Over $40 trillion of American wealth will transfer from one generation to the next in the next 50 years.
As younger generations migrate out of rural communities, this transfer could mean a tremendous loss of wealth for rural areas. Though many people care about their home towns, most communities do not have a means by which to accept and manage charitable gifts through estate planning. Hometown community foundations are a solution, and the RMFU Foundation can help your community create one.
A community foundation is a tax-exempt philanthropic institution funded by many separate donors and offering diverse, charitable benefits to the residents of a defined geographic community. These foundations can provide many services to donors who want to keep their estate in their community but want to avoid the administrative and legal costs of starting independent foundations. There are more than 500 community foundations across the United States, fifteen of them in rural Colorado.
How a Community Foundation Works
Community foundations represent the entire “community” and have boards that are broadly representative of the communities they serve. They are primarily grant makers, and they make grants in diverse areas that can benefit the citizens of the community. These foundations establish permanent, named funds with the goal of building endowments to support the grants.
If you are interested in learning more about community foundations and their role in keeping your family assets in your home community, contact RMFU for more information.