The work is part of MCN’s Red Tape Reduction Project, and now MCN is looking for your ideas about additional red tape that needs slashing.

MCN want ideas about streamlining processes and reporting requirements related to contracting, licensing or other regulatory arenas. It is particularly interested in ideas that reduce duplication, increase efficiency and conformity, and enhance accountability and transparency. Send your ideas to Jeannie Fox.

To get you thinking, here are a few of MCN’s red-tape cutting successes:

• Charitable Reporting Conformity: Brought IRS and state Attorney General financial reporting requirements in line with each other, which reduced duplication and increased financial clarity and transparency. (2011)
• More Choices for Unemployment Tax Systems: Eliminated the annual deadline for nonprofits to opt out of the state unemployment insurance fund, helping nonprofits take advantage of cost-saving opportunities to self insure or join an unemployment trust. (2010)
• Raised Threshold for Nonprofit Audits: Raised the audit threshold for nonprofits from $350,000 to $750,000, saving small organizations the expense of holding an independent audit, while still ensuring that 99 percent of donations are audited. (2009)

Grantmakers are also concerned about systems efficiency. To learn more, check out Project Streamline, a collaborative that aims to increase the impact of grants by eliminating unnecessary procedures and paperwork for grantseekers and grantmakers alike.

Photo cc: Department for Communities and Local Government

- Susan Stehling, MCF communications associate

While home sales are down from their record levels of a few years ago,  participation in the Edina Realty Foundation has remained steady. In fact, more than 75 percent of the company’s agents continue to donate a portion of their sales commissions.

Is there an Edina Realty office in your neighborhood? If so, you’ll want to read the winter issue of Giving Forum to learn more about what Edina Realty Foundation is doing to make the 60 neighborhoods where they are located better places to live and work.

- Susan Stehling, MCF communications associate

Rosenstone noted that we have a significant and growing workforce shortage:

• There is a skills gap: Unemployment remains high, while many businesses struggle to find workers who have the technical skills they need.
• Workforce shortages will increase in the future, as Minnesota’s population ages.
• Currently, our education system does not successfully meet workforce needs.

One critical key to addressing this workforce shortage is tackling Minnesota’s racial achievement gap.

• Minnesota is becoming more diverse. In the Twin Cities, the population of color has tripled in the past twenty years. One in five residents is now a person of color. The same is true for one in four of our children – our state’s future workforce, parents, and leaders.
• The gap between the percentage of non-Hispanic white students and students of color who are proficient in reading by the end of 3^rd grade is about 25 points.
• The gap between the percentage of non-Hispanic white students and students of color who are proficient in math by the end of 11^th grade score is about 30 points.
• And the gap between the percentage of non-Hispanic white students and students of color who graduate from high school on time score is about 30 points. Just over half of students of color graduate on time.

Participants discussed ways we use these hard facts to galvanize the government, nonprofit, and grantmaking communities – and ultimately all Minnesotans – to take meaningful action to close these gaps. The work will be difficult. But Karen Kelley-Ariwoola, vice president of community philanthropy for The Minneapolis Foundation and a past board chair for MCF, called the room to action. In addressing these achievement gaps, we must all be:

• Strategic: Invest in high return upstream strategies.
• Intentional: Ask, will this close the gap?
• Inclusive: Listen to our community stakeholders.
• Outspoken
• Relentless

-Anne Bauers, MCF research manager

Students in the certified nursing assistant training program at the International Institute of Minnesota, a grantee of The Jay and Rose Phillips Family Foundation of Minnesota, practice their hands-on skills.

Read the winter issue of Giving Forum – online and in your mail now – to learn more about what Minnesota grantmakers and their nonprofit partners are doing in the tough fight against poverty in our state.

Grantmakers play a variety of roles from meeting basic human needs, to creating systemic change around poverty’s root causes, to engaging the community in identifying and solving problems, to taking policy stands on matters affecting low-income residents. Whatever role foundations have chosen to play, they are working to create a brighter future for all Minnesotans.

Read this issue’s feature article to learn more about how The Jay and Rose Phillips Family Foundation of Minnesota is partnering to train individuals for jobs that pay a living wage and how Greater Twin Cities United Way is improving access to health care for those who need it most. And read about how the Northwest Area Foundation funded an initiative to drive payday lenders from Montana and how The Minneapolis Foundation is working to level the playing field for all residents of the city.

- Susan Stehling, MCF communications associate

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

Audience members had a lot to say and ask at the Session Line Up

If you’ve seen today’s headlines, you know that what I described in yesterday’s Philanthropy Potluck post as a “smoldering fire” has now burst into shooting flames at the Minnesota state capitol.

At last Friday’s 2012 Session Line Up (hosted by MCF and the Minnesota Council of Nonprofits (MCN)), more than a little partisan fuel was thrown about. At one point, after some boos and pointed questions (or, rather, statements) from the audience, MCN Public Policy Director Susie Brown had to remind everyone to keep the dialogue respectful.

