New Research Shows Bleak Outlook on Foreclosures in Twin Cities

June 29, 2009
Photo by Andrew Ciscel

Empty home on Bloomington Ave., South Minneapolis. Photo by Andrew Ciscel

Behind the bleak national statistics on unemployment, jobs, housing prices, and other economic indicators, are hundreds of urban areas facing unique challenges.

Intuitively, we all know the economy in the Twin Cities is different from that of  Seattle, Charlotte, or Detroit. But how different are they? And where are funds (public and private) best invested to address the needs specific to this metro area?

The Brookings Institution’s Metropolitan Policy Program recently issued the first in a series of quarterly reports looking at key economic indicators across the country’s 100 largest metro areas. Collectively, these 100 areas contain two-thirds of the nation’s jobs, and generate three-quarters of GDP. Combined they are the engines of growth from which the eventual “green shoots” of recovery will spring.

The Brookings researchers examined the following indicators: employment; the unemployment rate; wages; gross metropolitan product (GMP); housing prices; and real estate-owned properties; and ranked each metro area on each of these indicators, from 1 (strongest performing) to 100 (weakest performing).

How do the Twin Cities stack up? Average or slightly worse — in the 50s and 60s – for most indicators.  But for real estate-owned properties (REOs), defined as “foreclosed properties that fail to sell at auction and thus become owned by the lending institution, shown as the share of all mortgageable properties in each metro area,” the Twin Cities ranks 92 out of 100. (Remember, low scores are good, high scores are bad.) For every 1,000 mortgageable properties in the Twin Cities, 7.63 are REOs.

Things are worse — much worse – in places like Las Vegas, NV, Riverside, CA, and Modesto, CA, which are at the absolute bottom of the list, and where there about twice as many REOs as in the Twin Cities. But those cities are also at the bottom on indicators like the unemployment rate and declining housing prices.

The Brookings researchers classify the Twin Cities as similar to cities like Atlanta and Washington that are “somewhat healthier economically, but that experienced significant exurban expansion in recent years.”

What’s most striking to me about this report is how to interpret it in the context of MCF’s new research on the outlook for grantmaking for the remainder of 2009. In Special Update: 2009 Outlook Report, the specific services related to the downturn that Minnesota grantmakers say they are most likely to support are basic skills education and job readiness skills; food assistance; and emergency housing assistance/homeless shelters.

The services grantmakers say they are least likely to support? Financial assistance with mortgage payments; assistance with heating or utilities bills; credit counseling; and homeownership education or foreclosure avoidance education.

Does this mean grantmakers shouldn’t be putting resources into food assistance or job readiness skills? Of course not. There are clearly defined needs in these areas. And it’s not like there are no foundations doing work related to foreclosures.

The McKnight Foundation, an MCF member, is actively engaged in helping to stabilize communities affected by foreclosure. So is the Pohlad Family Foundation, another MCF member.

So the question is then, how should we interpret the findings from each of these research reports?

Join the Conversation: If you are a foundation trustee or staff member, have you actively made the decision recently to fund or not fund foreclosure-related programming? What information informed your final choice?

- Juliana Tillema, MCF research manager


MN Grantmakers Less Optimistic About Maintaining Giving Levels in 2009

June 25, 2009
A free full version of the report is available for download at mcf.org.

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Fifty-two percent of grantmakers in Minnesota expect giving to decrease in 2009, compared to 40% at the end of 2008, according to a new report issued by the Minnesota Council on Foundations.

The result of a collaboration with the national Council on Foundations, the Special Update: 2009 Outlook Report highlights how grantmakers’ outlook for the year has changed since MCF issued its last report on the outlook for grantmaking in 2009.

The new report compares responses to surveys conducted in March 2009 and November 2008, which asked respondents to anticipate their giving in 2009 compared to previous year’s levels.

Thirty-one percent expected giving to remain the same in March, compared to 41% in November. About the same number expected giving to increase in March (17%) and November (15%).

Although the outlook for 2009 has worsened, grantmakers in Minnesota compare favorably to national averages. Sixty-two percent of grantmakers nationwide expect to decrease their giving in 2009, as compared to 52% in Minnesota. In addition, asset declines in 2008 among grantmakers in Minnesota were not as steep as those experienced nationwide.

Food, housing, and jobs are the areas Minnesota grantmakers say they are most likely to support, in relation to the downturn.

These findings are consistent with the Nonprofit Current Conditions Report, recently issued by the Minnesota Council of Nonprofits. That report shows that 51% of nonprofits in Minnesota that receive corporate and foundation grants have already experienced a decline in grants and future commitments.

