New Research Shows Bleak Outlook on Foreclosures in Twin Cities

June 29, 2009
Photo by Andrew Ciscel

Empty home on Bloomington Ave., South Minneapolis. Photo by Andrew Ciscel

Behind the bleak national statistics on unemployment, jobs, housing prices, and other economic indicators, are hundreds of urban areas facing unique challenges.

Intuitively, we all know the economy in the Twin Cities is different from that of  Seattle, Charlotte, or Detroit. But how different are they? And where are funds (public and private) best invested to address the needs specific to this metro area?

The Brookings Institution’s Metropolitan Policy Program recently issued the first in a series of quarterly reports looking at key economic indicators across the country’s 100 largest metro areas. Collectively, these 100 areas contain two-thirds of the nation’s jobs, and generate three-quarters of GDP. Combined they are the engines of growth from which the eventual “green shoots” of recovery will spring.

The Brookings researchers examined the following indicators: employment; the unemployment rate; wages; gross metropolitan product (GMP); housing prices; and real estate-owned properties; and ranked each metro area on each of these indicators, from 1 (strongest performing) to 100 (weakest performing).

How do the Twin Cities stack up? Average or slightly worse — in the 50s and 60s – for most indicators.  But for real estate-owned properties (REOs), defined as “foreclosed properties that fail to sell at auction and thus become owned by the lending institution, shown as the share of all mortgageable properties in each metro area,” the Twin Cities ranks 92 out of 100. (Remember, low scores are good, high scores are bad.) For every 1,000 mortgageable properties in the Twin Cities, 7.63 are REOs.

Things are worse — much worse – in places like Las Vegas, NV, Riverside, CA, and Modesto, CA, which are at the absolute bottom of the list, and where there about twice as many REOs as in the Twin Cities. But those cities are also at the bottom on indicators like the unemployment rate and declining housing prices.

The Brookings researchers classify the Twin Cities as similar to cities like Atlanta and Washington that are “somewhat healthier economically, but that experienced significant exurban expansion in recent years.”

What’s most striking to me about this report is how to interpret it in the context of MCF’s new research on the outlook for grantmaking for the remainder of 2009. In Special Update: 2009 Outlook Report, the specific services related to the downturn that Minnesota grantmakers say they are most likely to support are basic skills education and job readiness skills; food assistance; and emergency housing assistance/homeless shelters.

The services grantmakers say they are least likely to support? Financial assistance with mortgage payments; assistance with heating or utilities bills; credit counseling; and homeownership education or foreclosure avoidance education.

Does this mean grantmakers shouldn’t be putting resources into food assistance or job readiness skills? Of course not. There are clearly defined needs in these areas. And it’s not like there are no foundations doing work related to foreclosures.

The McKnight Foundation, an MCF member, is actively engaged in helping to stabilize communities affected by foreclosure. So is the Pohlad Family Foundation, another MCF member.

So the question is then, how should we interpret the findings from each of these research reports?

Join the Conversation: If you are a foundation trustee or staff member, have you actively made the decision recently to fund or not fund foreclosure-related programming? What information informed your final choice?

- Juliana Tillema, MCF research manager


Michael Jackson…the Philanthropist?

June 26, 2009

Image by Son Marki

Image by Son Marki

What I learned about philanthropy from the King of Pop

I’m not going to lie to you. I grew up during the 80’s and 90’s. At the time when Michael Jackson reined as King of Pop, I was much more likely to be dancing around in my basement to the B52’s “Rock Lobster” than to “Billy Jean.”

However, news about Jackson’s death, a story first broken yesterday at TMZ.com, got me wondering was Jackson a philanthropist? The answer is, “Yes.”

According to Wikipedia, Jackson donated over $300 million to charity over the course of his lifetime. Among his most notable contributions to philanthropy were his musical ones.  He wrote and performed two hit singles that had a huge impact philanthropically.

Sales of “We are the World,” co-written with Lionel Richie in 1985, raised over $100 million for  USA for Africa.  Similarly, the proceeds of the “Heal the World” single, and the subsequent tour, were all donated to charity.

Say what you might about Michael Jackson. There’s a lot there to talk about–the outfits, the scandals, the weird pet chimp. Despite of all the dross,  you can’t deny he gave a lot.

