Raising the Stakes
The increased population loss of the past six years is resulting in West Virginia ’ s transfer of wealth moving a lot faster , with younger generations leaving and / or older populations passing away . On more occasions than not , this wealth leaves the town , city , county or state where it was created forever when it is transferred on to children and grandchildren who then leave their hometowns for other parts of the country . This wealth includes long-time West Virginia family businesses being sold off or relocated to out-of-state locations ; family property such as farms , main street buildings and homes being sold off or unmaintained ; and personal wealth that completely leaves the state ’ s borders versus staying local and investing to drive hometown economies .
A lack of action and leadership will result in over a century ’ s worth of wealth building leaving the Mountain State forever . This concept is so compelling it merits repeating : West Virginia will lose out on the historic opportunity to retain and grow $ 30 billion over the next 10 years and $ 263 billion in the next 50 years — and these are just the funds we know of . If we engage this wealth through permanent resources , West Virginia can advance and strengthen its long-term economy , business community , nonprofit sector and community growth .
Leading the Charge
As the transfer of wealth is moving much faster than originally anticipated for West Virginia due to population loss , action is needed immediately from the general public , businesses , foundations , nonprofits , policymakers and state and local governments . This requires one significant and leading partner to ensure this transfer of wealth can stay in local communities .
That partner is organized philanthropy , such as the grantmaking foundations — community , private , family and public — which are set up with permanent endowments to be around forever . These foundations annually grant out a percentage of their endowment for the needs of the communities and / or causes identified by the donors / founders .
According to the nationally recognized resource BoardSource , a grantmaking foundation is defined as a charitable , tax-exempt organization whose primary function is to distribute funds for charitable purposes . Private foundations are typically formed by individuals , families or corporations . Other grantmaking foundations include community foundations and other public funders that are created through individual donors establishing permanent funds for a variety of community needs .
As many neighbors and community leaders know , West Virginia does not lack the great ideas to innovate , advance great work or turn around communities . Rather , the state lacks a significant amount of the philanthropic , public and private investments to be successful in this work .
By working with organized philanthropy , West Virginia can encourage the transfer of wealth from individuals , families and businesses stay local by creating charitable funds with local community foundations . The money could also be used to form new private , family or corporate grantmaking foundations . This would provide every county and community with the potential for long-term benefits that would create a new staying power .
Wayne
Cabell
Mingo
As of July 1 , 2021 , the following 37 of West Virginia ’ s 55 counties have been assessed for transfer of wealth potential :
Mason
Lincoln
Putnam
Logan
Jackson
Boone
Wood
Wyoming
McDowell
Wirt
Roane
Kanawha
Pleasants
Fayette
Raleigh
Ritchie
Calhoun
Clay
Mercer
Tyler
Gilmer
Braxton
Nicholas
Summers
Hancock
Brooke
Ohio
Marshall
Wetzel
Doddridge
Lewis
Greenbrier
Monroeoe
Harrison
Webster
Marion
Upshur
Monongalia
Barbour
Pocahontas
Randolph
Pendleton
Source : LOCUS Impact Investing
Engaging the Experts
A 2018 Chronicle of Philanthropy article titled “$ 9 Trillion will Transfer from Americans ’ Estates ” by Heather Joslyn reported that more than half of American household wealth — 56 % to be exact — is in the hands of baby boomers . The oldest are in their mid-70s now . According to Don Macke , co-founder of the Center for Rural Entrepreneurship , which has historically run transfer of wealth assessments , “ We ’ re saying , here ’ s the opportunity . Now it ’ s up to you to go out and capture some of that .”
If every West Virginian , business owner and / or family planned to gift at least 5 % of the wealth in their estate or business succession plans for a West Virginia community foundation fund or new grantmaking foundation in the next 10 years , it would result in a new collection of philanthropic funds valued at $ 1.5 billion at least , which could be reinvested in communities to help the state face challenges every year .
If the average spend for grantmaking is 5 % of the value of a foundation endowment or community foundation fund , based upon the $ 1.5 billion figure , this would result in an additional $ 75 million per year in grants for West Virginia ’ s communities and critical organizations . These endowments managed by local foundations benefit numerous opportunities for local community economic development , entrepreneurship , health and human services , education , arts , culture , substance use disorder response and recovery , charities , natural disasters and causes that strengthen the state for its citizens ’ quality of life .
Taylor
Preston
Tucker
Grant
Mineral
Hardy
Hampshire
Morgan Berkeley
Je fferso n
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