Rosenstone noted that we have a significant and growing workforce shortage:

• There is a skills gap: Unemployment remains high, while many businesses struggle to find workers who have the technical skills they need.
• Workforce shortages will increase in the future, as Minnesota’s population ages.
• Currently, our education system does not successfully meet workforce needs.

One critical key to addressing this workforce shortage is tackling Minnesota’s racial achievement gap.

• Minnesota is becoming more diverse. In the Twin Cities, the population of color has tripled in the past twenty years. One in five residents is now a person of color. The same is true for one in four of our children – our state’s future workforce, parents, and leaders.
• The gap between the percentage of non-Hispanic white students and students of color who are proficient in reading by the end of 3^rd grade is about 25 points.
• The gap between the percentage of non-Hispanic white students and students of color who are proficient in math by the end of 11^th grade score is about 30 points.
• And the gap between the percentage of non-Hispanic white students and students of color who graduate from high school on time score is about 30 points. Just over half of students of color graduate on time.

Participants discussed ways we use these hard facts to galvanize the government, nonprofit, and grantmaking communities – and ultimately all Minnesotans – to take meaningful action to close these gaps. The work will be difficult. But Karen Kelley-Ariwoola, vice president of community philanthropy for The Minneapolis Foundation and a past board chair for MCF, called the room to action. In addressing these achievement gaps, we must all be:

• Strategic: Invest in high return upstream strategies.
• Intentional: Ask, will this close the gap?
• Inclusive: Listen to our community stakeholders.
• Outspoken
• Relentless

-Anne Bauers, MCF research manager

Students in the certified nursing assistant training program at the International Institute of Minnesota, a grantee of The Jay and Rose Phillips Family Foundation of Minnesota, practice their hands-on skills.

Read the winter issue of Giving Forum – online and in your mail now – to learn more about what Minnesota grantmakers and their nonprofit partners are doing in the tough fight against poverty in our state.

Grantmakers play a variety of roles from meeting basic human needs, to creating systemic change around poverty’s root causes, to engaging the community in identifying and solving problems, to taking policy stands on matters affecting low-income residents. Whatever role foundations have chosen to play, they are working to create a brighter future for all Minnesotans.

Read this issue’s feature article to learn more about how The Jay and Rose Phillips Family Foundation of Minnesota is partnering to train individuals for jobs that pay a living wage and how Greater Twin Cities United Way is improving access to health care for those who need it most. And read about how the Northwest Area Foundation funded an initiative to drive payday lenders from Montana and how The Minneapolis Foundation is working to level the playing field for all residents of the city.

- Susan Stehling, MCF communications associate

These health philanthropy leaders emphasized the importance of addressing disparities in health access and outcomes. Gayle described Medtronic’s focus: “We are trying to enable greater access to healthcare for populations that otherwise have been left out.”

He added, “We always have to keep diversity in the fore of our minds as we do funding. If we find we are missing some segment of the population, we will reach out to partners for recommendations on how to address that.”

Both grantmakers expressed strongly that philanthropy’s role should not be to fill gaps in public sector funding. Oswald noted, “There is just no way one philanthropic organization or even a partnership could tackle healthcare costs covered by the public sector.”

Gayle commented, “Philanthropy is able to go into areas that are unproven. We can make longer-term and sustained commitments to grantees. And philanthropy has the flexibility to make mistakes and learn from them. It’s not the role of philanthropy to step in where others have grown weary of funding. It’s to play the innovative, out-of-the-box partner.”

Both Gayle and Oswald see grantmakers becoming even more strategic as they seek to leverage grant dollars for meaningful results. As funding stays flat, Oswald said, it’s important to stick to goals. “We are working diligently to assure our funding is very targeted and a really clear match for our priorities.”

Gayle noted that Medtronic Foundation is focused on developing and strengthening health systems. “Much of our funding is going toward overall policy articulation and advocacy, development of the health infrastructure, and strengthening of healthcare deliverers, as opposed to direct services,” he explained.

