2023 Missouri Transfer of Wealth Study: $60 Billion in Assets to Transfer to Next Generation Over 10 Years
ST. LOUIS, June 14, 2023 — Over the next 10 years, nearly $60 billion will transfer from one generation to the next in the St. Louis region, according to a Transfer of Wealth Study released today by the Alliance of Missouri Community Foundations (AMCF) and locally by the St. Louis Community Foundation. These funds represent more than half of the more than $114 billion projected to transfer statewide, the study found.
For the purposes of the study, the St. Louis region is defined as the City of St. Louis and St. Louis and St. Charles Counties.
In the St. Louis region, if just five percent of the $60 billion in assets were allocated to St. Louis nonprofits or philanthropic initiatives, they would receive an infusion of more than $3 billion over the next 10 years.
If these funds were endowed, meaning the principle remained intact to grow over time and five percent of the annual earnings were allocated to charitable initiatives, St. Louis area nonprofits would stand to gain no less than $150 million in added resources. Statewide, these figures would be $7.6 billion and $383 million, respectively.
“Imagine what long-term good could be done in Missouri if citizens awarded and endowed just five percent of their estates to charity,” said Gary Dollar, interim president and CEO of the St. Louis Community Foundation. “These funds could strengthen local regional organizations and foster transformative change in areas like human services, education, the arts, community amenities.”
To project the amount of wealth changing hands in the coming decade, the study examined several data sources from the State of Missouri and the U.S. Government. These data points included: household size, life expectancy, income and wealth distribution, charitable giving. Projected wealth transfer information is available by individual county and Community Foundation region.
The study notes demographic trends, including Missouri’s aging population with a larger proportion of the population reaching retirement age, which increases the amount of wealth being transferred between generations. Missouri also is experiencing population loss in some areas, particularly rural counties, and a decrease in average household size, which is on par with nationwide trends. Locally, St. Charles is growing rapidly, with a population increase of 11.5 percent since 2010, as compared to a 0.42 percent decrease in St. Louis County and a 10.17 percent decrease in the City of St. Louis.
The 2023 Transfer of Wealth Study can be accessed at https://link.stlgives.org/2023transferofwealth. It was prepared for the AMCF by the Center for Civic Research and Innovation (CCRI), an initiative of the St. Louis Community Foundation.
“We are on the cusp of the largest intergenerational wealth transfer in our nation’s history,” said Kyle Juvers, senior director of research and operations for CCRI and principal author of the study. “CCRI’s analysis provides the basis for the necessary strategy and planning to ensure that our communities and their foundations are positioned to leverage this opportunity for the benefit of sustainable community impact.”
CCRI conducts and provides objective research and analysis designed to drive innovative civic solutions and inform community dialogue. CCRI has partnered with local organizations such as Invest STL, STL Youth Jobs, Kranzberg Arts Foundation, and the Missouri College & Career Attainment Network.
“Missourians have the opportunity to talk to their families and financial advisors about their charitable intentions during their estate planning,” said Dollar. “The St. Louis Community Foundation works with donors and their advisors on how best to reach their philanthropic potential through a variety of charitable fund types. Our staff are experts on local giving.”
“The potential benefits to our communities and nonprofit sector would be staggering if Missourians adopted the ‘Five Percent Solution’ to include their charitable intentions in their estate and financial planning,” said Mary Hinde, leader of the AMCF and president and CEO of The Community Foundation of Northwest Missouri, based in St. Joseph. “Missourians are known for their ‘show-me’ determination. This study shows us what is possible if we all give a little to support the greater good.”
About the St. Louis Community Foundation
The Foundation is a nonprofit with approximately 800 charitable funds and total assets of more than $470 million. Each fund represents a unique charitable giving partnership between nonprofit recipients and an individual, family, or business. The St. Louis Community Foundation inspires purposeful philanthropy that connects the community and donors to build and preserve a more equitable and vibrant region, now and forever. To learn more about the Foundation, please visit stlgives.org.
About the AMCF
The Alliance of Missouri Community Foundations was founded in 2012 to serve as a networking and collaboration resource for Missouri’s community foundations, which are regional public charitable foundations serving specific geographic areas. The members and where they are based are: Chariton County Community Foundation (Keytesville); Community Foundation of Central Missouri (Columbia); The Community Foundation of Northwest Missouri (St. Joseph); Community Foundation of the Ozarks (Springfield); Community Foundation serving West Central Illinois and Northeast Missouri (Quincy, IL); Greater Kansas City Community Foundation; Truman Heartland Community Foundation (Independence); St. Louis Community Foundation; and YouthBridge Community Foundation (St. Louis).