Charitable Giving Deduction: No Change for Minnesota, But Debate Continues in U.S. Congress

May 16, 2013

As in past years, Minnesotans will be able to claim a deduction for charitable gifts when filing their state income taxes next year.

The committee of Minnesota lawmakers who iron out the details of the tax plan to raise state revenue has dropped consideration of a House proposal that would have changed the tax deduction to a credit. The Minnesota Council on Foundations (MCF), along with other nonprofit organizations, opposed the proposed change.

As explained by MINNPOST, changing the state’s charitable giving tax deduction would have produced significant revenue for the state, but it posed a worrisome risk to an important revenue stream for charitable organizations.

MCF worked with other nonprofit advocates to ensure the Governor and Senate held fast in opposition to the House proposal. In addition to lobbying at the Capitol, the effort included a guest editorial in the Star Tribune.

But What of U.S. Tax Reform?
While the push for potentially harmful changes to charitable giving law seems to have waned in Minnesota, tax reform proposals are just gaining steam in the U.S. Congress.

The U.S. House Committee on Ways and Means continues to contemplate various tax reform proposals that impact the charitable sector.  Last week the committee issued a report proposing a variety of options, including changes to the federal charitable giving deduction.

MCF, in partnership with the  Charitable Giving Coalition, issued an immediate response to the report. We are particularly concerned about options that would unravel the charitable deduction and hurt our communities. We explained our concerns in a joint letter to all members of the U.S. House of Representatives.

Contact Your U.S. House Member
MCF is now contacting Minnesota’s Congressional representatives in Washington to explain concerns about the ideas in the working group report and to ask them to oppose changes in the federal charitable giving tax deduction. We encourage MCF members to also contact Minnesota’s members in the House of Representatives to express support for the current charitable giving tax deduction and reject proposed changes.

Do you have questions about state or federal tax reforms affecting the charitable giving deduction? Contact me at MCF.

– Bob Tracy, MCF director of government relations and public policy


In Social Media, Is Less More?

February 7, 2013

twitter_cupcakeAllison Fine recently interviewed Kivi Leroux Miller, president of Nonprofit Marketing Guide.com, for The Chronicle of Philanthropy’s Social Good Podcast. They talked about ways to use social media for social change, and ways for organizations to improve their social media presence. Here are some of the highlights:

In order to be effective and focused on social media your organization needs to first answer this question: “What does your organization want to be known for?”

  • Gain traction by focusing on key messages for your organization and continually communicating those messages.
  • Don’t cut and paste the same information, but rather focus on repurposing content in different, interesting ways and using visuals where possible
  • Be selective and decide where the focus needs to be for your organization and then stick to it. It requires discipline and a thoughtful approach.

To help tackle internal capacity issues, volunteers can be utilized to assist with social media but need to be trained and understand the organizations messaging, plan, values and approach to the issues in order to be effective.

What are the trends in social media in 2013?

  • In addition to using Facebook, Twitter, email, blogs and their websites, many nonprofits are planning to explore Pinterest in 2013.
  • Miller believes that more nonprofits should be utilizing video for their messaging, but nonprofits are discouraged, thinking that it’s complicated and expensive.

Is social media effective for fundraising?

  • Miller believes it’s time to stop treating social media as an add-on to other fundraising channels, but rather put all the cards on the table (direct mail, email, social media, etc.) and integrate them for best results.
  • The other challenge for nonprofits is to figure out how to develop direct relationships with friends of people that support the organization. For example, if you donate to an organization on behalf of friend who is doing a fundraiser, does the nonprofit ask how the donor wants to be communicated with or give the participant control over how the organization relates to their friends? The core power of social media is relationship building, but it needs to be harnessed effectively.

Listen to the whole thing on The Chronicle of Philanthropy website, or through iTunes.

- Megan Sullivan, MCF operations and publications coordinator

Photo cc M i x y


Minnesota Grantmakers Optimistic About 2013

January 7, 2013

2013outlookbMCF reported today that Minnesota grantmakers forecast slightly higher giving in 2013. According to the 2013 Outlook Report, foundations and corporations believe their grantmaking will increase about 2% from 2012.

According to MCF’s Giving in Minnesota research, Minnesota grantmakers give approximately $1.4 billion each year to charities and scholarship recipients.