Politics of Constitutional Amendments

A lot of Friday’s angst-ridden comments centered on proposed constitutional amendments. Referencing amendments, one attendee implored the elected officials to “move away from the politics of exclusion to the politics of inclusion and opportunity.”

MCN representatives came out strongly against possible constitutional amendments related to the state budget. Nan Madden, director of MCN’s Minnesota Budget Project, stated that they have “never been more worried and frightened about the future of our state.”

She explained that the permanence of the constitutional amendments would limit the ability to invest in Minnesota’s future and respond to changing demographics. If the amendments passed, she predicted more gridlock and budget gimmicks, more shutdowns and more difficulties in creating a more balanced tax system. (Read more about MCN’s position on the Minnesota Budget Project website.)

Insider Tips to Influence

No matter your point of view on these or other potential constitutional amendments, you can – and should – participate in our democratic processes.

Listening between the lines of Friday’s discussion, attendees heard some good advice for successfully influencing public policy. When engaging with elected representatives:

• Repeat, repeat, repeat. Raise your point of view as often as you can with as many audiences as you can.  Insist on public discussion and testimony.
• Break out of your issue silo. Show the consequences of your issue for others in society. Find and work with allies in the nonprofit community. Don’t just protect your turf.
• If you don’t ask, you don’t get. One bold questioner invited the Governor to attend her event; he responded by asking for the date and giving the entire audience his phone number at the governor’s mansion.
• Create a report card. Rep. Thissen complimented the Organizing Apprenticeship Project for its just-released agenda for racial and economic justice. He cited the report card as a way to highlight issues, give new insights and hold legislators accountable.
• Be there and be respectful. As Governor Dayton said, have strong convictions but be able to work with others who have equally strong convictions.

No Barriers to Involvement

No matter whether you work at a nonprofit or foundation, you can get involved in shaping critical state issues. As MCF President Bill King noted in his opening remarks, grantmakers can successfully engage in a wide range of public policy activities without violating the letter or spirit of anti-lobbying laws.

And if you’re a little nervous about getting started or looking to refresh your skills, be sure to take advantage of MCN’s array of public policy trainings.

Remember, if you didn’t like the headlines in today’s newspaper, don’t throw up your hands in disgust. The more residents of Minnesota who get engaged, the better our chances of dousing the partisan flames and creating a more positive future for our state.

–Wendy Wehr, MCF vice president of communications and information services

Governor Dayton at the 2012 Session Line Up

Frustration. Anger. Resignation. Compassion. Understanding. Hope.

Speakers and audience members alike expressed a full gamut of emotions at last Friday’s 2012 Session Line Up, the annual event co-sponsored by MCF and the Minnesota Council of Nonprofits.

If you missed the politically charged event where the state’s top elected officials spoke to individuals from the nonprofit and philanthropic sectors, here are a few highlights — shared in two blog posts.  Today’s is a brief look at what the Governor and top legislative leaders (listed in the order of their appearance) said about Minnesota’s current legislative agenda and the most critical issues affecting Minnesota’s future.

Tomorrow I’ll write about what we learned by listening between the lines, including how you can successfully participate in the process – without adding fuel to the smoldering partisan fire.

Governor Mark Dayton expressed his frustration about the difficulty of working with the Republican-controlled legislature. Never, he said, had he worked in an environment where “compromise is a weakness and intransigence is a virtue.” (For another perspective on polarization in our society, see my recent “Us vs. Them” post .)

MPR’s story on the event  picked up Dayton’s irritation, reporting on his comments about the pending confirmation hearing of Public Utilities Commission head Ellen Anderson.

Dayton also spoke out against constitutional amendments, which he described as bypassing the system of checks and balances of state government. If amendments come to the ballot, he said “the only check will be the wisdom of the people of Minnesota.”

Shifting gears in the Q&A, Dayton responded to a question about bonding and housing.  He stated he will do his best to keep housing and other public funding that will boost private employment in the bonding bills.

House Minority Leader Rep. Paul Thissen spoke to the importance of creating jobs and building a strong middle class, which is the key, he said, to building long-term prosperity in the state. He criticized Republicans for only talking about business. “Yes, businesses should be able to thrive…but businesses can’t thrive without the people of Minnesota.” Nonprofits, he said, should bring to the conversation their focus on making the people of Minnesota as strong and as successful as possible.

Representative Kurt Zellers, Speaker of the House, focused his remarks on reform – getting more of the dollars sent to St. Paul to the people who need them: to kids and families, and to businesses to hire more workers. He referenced the recently announced Reform 2.0 agenda, which is focused on excising outdated, outmoded and wasteful government spending.

Zellers also emphasized that this session’s bonding bill needs to focus on maintenance of the state’s infrastructure. An example cited was the upkeep of buildings on MNSCU campuses.

Senator John Marty spoke vociferously against proposed constitutional amendments that would “take away people’s rights.” He claimed that voter i.d. legislation would potentially deny votes to seniors, college students and the homeless, among others. He preached an agenda of “first do no more harm,” referencing “cruel and heartless” human services and medical assistance cuts.

