New report shows potential impact of intergenerational wealth transfer on Maine's communities
In 2009, the Maine Community Foundation provided grant support for a study that highlights the power of philanthropy throughout the state. The study, Realizing Maine’s Worth: Our Community Legacy, was published by Maine Rural Partners.
“The upcoming intergenerational transfer of wealth has the potential to transform future bequests into assets that will sustain Maine’s communities,” said Meredith Jones, MaineCF president and CEO. “This is exciting for large and small communities in Maine.”
Data from the transfer of wealth report helped convince residents of the Schoodic Peninsula to establish a fund to support the long-term well being of their community. According to a story in the Ellsworth American, the fund will begin making grants next spring.
According to the report, over the next 10 years, Mainers are likely to transfer $29 billion to the next generation. If all Mainers invested 5 percent of their estates in community endowment funds, by 2020 these funds would supply an additional $74 million every year to benefit Maine communities.
- For Androscoggin County, the report estimates a $1.5 billion intergenerational transfer in the next ten years, which could result in an additional $3.7 million annually for local causes
- For Aroostook County, the report estimates a $923 million intergenerational transfer in the next ten years, which could result in an additional $2.3 million annually
- For Cumberland County, the report estimates an $8.5 billion intergenerational transfer in the next ten years, which could result in an additional $21 million annually
- For Franklin County, the report estimates a $498 million intergenerational transfer in the next ten years, which could result in an additional $1.2 million annually
- For Hancock County, the report estimates a $1.9 billion intergenerational transfer in the next ten years, which could result in an additional $4.8 million annually
- For Kennebec County, the report estimates a $1.9 billion intergenerational transfer in the next ten years, which could result in an additional $4.7 million annually
- For Knox County, the report estimates a $1.7 billion intergenerational transfer in the next ten years, which could result in an additional $4.1 million annually
- For Lincoln County, the report estimates a $1.5 billion intergenerational transfer in the next ten years, which could result in an additional $3.7 million annually
- For Oxford County, the report estimates an $889 million intergenerational transfer in the next ten years, which could result in an additional $2.2 million annually
- For Penobscot County, the report estimates a $2.3 billion intergenerational transfer in the next ten years, which could result in an additional $5.7 million annually
- For Piscataquis County, the report estimates a $422 million intergenerational transfer in the next ten years, which could result in an additional $1 million annually
- For Sagadahoc County, the report estimates a $746 million intergenerational transfer in the next ten; years, which could result in an additional $1.9 million annually
- For Somerset County, the report estimates a $740 million intergenerational transfer in the next ten years, which could result in an additional $1.8 million annually
- For Waldo County, the report estimates a $3.7 billion intergenerational transfer in the next ten years, which could result in an additional $2.1 million annually
- For Washington County, the report estimates a $569 million intergenerational transfer in the next ten years, which could result in an additional $1.4 million annually
- For York County, the report estimates a $4.7 billion intergenerational transfer in the next ten years, which could result in an additional $12 million annually.
Maine Rural Partners is already working with pilot communities in Strong, Rockport, and the Unity region to create local endowment funds inspired by the conclusions of Realizing Maine’s Worth.
Alice Cheeseman, a retired dairy farmer and town budget committee chair, is presented with a special quilt celebrating her many community activities. Unity Barn Raisers, an organization dedicated to community development in the Unity region, was founded during meetings around Alice's kitchen table. Photo courtesy of Unity Barn Raisers
In late 2010, Maine Rural Partners will publish a Community Legacy Tool Kit that consolidates the lessons learned by these three pilot communities. This tool kit will guide other Maine communities that may wish to create endowment funds.
A copy of the Realizing Maine’s Worth report can be downloaded at the Maine Rural Partners website.
February 11, 2010
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