthropy study showed that 90% of high-net-worth households expect their advisor to bring up charitable giving, yet only 10% of advisors bring up the topic.
At CCF, a permanent endowment will grow through investments. CCF also provides expert oversight of funding and grantmaking. We keep our finger on the community's pulse by studying local needs and demographics each year and tracking nonprofits' effectiveness through grant and program impact fulfillment.
Donors want to support causes they care about. But sometimes, organizations close their doors or change their policies. With a CCF fund, the money is redirected to a similar program or nonprofit that aligns with the donor's original intentions, so there are no surprises. "We provide the oversight to spend their dollars the way they want them spent according to their estate plan," said CCF President/CEO Eileen Connolly-Keesler.
Call the Collier Community Foundation at 239.649.5000 to learn more.
Benefits of Growing Funds at CCF
Professional oversight: Management that includes analyzing community needs and vetting nonprofit programs.
Donor choice: Knowing your investment in your passions and causes continues to grow in perpetuity.
Flexibility: Many people might not realize that funds at CCF can go to causes across the nation and the globe.
Sustainability: Nonprofits' funds at CCF will continue to grow through investment.
Donor impact: Seeing the positive impact you are making in Naples, a community you love enough to call home.
Family legacy: Being a role model to heirs about the significance of giving back.
Family dignity: Your entire family is honored during your life and after your death.
Tax benefits: During your lifetime and after death.