Estate Planning for the Great Wealth Transfer and Local Philanthropy
Written by Clark Collier, CAP(R), CICF Director of Giving Strategies
Reports of philanthropy’s death may have been not only exaggerated, but also backwards.
Once adjusted for inflation, total U.S. charitable giving is up more than 175% over the last forty years (from $214 billion in 1984 to $592 billion in 2024[i])
So, what’s all the fuss about? Well, though charitable giving is breaking records, these massive totals come from fewer, older individuals.
One likely explanation is the much-vaunted “Great Wealth Transfer.” Recent estimates show a $124-trillion wealth exchange is underway in America, lasting until 2048[ii]. That sum represents the largest accumulation of wealth in human history. How those assets will be directed in our society is a major discussion in households, charitable organizations, and, increasingly, the offices of estate planners and other advisors.
At the same time, a 2025 pullback in federal grant funding to nonprofits is adding urgency to a shrinking donor landscape. Many nonprofits find they suddenly have a greater reliance on private philanthropists they have yet to meet. Who will make the introductions?
These unanswered questions and competing trends are all reshaping the role of philanthropy within the estate plan.
How the Great Wealth Transfer Rewrites the Planning Conversation
Cerulli Associates projects that about $18 trillion worth of the transfer will go to charity, with the remainder going to heirs.
In most cases, these donors are Baby Boomers (born between 1946 and 1964), whose wealth reflects decades of market gains, home appreciation, retirement savings, and business growth. More than any other generational cohort before them, old age is forcing them to confront the question: “How will our remaining wealth contribute once we no longer need it?”
As philanthropy shifts from an afterthought or a line item to a more intentional family endeavor, these clients are taking a more direct interest in how their giving shows up in the community. They want to know if a portion of their wealth can sustain the local food banks that saw their neighbors through the pandemic or contribute to the scholarship funds working to achieve a more upwardly mobile Indiana.
That is especially true for married couples. Most of the wealth transfer will pass first through the hands of surviving spouses—95% of whom Cirulli Associates estimate are women. For that reason, estate planners must consider who is invited into the discussion.
It is important to note this could present a shifting dynamic in goals. Consider this: Last year, the Lilly Family School of Philanthropy found that “Millennial, Boomer, and older… women are more likely to give in general and to secular causes than their male counterparts.”
Bringing together both spouses into discussions about legacy gifts, charitable priorities, and the vehicles used to give is no longer just “best practice.” It is an essential step in crafting plans that will endure as wealth passes to spouses and younger generations.
DAFs and the Local Advantage of Community Foundations
For some clients, especially those who have lived mostly in one state or community, they want to make as significant an impact as possible locally.
Against this backdrop, donor-advised funds (DAFs) have emerged as one of the most popular tools for incorporating philanthropy into estate and tax planning.
DAFs are largely sponsored by either national financial firms or local community foundations. For Indiana, the latter route is often taken simply due to the state’s early adoption of and explosive growth in community foundations; the statewide total of these groups increased from about twelve in 1990 to ninety-four by 2016[iii]. Today, there’s at least one such foundation serving every Hoosier county.
A donor-advised fund at a community foundation offers the accessibility and simplicity clients appreciate in a DAF, but with a distinctly local expertise. Staff at a foundation also live in the community they serve. Consequently, they have personal knowledge of which nonprofits have strong track records, where gaps in services exist, and how local conditions are evolving.
For example, when a client wants to support infant and maternal health in Indianapolis or housing affordability in Hamilton County, a community foundation moves beyond a database search to discussions with specific individuals and organizations; they consult local data, or fund it where it does not yet exist; they assess current initiatives, and effective partnerships.
For some of those planning an estate, administrative fees are a surprising point of differentiation, favoring the local foundation. Unlike national institutions, fees at a community foundation underwrite more local charitable activity, like more grantmaking, data collection, and community convenings.
For clients who care about their region’s long-term health, it is often compelling to know that even the overhead associated with a donor-advised fund is reinvested closer to home.
Crisis and Opportunity
Taken together, the growing need among nonprofits and the ongoing Great Wealth Transfer point toward a philanthropic future that is both more in-demand and more effective.
With changes to tax law taking effect this year, many more taxpayers will find they have both a financial and a communal reason to claim at least some charitable giving[iv]; this could potentially broaden a shrinking donor base. Meanwhile, older Americans and spouses will continue to steward the greatest concentration of private wealth the world has ever seen.
Women, in particular, are poised to become central philanthropic decision-makers as surviving spouses and primary wealth holders. When their voices are fully included in planning conversations, the resulting charitable plans may reflect a wider range of priorities, from human services and education to cultural amenities and neighborhood-level investments.
In Indiana, that combination of a broader philanthropic base, generational philanthropic impact, and a well-established nonprofit ecosystem creates a historic opportunity for anyone wishing to plan a more significant legacy in the Hoosier state.
About the CICF Collaborative
CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unites the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more »
About the Author
Clark Collier is CICF’s director of giving strategies, working with individuals, families, and their advisors to structure meaningful and impactful philanthropy. As a Chartered Advisor in Philanthropy (R), Clark provides gift planning support and counsel to the CICF Collaborative and nonprofit organizations throughout the region. He previously served as a philanthropic advisor for CICF and in development roles for both local and global organizations.
[i] Giving USA, Lilly Family School of Philanthropy at IU Indianapolis; https://givingusa.org/giving-usa-2025-u-s-charitable-giving-grew-to-592-50-billion-in-2024-lifted-by-stock-market-gains/
[ii] Cerulli Associates, “Cerulli Anticipates $124 Trillion in Wealth Will Transfer Through 2048” (Dec. 2024); https://www.cerulli.com/press-releases/cerulli-anticipates-124-trillion-in-wealth-will-transfer-through-2048
[iii] Lilly Endowment Inc., “Lilly Endowment Continues its Community Foundation Initiative” (Oct. 2023):
https://lillyendowment.org/news/lilly-endowment-continues-its-community-foundations-initiative/
[iv] Carnegie Investment Counsel, “Charitable Giving Tax Changes Coming in 2026 – What You Should Know” (Dec. 2025); https://blog.carnegieinvest.com/charitable-giving-tax-changes-coming-in-2026-what-you-should-know