Recent giving trends show that grantmaking to arts has declined 7.6 percent since 2004. MCF’s outlook for 2012 indicates that arts funding will remain relatively stable.  Bill King, MCF president, discussed arts funding challenges and opportunities with Sharon DeMark, program officer, Minnesota Philanthropy Partners, and Laura Zimmermann, program officer, The McKnight Foundation.

Grantmakers are seeking to increase community vibrancy through the arts. Zimmerman noted, “With an awareness of the power of artists and art in the quality of place and of community, foundations are looking at work where the arts are integrated with other programming.”

DeMark noted that arts grantseekers may find funding in program areas they don’t expect — like health, for example. Zimmerman elaborated, “If you are already doing things that are really important in your neighborhoods, or in schools, or in hospitals, think about whether there’s an approach outside of arts funding that is going to make a difference for you. Places other than arts funders may be really interested in what you are doing.”

Grantmakers are also focusing on supporting individual artists. “There’s a surge of fellowship and individual artist grant programs,” said Zimmerman. She added that The McKnight Foundation has strongly supported general operations of small and mid-size organizations. “Our conversations in the field indicate that that’s the best way to impact the lives and livelihoods of individual artists,” she explained.

Grantmakers are seeking new ways to provide non-cash assistance to their nonprofit partners. DeMark noted, “Nonmonetary assistance is something we’re looking at a lot, knowing that our dollars are not going to be growing as much as we’d like.” Both grantmakers provided several specific examples:

• Minnesota Philanthropy Partners created GiveMN to help nonprofits connect online with individual donors. “It’s a great tool for nonprofits of all types, and some of the arts groups have been the most creative in how to capture people’s imaginations with it,” DeMark enthused.
• ArtsLab, which seeks to strengthen the impact of arts organizations in urban and rural communities, will be launching a two-year capacity building program. DeMark suggested, “If your organization fits the criteria, go ahead and apply. There will be an organizational assessment opportunity for all applicants.”
• The Cultural Data Project, which will provide reliable longitudinal data about the arts and culture sector, is coming to Minnesota later this year. Zimmerman explained, “Participating organizations will be able to update the database once a year and will then be able to use the data in grant proposals, for annual reports, to analyze their own trends and history, and to compare to like organizations. It’s also been useful in other states for advocacy purposes.”

MCF thanks all the grantmaker panelists in our four-webinar series.  For year-round access to giving trends and 2012 grantmaking outlook data, visit mcf.org/research.

-Anne Bauers, MCF research manager

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

• Start by deciding what issue is most important to you – this is where you should give.  Your next step is to choose an effective organization that works on your chosen issue. Philanthropedia notes, “Choose issues with your heart and choose organizations with your head.”
• Take the time to research nonprofits to which you are considering giving a gift. The chat panelists suggest several websites where you can research nonprofits, but they note that no site is comprehensive. Many great smaller nonprofits may not be featured on any of these sites, so don’t limit your research to the virtual world. Ask your friends who they support, attend nonprofit meetings, and become involved in the organizations you support.
• Avoid using some websites’ “efficiency score” ratings to determine how effective a nonprofit is at achieving its mission. One panelist commented, “Anyone who claims zero cost of fundraising is suspect.”
• Remember, even small sums can add up to make a big difference for nonprofit organizations. And you can support your favorite organization in other ways, too: with volunteering or board service, or by raising money from friends.

Join the conversation: What are your best tips for year-end charitable giving?

-Anne Bauers, research manager

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

• MN’s unemployment rate is 6.9% – 205,000 of our residents are out of work.
• Veterans’ unemployment is higher at 9.4%.
• Poverty in MN is almost 12% – twice the rate of a decade ago.
• More than half of Minneapolis’ children of color live in poverty.

But, instead of being overwhelmed by bad news, how about if each of us did a little bit to help create some good news? By not closing our eyes to the hurt and misfortune of others – by opening our eyes and our checkbooks to make things better.

