Giving — Not Just a Task for the Wealthy

August 13, 2010

Not long ago we all celebrated the news of The Giving Pledge announced by Warren Buffett and Bill and Melinda Gates. Through The Giving Pledge Buffett and the Gates’ have invited the richest Americans to commit to giving a majority of their wealth to philanthropy.

But why stop at just encouraging the rich to contribute? Why shouldn’t everyone who is able pledge to the cause of making our world just a little better? Contrary to some who believe that people shouldn’t be required to give to the poor (presented in one of our previous blog posts), the One Percent Foundation invites the whole American population to do just that.

The thought behind the One Percent Foundation is that every working man and woman in America should be able to contribute one percent of their incomes to the charities they choose. The initiative is primarily aimed toward people in their twenties and thirties, and in a recently published article in the Huffington Post, it was stated that if every person in that age bracket gave one percent to philanthropic causes the total annual sum would add up to $16 billion. Imagine what kind of effect that would have on our community! One cannot help being excited about statistics like that.

It doesn’t matter whether you sign the actual pledge on the One Percent Foundation website or simply commit on your own to support a charity – the act in itself is what is important. And if you are having trouble deciding on one cause or charity to give your money to, you can join the One Percent Foundation, which is a nationwide, online giving circle.

Happy giving everyone!  And, once you’ve signed your personal Giving Pledge, post a comment about what motivated you to make this bold commitment!

– Annette Wind, MCF administrative assistant


Must We Give to the Poor? Guess Not. But Should We?

July 16, 2010

It’s official.  The wealthy are not obligated to help the poor.

That was the conclusion from this year’s ”Great American Think-Off,” the amateur philosophy debate held annually in New York Mills, Minnesota.

When I wrote about this contest back in March, my attitude was, “Duh, of course the well-to-do should share with those less fortunate.”  But the winning debater — through personal story-telling and clever emphasis on the word “obligation” — was able to convince the audience (the final judges) that, indeed, we should not be required to share our wealth.  After all, if you are forced to share, then it’s really about taking, not giving, and wouldn’t you be abdicating your individual moral responsibility to share?  (You can read winner David Eckel’s essay at www.think-off.org.)

The outcome of the debate is a good reminder to us all that philanthropy in the U.S. is voluntary.  But it also brings to mind the heated discussions in the field today about the extent to which government should mandate giving toward certain groups or causes.

Well, no matter your point of view on those issues, we can probably all agree that more philanthropy is better.  And we should join forces to actively promote more voluntary philanthropy.  Today’s opinion piece by John Verant in the Star Tribune really reinforces why it’s more important than ever for the well-to-do to give, and to give generously.  Verant writes:

The past 30 years have witnessed the largest redistribution of wealth in the history of America. When Ronald Reagan came to power, the richest 1 percent of Americans held 20 percent of the total wealth. When he left office, that figure was 36 percent. Today it is 43. The distribution of income has similarly skewed. Since 1980, the wealthiest 1 percent of Americans had their share of all income increase 2 1/2 times. And the top 0.1 percent had their share of our national earnings increase an amazing six times.

This summer we heard that Bill and Melinda Gates and Warren Buffett challenged American billionaires to give at least half of their net worth to charity.  They apparently recognize their individual moral responsibility to care for their fellow men and women.  Let’s hope their wealthy friends — who are not obligated to give to the poor — do, too.

– Wendy Wehr, MCF v.p.  of communications and information services


Minnesota Snapshot: Leveraging the Past to Build the Future

July 9, 2010

Bill King, MCF president, recently wrote a guest blog entry for The Forum of Regional Associations of Grantmakers. Posted here is an excerpt from his full post, which you can find in its entirety at the Forum’s Forum.

MCF has been privileged to receive two grants from the Forum of Regional Associations of Grantmakers initiative, The Forum of Regional Associations of Grantmakers.

With our first grant, we led a collaboration of key philanthropic partners in developing the Minnesota Toolkit for Giving and a corresponding website, minnesotagiving.org.  These resources provide donors with information on a wide range of charitable giving options, ranging from simply writing a check to support a favored charity to making more complex decisions on creating a private foundation or setting up a fund at a community foundation.  Created in 2001, the website continues to garner attention and had 31,000 unique visits in 2009.

Our second New Ventures-supported project focused on Minnesota’s long-held tradition of corporate giving and its nationally known 5% Club.  Concerned with waves of mergers and acquisitions resulting in the loss of many home-grown businesses and their contributions to communities, we designed this project to take the concept of percent giving and apply it to smaller businesses in rural communities.  From our experience with the 5% Club, we knew this would only be successful if conducted through established business associations – the Chambers of Commerce.