Nonprofits that find the current fundraising environment challenging can look for creative ways to finance their programs. Gayle suggested: “Think about nontraditional sources of funding — local companies, other service organizations, fraternities and sororities, or professional organizations can provide as much – or even more – support than local philanthropies.” He added that sometimes health causes are perceived as social services. So see if what you’re trying to fund is defined differently by different organizations.

When approaching grantmakers, nonprofits should do their homework, but be ready to have an open conversation. Oswald noted, “Be at your very best. Really clearly explain what you’re looking for and how that fits with our priorities. When the pieces all fall into place, we are absolutely willing to work with you, even if you are completely unfamiliar with the grantmaking process.”

And Gayle encouraged nonprofits, “Take a chance. Don’t let a ‘no’ ever stop you.”

Last Outlook Webinar to Focus on Arts, Culture and Humanities

The final Outlook webinar, taking place on February 7, will delve deeply into arts funding.  It will feature conversations with grantmakers from Minnesota Philanthropy Partners and The McKnight Foundation.

Register today to learn more about Minnesota’s funding landscape in 2012!

-Anne Bauers, MCF research manager

Turn on or tune in to any media source, and your emphatic reply would be “No way.” The extreme polarization in our country is more and more frightening every day. The new cultural norm is to not merely express strong points of view but to thoroughly demonize others.

At least one practitioner says it’s time to address this crisis with a new, 21st century approach to diversity, inclusion and equity.

At the University of St. Thomas Diversity Insights program last Thursday, Howard Ross, founder of Cook Ross Inc. and a leading national expert on diversity, leadership, and organizational change, challenged his audience to look within themselves for solutions.

Ross homed in on the source of our animosity toward each other — essentially, primal fears that lead us toward unconscious, visceral negative reactions to cultural, group, individual and institutional differences.

He coached audience members to overcome the “us vs. them” mentality by developing our capacity to observe ourselves. Instead of pointing the finger at others, he said, we should shine a light on our own biases.  Recognizing our own foibles and faults will increase our compassion toward others.

Ross’s points reminded me of conversations we’ve had at MCF about diversity in philanthropy. When we developed our Diversity & Inclusion Action Kit to accompany MCF’s Working Towards Diversity IV research, we deliberately titled the worksheets ”My Actions.” We wanted to reinforce that grantmakers must take the first step by focusing on what they can do – not what others should do.

Ross concluded his remarks with some concrete steps we can each take to close the widening gulfs in our organizations and in society at large:

• Shift your consumption of media to really listen to the other side.
• Open a constructive dialogue in your organization, focusing not on the issues themselves, but on the way in which you’re talking about the issues.
• Talk to young people about other points of view.
• Take “the other” to lunch not to persuade, but to listen.

I haven’t cracked open Ross’s new book “ReInventing Diversity: Transforming Organizational Community to Strengthen People, Purpose and Performance.” But based on his presentation, I expect I’ll find more than a few concepts that are applicable to the nonprofit and philanthropic sectors.

Join the Conversation: When “us vs. them” differences arise in your own organization, what are your actions and reactions? Is there a chasm between grantmakers and nonprofits that could be narrowed by self-awareness?

- Wendy Wehr, MCF v.p. of communications and information services

Photo cc AAskew

A growing movement to spark philanthropic giving from a community on behalf of a community, where “community” is defined by race, ethnicity, gender or sexual orientation.

The U.S. population is changing, with ethnic and racial groups growing faster than the overall population. Not surprisingly, the face of philanthropy is changing along with it.

The report found that 63 percent of Latino households now make charitable donations, and blacks give away 25 percent more of their income per year than whites.

Concurrently the definition of philanthropy is expanding to encompass contributions of any size from people of every income bracket and ethnic background. And, the report shows how these new philanthropists are pooling their money—in increasingly organized ways—for greater impact.

The report challenges funders to consider ways to collaborate:

• by providing seed support and other forms of assistance,
• by embracing identity-based funds as critical partners in the sector and forging stronger connections within communities of color,
• by diversifying the leadership of mainstream philanthropy to reflect changing demographics and
• by shifting practices to reflect what communities of color are teaching about the future of giving and how funders can positively impact the country’s most vulnerable children and families.