In fact, I would even go so far as to say that there’s something that we can take away from the charitable work that Jackson did while he was alive. Namely, a lesson about the power of using your own personal talents to become a philanthropist.

Now I don’t know about you, but I personally don’t have enough dough to summer at Neverland Ranch. But I can write code. That’s why my philanthropic work is the time I spend volunteering for an organization called Rainbow Rumpus as webmaster.

If you are in similar straights, or if you just have the inclination, please volunteer. Here at MCF we are firm proponents of the notion that philanthropy is not just for wealthy people.  Anyone who cares can do it.

Whether you’re donating your time, your money, or the proceeds from your latest chart topper, whatever you do makes a difference.

Related Resources: The Whitehouse has launched a neat new website that can help match you with an organization that needs your help. Those interested in learning more about Jackson’s charitable work should read this article at DoSomething.org. Which, by the way, has some great resources for getting youth engaged in volunteerism and philanthropy. If you do have some money to donate and are looking for ways to do so, check out our Minnesota Toolkit for Giving.

- Cary Lenore Walski, MCF Web Communications Associate


MN Grantmakers Less Optimistic About Maintaining Giving Levels in 2009

June 25, 2009
A free full version of the report is available for download at mcf.org.

Download - pdf

Fifty-two percent of grantmakers in Minnesota expect giving to decrease in 2009, compared to 40% at the end of 2008, according to a new report issued by the Minnesota Council on Foundations.

The result of a collaboration with the national Council on Foundations, the Special Update: 2009 Outlook Report highlights how grantmakers’ outlook for the year has changed since MCF issued its last report on the outlook for grantmaking in 2009.

The new report compares responses to surveys conducted in March 2009 and November 2008, which asked respondents to anticipate their giving in 2009 compared to previous year’s levels.

Thirty-one percent expected giving to remain the same in March, compared to 41% in November. About the same number expected giving to increase in March (17%) and November (15%).

Although the outlook for 2009 has worsened, grantmakers in Minnesota compare favorably to national averages. Sixty-two percent of grantmakers nationwide expect to decrease their giving in 2009, as compared to 52% in Minnesota. In addition, asset declines in 2008 among grantmakers in Minnesota were not as steep as those experienced nationwide.

Food, housing, and jobs are the areas Minnesota grantmakers say they are most likely to support, in relation to the downturn.

These findings are consistent with the Nonprofit Current Conditions Report, recently issued by the Minnesota Council of Nonprofits. That report shows that 51% of nonprofits in Minnesota that receive corporate and foundation grants have already experienced a decline in grants and future commitments.

As foundation assets and payouts continue to decline, most nonprofits report they expect 2010 to be worse than 2009, according to the report.

-Juliana Tillema, MCF Research Manager


In the Media

June 24, 2009
Photo by Dan..

Ridin' the range and ropin' the headlines so you don't have to.

Your biweekly roundup of media coverage on the world of nonprofit and philanthropy (yee-ha.)

Economy
Foundations Trim Staffs After Assets Slide Lower
(New York Times) Racked by steep declines in the value of their assets, the nation’s foundations are paring their staffs in large numbers.

Kiva Takes a Righteous Risk: Offers Peer-to-Peer Lending in the U.S.
(On Philanthropy) The timing seems right. In the midst of the deepest American recession since the Great Depression, peer-to-peer microlending pioneer Kiva.org has opened the doors to its long-planned domestic lending program.

MN Nonprofits Facing More Needs, Fewer Resources
(WCCO) Brenda Voigt, the manager of the food shelf in Litchfield, neatly summarized the problem facing many nonprofit social service providers in this economic downturn. “More people are coming to us, but we don’t have as much to give,” she said.

Local
Ten Organizations Given Grants by Nonprofit Group
(St. Cloud Times) The Initiative Foundation of Little Falls has given out 10 grants for a total of $31,000 to some Central Minnesota communities.

Moai initiative kicks off
(Albert Lea Tribune) Leaders with the AARP/Blue Zones Vitality Project kicked off the walking moai initiative Thursday night for Albert Lea residents interested in boosting their social connections, friendships, physical activity and overall good habits.

