The Nebraska Community Foundation has a proposal that could allow current and former residents of Columbus and Platte County to ensure the well-being of these communities long after they leave.
The Nebraska Community Foundation (NCF) is encouraging them to do so by bequeathing 5% of their estate to the Columbus Area Future Fund (CAFF) and other local charities.
The CAFF has access to the annual grant of up to 4.5% of the average value of the grant over the last 12 quarters. For example, if the average fund value over the past 12 quarters – or three years – was $ 5 million, then 4.5% of that amount would be $ 225,000. This means that no more than $ 225,000 per fiscal year would be available to be awarded.
Because the principal of the donation is never touched, the payment continues to be available and increases forever.
“A gift of any size to our endowment is a gift forever – the gift will stay in the endowment and grow over time,” CAFF’s Deb Loseke said in an email to the Telegram on Friday.
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The recent 2021 study by NCF’s Nebraska Transfer of Wealth projects that in Platte County, $ 1.7 billion in assets – such as real estate, securities and retirement accounts – will be transferred from generation to generation in the over the next 10 years.
âNCF was actually the first place in the country to conduct a statewide wealth transfer study a few decades ago,â NCF COO KC Belitz said, at a Butler County Foundation fund meeting on Nov. 1 in David City.
Released on November 15, the 2021 study hit the $ 1.7 billion figure after taking various factors into account, including census data, farmland values ââand household net worth.
It is expected that much of this wealth will go to the heirs, who may or may not live in County Platte.
The goal of the NCF’s recently announced Five to Thrive campaign – which encourages Nebraska residents to bequeath 5% of their estate to their hometown – is to retain wealth in the communities where it was built, by putting it in the hands of organizations like CAFF which will continue to invest this money in the community.
If the Five to Thrive 5% goal is met in Platte County, the CAFF endowment would increase by approximately $ 85 million over the next 10 years. The 2021 study, released on November 15, said that as of June 30, $ 4.4 million was already waiting behind the scenes, destined for Platte County. And Platte County hasn’t even reached its “peak transfer years” yet.
An FAQ document from the NCF Wealth Transfer Study defined peak transfer years as a “prediction of when the greatest number of people will die and leave their property to their heirs.” Platte County’s peak transfer years are expected to begin in 2046.
âWe are experiencing the largest transfer of wealth in the country, unsurprisingly, because of the baby boomer generation,â Belitz said.
Loseke said CAFF works with local financial planners and lawyers to help those seeking unrestricted endowment.
âWe run annual estate planning seminars to help start the thought process and provide steps to leave a legacy,â said Loseke.
Loseke said it’s also important to keep people informed of how current contributions can make differences in the future, as well as showing how existing community organizations are working together to achieve common goals.
âWe reinvest your contribution in the community through our four pillars: building local leadership, expanding community philanthropy, energizing entrepreneurship and engaging youth and youth,â said Loseke.
To this end, CAFF has invested in projects such as the Kramer Education Center, Central Community College-Columbus Center for Science and Technology, Columbus Inclusive Playground, Quality of Life Centers, STEM Academy and Youth Leadership Columbus.
Molly Hunter is a reporter for The Banner-Press. Contact her by email at [email protected]