As foundation assets and payouts continue to decline, most nonprofits report they expect 2010 to be worse than 2009, according to the report.

-Juliana Tillema, MCF Research Manager


Announcing the 2009 “Nancy” Award Winners: Two Leaders Improving Young-Children’s Lives

June 23, 2009

Honoring the legacy of Nancy Latimer, lifelong advocate for children and families, the Minnesota Early Childhood Funders Network, an MCF network, announced today that its Third Annual “Nancy” Award recipients are Dr. Glenace Edwall and Zoe Nicholie.

Throughout their careers in research, teaching and administration, Edwall and Nicholie have tirelessly worked to strengthen policies and systems affecting the healthy development of children throughout Minnesota.

Dr. Edwall has served as director of the Children’s Mental Health Division at the Minnesota Department of Human Services since 2000. She is responsible for the state’s county-administered mental health service system, supports the state’s 95 children’s mental health and family service collaboratives, and oversees policy related to children’s mental health benefits provided through Medicaid. Dr. Edwall’s work has increased the identification and service capacity of the state to meet the mental health needs of young children and their families.

Zoe Nicholie retired this year from Ready 4 K, the statewide early childhood advocacy organization, where she directed the Build Initiative and Ready 4 K’s public policy work. She helped broker a new coordinated, comprehensive early childhood system. She also helped lay the groundwork for the creation of a statewide early learning council and launch the Minnesota Quality Rating and Improvement System, a collaboratively developed system of assessments, incentives and education to improve the quality of child care.

The co-chairs of the Minnesota Early Childhood Funders Network steering committee described this year’s recipients, saying:

“This award recognizes the recipients’ extraordinary leadership, passion and commitment to the development of children. Their work on policy and systems has changed the lives of children and families here in Minnesota and beyond.” – Amy Crawford, executive director of The Jay and Rose Phillips Family Foundation

“Both Glenace and Zoe are gifted leaders. They have brought people together around a common vision and have been adept at bridging organizational and sectoral boundaries.”  – Denise Mayotte, executive director of The Sheltering Arms Foundation

The Minnesota Early Childhood Funders Network created the “Nancy” Award to honor Latimer, whose 20-year career at The McKnight Foundation included serving as senior program officer.

Latimer, wife of former St. Paul mayor George Latimer, passed away in 2006.

The Minnesota Early Childhood Funders Network works to strengthen the individual and collective efforts of funders to enhance the well-being of Minnesota children and their families. Network membership is open to staff and trustees of MCF members.

Currently, 27 grantmaking organizations participate actively.  The network co-sponsors an annual briefing on children’s issues, presents quarterly briefings on early childhood topics, and holds an annual convening.

The Third Annual Nancy Latimer Convening for Children and Youth*, at which the “Nancy” Awards will be presented, is June 25, in Brooklyn Park, Minn.

- Chris Murakami Noonan, MCF Communications Associate

*This event is open to the public.


Making it Real, Even on My Day Off

June 18, 2009

It wasn’t that I was growing weary of immersing myself in all the good work our Minnesota grantmakers are doing to support education.  It’s just that, after days and days of writing copy on this topic for our upcoming issue of Giving Forum, my fingers and my brain needed a change.

So, I was looking forward to my day off – a day dedicated to working on a Twin Cities Habitat for Humanity house being constructed in partnership with Holy Hammers. I could spend the day spreading mud on drywall and chatting with my fellow builders.

All morning, I didn’t spend even one minute thinking about my to-do list here at MCF.  Then came lunch.

Before we were done chewing our cookies, the Twin Cities Habitat onsite supervisors asked us to join in a participatory exercise that would give us insight into Habitat’s mission.  The curriculum for these “lessons” was funded by The McKnight Foundation, they said.

At the mere mention of this organization, my mind raced back to my day job and all the writing I had yet to do on education and philanthropy: “Don’t forget to email so and so about the article; remember to double check on X and get the OK on Y … .”

Oh yeah, back to drywall and housing needs in the Twin Cities.  The directions for the participatory exercise: Divide into groups of 3 people; within each group, choose one person to be the “mover” (I volunteered); each group receives a different set of step-by-step knot-tying instructions and a bunch of rope; each person in the group had to execute at least one step of the instructions. “Use as much of the rope as you want and keep tying knots as long as you can,” the Habitat person said.

OK. My group conferred, agreed on how to tie the knot so it looked like the illustration, then we each took a step and did our part to complete the knot.  We excelled.  We used up almost all of our rope tying knot after knot.

Just when we were about to proclaim, “We’re out of rope. What’s next?,” the Habitat staff person said, “Move.” An additional, unexpected rule: Whenever the staffer said “move,” the mover had to get up and move clockwise to the next group and join in their knot-tying.

