Originally published on 10/11’s Pure Nebraska Program.
Five percent might not seem like much, but generous Nebraskans understand that just a small portion of their estates can go a long way in helping the communities they love thrive.
Raymond Scott in Valley County was inspired to leave 5% of his estate to the Valley County Community Foundation Fund after learning about Nebraska’s 2021 Transfer of Wealth Study, which found more than $100 billion in Nebraska wealth will pass from one generation to another over the next 10 years. Over 50 years, the figure swells to $950 billion.
There is always a transfer from generation to generation, as parents pass away and leave their estates to their children. But if the heirs no longer live where they grew up, those critical resources leave as well.
“It’s a shock to see how much is going out of the county,” Scott said.
Nebraska Community Foundation’s Five to Thrive campaign urges Nebraskans to consider leaving 5% of their estate to their hometown. Giving just 5% to local charitable causes would amount to more than $5 billion in the next decade – and $47.5 billion over the next half-century. It’s also an approachable number for people concerned about leaving enough assets for their family. Hundreds of hometowns in the Nebraska Community Foundation network are putting those charitable dollars to good use be reinvesting them into things like education, the arts, early childhood development, recreation and other quality of life initiatives that are making Greater Nebraska more attractive to future generations.
“Five percent does not scare people,” Scott said. “It’s not going to rob the family. I think it’s a reasonable ask.”
Amanda Sindelar of Atkinson also took the Five to Thrive campaign to heart when she made a planned gift to Atkinson Community Foundation Fund in the form of a designation on her retirement plan.
“I was so excited when this campaign launched, not only as a giver but as an asker,” Sindelar said. “My mind just spins with so many ways this could help our hometown.”
Many donors are designating their planned gifts toward their local Nebraska Community Foundation (NCF) affiliated fund’s unrestricted endowment. Much like a retirement account, an unrestricted endowment generates investment income for a community year after year. Because the principal remains untouched, it grows with every gift – and so does the annual payout. The local volunteers stewarding the unrestricted endowment account can grant the funds in ways that they determine will fulfill its mission.
Siblings Julie and Bill Claybaugh, who have also planned a Five to Thrive gift, are confident the Wayne Area Legacy Fund will be good stewards of their legacy and continue to make Wayne County a vibrant place to live, work, and raise a family.
“It’s in good hands,” Julie said. “They have their finger on the pulse of a lot of things that are going on, so they can see a bigger picture and are aware of more needs than we are as individuals.”
As Estate Planning Awareness Week (Oct. 20-26) comes to a close, NCF says now is a perfect opportunity to create or revisit an estate plan. Writing a will may seem intimidating, but most people report the process is easier than anticipated. Meeting with an attorney or professional advisor is always recommended, however, the Foundation has online tools to help you get started. For instance, www.fivetothrivene.org has a free, easy-to-use will planning guide to take you through the process. Visit the website, scroll down to the “Transfer of Wealth Toolkit,” and click on “WORKBOOK: Planning Your Legacy” to access the free guide. Nebraska Community Foundation staff are also always happy to discuss taxwise charitable gift planning strategies and the ways Nebraskans are leaving a legacy.