Group Tries To Save Dying Bird Population
(Northland Newsletter) People looking up at the high stacks of the Clay Boswell Power Plant in Grand Rapids saw more than just clouds Thursday. Power plant officials united with environmentalists to help the Peregrine Falcon population get back on its feet as Boua Xiong reports.

National
Drop by drop, a Current of Young Philanthropy Grows
(The Seattle Times) Adnan Mahmud’s inspiration to create a new kind of charity started when he passed a stranger at a cemetery.

Early Reviews of  The Philanthropist
(The Chronicle of Philanthropy) Is the popcorn ready? Beer and soda chilling? And may be a few rotten tomatoes on hand to throw at the television screen? Then you’re ready for tonight’s debut of “The Philanthropist.”

National Community Service Initiative Launched, Leveraged by Organizations Across the Country
(PND) The Corporation for National and Community Service has announced that it will lead a national, twelve-week initiative developed by the Obama administration to stimulate economic growth and encourage community service through volunteerism.

New Project Seeks to Address ‘Unconscious’ Racial Biases

(Indian Country Today) A project sponsored by a grant from the W.K. Kellogg Foundation, is working to find new ways to promote racial equality and fairness in America. Americans for American Values is a nonprofit organization that will research the effects of “unconscious racial bias” on decision making and will develop strategies to support decision making based on consciously-held American values rather than on racial anxiety and stereotypes.

-Cary Lenore Walski, MCF Web Communications Associate


Announcing the 2009 “Nancy” Award Winners: Two Leaders Improving Young-Children’s Lives

June 23, 2009

Honoring the legacy of Nancy Latimer, lifelong advocate for children and families, the Minnesota Early Childhood Funders Network, an MCF network, announced today that its Third Annual “Nancy” Award recipients are Dr. Glenace Edwall and Zoe Nicholie.

Throughout their careers in research, teaching and administration, Edwall and Nicholie have tirelessly worked to strengthen policies and systems affecting the healthy development of children throughout Minnesota.

Dr. Edwall has served as director of the Children’s Mental Health Division at the Minnesota Department of Human Services since 2000. She is responsible for the state’s county-administered mental health service system, supports the state’s 95 children’s mental health and family service collaboratives, and oversees policy related to children’s mental health benefits provided through Medicaid. Dr. Edwall’s work has increased the identification and service capacity of the state to meet the mental health needs of young children and their families.

Zoe Nicholie retired this year from Ready 4 K, the statewide early childhood advocacy organization, where she directed the Build Initiative and Ready 4 K’s public policy work. She helped broker a new coordinated, comprehensive early childhood system. She also helped lay the groundwork for the creation of a statewide early learning council and launch the Minnesota Quality Rating and Improvement System, a collaboratively developed system of assessments, incentives and education to improve the quality of child care.

The co-chairs of the Minnesota Early Childhood Funders Network steering committee described this year’s recipients, saying:

“This award recognizes the recipients’ extraordinary leadership, passion and commitment to the development of children. Their work on policy and systems has changed the lives of children and families here in Minnesota and beyond.” – Amy Crawford, executive director of The Jay and Rose Phillips Family Foundation

“Both Glenace and Zoe are gifted leaders. They have brought people together around a common vision and have been adept at bridging organizational and sectoral boundaries.”  – Denise Mayotte, executive director of The Sheltering Arms Foundation

The Minnesota Early Childhood Funders Network created the “Nancy” Award to honor Latimer, whose 20-year career at The McKnight Foundation included serving as senior program officer.

Latimer, wife of former St. Paul mayor George Latimer, passed away in 2006.

The Minnesota Early Childhood Funders Network works to strengthen the individual and collective efforts of funders to enhance the well-being of Minnesota children and their families. Network membership is open to staff and trustees of MCF members.

Currently, 27 grantmaking organizations participate actively.  The network co-sponsors an annual briefing on children’s issues, presents quarterly briefings on early childhood topics, and holds an annual convening.

The Third Annual Nancy Latimer Convening for Children and Youth*, at which the “Nancy” Awards will be presented, is June 25, in Brooklyn Park, Minn.

- Chris Murakami Noonan, MCF Communications Associate

*This event is open to the public.