I like to think of Minnesota as a place of unparalleled generosity instead of a place with an unparalleled racial achievement gap. Turns out we’re both. Let’s do what we can to grow the generosity and shrink the gap.

This is the week to do it. Wednesday, Nov. 16 is “Give to the Max Day,” and Friday, Nov. 18 is “National Philanthropy Day.”

“Give to the Max Day,” now in its third year and sponsored by MCF members like the Minnesota Community Foundation, The Mosaic Company and Blue Cross and Blue Shield of Minnesota, has made it very easy for each one of us to be a philanthropist. Simply, “Click. Contribute. Change your world.”

There are more than 21,000 nonprofit organizations  listed on GiveMN.org this year. Each is working to make something in our state better. Whether your preferred cause is hunger, education, animal welfare or many more, many worthy organizations are out there to support. You can search or browse the GiveMN.org site to see them all. You can also narrow your search to see organizations with matching grants, so your dollar goes further.

What if Minnesota shocked the nation by spending more on this week’s ”Give to the Max Day” than on next week’s “Black Friday”? Now that’s news I’d like to see. I’ll do my part to make things better. What about you?

- Susan Stehling, communications associate

Photo: cc opensourceway

Charlie Rounds

The story of how MCF member Mark and Charlie’s Gay Lesbian Fund for Moral Values came into being can serve as an inspiration to many.

When Minneapolis entrepreneur Charlie Rounds sold his share of the successful RSVP Vacations, he and his husband Mark could have decided to keep the money and never have had to work again. 

Instead, they put the entire amount (60% of their net worth) into a donor-advised fund at The Minneapolis Foundation. The entire balance of their fund will be given away within 15 years to support their chosen causes: economic development in local communities of color, international human rights, and GLBT rights.

A free teleconference on Thursday, October 20, starting at 11 AM, offers those interested a chance to learn more about Charlie and his donor-advised fund. This Bold Conversation series of  discussions, hosted by Bolder Giving, features extraordinary givers who share strategies, challenges and excitement about their giving.

RSVP on Eventbrite now for this free teleconference, and read more about Charlie’s story on the Bolder Giving website.

For those who can’t make the phone discussion, The Chronicle of Philanthropy is hosting an online chat with Charlie on Wednesday, October 19 at 11 AM, which will also be a great chance to learn more.

The Scenario
As marketing manager of a faith-based community foundation, you are charged with generating new donor leads. For years, your predecessor had great success sending direct mail pieces to rented lists of subscribers of Catholic publications. The direct mail pieces focused on Charitable Gift Annuities and Donor Advised Funds, targeted people over age 55, and the typical minimum donation was $10,000.

Now, in the midst of the recession, you’re spending the same amount of money on a direct mail program, using the same list criteria, and getting zero responses. How do you leverage your resources and redesign a marketing strategy that will engage prospects in your foundation?

Catholic Community Foundation’s “Lived” Example
The foundation piloted a Planned Giving Marketing Program with seven participating parishes from November 2010 to March 2011.

Participating Parish Requirements

• A two-year commitment to the pilot program.
• Each parish selects up to 600 contacts to receive two different mailings. The lists are slightly different; see notes below in red. The mailing lists are sent directly to the mail processor; CCF does not gain access to the lists unless they convert to leads.
• Each parish provides their logo, a letterhead sample, and an electronic version of the pastor’s signature.
• Each parish designates a staff person to accept leads and work with CCF to respond.
• Each parish runs bulletin announcements (provided) twice monthly from November through March.
• Because this is a pilot, CCF is paying all associated costs.

Mailing #1

• Dropped November 8, 2010; focused on promoting Charitable Gift Annuities
• Mailing lists included consistent, loyal donors* age 65+
• Follow-up Process: Leads came directly to parish associates who notified CCF. CCF called the leads and sent further info as requested. Parish made a second follow-up call to leads.
• CCF suggested hosting a Planned Giving Seminar at each parish in May.