Education Giving May Grow

In the Outlook survey, MCF asked grantmakers to estimate changes in giving to specific subject areas they support.

  • Most (82 of 104) respondents plan to support education causes in 2013.
  • And 25 of the 82 plan to boost funding to education.

Support for Racial, Ethnic Populations Evident

MCF also queried grantmakers on their plans to support specific populations in 2013.

  • Most (82 of 104) respondents indicated their giving benefits racial and ethnic minority groups.
  • Other key constituencies on which grantmakers will focus include economically disadvantaged populations and children or youth.

Optimism for Assets

Grantmakers are slightly more optimistic than last year about the outlook for asset values.

  • 56% of foundations expect their assets to grow in 2013, versus 45% who projected increases during 2012.
  • Almost 33% of foundations anticipate assets will remain constant in 2013.

Learn More at Webinar

MCF will host a webinar January 16 to detail the 2013 Outlook Report findings and provide additional context about the overall economic climate.

Bob Tracy, MCF’s director of government relations and public policy, will discuss how state and federal policy priorities will impact the nonprofit and philanthropic sectors.

For webinar details and to register, visit www.mcf.org/events.

Read the Full Report

Read the complete 2013 Outlook Report, including an analysis of anticipated giving by grantmakers of different sizes and types, and descriptions of non-cash support strategies: www.mcf.org/research/outlook.

The 2013 Outlook Report is based on a late 2012 survey of 104 foundations and corporate giving programs that represent 75 percent of all Minnesota annual grantmaking.

- Susan Stehling, communications associate, MCF


The Top Ten Posts of 2012

December 27, 2012

fireworksAs the year quickly draws to a close, here’s a look back at some of the most popular content on the Philanthropy Potluck Blog in 2012.

Have a look to get a refresher or catch up on the ones you missed!

  1. Measuring the Value in Social Media Dashboards, metrics and insights for measuring internal and external values, while always tying it all back to high-level organizational goals.
  2. Visualizing Philanthropy: Storytelling with Data Takeaways from an MCF program with Cole Nussbaumer, people analytics manager at Google.
  3. Connect for Health with the Blue Cross Foundation The launch of Blue Cross and Blue Shield of Minnesota Foundation’s innovative grant program that engaged the community through a voting process.
  4. Performance Measurement: No More Excuses A first look at the new PerformWell website, designed to give nonprofits accessible, valid tools for evidence-based measurement of their work.
  5. Diversity and Donors of the Future The first blog post from Lissa Jones, MCF’s new director of diversity, equity and inclusion, looks at 12 key giving trends for nonprofits.
  6. Social Media Engagement Lessons From Knight Foundation Why are foundations seeing limited engagement from their grantees on social media? Knight Foundation’s Elizabeth Miller shared tips to turn that around.
  7. Sandy Vargas Recognized as Outstanding Citizen The Minneapolis Foundation president and CEO was honored by The Caux Round Table.
  8. The Best Free Ways to Collaborate Online Tools for project management, file sharing, online meetings and more. Also see the longer feature in Giving Forum.
  9. Karen Kelley-Ariwoola Lauded for Community Contributions A celebratory send-off for Kelley-Ariwoola as she stepped down from her role at The Minneapolis Foundation after 18 years of service.
  10. Striving to Reduce the Achievement Gap A look at the Twin Cities Strive initiative and its future impact on education grantmaking in the state.

Join the conversation: What were your favorite blog posts of 2012?

Photo cc MJIphotos


Celebrate National Philanthropy Day on Friday

November 12, 2012

This Friday, Nov. 16, AFP Minnesota, in partnership with GiveMN, will honor five local individuals and organizations as part of National Philanthropy Day. Tickets are still available for the awards luncheon, set for 11 a.m. Friday at the Minneapolis Marriott City Center.

In addition to four major awardees, GiveMN will announce the winner of two $10,000 Supersized Golden Tickets and announce the winner of a new fundraising award as part of Give to the Max Day 2012, which is Thursday, Nov. 15.

Each of these honorees has demonstrated exceptional leadership and generosity of time and resources to encourage and advance philanthropy in our community:

For more information, contact AFP Minnesota: 952.928.4645 or info@afpminnesota.org. Or visit: afpminnesota.org/philanthropyday.

