Transformational Giving At Our Doorstep – If…

“Most communities have no idea how much wealth resides in their midst,” University of Minnesota Extension educator and rural sociologist Ben Winchester says. For the most part, the wealth represents an asset that could help rural communities not just survive but thrive.

“Philanthropic giving represents the greatest underdeveloped financial resource a community can mobilize — and now is the time for communities to start talking about it,” he says.

This transformational transfer of wealth is expected to peak in the next 15 years.

Minnesota’s baby boomers, those born between 1946 and 1964, “are preparing to hand down their collective wealth and assets — a whopping $61 billion,” Sarah Jackson, University of Minnesota Extension news media manager, says in an article about Winchester’s study of the untapped wealth of the baby boom generation.

Grant funds can be transformational for a community. They can help support programs for childcare, community education, sports, community events, the food shelf, and senior citizen services. Healthcare, emergency medical services, and fire departments would benefit.

They can help a new generation of community members make their towns better places to live, work, play, and enjoy cultural events.

Grant funds can help communities retain more residents and draw young people back to their hometowns. They can be used to fund business incubators with the aim of helping new entrepreneurs get started.

How much wealth is likely to be transferred in our area? Consider what the donation of just 5% of it to a foundation would mean over the next decade:

Household net worth expected 

to transfer in the next 10 years

County Net worth 5% donated

Pope $133.8 million $6.9 million

Swift $80.6 million $4.03 million

Stevens $80.4 million $4.02 million

Grant $56.8 million $2.84 million

As federal and state dollars that help support rural communities disappear or are significantly reduced, philanthropic gifts will be critical to sustaining local programs and our quality of life.

A considerable challenge for communities is connecting with people with the wealth to share. They must first reach them, then convince them of the value of leaving a financial gift that will have a lasting impact for generations to come.

One hundred years ago, Winchester says, young people stuck around their communities in great numbers. They would go into the family business, find a local job, or take over the farm.

 “Today, many kids no longer continue to live in rural communities. So how do we ensure there’s a thriving community left for those who stay — and for those who move to town?” he asks.

We have an opportunity to bring back the young people if we have the tools, motivation, and ingenuity to offer what they need to return.

Winchester says young people in their 30s and 40s are looking to relocate to rural Minnesota communities, seeking a lower cost of living, access to a natural landscape, and a more relaxed pace of life. They are also looking for a deeper sense of community and connections that exist in a small town.

 “As a new generation arrives in these communities, they’ll need investments in schools, recreation, housing, streets, businesses, hospitals, and more,” he says.

Starting the conversation about charitable giving in local communities is a first step, Winchester says. 

If we are to capture those baby boomer dollars, our community leaders must develop a strategy now for how they will create relationships with people who would willingly help their hometowns if just asked.

Unidentified in Winchester’s net worth study is the wealth belonging to people who graduated from our schools or moved away to live and work in other cities and states. These individuals started businesses, worked for major corporations, or saved funds throughout their lives to retire. 

Every rural school district should maintain a graduate database that is frequently used to reach out to former students. Don’t just email them; invest in a newsletter in print that sits around for a while. Foundation funds could help pay for such an effort.

While some of our rural communities have foundations, many do not. So, how do people in these communities give and see their donations invested locally?

First, check to see if your county or city has an established foundation that gives out local grants. If there is one, you can donate and ask that it be used toward a specific area. Or funds can be used for the general betterment of life in your city, county, or school district.

If you don’t have a local foundation, Winchester says, Extension educators are available to assist communities in establishing one.

Both the West Central Initiative, which serves the people of Stevens, Grant, and Pope counties, and the Southwest Initiative Foundation, which serves Swift County, offer communities assistance in reaching out to those who wish to leave a legacy. They have staff ready to assist with your giving or foundation plans. The Southwest Initiative Foundation’s number is 320-587-4848. The West Central Initiative can be reached at 218-739-2239.

Who are the people who will be turning over this wealth? They are newspaper readers. We suggest that these foundations consider advertising campaigns in their local community newspapers to target the baby boom generation. This advertising would lead to new donations, keep people informed about what these foundations are doing, and strengthen their community newspapers.

In their advertisements, the foundations could highlight their giving, its value, and successes. At the same time, they could create goodwill by highlighting their support for the community newspaper. It is a win-win for rural communities and the foundations.

Do you want to reach young people who could be encouraged to return to their hometowns? Reach out to them with a subscription to the community newspapers. Keep them tied to the people and places in their hearts. 

Giving is at our doorstep, if we seek it.

For more about transferring wealth to benefit your community, go to <https://extension.umn.edu/community-development/transfer-wealth>.