MINNEAPOLIS, Minn. (December 3, 2002) -- Minnesota is likely to experience a decline in total private grant dollars in 2003, according to a new report by the Minnesota Council on Foundations, a membership association for philanthropy. In a November 2002 Council survey, 89 percent of Minnesota foundations reported declines in their assets over the past year, and more than half of foundations and corporate givers said they expect declines in their 2003 grants to nonprofits.

The decreases in assets and grants are due primarily to the nation's economic recession. Council analysis shows that the poor performance of the stock market has resulted in a loss in the dollar value of many foundations' assets, which are the source for their grants; that the weak economy has dampened corporate profits, which are the source for many companies' charitable giving; and that individuals' investment losses have resulted in fewer gifts to community foundations.

"Minnesota's weak grantmaking outlook for 2003 comes at a time when nonprofits also are facing reductions in funding from individual donors and the government, as well as experiencing more demands for their services from Minnesotans affected by the recession," said Council president Bill King. "These factors will place growing pressures on Minnesota in 2003 to find new and innovative ways to continue maintaining and improving the health and vitality of the state with more limited resources, while ensuring that our most vulnerable citizens don't unduly shoulder the burden."

Grantmakers are taking a variety of measures to respond to the negative impacts of the economic recession, according to the survey. Some funders are reducing the size of their grants and/or the number of nonprofits they fund. Others are tightening their focus on their core priorities. Still others have taken more severe action, such as laying off staff or eliminating program areas.

The "Minnesota Grantmaking 2003 Outlook Report" is available on the Council's Web site at www.mcf.org. Print copies are available for $5 from the Council (612/338-1989, info@mcf.org).

Founded in 1969, the Minnesota Council on Foundations' mission is to strengthen and to increase participation in philanthropy. The Council is a regional membership association of grantmakers working to improve the vitality and health of our communities, with a broad and diverse membership that includes private foundations, community and other public foundations, and corporate foundations and giving programs.

CONTACT: David Biemesderfer, director of communications and external relations, 612/335-3597, dbiemesderfer@mcf.org.

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MORE INFORMATION:

• Minnesota Grantmaking 2003 Outlook Report (PDF, 4 pages).

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