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

We reviewed recent trends in human services giving and the subject area outlook for 2012. Then Bill King, MCF president, talked with Neal Cuthbert, vice president of program, The McKnight Foundation, and Randi Roth, executive director, Otto Bremer Foundation.

These leading grantmakers acknowledged the difficult funding landscape. Roth explained, “Needs are dramatically outstripping resources. In the communities, the economic conditions are more difficult than you could remedy with the amount of money that’s available. Last year’s donors are this year’s recipients.”

Added Cuthbert, “The human services arena has really been challenging not only because of the recession but because of what’s been going on in the public sector. There’s political stasis and an inability for the public sector to move forward.”

These challenges aside, Roth and Cuthbert offered some perspective and insight for grantseekers in 2012:

• Everyone’s focused on greater impact. “These communities need help. You only have so many dollars and you want them to go as far as possible. Impact is really just a way of being cost effective,” noted Roth. Both panelists agreed that defining and measuring impact is difficult. Cuthbert said, “We try to really focus on and articulate the two or three areas where we want to see change.”
• To achieve more impact, grantmakers and nonprofits are creating opportunities for shared learning and collaboration. As Roth described, “Is one model proven to be effective and can this information be shared between grant applicants? Can a program that’s doing a good job share those best practices?” Cuthbert explained, “We expect ourselves to be constantly learning and we expect it of the people we work with.”

So how can nonprofits more successfully partner with grantmakers in 2012? Roth summarized, “Tell us how your work will move this community forward, tell us how you’ll know you’re successful, and tell us where you fit into the network of service providers.” She added, “As a grantmaker you don’t expect the same level of sophistication in answering these questions from a very small organization as from a very large one. But I think you still have the conversation on the same topics. Even the smallest organization in the most remote place does need to be thinking about these things.”

Cuthbert summed up, “You have to be brutally pragmatic, as nimble as you can possibly be, flexible and opportunistic.”

Other Grantmakers to Share Advice

Two more upcoming webinars will delve deeply into health and arts funding.  They will feature conversations with grantmakers from Medtronic Foundation, Miller-Dwan Foundation, Minnesota Philanthropy Partners, and The McKnight Foundation.

• Health, February 1; and
• Arts, February 7.

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

-Anne Bauers, MCF research manager

We reviewed recent trends in education giving and the grantmaker outlook for 2012. Then Bill King, MCF president, chatted with Mike Newman, vice president and director of community relations, Travelers Foundation, and Susan Heegard, vice president and educational team leader, Bush Foundation. These leading grantmakers described several important trends in education grantmaking for 2012:

• Grantmakers will continue to focus on collaboration as a way to share learning opportunities with partners, leverage resources, and prevent duplication. Heegard explained, “If there are other folks working in this area, we want to make sure that we’re adding value and figuring out carefully where our niche is.” Newman added, “We as a philanthropic sector, along with the nonprofit sector, are learning how to better connect with one another.”
• One benefit of collaboration is enabling grantmakers and nonprofits to be learning organizations. “Learning – and sharing that learning with others – is really critical, whether you have success or not,” said Heegard.
• Data will continue to drive grantmaker decision making. Heegard noted, “You want to use data to guide the front-end decision: How should you invest? And then you want to use data to track your progress: how are you doing?”
• Even as collaboration becomes increasingly important, Newman noted that grantmakers will continue to fund diverse priorities and programs. Heegard added that this makes sense — to fund across the full spectrum of education needs.

The grantmakers also offered their own advice to nonprofits seeking grants in 2012:

• Know your own work well. Newman commented, “Be clear about who you are and say it with clarity.”
• Know your colleagues and potential partners. “Have a good knowledge of who else is doing similar or related work. Distinguish your efforts, or figure out a way to come together with others in partnership,” Heegard said.
• Understand the grantmaker, including areas of focus. “Check out our website. Talk to colleagues. Find out who else we fund. That gets you a helpful overview,” Newman advised.

One great tool for understanding grantmakers’ guidelines and which nonprofits they’ve supported in the past is MCF’s Minnesota Grantmakers Online.

