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Summer 2009
Announcement
Waller Financial Planning Group is proud to announce that it has been selected by Wealth Manager Magazine as a “Top Wealth Manager.” The magazine has recognized Waller Financial Planning Group as one of the top advisory firms in the United States, and will include the firm in its July/August 2009 issue.
Quote
"If we had no winter, the spring would not be so pleasant; if we did not sometimes taste of adversity, prosperity would not be so welcome.”
- Anne Bradstreet
Inside
Announcement
Waller Financial Planning Group is proud to announce that it has been selected by Wealth Manager Magazine as a “Top Wealth Manager.” The magazine has recognized Waller Financial Planning Group as one of the top advisory firms in the United States, and will include the firm in its July/August 2009 issue.
Quote
"If we had no winter, the spring would not be so pleasant; if we did not sometimes taste of adversity, prosperity would not be so welcome.”
- Anne Bradstreet
Inside
The $6 Trillion Question
How the greatest transfer of wealth in U.S. history may impact philanthropic giving
According to a study conducted by Boston
College, an estimated $41 trillion will
transfer from the World War II and Baby
Boomer generations to heirs by the year
2052. Of this, an estimated $25 trillion will
go to heirs, $10 trillion to taxes and fees,
and a projected $6 trillion to America's
charities in the form of bequests.*
This unprecedented transfer of wealth has created a sense of urgency for nonprofit organizations and foundations seeking to capture a portion of the available dollars. Organizations have begun to shift from static fundraising to dynamic models that center on creating personal connections with donors. Staff, board members and volunteers are increasingly engaging in donor cultivation and relationship building to maximize long-term giving.
The coming wealth transfer also presents a new wrinkle for fundraisers. Women are increasingly serving as a transition point for wealth transfer as money is passed from deceased spouses to wives and family members prior to reaching children. At the end of 2007, 44 percent of the nation's top wealth holders were women with a combined net worth of $4.4 trillion.**
While male donors traditionally have given large planned gifts to a small number of organizations, female donors have trended differently, opting to spread giving around to a wider range of causes. “Giving circles” have also emerged, where groups of female donors pool money together to collaboratively decide where to donate.** Giving has also become a multi-generational pursuit. The recent increase in newly created private foundations and donor- advised funds has been driven in large part by donors seeking to control giving and to pass values onto future generations.
The merger of these trends in giving has changed the requirements of philanthropic organizations seeking to capitalize on the impending wealth transfer. Social networking, relationship building and donor education are all requirements of success. Philanthropic organizations must provide donors with the opportunities to personalize giving, while also demonstrating success in making an impact in the community.
There remains some speculation as to when the biggest impact of the wealth transfer will be felt in philanthropic giving. Recent studies suggest that most bequests will occur after 2016. However, with charitable giving topping $300 billion in 2007 and 2008, philanthropic organizations who begin building and strengthening relationships now stand to receive significant benefits in the short and long-term.^
Waller Financial is proud of the generosity of all of its clients, who to date have donated more than $60 million to charitable causes around the world. If you would like to discuss your philanthropic goals as a part of your financial plan, contact your advisor today at 614.457.7026.
* Havens, J.and Schervish,P. Why the $41 Trillion Wealth Transfer Estimate is Stall Valid: A review of Challenges and Questions. (January 6,2003). The Journal of Gift Planning. Vol.7, No.1, pp.11-15, 47-50.
**Kearney, H. The New Face of Philanthropy (October 1,2008). On Wall Street. Available online at: http://www.onwallstreet.com/ows_issues/2008_10/new-face-philanthropy707391-1.html
^ Giving USA Foundation Annual Report.2008.
How the greatest transfer of wealth in U.S. history may impact philanthropic giving
According to a study conducted by Boston
College, an estimated $41 trillion will
transfer from the World War II and Baby
Boomer generations to heirs by the year
2052. Of this, an estimated $25 trillion will
go to heirs, $10 trillion to taxes and fees,
and a projected $6 trillion to America's
charities in the form of bequests.* This unprecedented transfer of wealth has created a sense of urgency for nonprofit organizations and foundations seeking to capture a portion of the available dollars. Organizations have begun to shift from static fundraising to dynamic models that center on creating personal connections with donors. Staff, board members and volunteers are increasingly engaging in donor cultivation and relationship building to maximize long-term giving.
The coming wealth transfer also presents a new wrinkle for fundraisers. Women are increasingly serving as a transition point for wealth transfer as money is passed from deceased spouses to wives and family members prior to reaching children. At the end of 2007, 44 percent of the nation's top wealth holders were women with a combined net worth of $4.4 trillion.**
While male donors traditionally have given large planned gifts to a small number of organizations, female donors have trended differently, opting to spread giving around to a wider range of causes. “Giving circles” have also emerged, where groups of female donors pool money together to collaboratively decide where to donate.** Giving has also become a multi-generational pursuit. The recent increase in newly created private foundations and donor- advised funds has been driven in large part by donors seeking to control giving and to pass values onto future generations.
The merger of these trends in giving has changed the requirements of philanthropic organizations seeking to capitalize on the impending wealth transfer. Social networking, relationship building and donor education are all requirements of success. Philanthropic organizations must provide donors with the opportunities to personalize giving, while also demonstrating success in making an impact in the community.
There remains some speculation as to when the biggest impact of the wealth transfer will be felt in philanthropic giving. Recent studies suggest that most bequests will occur after 2016. However, with charitable giving topping $300 billion in 2007 and 2008, philanthropic organizations who begin building and strengthening relationships now stand to receive significant benefits in the short and long-term.^
Waller Financial is proud of the generosity of all of its clients, who to date have donated more than $60 million to charitable causes around the world. If you would like to discuss your philanthropic goals as a part of your financial plan, contact your advisor today at 614.457.7026.
* Havens, J.and Schervish,P. Why the $41 Trillion Wealth Transfer Estimate is Stall Valid: A review of Challenges and Questions. (January 6,2003). The Journal of Gift Planning. Vol.7, No.1, pp.11-15, 47-50.
**Kearney, H. The New Face of Philanthropy (October 1,2008). On Wall Street. Available online at: http://www.onwallstreet.com/ows_issues/2008_10/new-face-philanthropy707391-1.html
^ Giving USA Foundation Annual Report.2008.