So, I left the comfort of my first group and moved on.  My new group graciously allowed me to give my input on how I thought the knot ought to be tied, then told me that how they had done it previously was different.  We worked together, albeit quite a bit slower than my first group. “Move.”

The two people in my third group tried to get me up to speed on their knot. But, when I wasn’t catching on (it was a complicated knot), they grew frustrated.  During my time with them, we didn’t even complete one knot together.

On to the fourth group. Believing that perhaps the goal was to tie the most knots, all of us started to feel the pressure to just cut to the chase and get knots tied before that darn staff person uttered another “move.”  So, I simply sat down and said, “Looks like you’ve already got a knot started. Tell me what you want me to do and show me how to do it.”

Better yet, I thought, why don’t you just do it for me? I didn’t care to look at the illustrations or the knots that had been tied previously.  In fact, I didn’t even say “hi” when I sat down.

I had become completely disengaged, knowing that if I was in the least bit inquisitive, I would only frustrate the group I had temporarily joined and slow down their progress toward the ultimate objective of completing the knot.  I’m sure they were merely going through the motions too, thinking, “We can try and work through this process and tie this knot together, but you won’t be here long enough for it to matter.”

We were hopeful the exercise was almost over, but we had also resigned ourselves to knowing that the next “move” wasn’t a matter of if but when.

Frequent moves take their toll on kids with low SES.

Frequent moves take their toll on children with low socioeconomic status.

My fellow builders and I had experienced what it’s like for those who do not have a stable place to live, lay down roots, get comfortable, become engaged, contribute, be the recipient of that warm “welcome” and heartfelt investment that comes when others know you’ll be around for awhile.

“This is why we do what we do,” said the Habitat staffer.  There are way too many people – whether they’re the movers constantly trying to fit in and catch up or the seated holders of the knot-tying instruction card, the in-process knot and a bunch of rope that needs to be tied – for whom “move” is a daily, stressful reality.

As I went back to my mudding-the-drywall task, I thought about what Kathleen O’Donnell had told me.  Kathleen is the program manager for The Minneapolis Foundation’s Destination 2010 initiative. At the risk of oversimplifying this complex, 10-year undertaking, I’ll briefly explain what D2010 is.

D2010, which began in 2001 with 364 third graders at seven struggling St. Paul and Minneapolis schools, works with the students, their families and a whole host of community partners to motivate and support the students through high school graduation in 2010 and on to post-secondary education. Students must remain enrolled in Minneapolis or St. Paul public schools to continue in the D2010 initiative.

Kathleen said, “We only have 40 percent of our original students in this, their junior year, of high school. We have witnessed firsthand the corrosive effects of mobility on relationships, access to information and opportunities, and academic success.” Corrosive effects, what a thought-provoking, insightful description.

So, I tip my (drywall-dusty) hat to Twin Cities Habitat for Humanity and the McKnight and Minneapolis foundations.  They invaded my day off and made real the issues faced by too many schoolchildren, their families and those striving to help them succeed.

- Chris Murakami Noonan, MCF Communications Associate


International Giving – Networking Around the World!

June 15, 2009

If you are an MCF member involved in international giving or considering it, you would love to have participated in a recent meeting of the Minnesota Council on Foundation’s (MCF) International Funders Network and hear from four people who recently attended an international giving conference. This meeting was hosted by the Lutheran Community Foundation (an MCF member) and moderated by Susan Hayes, director of Community Grants and Services at the Lutheran Community Foundation.

The speakers included:

I found the following points that came out during the presentations and during the Q&A especially interesting:

  • Networking and Contacts
    The networking and contacts available at these conferences were extremely valuable for everyone.  All of the presenters commented on having connected with people who know and work with one of their grantees or in the country in which they were making the grants, providing a unique opportunity to learn from others who are in the countries in which these funders are making grants.  In addition, several of the conferences included creative approaches to networking like “speed networking,” a “reciprocity web,” maps showing where each participant’s organization is providing funding, and even dots on nametags indicating the language a person speaks.
  • Selecting the “Best” Conference
    Since there is an increasing number of international giving conferences, all speakers had made a very deliberate decision about which conference to attend, taking into account several or more factors including the types of organizations that participate and the design of the conference.
  • Grant Applications – Which Language?
    One foundation is working on providing its grant application in several languages, to make sure that the content is clear to grantseekers, while requiring the grant application to be submitted in English.

Even in this two-hour program, I learned a great deal about international giving and left feeling inspired by all of the great work that is going on around the world.

