The State of Minnesota’s Native American Nonprofit Economy

March 12, 2013

nativereportEarlier this month, the Minnesota Council of Nonprofits and Native Americans in Philanthropy released their Native American Nonprofit Economy Report. I had the chance to attend a community forum about the report, where we heard from those who put it together along with responses from several Native nonprofit and tribal leaders.

Among the many insights they shared about the state of Native American nonprofits in Minnesota, here are a few that stuck out to me:

  • Native-led nonprofits are an innovative group — 83 percent of them feel they’re better off now than they were five years ago and attribute that to a serious organizational focus on obtaining results.
  • The majority of Native American nonprofits are located in the Twin Cities metro area. This is a boon for the many Native people living in this urban area, but it also means Native nonprofits in rural areas are overlooked. Nonprofit resources are also badly needed within reservation communities.
  • Native nonprofits do not receive substantial funding from casino revenue. This is a common misconception, but the reality is that tribal funding of nonprofits is a distant fifth place as a source of revenue, behind government (federal, state and county) support, private foundation grants, earned revenue and private donations.

And some key recommendations for funders:

  • Consider long-term funding support for programs, operations and public policy advocacy, instead of one-year grants that can leave nonprofits constantly unsure if they will be able to sustain any momentum from their efforts.
  • Build close relationships in the Native community, and develop joint evaluation metrics using logic models based on community assets rather than deficits.
  • Make it a point to support youth and leadership development.

You can download the full report from the Native Americans in Philanthropy website. I recommend giving it a read and learning more about this important part of Minnesota’s nonprofit community.

-Chris Oien, MCF web communications associate


Minneapolis Develops New Index to Measure Creative Vitality of City

March 5, 2013
The Minneapolis Creative Index 2013 is filled with graphics, like this one on nonprofit art organizations.

The Minneapolis Creative Index 2013 visually showcases the strength of the local arts community.

The Arts, Culture and Creative Economy program for the City of Minneapolis has released a new study using the Creative Vitality Index (CVI), commissioned by the city and developed by Western States Arts Federation (WESTAF). CVI is designed to capture the impact of the creative community in Minneapolis and the Minneapolis Metropolitan Statistical Area (MSA) and to measure annual changes in the economic health of highly creative industries.

This system of measurement will provide a new resource for policymakers, arts professionals, artists and community arts advocates. Grantmakers may utilize the index to provide a more in-depth analysis of Minneapolis’ creative sector, including measuring the city’s creative employment by ZIP code. This will allow grantmakers to focus funding on the specific needs of the creative community in their target geographic areas.

According to the Minneapolis Creative Index 2013 report, the economic impact of the Minneapolis creative community on the economy is large, accounting for 1% of the overall retail economy and posting performing arts revenues almost ten times the national average.

On average, the MSA creative sector injects $700 million into the Minnesota economy each year. By comparison, this is approximately 70% of Minneapolis’ sports sector revenue without the benefit of publicly subsidized stadiums. Arts patrons spend on average an additional $20.40 per person on event-related purchases like parking and food.

The creative sector has also been crucial to Minneapolis’ job growth, employing nearly 20,000 residents, or about 5% of all jobs in the city. Creative employment in the MSA represents 74% of Minnesota’s creative occupations, the sixth highest CVI score in the country.

The report also detailed the effects of the creative sector on Minneapolis’ nonprofit community and the greater creative arts ecosystem. Despite recent losses in overall nonprofit revenue, contributions to nonprofit arts organizations increased 10% over the two year period ending in 2011. Increased revenue from the Clean Water, Land and Legacy Amendment also fueled growth in the nonprofit arts community.  The amendment specified that 19.75% of $7.5 billion dollars to be generated statewide over the next 25 years will go to fund arts and cultural activities.

Although the new CVI measurement system has proven to be a valuable tool for measuring the economic benefits of art in Minneapolis, the system has some limitations. It relies is heavily on business transactions and employment, and does not capture non-commerce related impacts like community cohesion and safety, feeling of well being, expressions of identity or rates of attendance. Also not captured in the measurement are nonprofit organizations with annual budgets under $25,000 or demographic traits like race, age or gender. As looking for arts funding has become more competitive, proving the impact of the arts remains a difficult but crucial part of arts advocacy.