Results of Mailing #1

• 6 leads totaling at least $130,000 in potential gifts
• 1 closed Charitable Gift Annuity for $10,000; donor plans to establish a second annuity in 2012
• 5 leads remain pending, one of which is waiting for property to sell before establishing an annuity.

Mailing #2

• Dropped March 5, 2011; promotes bequests and outright gifts to endowment fund.
• One of the seven parishes has a $3000 matching gift to apply to new gifts.
• Mailing list includes consistent, loyal donors* age 50+.
• Follow-up Process: Parishes will notify CCF as leads come in. Parish will make first follow-up call and involve CCF as needed.
• CCF suggested hosting a Planned Giving Seminar at each parish in May.

* Consistent loyal donors are those who have made an annual gift in 8 out of the last 10 years, $100 or more per year.

– Anne Rodenberg, Catholic Community Foundation

This is an updated version of the fifth in a series of posts from MCF’s recent ComMotion meeting.

Stories of unassuming farmers who have left thousands – and in some cases, millions – to their hometown schools, churches and favorite charities will become increasingly common, according to the “Minnesota Generational Transfer of Wealth” (TOW) study commissioned by the Minnesota Initiative Foundations. “Farmers and business owners, who retire and sell their assets because their children don’t want to carry on, often find themselves with sizeable estates,” explains Bill King, MCF president.

Between 2011 and 2030, as an entire generation of baby boomers reaches retirement age and beyond, the TOW research estimates that the historic sum of $47.9 billion will be passed on. In 14 central Minnesota counties, that wealth transfer is approximated to be $5.8 billion.

The magnitude of this is illustrated in “The Great Succession” graphics that accompany my article “New Dawn,” which appears in the spring issue of IQ Magazine. IQ is published by the Initiative Foundation, based in Little Falls, Minn.

What does being on the brink of this new horizon mean? Historic windfalls often trigger introspective moments when people consider whether charitable giving is something they value and want to pursue.

“Every person, no matter how much or how little they have, reaches a moment in their lifetime where they consider doing something greater than themselves,” says Matt Kilian, Initiative Foundation’s vice president for external relations.

Although only time will tell if the generational transfer of wealth will inspire increased nonprofit donations or endowed funds in central Minnesota, Kilian envisions the possibilities: “What if a tiny portion of those dollars – say 5 percent – were invested in permanently endowed funds? What a gift from one generation to future generations.”

Titled “Outpourings,” the IQ spring issue looks at the trends and tradition of charitable giving in central Minnesota. Among the features:

• A profile of four silent, selfless and inspiring givers
• Charitable giving strategies employed by central Minnesota businesses
• Creative, win-win philanthropic vehicles for donors
• How donors and nonprofits click with online giving
• Young Americans’ belief that giving isn’t a spectator sport
• How legacies begin
• Raising kids who give

As the magazine’s subtitle notes, generosity is truly flowing in central Minnesota.

- Chris Murakami Noonan, MCF communications associate

The Scenario
As marketing manager of a faith-based community foundation, you are charged with generating new donor leads. For years, your predecessor had great success sending direct mail pieces to rented lists of subscribers of Catholic publications. The direct mail pieces focused on Charitable Gift Annuities and Donor Advised Funds, targeted people over age 55, and the typical minimum donation was $10,000.

Now, in the midst of the recession, you’re spending the same amount of money on a direct mail program, using the same list criteria, and getting zero responses. How do you leverage your resources and redesign a marketing strategy that will engage prospects in your foundation?

Catholic Community Foundation’s “Lived” Example
The foundation piloted a Planned Giving Marketing Program with seven participating parishes from November 2010 to March 2011.