If you are an MCF member interested in international giving, please consider attending the next meeting arranged by the International Funders Network.  The speaker will be Rob Buchanan, who is the managing director, International Programs, at the national Council on Foundations.  The meeting is scheduled for August 12, 11:30 a.m. – 2:00 p.m.  This meeting also is open to all MCF members.

If you are a grantmaker interested in international giving and are not a member of MCF, please contact Chuck Peterson, vice president, Member Relations and Operations, at cpeterson@mcf.org for membership information.

- Cindy Moeller, Director, Professional Development and Member Services
Minnesota Council on Foundations


More Data Nuggets Worth 1,000 Words

June 9, 2009
Student attending Youth Uprising Afterschool Program

Student attending Youth Uprising Afterschool Program

In my post last week, I highlighted some research statistics related to education.  I found some more that paint such a vivid picture in my mind of the task before us.  This time, these “nuggets” focus on “out-of-school time.”

Funders such as the McKnight Foundation and Sheltering Arms Foundation, as well as the Greater Twin Cities United Way, all MCF members, are working to address the picture painted by statistics such as these.  I’ll profile their perspectives in the upcoming issue of Giving Forum.

Youth have 2,000 hours of non-school discretionary time each year – equivalent to a full-time job; school time is 800 hours per year.  (Youth Community Connections)

Percentage of youth who participate in any after school program:

  • 66% of youth with family income under $25,000
  • 92% with family income over $50,000
  • 91% youth who are white
  • 74% youth of color
  • 67% youth of immigrants

(University of Minnesota Extension Center for Youth Development and Wilder Research, 2008)

75% of Nobel Prize scientists discovered their craft outside of school.

Research findings like this sure makes me stop and think, “What if … ?”

Join the conversation: Have you come across any data nuggets that make you think “What if?”

- Chris Murakami Noonan, MCF Communications Associate


Are Some Foundations Better Than Others?

June 8, 2009
Are some ideas better left in the board room?

Are measures of effectiveness better left in the for-profit board room?

A recent blog entry in Tactical Philanthropy got me thinking, are some foundations more effective and therefore “better” than others? Donors to the Bill & Melinda Gates Foundation seem to have spoken a resounding, “yes.”

In its Annual Report published this week, the Gates Foundation reports receiving $10.4 million in unsolicited contributions, despite stringent guidelines and encouragement to donate directly to charitable organizations.

These donors, like Warren Buffett before them, are responding to a desire that each dollar be well spent, and they perceive that the Gates Foundation has the know-how and the resources to do so.

The act of giving is very personal, and that’s why I am hesitant to apply opaque labels like “better” to foundations and nonprofits a like.

However, I believe there is value in having a conversation about what “effectiveness” means for foundations and sharing practices that can help foundations serve their missions more effectively.

The Center for Effective Philanthropy (CEP) is dedicated to doing just that. Over the last eight years, CEP has conducted research and created a variety of free assessment tools to enable foundations to take stock of their impact.

In fact, Phil Buchanan, president of CEP, will be presenting on this topic on June 17 at an MCF event for its members titled, “Findings from the Field: Essentials for Foundation Effectiveness.”

Join the conversation: I’d like to know how your foundation or nonprofit assesses effectiveness. Are there any tools or resources that you can recommend?

Or do you object, as many do, to the idea that philanthropic and charitable work can be reduced to quantifiable variables that can be objectively assessed? Is this a misapplication of thinking better left in the board room of Fortune 500 companies?

-Cary Lenore Walski, MCF Web Communications Associate


Recognize a Grantmaker That’s Made a Difference to Your Organization

June 3, 2009

If you work or volunteer at a nonprofit, chances are there is a foundation that’s made a positive difference to your organization over the past year.  Why not recognize it with a nomination for the Nonprofit Mission Award for Responsive Philanthropy?

Presented by MAP for Nonprofits and the Minnesota Council of Nonprofits, this award recognizes the partnership between funders and nonprofits in mobilizing resources for the public good.

The award will be presented at this year’s Minnesota Council of Nonprofits (MCN) and Minnesota Council on Foundations (MCF) Joint Annual Conference, Transforming Our Work, on November 5 and 6 at the St. Paul RiverCentre.

In addition to other basic criteria, nominated organizations should:

  • Be responsive to citizen initiatives;
  • Recognize public policy issues and long-term strategies to fight problems; and
  • Commit substantial resources to disadvantaged people and Minnesota communities through a process of dialogue and partnership.

For more information and to submit a nomination, visit the Minnesota Nonprofit Awards website.  Organizations may also self nominate for this award.  The deadline for nominations is June 15.