Minneapolis plans on releasing core CVI data annually, with a full report to be published bi-annually.

-Kaitlin Ostlie, MCF administrative assistant


Funding Diversification Needed for Culturally Specific Theaters

February 21, 2013
penumbra

Penumbra is the largest theater representing African American experiences in the Twin Cities

A recent Minnesota Public Radio (MPR) piece examines the unique fundraising challenges faced by culturally specific and ethnic theater groups. These theaters present work by and about particular groups. Two local examples are Mu Performing Arts, representing Asian American experiences, and Penumbra Theater, representing African American experiences.

As art funding starts to rebound, most individual donors continue to support large, culturally western groups serving audiences who are whiter and wealthier than the American average. This trend, along with the reduction of foundation, government and corporate support for theater, has placed many culturally specific theaters in jeopardy. To survive, small arts groups must expand revenue sources, diversify funding and do a better job of networking with individual donors.

As Minnesota’s population diversifies, engaging diverse individual donors continues to be a challenge. According to MPR and Michael Kaiser, president of the Kennedy Center for Performing Arts, the average white theater company gets 60% of its funding from individual donors. That compares to (less than) 26% of funding that Penumbra receives from individuals. Two factors are cited as contributing to the gap: available wealth in the theater’s community and the history of philanthropy within the culture.

Another factor contributing to the decline is the diversification of offerings from mainstream theaters. As large theaters start to embrace multicultural programming, they attract support that may traditionally have gone to small ethnic theaters, which may have trouble competing for grants against large, more established groups. And, even with a shift toward more mainstream multicultural theater, criticism about a lack of representation from women and communities of color on America’s stages continues, as a backlash against the Guthrie’s 2012-2013 season showed.

However, Penumbra has also demonstrated that there is hope for building and diversifying fundraising capacity. After cutting staff and suspending programming indefinitely as a result of a major 2012  budget short fall, Penumbra focused all its energy on raising the $340,000 needed to keep its doors open. According to MPR, by the end of 2012, the theater had raised $359,000 from more than 1,400 individuals, corporations and foundations. To grow future sustainability, Penumbra is now developing a new business plan and examining ways to maximize revenue streams.

Culturally specific theaters are worth supporting. They provide ethnic and minority communities with a place to express their cultures using their voices. In addition, they bring another group’s individual and shared experiences to broader audiences. Funding diversification is key to making these theaters sustainable.

For more on a similar topic, read a post I wrote a year ago for Philanthropy Potluck on the need for arts giving to contribute more to the common good.

-Kaitlin Ostlie, MCF administrative assistant


Data More Important Than Ever in the Social Economy

January 15, 2013

datasocialAs 2013 begins, many organizations (including MCF) are releasing their predictions for what the new year may hold for grantmakers and nonprofits. One of the strongest industry forecasts is Lucy Bernholz’s Blueprint 2013: Philanthropy and the Social Economy.

Bernholz begins by broadening how we think about the philanthropic and nonprofit sector to include the entire social economy: “The social economy refers to all the ways that we direct private resources for public good. Where once this was largely the domain of charitable gifts to nonprofit organizations, we now use social businesses, impact investing, campaign contributions, social welfare organizations, peer-to-peer giving, crowdfunding platforms, and informal networks to make the change we want.”

So what are some long-term shifts that will matter to the social economy in 2013 and later years? Bernholz outlines several:

  • Foundations will go big on data. In 2012, more than a dozen meaningful efforts at sharing philanthropic data were launched. The development of linked, comparable, accessible data will only continue. And all of us will find new ways to compare, analyze, and present this data.
  • Mobile giving and networked action will become an even bigger movement in the social economy. It’s now easy for individuals to donate to causes quickly and easily using a mobile device. This will spur smaller, more frequent donations.
  • Being thoughtful about data privacy and transparency will become even more critical for philanthropy. Bernholz notes that “organizations working for the public benefit have a particular responsibility to be inclusive in the data they collect, use, and advocate with while also respecting the privacy and ownership of that data by the people from whom it comes.” As data sharing becomes more prevalent, organizations should ensure that they are respecting individual information ownership and privacy.

