According to Federal Reserve data, Americans age 70 and older have acquired more than $35 trillion in their lifetimes, making up 27% of U.S. wealth. In fact, Cerulli Associates projects baby boomers will pass down more than $70 trillion by 2042. While the majority of these funds will go to heirs and family members, a large portion of funds will be set aside for charities and other philanthropic efforts. This is where the Christian Community Foundation comes in!
Recently, president Rex Jones spoke with Christin Yates of the Daily Memphian about what this means for
giving foundations like CCF.
As of 2021, anyone can give up to $11.7 million in inheritance and still avoid federal gift or estate taxes. Additionally, gifts up to $15,000 can be given within a calendar year without tax implications. This transfer of funds is causing nonprofits to see an uptick in donations and the establishment of donor-advised funds to better manage money.
“A benefit of a donor-advised fund is that you can create a plan for giving,” said Rex. “It’s our job at CCF to ensure your giving philosophy and wishes are carried out in the way you decided.”
Another benefit baby boomers are taking advantage of is a donor-advised funds’ ability to grow funds tax free. Money accrues and your loved ones get the best part of the job – giving it away!
To learn more about the largest wealth transfer in modern U.S. history, check out this Daily Memphian article.