University Center Produces Finance Study

A study released by Boston College’s Center on Wealth and Philanthropy (CWP) investigated New Jersey’s wealth from 2004 to 2008 and noted a $70 billion decline, as well as a $1.13 billion deficit in the state’s philanthropic activity.

Authorized by the Community Foundation of New Jersey and the Enterprise Trust at the New Jersey State Chamber of Commerce, the study focused on the migration of household wealth in the state over a decade.

Because wealthy households tend to be the most charitable, the study concentrated on wealth as opposed to income.

In the four year’s before those outlined in the study, New Jersey saw an increase in wealth of $98 billion and, in a similar time frame, philanthropic activity increased by $881 million. This trend was completely reversed from 2004 through 2009. The total loss amounted to around $2 billion.

“This study is important because it is the first time we have captured the movement of household wealth from one part of the country to another,” John Havens, associate director of CWP, said in a recent release. “The migration of wealth out of New Jersey is substantial and significant.”

“What we are seeing here is that wealth, and those who hold it, are not only leaving New Jersey, but they are also not being replaced at the same rate,” Hans Dekker, President of the Community Foundation of New Jersey, said.

“This has major consequences for communities across the state, especially on the nonprofit community which relies on these families to fund their critical programming.”
The migration of wealth out of New Jersey took place after a series of tax structure changes that made the state’s charitable families less competitive in comparison to other area states. The level of New Jersey’s state income taxes now exceed New York, Pennsylvania, and Connecticut, and taxes for charitable giving have not been reduced.
CWP is an interdisciplinary research center that specializes in the study of spirituality, wealth, philanthropy, and other elements of affluent life. CWP, which began in 1970, is a distinguished authority on the relationship between philanthropy and the economy, the motivations for charitable involvement, and the deeper meaning of care.

The Community Foundation of New Jersey is composed of families, businesses, and foundations with the stated goal of making an impact on lives and communities.
Their objective is to act as the go-between for donors to charity organizations and issues, and to provide continual leadership and support to their partners and communities. In this way, the families, businesses, and foundations can contribute assets into funds set up with the Community Foundation.

Depending on the type of fund, donors can recommend different grants, designate a specific beneficiary, or allow the Community Foundation to determine the best use of the fund.