Blueprint 2013 also makes a few predictions that will be particularly relevant this year. Here are three of the most interesting:

  • Congress will change the rules on tax deductions
  • State courts will take center stage on issues of nonprofit donor disclosure.
  • Crowdfunding will go mainstream.

Join the Conversation: What long-term trends do you think will impact the social economy?

- Anne Bauers, MCF research manager  



The State of General Operating Support in Minnesota and Beyond

November 13, 2012

Grantmakers can invest in the health, growth and effectiveness of their nonprofit partners by providing them with general operating support, in addition to or instead of more restricted program or capital support. Recently, the National Committee for Responsive Philanthropy (NCRP) took a close look at national trends in general support in their research brief The State of General Operating Support (PDF). NCRP compared the latest available data on a sample of 906 large grantmakers’ average giving from 2008-2010 to a previous 2004-2006 sample. It found that foundation giving to support the general operations of nonprofits increased through the recent recession, but the share of foundation dollars classified as providing this vital type of funding remains the same, at about 16 percent.

Here in Minnesota, grant dollars dedicated to general support tend to be higher than the national average. In 2010, general support received 20 percent of Minnesota grant dollars. Program support garnered 62 percent and capital support 9 percent. (Student Aid and Other Support received the remaining 7 percent of grant dollars.)

Click on this figure for a full-size view

But general support has not grown as quickly as program support in recent years. Program and general support both remained steady during the height of the recession in 2008 and 2009, but program support increased sharply while general support dipped slightly in 2010 (see Figure A). Capital support, which decreased in 2008 and 2009, increased in 2010, primarily because of the Minnesota Orchestral Association’s capital campaign.

Why General Operating Support?

NCRP articulates five benefits to providing general support to nonprofits:

  • It provides flexibility to meet pressing community needs and achieve impact.
  • It eases administrative burdens for grantmaker and grantee alike.
  • It contributes to nonprofit sustainability and capacity building.
  • It signals trust between the funder and grantee without sacrificing accountability.
  • It shifts attention from limited program outcomes to broader organizational and social impact.

Learn More: A detailed overview of support type giving in Minnesota – and information on many other trends in giving – is available in Giving in Minnesota, 2012 Edition.

-Anne Bauers, MCF research manager  


Honoring Innovation in Technology

November 8, 2012

Last week, the Minnesota High Tech Association (MHTA) presented the 2012 Tekne Awards to honor those who play a significant role in discovering new technologies that educate and improve the lives and futures of people living in Minnesota and beyond.

An MCF member and a nonprofit changing the way Minnesota gives online were among the recipients:

Blandin Foundation (on behalf of the Minnesota Intelligent Rural Communities Coalition) won the Innovative Collaboration of the Year Award.

Blandin Foundation aims to ensure that its rural Minnesota partner communities have access to broadband Internet capabilities.

The latest in a series of broadband projects led by Blandin Foundation, MIRC was built on the lessons learned and the success of its predecessor broadband-focused programming. It supports a broadband vision for Minnesota, developed by the project’s guiding strategy: to ensure a high quality of life and a globally competitive future for its citizens, businesses and communities.

MIRC partners are numerous and the impact the collaboration has had on broadband adoption is significant. In fact, the adoption rate is 29.8% faster in MIRC partner communities when compared to the rest of rural Minnesota.

GiveMN (an affiliate of Minnesota Philanthropy Partners) won the Technology Excellence in a Nonprofit Organization Award.

GiveMN aims to transform philanthropy in Minnesota by growing overall giving and moving more of it online.

Since its launch in 2009, GiveMN has helped raise $50 million, for over 6,600 non-profits. GiveMN’s new model for e-philanthropy, combined with its relationships with local partners, lends credibility to the organization’s mission. In addition, GiveMN provides training to help non-profits and individuals become more digitally savvy fundraisers.

GiveMN’s fourth annual Give to the Max Day is one week from today, on Thursday, November 15.

Congratulations to all fifteen of this year’s Tekne Award winners!

- Susan Stehling, MCF communications associate

Photo cc mrsdkrebs


Follow

Get every new post delivered to your Inbox.

Join 2,445 other followers