Second Helpings from the Blogosphere

June 22, 2009

Grab a plate folks, it’s time for your biweekly serving of the latest and greatest commentary from the philanthropy and nonprofit blogosphere.

Twenty-one Community Foundations that Tweet
(Philanthropy 411 Blog) The world of philanthropy is all a-twitter! Here’s a list of 21 community foundations from the Philanthropy 411 Blog who are using twitter to keep in touch with their stakeholders.

How to use Twitter to Benefit Your Nonprofit
(NJ.com) Wondering how twitter can help your nonprofit? This article gives an excellent overview of what twitter is, with some ideas on how you can get started with it. (Not technically a blog entry, but it’s so useful I don’t think you’ll mind!)

Nonprofits Will Never Be Respected Until We Start Respecting Ourselves
(Rosetta Thurman) Thurman addresses the important issue of individual responsibility in raising the prestige of working in the nonprofit field.

Philanthropy Feature on AOL News
(Charity Navigator Blog) The Philanthropy Project, in partnership with AOL, recently launched a new site, http://news.aol.com/philanthropy, to promote the benefits of living a philanthropic lifestyle. There are some great features on the site including interactive quizzes to help you identify your philanthropic interests.

Why Innovation Matters
(Stanford Social Innovation Blog) Mario Morino explores the concept of innovation using the analogy of an ecosystem. Using examples, he outlines a model for fostering a culture of innovation on a national scale.

-Cary Lenore Walski, MCF Web Communications Associate


Run, Don’t Walk Into the Public Policy Fray

June 19, 2009

As I read Lori Sturdevant’s comments about Minnesota statesman Elmer Andersen in the Strib yesterday, I was reminded of the conversation about public policy that the MCF Board had with her last week.

At the board’s June meeting, Sturdevant challenged the philanthropic community to step up:  Foundations can and should play a significant, substantive role in raising the level of public discourse in our community . . . and leading Minnesota out of the mess we’re in.

But, at an association like MCF, active public policy engagement presents some challenges.  We represent members who fall on both ends of the political spectrum — and everywhere in between, so partisan activity is a no-no.

That doesn’t mean, though, that we can shrug our shoulders and walk away. We — collectively and individually — can turn the challenges into opportunities.  (As I heard The Minneapolis Foundation’s Sandy Vargas say recently, “No excuses!”)  MCF can give our members the tools they need to make their individual voices heard and fully engage on the issues they care about most.

A recent example of member engagement was the publishing this spring of the Minnesota Bottom Line report, which offered up some innovative ways to get better results from government dollars spent.  Several major local foundations funded and led that initiative, in hopes of reframing state budget discussions during this and future legislative sessions.

Although the report has not received the play that some hoped, Sturdevant complimented the effort, citing it as an example of ways to advance ideas collaboratively and to engage the larger citizenry in these complicated budget decisions.

MCF is starting to do more public policy work these days, too.  Our Humphrey Institute fellow compiled new public policy resources on the web, and we recently hosted a forum for members with speaker David Dodson of MDC (more on that to come in a future post).

I imagine Elmer Andersen would approve of the steps we’re taking, but he would also spur us to pick up the pace.  In her column yesterday Sturdevant noted Andersen’s many roles — entrepreneur, lawmaker, journalist, farmer, etc.  In addition, he was a dedicated philanthropist, and the foundation established by him and his wife, Eleanor, continues as an MCF member.

Sturdevant concluded that Andersen’s true legacy was his stewardship of “the whole.”  Let’s hope his fellow philanthropists follow his fine example.

- Wendy Wehr, MCF V.P. of Communications and Information Services


Making it Real, Even on My Day Off

June 18, 2009

It wasn’t that I was growing weary of immersing myself in all the good work our Minnesota grantmakers are doing to support education.  It’s just that, after days and days of writing copy on this topic for our upcoming issue of Giving Forum, my fingers and my brain needed a change.

So, I was looking forward to my day off – a day dedicated to working on a Twin Cities Habitat for Humanity house being constructed in partnership with Holy Hammers. I could spend the day spreading mud on drywall and chatting with my fellow builders.

All morning, I didn’t spend even one minute thinking about my to-do list here at MCF.  Then came lunch.

