Transfer of Wealth

For immediate release December 6, 2007

For more information, contact:
Ralph Kletzien
The Portage Foundation
330-474-0480

Estimated $14 billion in inherited wealth in Portage County could translate into community good, says Portage Foundation

An estimated $14 billion in inherited wealth will change hands within the next 50 years in Portage County alone.

According to a Transfer of Wealth study, commissioned by a group that includes the Portage Foundation, the median household in Portage County will transfer $242,000 in accumulated wealth over the next 50 years.

For Ohio, the 50-year estimate of transfer of wealth is $1.07 trillion.
“It’s unprecedented,” explains Kevin Lewis, President of the Portage Foundation’s Board of Trustees. “This new research shows the amount of wealth which will transfer from the World War II generation to the baby boomers and then to the next generation right in our own county.”

Lewis says that community foundations—like the Portage Foundation—across the country are urging residents to consider designating a portion of their estates to a community fund. “Everyone is surprised at the totals,” he says. “Of course, with most estates in the U.S., the vast majority of assets go to heirs. We are encouraging people in Portage County to consider leaving just 5 percent to our endowment to benefit our county for years to come.”

The Portage Foundation is part of the Ohio Grantmakers Forum, which commissioned the Transfer of Wealth Initiative with funding provided by the W. K .Kellogg Foundation.

Assets of the Portage Foundation--the only community foundation in the county—total nearly $550,000. Over $34,000 has been awarded to local non-profit groups since 1997, including $8,000 in grants made this month.
“A portion of the earnings from the foundation is paid out in grants to address the most pressing community needs,” Lewis explains, “but the principal is never touched.”

More than 650 community foundations in the U.S. play an influential role in defining needs and coordinating resources within a geographic area. What makes a community foundation different, according to Lewis, is that it gives people a way to make a long-term impact on their own community.

Now in its tenth year, a volunteer Board of Trustees oversees the Portage Foundation. The Foundation’s offices are located at 138 East Main St. in Kent.

“We expect that this study will start some conversations about what is really important to the people of our community,” says Ralph Kletzien, Interim Executive Director of the Portage Foundation. “When wealth is passed from one generation to the next, we hope that residents will consider designating a portion of their estates, 401(k) and IRA accounts or life insurance policies to the Portage Foundation. That could make an incredible difference to the future of everyone living in Portage County.”

For more information about the Portage Foundation, ways to give and the Transfer of Wealth survey, please visit www.PortageFoundation.org or call 330-474-0480.