MCF agrees that grantmaking is most effective when grantmakers reflect the diversity of the communities they serve.

For local information on the subject, check out our 2011 Working Towards Diversity IV report, which paints a comprehensive picture of the demographics, policies and practices on diversity and inclusion of Minnesota grantmakers. Review our diversity resources, and visit the websites of our strategic partners:

• Asian Americans/Pacific Islanders in Philanthropy (AAPIP)
• Hispanics in Philanthropy (HIP)
• Minnesota Blacks in Philanthropy and
• Native Americans in Philanthropy

It’s important work. W.K. Kellogg Foundation president and CEO Sterling Speirn puts it this way, “We believe that understanding and supporting this emerging area of philanthropy is essential for any foundation, funder or donor who wants to drive social change.”

- Susan Stehling, MCF communications associate

CC Photo: KellyCDB

A study released by the University of Minnesota College of Education and Human Development in February 2011, found:

• for every $1 invested in a school-based early education program, $11 is returned to society over the children’s lifetimes
• there is an 18 percent annual return on investment in early education programs (a far greater rate of return than any other common public investments)

The coalition will leverage its unique perspective as early childhood funders to advance public policy and community support for affordable, accessible, high quality care and education in Minnesota so that all children have a strong and healthy start and are prepared to contribute to Minnesota’s vitality.

The Start Early Funders Coalition currently represents more than 20 organizations that are a part of Minnesota’s philanthropic community, many of whom are MCF members.

The coalition provides critical leadership, funding, research, program development, public policy and grant making to improve early childhood efforts in Minnesota.

Together, the coalition represents:

• Statewide leadership on early childhood issues
• The voice of Minnesota’s philanthropic community
• A credible and unique perspective as funders
• A commitment to shared learning
• Dedication to capacity building
• A long-term comprehensive vision for children and our state

In the past year, significant progress has been made across the state to enhance Minnesota’s approach to early childhood care and education. However, half of Minnesota’s children remain inadequately prepared for school, and Minnesota’s achievement gap, currently among the widest in the country, must be addressed.

The Start Early Funders Coalition will work to combat these types of issues and others faced in Minnesota by uniting philanthropic and policy efforts with research and shared learning.

The group represents the merger of the School Readiness Funders Coalition and the Early Childhood Funders Network.

For more information, visit their new website.

1. Pet Peeves from Program Officers – How to steer clear of some common annoyances in the grantmaker/grantee relationship.
2. Program Evaluation or Research and Development? – We need both! Six principles for engaging in sound research & development.
3. Grantmaking at Margaret A. Cargill Philanthropies – Minnesota’s largest grantmaker gears up and starts granting.
4. Blandin Foundation Names New CEO – We welcome Kathleen Annette to her new role.
5. What Does It Take to Lead in Diversity and Inclusivity? – Excerpts from an interview with Headwaters Foundation for Justice program director David Nicholson.
6. High Praise from Program Officers – The flip side of pet peeves: how to make that relationship a good one!
7. Youthprise Launches to Champion Learning Beyond the Classroom – A new grantmaker and MCF member hits the scene.
8. Five Critical Ways to Address the Education Gap – Recommendations from the Minnesota African American Leadership Forum.
9. We All Lose: Impact of Deep Cuts to NEA – Thoughts on arts-related cuts passed in Congress earlier this year.
10. Native Americans in Philanthropy Giving Research Shows Inequities – Some bad news (national funding to Native Americans is low), and some good (Minnesota-based grantees receive the largest share of grant dollars targeting Native Americans in the nation).
11. Teaching Kids to Share, Save and Spend – Some lessons from Teach Your Kids to Share Day, presented by MCF member Thrivent Financial for Lutherans.

Join the conversation: What were your favorite blog posts of 2011?

Minnesota will receive $45 million – $20 million of which is targeted to high-poverty areas in Minneapolis, St. Paul, Itasca County and on the White Earth Reservation. The rest is designated for oversight and accountability, including a new ratings system to help parents find quality child care providers.