Senate Majority Leader David Senjem emphasized that jobs and the economy are the number one goals of everyone at the legislature. Admitting that there was lack of agreement on how to tackle unemployment and economic sluggishness, he focused on the need to improve the tax and regulatory environment for businesses and invest in a skilled workforce.

Senjem noted that, although constitutional amendments will be taken up this session, he is not a “big fan” of budgeting through the constitution. (Much to his surprise, he got applause when noting his opposition to the Legacy Amendment.) He also expressed hope that the legislature could work with the Governor to work out a statutory solution to the voter i.d. issue, rather than advance a constitutional amendment.

Tomorrow’s Post: Being an Advocate, Not a Partisan

Senjem’s closing remarks about working with the Governor might allay some of the fears about constitutional amendments expressed at the opening of the event. Read tomorrow’s post for more about the amendments, partisanship and successful strategies to participate in the public policy sphere.

–Wendy Wehr, MCF vice president of communications and information services

Turn on or tune in to any media source, and your emphatic reply would be “No way.” The extreme polarization in our country is more and more frightening every day. The new cultural norm is to not merely express strong points of view but to thoroughly demonize others.

At least one practitioner says it’s time to address this crisis with a new, 21st century approach to diversity, inclusion and equity.

At the University of St. Thomas Diversity Insights program last Thursday, Howard Ross, founder of Cook Ross Inc. and a leading national expert on diversity, leadership, and organizational change, challenged his audience to look within themselves for solutions.

Ross homed in on the source of our animosity toward each other — essentially, primal fears that lead us toward unconscious, visceral negative reactions to cultural, group, individual and institutional differences.

He coached audience members to overcome the “us vs. them” mentality by developing our capacity to observe ourselves. Instead of pointing the finger at others, he said, we should shine a light on our own biases.  Recognizing our own foibles and faults will increase our compassion toward others.

Ross’s points reminded me of conversations we’ve had at MCF about diversity in philanthropy. When we developed our Diversity & Inclusion Action Kit to accompany MCF’s Working Towards Diversity IV research, we deliberately titled the worksheets ”My Actions.” We wanted to reinforce that grantmakers must take the first step by focusing on what they can do – not what others should do.

Ross concluded his remarks with some concrete steps we can each take to close the widening gulfs in our organizations and in society at large:

• Shift your consumption of media to really listen to the other side.
• Open a constructive dialogue in your organization, focusing not on the issues themselves, but on the way in which you’re talking about the issues.
• Talk to young people about other points of view.
• Take “the other” to lunch not to persuade, but to listen.

I haven’t cracked open Ross’s new book “ReInventing Diversity: Transforming Organizational Community to Strengthen People, Purpose and Performance.” But based on his presentation, I expect I’ll find more than a few concepts that are applicable to the nonprofit and philanthropic sectors.

Join the Conversation: When “us vs. them” differences arise in your own organization, what are your actions and reactions? Is there a chasm between grantmakers and nonprofits that could be narrowed by self-awareness?

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

Photo cc AAskew

The forums brought together more than 400 city, county and school district leaders, including elected and appointed officials, to generate ideas about ways they could collaborate across jurisdictions for better public service delivery.

At the forums, some of Minnesota’s most innovative local leaders came together to share their experiences with redesign and to explore new opportunities to work together across jurisdictions. They shared stories of what’s working in their communities, and they shared their hopes for the future.

Three critical lessons, summarized here, came out of the forums. The report provides much more detail on each.

1. Redesign is facing some barriers to change. Changing the way services are managed or delivered is never easy, and it hasn’t been for our local leaders working to redesign services in their communities.

There’s the identity issue, there’s turf, and there’s ego, and there’s the fear of change. We’ve got to get people to understand that we’ve got to change to stay alive.
— JO CARLSON, MAYOR, CITY OF WHITE BEAR LAKE

2. Leaders agree that five essential elements are needed to redesign local governments. Barriers are not permanent obstacles, and many local leaders have moved past them.

There’s definitely a willingness among local units of government to work together. At the legislature, they need to know that there are people in local government that want to work together, and I think that message needs to go out to our stakeholders at the local level, too.
— KEVIN DONOVAN, MAHTOMEDI SCHOOL BOARD

3. Minnesota’s local governments are ready to innovate. In fact, they’re already doing it.

Right now we’re working with other school districts in Itasca County and the region in Deerwood, Nashwauk-Keewatin, Floodwood, Hill City, Greenway, and Northland Community School. We’re linking via technology and together we’re sharing teachers and courses. Our students are getting electives and opportunities that a lot of large school districts in the Metro don’t offer because we’ve worked together and used technology to do more with what we have.
— JOE SILKO, SUPERINTENDENT, GRAND RAPIDS

Learn more, follow the media coverage of the report and find additional resources on local government redesign on The Bush Foundation’s Redesigning Local Government web page.

- Susan Stehling, communications associate

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