Other Grantmakers to Share Advice

Three upcoming webinars will delve deeply into other subject areas, and they will feature conversations with grantmakers from The McKnight Foundation, Medtronic Foundation, Miller-Dwan Foundation, Minnesota Philanthropy Partners and Otto Bremer Foundation.

• Human Services, January 24;
• Health, February 1; and
• Arts, February 7.

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

-Anne Bauers, MCF research manager

Their Transformational Fund will provide one-time major funding of up to $500,000 for nonprofits that help economically disadvantaged people become self-sufficient, and that are ready for organization-wide, long-term sustainable change.

A few of the things they’re looking for:

• Organizations that primarily serve Hennepin County
• Organizations with proven program effectiveness
• Organizational leadership with pioneering vision and the ability to bring that vision into action
• Organizations with business models that include a strong revenue mix and a clear understanding of the strengths and weaknesses of their current infrastructure
• Consensus between the board of directors and key staff on the next steps needed for the organization to move to the next level

Visit the Minnesota Community Foundation website to learn more and to complete their online submission form. Interested nonprofits should start planning their applications now! The submission window closes January 31, 2012.

I’m thrilled to see that Minnesota Helps – North Minneapolis Recovery Fund will be awarded the “Outstanding Contribution to Philanthropy” award. It’s a well-deserved honor that comes just six months after a tornado slammed into the north side of our city. Thus far, the fund has provided $1,337,160 to assist the residents of North Minneapolis.

Shortly after the tornado hit, local foundations and the Greater Twin Cities United Way joined together to create the fund to quickly assist those directly impacted by the storm.

The effort has been led by the following partners, almost all of them members of MCF (marked with an asterisk).

• The Minneapolis Foundation*
• Greater Twin Cities United Way*
• GiveMN.org
• Best Buy Corporation*
• Blue Cross and Blue Shield of Minnesota Foundation*
• CenturyTel, Inc.
• Comcast*
• Cummins Foundation
• Faegre & Benson Foundation*
• George Family Foundation*
• The Grotto Foundation*
• James R. Thorpe Foundation*
• Land O’Lakes, Inc.*
• Lunds and Byerly’s
• McKnight Foundation*
• North Star Fund
• Park Nicollet Foundation*
• Pohlad Family Foundation
• The Saint Paul Foundation*
• TCF Foundation*
• US Bank – Private Client & Trust Services*
• Wells Fargo Foundation*

Many of these partners made large donations and also matched contributions from city residents and others who answered the call for assistance. GiveMN.org waived credit card fees on donations, so 100% of every donation went to help those in need.

Thanks to all of the funding partners and to those who contributed to the fund. We all make Minnesota a better place to live.

Funds Still Available
And, funds are still available for nonprofits, faith based organizations and public entities providing support and financial assistance to those most affected by this disaster. Learn more about how to apply for funds.

-Susan Stehling, communications associate

Supported by $1.59 million in grants, this two-year undertaking aims to bolster Native financial institutions. Native social entrepreneurship uses business principles to build wealth and formulate solutions to social issues.

“Historically, less than one-half of one percent of philanthropic dollars is invested in Native American programs, and studies indicate that number is decreasing. This initiative seeks to invest in Native communities’ ability to reduce poverty and build prosperity,” says Kevin Walker, president and CEO of Northwest Area Foundation.

To learn more about this innovative effort, use the links below and watch for a Q&A with Martin Jennings, Northwest Area Foundation program director, in the fall issue of Giving Forum - in your mailbox soon.

Oregon Native American Business and Entrepreneurial Network (ONABEN) will lead the initiative and support an educational cohort in which the participating organizations will meet regularly to learn and share best practices.

Six additional grants have been awarded to nonprofits participating in the cohort.

