After several years of increased giving, Minnesota foundations and corporate giving programs expect a decline in grantmaking to nonprofit organizations in 2009 versus 2008. According to the 2009 Outlook Report released today by the Minnesota Council on Foundations, 40 percent of grantmakers anticipate a decrease in giving, 41 percent expect their giving to remain the same, and 15 percent hope to increase their grantmaking in 2009.
“Overall, the report data show that grantmaking is expected to decrease about 4 percent in 2009,” says Bill King, MCF president. “This is, of course, a snapshot in time. The giving picture may change with the economy throughout the year.”
Grantmaking this year will decrease at a somewhat lower rate than that of asset declines because payouts are typically based on one- to three-year rolling averages, explains King. “Unfortunately, this same factor may negatively affect grant levels in 2010 and beyond.”
In response, survey respondents plan such changes as include awarding fewer grants, adjusting priorities to meet shifting community needs, and offering more nonmonetary and in-kind support to assist nonprofits that face economic challenges.
MCF also released its annual Giving in Minnesota, 2008 Edition report. This analysis of charitable giving in Minnesota in 2006, the most recent year for which comprehensive data are available, shows that individuals and grantmakers gave $5.2 billion in charitable contributions that year, an increase of 1.8 percent from 2005.
While individual giving in Minnesota decreased 1.2 percent in 2006, foundation and corporate giving showed a notable increase: 13.8 percent.