Now called Minnesota Business Gives and housed at the Minnesota Chamber of Commerce, this project has led to 36 community chambers across the state recognizing their business members for giving at least 2%.  In addition, each chamber has conducted a seminar on giving strategies for businesses; 17 seminars were delivered in 2009 alone. We also developed two publications, The Minnesota Business Giving and Community Involvement Workbook (modeled on workbooks created by the Association of Baltimore Area Grantmakers and the Oregon Community Foundation) and Giving Stories…

> Post continued at the Forum’s Forum


Kitchen Table Philanthropy Involving the Whole Family

June 25, 2010

The following article is taken from West Central Initiative’s quarterly newsletter Focus on the Region. Thanks to WCI for letting us share this article on the blog!

The next time your family comes together for a day at the lake or a barbecue in the backyard, why not take an hour to discuss your estate and how your family can make an impact on the things that are most meaningful to all of you?

To help you start the discussion, here are some topics and questions to post to your “kitchen table philanthropists”:

1.) First, let your family know that including charitable giving in your estate does not mean leaving out children, grandchildren and other family members. Including charities in your planning can actually enhance what your loved ones will inherit. Because your family is important to you their input into how those charitable dollars are spent and what organizations they will support is also important to you.

2.) Encourage your family to talk about the charitable organizations they currently support. Ask each about the most satisfying charitable gift that they have made. Other questions could include:

    • Do you see your family as a family who “gives back”? How do you feel about that?
    • Are local issues and organizations more important to your family than national or international organizations?
    • Are there projects or organizations you would like the family’s name linked with?
    • What would the family like to see accomplished through charitable giving?

    Including your loved ones in these discussions can provide multiple benefits. It gives them a role in your decision making. They will understand what you want to do and how you want to do it. It should also ensure that there will be no surprises for the family at the time your estate is settled.

    If you’d like to explore opportunities for planned giving, get in touch with the Minnesota Planned Giving Council. Or, if you’re a Minnesota resident living in the west central region, you may call Kim Embretson or Tom McSparron of the West Central Initiative at 800.735.2239.

    More about WCI: The West Central Initiative serves to improve west central Minnesota through funding, programs and technical assistance. Their vision is to unite ideas and resources to help people and communities create a better tomorrow. To learn more about WCI, visit their website at wcif.org. WCI is a member of Minnesota Council on Foundations.


    What’s It Gonna Take for Me to Get Through to You?!

    May 11, 2010

    Many of us heard our parents exclaiming this to us in exasperation as we were growing up. I never thought that I, as a parent, would utter these words (after all, wouldn’t I be the hippest, coolest parent around? What kid wouldn’t want to hang on my every nugget of wisdom?).

    These days, though, I find myself asking not only how can I get through, but how can I connect? Great divides in the area of technology seem to be just the tip of the iceberg.

    Connecting and engaging with the next generation is an important topic in the foundation world too.

    My colleague Chuck Peterson, MCF’s vice president of member relations, upon his return from the Council on Foundations conference in Denver last week, has been sharing with MCF staff some take-aways. Among them was this from the session titled “The Next Generation Trustee: Insights into Engaging the Next Generation,” presented by Sharna Goldseker, vice president, Andrea and Charles Bronfman Philanthropies; and Joseph Thalheimer, next generation family member, Alvin and Fanny Thalheimer Foundation:

    “Top 10 Tips on Engaging the Next Generation”

    1. The “next generation” is two different generations with distinct personalities.  Different approaches are needed for different generations.
    2. The “kids” are now adults. Transition from a parent-child dynamic to a peer-to-peer relationship.
    3. Generational personalities are enduring. Accept that the unique generational experiences of Gen X and Gen Y (a.k.a. “The Millennials”) might cause them to become different people. Don’t assume you can wait them out.
    4. Look for the values that underlie the next generation’s choices. Take time to discover what motivates someone’s choice; you may find you have a lot in common.
    5. Learning is a two-way street.  If you have things you want to teach, be ready to learn.
    6. Show rather than tell. Experiential learning is preferable to didactic learning with these generations. Think site visits rather than binders.
    7. You don’t have to step away to let the next generation step up. Think about ways to share and trade power rather than transfer it.
    8. Transparency matters. Access to information is a given these days.  Being open about challenges is a strength, not a weakness.
    9. Engaging new leaders requires more than a Facebook page. Technology is a means to an end, rather than an end in itself.
    10. Engaging people is easy, sustaining their involvement requires change. They can only stay at the kid’s table (or the junior board or the associate position) for so long, and then they are looking for more material involvement.