• Four Bands Community Fund Inc. will create a green business development curriculum. Four Bands will work in partnership with Cheyenne River Tribal Ventures.
• Hunkpati Investments Inc. will receive a grant for its Community Development Financial Institution (CDFI), which seeks to stimulate economic growth on the Crow Creek Sioux Indian reservation.
• Lakota Funds will support a pilot project for a children’s matched savings program known as Children’s Development Accounts (CDA).
• Northwest Native Development Fund (NNDF) will implement its Growing into Our Footprint project to expand business training, outreach, tax preparation assistance and access to loans.
• Taala Fund of Taholah, Wash. will receive funding for the Quinault Asset Building initiative, which introduces youth to financial management and business principles, paving pathways to future prosperity.
• Confederated Tribes of the Umatilla Indian Reservation – Business Service Center will provide business and financial education as early as elementary school.

- Susan Stehling, MCF communications associate

The research sample gave $105.7 million to the arts in 2009, the most recent time period for which complete data are available. The sample includes 100 of Minnesota’s top grantmakers and a portion of their grants that represent about two thirds of the state’s philanthropic giving for the year.

The share of Minnesota grant dollars going to the arts has decreased steadily in recent years, from 15 percent in 2004, to 11 percent in 2009. Arts grantmaking falls behind giving to education, human services, and public affairs/society benefit.

“The poor economy and changing priorities at foundations have hit arts organizations especially hard,” says Bill King, MCF President. “Many funders have reduced arts giving and prioritized human services and education giving during tough times.”

Corporate grantmakers, private foundations and community/public foundations all decreased their giving to the category of arts, culture and humanities. Corporate grantmakers, who gave just over half of the arts grant dollars in 2009, decreased their funding by 7 percent.

Private grantmakers, who gave about one-third of arts dollars, decreased their funding by 5 percent to $37.6 million. And community/public foundations reduced giving by 32 percent to $11.8 million.

Minnesota Community Foundation and The Saint Paul Foundation was the state’s third largest arts grantmaker in 2009.

Sharon DeMark, program officer, explains, “At our foundations, we remain committed to supporting the arts as an important part of a vibrant community.”

As in past years, in 2009 the performing arts subcategory received the largest share – just over one-third – of arts grant dollars. Grantmaking to arts, culture and humanities includes contributions to the performing arts, museums, media/communications, cultural organizations, historical societies, visual arts, humanities and arts services.

“The arts are an essential part of life for all Minnesotans,” stresses Vickie Benson, arts program director at The McKnight Foundation, Minnesota’s second largest arts funder. “Artists help us find meaning and make sense of the world around us.”

In 2009, the Minnesota Legislature appropriated approximately $93 million from the Arts and Cultural Heritage Fund for projects starting between July 1, 2009, and July 1, 2011. This new taxpayer-funded source of arts funding is not included in MCF’s philanthropic research.

MCF conducts Giving in Minnesota research annually to examine long-term trends in charitable giving. MCF’s complete Giving in Minnesota, 2011 Edition, will be released in October.

This year’s summaries on giving to arts, education and human services, and complete research from prior years, can be found at www.mcf.org/research/giving.

- Susan Stehling, communications associate

The sample includes 100 of Minnesota’s top grantmakers and a portion of their grants that represent about two thirds of the state’s philanthropic giving for the year.

In contrast to overall human services funding, grants to employment-related programs (nine percent of the human services total) increased 97 percent from 2008 levels. The Carl and Eloise Pohlad Family Foundation drove the increase, giving $8.3 million to the employment subcategory.

Overall, grantmakers in the research sample gave 23 percent of their grant dollars to the human services category in 2009, while education received 26 percent of the sample’s support in 2009. In 2008, with grantmakers responding to the economic crisis, human services edged out education.

“The ‘second-place finish’ for human services grant dollars in 2009 isn’t surprising,” explains Bill King, MCF President. “Since 1976, education has led giving in Minnesota in all but three years.”

MCF conducts Giving in Minnesota research annually to examine long-term trends in charitable giving. MCF’s complete Giving in Minnesota, 2011 Edition, will be released in October.

This year’s summaries on giving to education and human services, and complete research from prior years can be found at www.mcf.org/research/giving.