Participating Parish Requirements

• A two-year commitment to the pilot program.
• Each parish selects up to 600 contacts to receive two different mailings. The lists are slightly different; see notes below in red. The mailing lists are sent directly to the mail processor; CCF does not gain access to the lists unless they convert to leads.
• Each parish provides their logo, a letterhead sample, and an electronic version of the pastor’s signature.
• Each parish designates a staff person to accept leads and work with CCF to respond.
• Each parish runs bulletin announcements (provided) twice monthly from November through March.
• Because this is a pilot, CCF is paying all associated costs.

Mailing #1

• Dropped November 8, 2010; focused on promoting Charitable Gift Annuities
• Mailing lists included consistent, loyal donors* age 65+
• Follow-up Process: Leads came directly to parish associates who notified CCF. CCF called the leads and sent further info as requested. Parish made a second follow-up call to leads.
• CCF suggested hosting a Planned Giving Seminar at each parish in May.

Results of Mailing #1

• 6 leads totaling at least $130,000 in potential gifts
• 1 closed Charitable Gift Annuity for $10,000; donor plans to establish a second annuity in 2012
• 5 leads remain pending, one of which is waiting for property to sell before establishing an annuity.

Mailing #2

• Dropped March 5, 2011; promotes bequests and outright gifts to endowment fund.
• One of the seven parishes has a $3000 matching gift to apply to new gifts.
• Mailing list includes consistent, loyal donors* age 50+.
• Follow-up Process: Parishes will notify CCF as leads come in. Parish will make first follow-up call and involve CCF as needed.
• CCF suggested hosting a Planned Giving Seminar at each parish in May.

* Consistent loyal donors are those who have made an annual gift in 8 out of the last 10 years, $100 or more per year.

– Anne Rodenberg, Catholic Community Foundation

This is the fifth in a series of posts from MCF’s recent ComMotion meeting. Look for the next and last posting on Creative and Strategic Use of Social Media on Friday, June 3.

During our visits with both our Minnesota and North Dakota members of Congress we talked specifically about defining philanthropy’s role in society by sharing the real story of philanthropy in our communities. We asked for their support of the field in general, but also a partnership in continuing to build a strong and healthy charitable and philanthropic sector which is vital to a prosperous nation and vibrant communities.

Just two weeks after Foundations on the Hill there’s great news to report! Two bills have been introduced in the Senate which would encourage charitable giving at a time of great need: The Public Good IRA Rollover Act and a Private Foundation Excise Tax bill.

Last week, Senator Charles Schumer (D-NY) introduced a Private Foundation Excise Tax bill – S.593. This bill would amend the Internal Revenue Code of 1986 to modify and simplify the excise tax on the investment income that private foundations pay. S.593 would remove the current two-tiered excise tax imposed on private foundations and replace it with one flat rate. The bill sets the excise tax rate at 1.39 percent, deemed to be revenue neutral by the Joint Committee on Taxation in the 111^th Congress. S.593 would be applicable to tax years beginning after the date the bill is enacted.

Two weeks ago, Senators Schumer and Olympia Snowe (R-ME) introduced the Public Good IRA Rollover Act of 2011 – S.557. The bill proposes to extend the IRA charitable rollover beyond 2011 and allow gifts made to donor-advised funds, supporting organizations, and private foundations to qualify for the incentive. Additionally, the bill proposes to lift the $100,000 cap on distributions and allow planned gifts beginning at age 59 ½.

The Minnesota Council on Foundations, along with our colleague organization, the national Council on Foundations, strongly supports these bills and has been encouraging passage over several years.

Please Ask Your  Senators to Sponsor Excise Tax and IRA Rollover Bills: we strongly encourage you to contact your Senators to ask them to support the charitable sector by adding their names to the list of co-sponsors of S.593 and S.557. The more co-sponsors, the better chance that the bills will be passed. The national Council on Foundations has made it easy for you to support these bills through its Legislative Action Center.

We will continue to monitor the Private Foundation Excise Tax bill and Public Good IRA Rollover Act and will provide updates as they become available.  If you would like to review MCF’s complete list of 2011 legislative priorities, please visit our website.

- Chuck Peterson, MCF vice president of member relations