Before we were done chewing our cookies, the Twin Cities Habitat onsite supervisors asked us to join in a participatory exercise that would give us insight into Habitat’s mission.  The curriculum for these “lessons” was funded by The McKnight Foundation, they said.

At the mere mention of this organization, my mind raced back to my day job and all the writing I had yet to do on education and philanthropy: “Don’t forget to email so and so about the article; remember to double check on X and get the OK on Y … .”

Oh yeah, back to drywall and housing needs in the Twin Cities.  The directions for the participatory exercise: Divide into groups of 3 people; within each group, choose one person to be the “mover” (I volunteered); each group receives a different set of step-by-step knot-tying instructions and a bunch of rope; each person in the group had to execute at least one step of the instructions. “Use as much of the rope as you want and keep tying knots as long as you can,” the Habitat person said.

OK. My group conferred, agreed on how to tie the knot so it looked like the illustration, then we each took a step and did our part to complete the knot.  We excelled.  We used up almost all of our rope tying knot after knot.

Just when we were about to proclaim, “We’re out of rope. What’s next?,” the Habitat staff person said, “Move.” An additional, unexpected rule: Whenever the staffer said “move,” the mover had to get up and move clockwise to the next group and join in their knot-tying.

So, I left the comfort of my first group and moved on.  My new group graciously allowed me to give my input on how I thought the knot ought to be tied, then told me that how they had done it previously was different.  We worked together, albeit quite a bit slower than my first group. “Move.”

The two people in my third group tried to get me up to speed on their knot. But, when I wasn’t catching on (it was a complicated knot), they grew frustrated.  During my time with them, we didn’t even complete one knot together.

On to the fourth group. Believing that perhaps the goal was to tie the most knots, all of us started to feel the pressure to just cut to the chase and get knots tied before that darn staff person uttered another “move.”  So, I simply sat down and said, “Looks like you’ve already got a knot started. Tell me what you want me to do and show me how to do it.”

Better yet, I thought, why don’t you just do it for me? I didn’t care to look at the illustrations or the knots that had been tied previously.  In fact, I didn’t even say “hi” when I sat down.

I had become completely disengaged, knowing that if I was in the least bit inquisitive, I would only frustrate the group I had temporarily joined and slow down their progress toward the ultimate objective of completing the knot.  I’m sure they were merely going through the motions too, thinking, “We can try and work through this process and tie this knot together, but you won’t be here long enough for it to matter.”

We were hopeful the exercise was almost over, but we had also resigned ourselves to knowing that the next “move” wasn’t a matter of if but when.

Frequent moves take their toll on kids with low SES.

Frequent moves take their toll on children with low socioeconomic status.

My fellow builders and I had experienced what it’s like for those who do not have a stable place to live, lay down roots, get comfortable, become engaged, contribute, be the recipient of that warm “welcome” and heartfelt investment that comes when others know you’ll be around for awhile.

“This is why we do what we do,” said the Habitat staffer.  There are way too many people – whether they’re the movers constantly trying to fit in and catch up or the seated holders of the knot-tying instruction card, the in-process knot and a bunch of rope that needs to be tied – for whom “move” is a daily, stressful reality.

As I went back to my mudding-the-drywall task, I thought about what Kathleen O’Donnell had told me.  Kathleen is the program manager for The Minneapolis Foundation’s Destination 2010 initiative. At the risk of oversimplifying this complex, 10-year undertaking, I’ll briefly explain what D2010 is.

D2010, which began in 2001 with 364 third graders at seven struggling St. Paul and Minneapolis schools, works with the students, their families and a whole host of community partners to motivate and support the students through high school graduation in 2010 and on to post-secondary education. Students must remain enrolled in Minneapolis or St. Paul public schools to continue in the D2010 initiative.

Kathleen said, “We only have 40 percent of our original students in this, their junior year, of high school. We have witnessed firsthand the corrosive effects of mobility on relationships, access to information and opportunities, and academic success.” Corrosive effects, what a thought-provoking, insightful description.

So, I tip my (drywall-dusty) hat to Twin Cities Habitat for Humanity and the McKnight and Minneapolis foundations.  They invaded my day off and made real the issues faced by too many schoolchildren, their families and those striving to help them succeed.

- Chris Murakami Noonan, MCF Communications Associate