This is the last in a three-part series of insights from program officers. Find “Pet Peeves from Program Officers” and “High Praise from Program Officers” here.

Other advice to nonprofits on making their case:

• Don’t waste time using writing gymnastics when your proposal doesn’t really fit a funder’s guidelines. Instead, develop proposals for funders whose guidelines align with your project or program.
• Your proposal should reflect how your organization’s goals align with the grantmaker’s guidelines. Be thoughtful, clear and succinct.
• If you’re not sure how much to ask for, read the funder’s previous year’s IRS 990, annual report or website. And ask. Many grantmakers will candidly provide insight about grant amounts.
• After reading your proposal, grant reviewers should not have to ask, “What do they want to do, and how are they going to use our funds?” General information about your organization, its history and the critical issue being addressed is helpful background, but it should not outweigh answers to these essential questions.
• Make sure your anticipated outcomes align with your program goals.
• Marry story with data. Data can tell the funder how many people are served and what results are achieved, but then illustrate the numbers through a personal story.
• Describe how you’re anticipating the future. In the words of hockey great Wayne Gretsky: “I skate to where the puck is going to be, not to where it’s been.”
• If a foundation welcomes calls, take advantage of this. Ask questions, seek advice and discuss ideas with program officers. But, if you don’t like what you hear, don’t shop for a different program officer to get another assessment or submit a proposal that disregards the recommendations.
• Be proactive and transparent about how you’re addressing challenges.
• Whether you are a nonprofit staff member or freelance grantwriting consultant, convey passion, investment and commitment.

Thanks to the many grantmakers who responded to my query for pet peeves and tips for grantees.

For more insight, check out the Summer issue of Giving Forum. In addition to “Pet Peeves,” you’ll find tips on how to conduct effective evaluations, what grantmakers look for when reviewing applications, and how an application becomes a grant.

- Chris Murakami Noonan, MCF communications associate

This is part two of a three-part series of insights from program officers. Look for part three tomorrow. Check out part one, “Pet Peeves from Program Officers”.

What makes a grant proposal really stand out?

• Those who convey their message best will win out in a tighter grant reality. Clearly and succinctly state what you want to accomplish, how you will do it, who you’re going to serve when, where and how, and how you’ll know if you’re successful.
• Proposals that stand out: Ones that provide a one-page quick overview of statistics and outcomes, with back up and narrative attached; and ones that have a specific section with highlights/outcomes/impact of the organization from the previous year.
• A proposal is compelling when: it meets a clear need and the strategy is thought through well, explained and based on evidence; it addresses long-term sustainability; and when it demonstrates an understanding of the foundation’s interests. A two-way conversation about potential interest before a proposal is submitted is critical.
• Proposals should contain: good metaphors, examples of work, a strong statement of who you are and how you play in the sandbox with others; good, clear statements of data.

What is the best way for a nonprofit to get “in” with a funder, to open communication and contact, or to build a relationship with a funder or potential funder? 

“The first rule of thumb is to know the foundation’s interests.  If there isn’t a common interest or goal, then there’s no ‘in.’ It’s foolish to think this is just about ‘ins’ – it’s about mutual interests and respectful communications.   Having said this, I realize not all funders are open to this.  I’m sorry about that.  I know some of us don’t return phone calls, don’t publish guidelines, and some of us don’t treat grantees respectfully.  But always taking the high road is wise advice for all of us, and I think most will benefit from this approach.

“I think doing the requisite development is important. That is, over time developing relationships with those who share our interests, showing up at meetings where these mutual interests are discussed, participating with colleagues in community problem-solving (developing networks).  Some of the best work I’ve seen is from people who are candid, ask good questions, and engage funders in conversations that are mutually beneficial.” - Family foundation staff member

Thanks to the many grantmakers who responded to my query for pet peeves and tips for grantees.

For more insight, check out the Summer issue of Giving Forum. In addition to “Pet Peeves,” you’ll find tips on how to conduct effective evaluations, what grantmakers look for when reviewing applications, and how an application becomes a grant.

- Chris Murakami Noonan, MCF communications associate