    In our Spring issue of Giving Forum, Sarah Andersen, board president of the Hugh J. Andersen Foundation, talks about her foundation’s efforts to engage the next generation in their family philanthropy and the challenges they’re encountering. The issue also includes insight from Tim Showalter-Loch, senior manager of community relations at Best Buy, on his company’s @15 platform encompassing grants, employee giving programs, a website, cause marketing, data collection and research targeting the strength of teens.

    And finally, if you’re like me and think you really are more “with it” than your age belies, try taking the Pew Research “How Millennial Are You?” quiz. Here, in 14 questions, you’ll discover how “Millennial” you are and how you stack up against others your age.

    What’s your reaction to your score? Mine? It was like one of those moments when you happen to glance at your reflection as you pass by a mirror at the store, and you think, “Wow, when did THAT happen?”

    - Chris Murakami Noonan, MCF communications associate



    Bringing to Life the Buzzword “Leverage”

    February 15, 2010

    Over the past year, as I’ve been writing for various publications of the Minnesota Council on Foundations and reading extensively on philanthropy, the word that’s rising to the top more and more is “leverage.”

    Dictionary.com defines the word several ways, but the most relevant to philanthropy are:

    • The power or ability to act or to influence people, events, decisions, etc.; sway.
    • The use of a small initial investment, credit or borrowed funds to gain a very high return in relation to one’s investment, to control a much larger investment, or to reduce one’s own liability for any loss.

    Kevin Walker, president and CEO of Northwest Area Foundation, has described “leverage” the most vividly. At MCF’s 2010 Outlook Program for Minnesota Grantmakers and Nonprofits on Jan. 29, as part of the panel discussion, he said leveraging is “making sure our dollar pushes other dollars in a direction in pursuit of our mission.”

    As part of my research for our spring issue of Giving Forum, which will focus on innovation in philanthropy, I am reading the annual reports of several MCF members. The 2009 report of West Central Initiative (WCI) was filled with stories of how it is leveraging its funding in the nine counties and 83 communities the foundation serves in west central Minnesota.

    Among the highlights:

    • WCI’s Community Organizing and Visioning Grant was joined with a variety of public and private funding to energize stewards in Bemidji, Alexandria and Fergus Falls to create “destiny statements” envisioning the future of their communities and measurable goals to achieve.
    • WCI is acting as fiscal host, grant writer and coordinator of the Early Childhood Dental Network, which has grown into a regional effort to combat a deficiency in access to oral health care.
    • Gap financing – such as that provided to local entrepreneurs, including TFC Poultry in Ashby – is supporting job creation and business establishment and expansion in rural Minnesota.
    • WCI used its expertise to help community organizers map out a fundraising effort and create the Pelican Rapids School Fund to raise and administer funds when the school levy referendum failed and the school district faced dire cutbacks.

    These are energizing, motivating and inspirational ways WCI is bringing to life the concept of “leveraging” – using its resources to push other resources as WCI pursues its mission in greater Minnesota.

    – Chris Murakami Noonan, MCF communications associate


    Is philanthropy via TXT a fad or a revolution?

    January 19, 2010

    I heard a “fad vs. revolution” question posed on the radio this morning on the way to work. It was in reference to another topic, but it struck me, because I’ve been thinking this past weekend about all the various ways individuals are donating to the relief efforts in Haiti – via text messaging being the vehicle most prominently publicized.

    Two men pause to send text messages on their smartphones.

    Fad or future? What's your take on using SMS or texting to make donations?

    I’ve been keeping my eyes open for any organization that is asking people to send in checks, but those appeals are almost nonexistent as most organizations are directing donors to their websites. A few are promoting phone numbers that take credit card donations, but these also are rare.

    Is appealing for financial support via text messaging a fad or a revolution? How many more people will donate who wouldn’t have given otherwise, because it’s just a quick few punches with the thumbs and $10 is on its way? Preliminary numbers certainly point to the success of this appeal. If people give $10 via texting, but they would like to give more, will they? How?

    Charitable giving is a $5.5 billion endeavor in Minnesota, according to MCF’s Giving in Minnesota, 2009 Edition research. Of this, 76 percent or $4.19 billion came from individuals. Over the past decade, charitable giving in Minnesota increased 67 percent, and the number of grantmakers in the state rose by more than 65 percent. In just a year, from 2006 to 2007, foundations and corporate giving programs increased their giving by 10.1 percent to $1.32 billion.

    Has innovation or evolution in philanthropy contributed to this increase? What factors – technology, outreach strategies, messaging, donor-advised initiatives to name just a few examples – are redefining how and what we give? Which individuals and organizations are leading the way? These topics and more will be the focus of our spring issue of Giving Forum.

    In the meantime, join the conversation on texting to support relief efforts in Haiti by commenting on this entry. I’m interested to hear others’ perspectives.

    - Chris Murakami Noonan, MCF communications associate

    Image CC Kiwanja