In recent (and not so recent) years, Minnesota seems to have had more bad than good education news. And this grant is GREAT news! I say that because it will put money toward what we know works.

When kids enter school ready to learn, learn to read in 1st and 2nd grade, and read to learn by 3rd, they have a much better shot at success in school and life.

And we know how to get kids ready to learn. According to The Minneapolis Foundation, an MCF member, the Minneapolis Public Schools have seen a 13 percent increase in the number of children entering kindergarten ready to learn after just 3 years of funding. There are lots of other examples out there too.

Art Rolnick summarized it quite nicely in his post yesterday on mpr.org:

While many of us think of Minnesota as the education state, roughly half of our children do not start school healthy and ready to learn. And research shows that when kids start school far behind they don’t catch up. Many of those kids drop out of high school and are much more likely to struggle in our society. Indeed, criminologists claim that they can predict the need for prisons in the future by the number of children who are not proficient in reading by the third grade.

That last sentence astounds me!

So Minnesota, let’s match the federal money. Let’s really start investing in every resident of our state and fund early education sufficiently, so every child has access to preschool and all-day kindergarten. And every child truly has the opportunity to become a productive citizen.

Would anyone out there really rather fund prisons?

- Susan Stehling, communications associate

Photo: cc woodleywonderworks

[Economics professor Scott Page] made a remarkable discovery, subsequently elaborated in his 2007 book, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies. Not only did diverse teams comprising members who each thought differently about the problem outperform less diverse teams, but they often did so even when the less diverse teams had better individual problem-solvers as members. As Page concluded, diversity trumps ability.

This struck a chord for me because it can be so easy to think of diversity as a laudable goal, but one that competes with other priorities instead of supporting them. We can hire the most qualified candidate, or we can hire one that will make us more diverse. We can take some time to do a diversity training, or we can get that work done that’s piling up our desks.

The research mentioned above is a powerful reminder to me that these are false choices. Increasing diversity in an organization is a plus for job candidates precisely because it can make them the best choices, by adding new perspectives and experiences that wouldn’t occur to a more homogenous group. An organizational focus on diversity is valuable because it produces better results, by getting us all to consider those different perspectives and inform our work through them.

If you appreciate those reminders about the value of diversity like I do, I encourage you to give the full thing a read. MCF is committed to the principle of diversity in philanthropy, and released a Diversity and Inclusion Action Kit for grantmakers earlier this year.

On a related note, I was glad to see an announcement this week about monthly Diversity and Inclusion Networking Lunches, sponsored by the Minnesota Council of Nonprofits and Charities Review Council, and hosted by a variety of organizations doing good work on this issue in our community.

-Chris Oien, MCF web communications associate

It continued: Minnesota outperformed almost every other state in the union, earning an Opportunity Score of 81.2 out of 100. Sounds good, but based on other information I’ve read recently, I’m not sure it tells a complete story.

The achievement gap, based on race and socioeconomics, persists in Minnesota. Things are above average for some state residents and far below average for others.

Excelling in Education:

• Good News: Minnesota has one of the highest on-time high school graduation rates (87%) in the country.
• Bad News: According to an analysis of 2011 National Assessment of Educational Progress results by MinnCAN, African American students remain more than three grade levels behind white students in math and more than two grade levels behind in reading. Low-income students are more than two grade levels behind wealthier peers. Only the District of Columbia has consistently had a larger gap.

Weathering the Economic Downturn:

• Good News: Minnesota’s unemployment rate is significantly lower than the national unemployment rate (7.4% vs. 9.1%, respectfully).
• Bad News: An Economic Policy Institute study recently found that the rate of unemployed African Americans in Minneapolis is three-times that of whites, the highest disparity in the country. State Demographer Tom Gillaspy said the findings are similar to U.S. Census data for all of Minnesota.

So, to my mind, the news just isn’t good enough for all of our state’s residents. Paul Wellstone put it simply, “We all do better when we all do better.”

Watch for the Winter issue of Giving Forum to learn how Minnesota grantmakers are addressing these and related issues.

- Susan Stehling, communications associate