Cathy Wurzer, Minnesota Public Radio host, will emcee the awards luncheon. This year’s event is generously sponsored by Abbott Northwestern Hospital Foundation Penny George Institute for Health and Healing, Marriott Minneapolis City Center, Breck School, University of Minnesota Center for Spirituality & Healing, Hansen Henley Yoder & Lamb, Minnesota Philanthropy Partners and StoryTeller Media & Communications.


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


Transform Your Nonprofit With $500,000 From Minnesota Community Foundation

October 18, 2012

This week, MCF member Minnesota Community Foundation opened applications for its Transformational Fund, a unique opportunity for a nonprofit poised for organization-wide, long-term change to receive a one-time grant of up to $500,000.

To be eligible, organizations must serve Hennepin County residents and work primarily to help individuals and families become self-sufficient. Organizations with education programs that directly lead to self-sufficiency are encouraged to apply.

Other key criteria include:

  • A strong business model
  • Clear understanding of the strengths and weaknesses of the nonprofit’s current infrastructure
  • Commitment from the staff and board to the transformation this grant would bring about

Last round’s recipient was AchieveMpls, a nonprofit that works to ensure academic achievement, equitable opportunities and career and college readiness for all students.

Visit the Minnesota Community Foundation website to learn more and watch an informational webinar about the Transformational Fund. The application deadline is December 14 at 5:00 p.m.


Best Practices for Online Giving

October 1, 2012

Give to the Max Day 2012 is coming up next month, and online giving of all sorts becomes more important every year. Jeff Achen, digital strategist at GiveMN.org, shares some tips with us here on making the most of a Give to the Max Day campaign. Many of these tips can be put to good use in many other online giving campaigns!

During 2012’s Give to the Max Day, Nov. 15, Minnesotans will donate millions of dollars to thousands of their favorite nonprofits, schools and community foundations. Ensure your GiveMN pages are ready with these best practices for online giving.

Do an image audit
It’s a good idea to do an audit of your organization’s online pages and profiles at least every six months. And, it is especially important to clean house prior to Give to the Max Day when tens of thousands of visitors will visit the fundraising site “shopping” for a cause.

Start with your GiveMN organization page. Is there a more recent photo or video you could add, or perhaps even create? Is your language up-to-date? Do you need to delete any old fundraising or project pages? Do whatever you can to make sure your nonprofit is represented well on Give to the Max Day.

Create a communication plan
Having a game plan as you head into the big day will help your nonprofit capitalize on the publicity and prizes Give to the Max Day provides. Communications planning is one of the most important areas on which to focus, so take a fresh look at your website, social media properties, blog, e-newsletter and print communications.

Use your communications to let supporters know about Give to the Max Day, why it’s important to back you on this day in particular, how to make a donation and what that donation will accomplish. Strategize about message frequency, channel and tone of communications.

Find or offer a match on donations
Offering matching dollars on donations is a great incentive to donors who enjoy making their donations go further, and if a nonprofit creates a matching grant for Give to the Max Day, it will be highlighted with other matches on the Give to the Max Day homepage.

For nonprofits: Once you’ve found a donor to match contributions, setting up the match on GiveMN is easy. Determine the dollar amount, name of the grantor (or anonymous), time period, and whether it will be created as a dollar-for-dollar match or as a challenge grant (met when a specified number of donors contribute).

For foundations: The first step is finding a nonprofit with which to partner. Then, once the match amount is determined, the nonprofit should set it up as outlined above. When the match time frame is complete, the nonprofit should report how much of the match was met and the foundation will arrange payment to the nonprofit. Foundation matching dollars do not need to be donated through GiveMN.org.

Engage your advocates
Amplify your appeals by reaching out to those in your network who already know and support your organization’s work. Ask for their help and provide them with messages they can easily customize and pass along to their email contacts and social networks.

Thank your donors
GiveMN allows nonprofits to customize the automatic email donors receive after making a donation. Take the time to update that message through the GiveMN administrative dashboard, but realize that it serves primarily as a tax receipt and acknowledgement of a donation. It shouldn’t be the only thank you message donors receive from your organization.

Using GiveMN, your organization could add a thank you video to its page. And then consider other avenues to follow-up and thank each of your donors appropriately.

Join the conversation: What are your best practices for a successful online giving campaign?


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