Minnesota Charitable Giving Increases After Declines Over Two Years January 5, 2006 Download the Summary Report (4 pgs, PDF) After two years of declines, Minnesota's charitable giving increased in 2003, showing the first improvement after the recession following the Sept. 11 attacks, according to a report from the Minnesota Council on Foundations. State charitable giving totaled $4.39 billion for 2003, up 5 percent (2.9 percent adjusted for inflation) from the previous year. Giving in Minnesota, 2005 Edition compiles and analyzes grantmaker and individual data for 2003, the most recent year for which IRS information is available. The report is published annually by the Council to support its mission to strengthen and to expand philanthropy. Individual giving in Minnesota contributed 78 percent of the state's charitable dollars in 2003, or $3.43 billion. The state's 1,296 foundations and corporate giving programs awarded $958 million to nonprofit organizations, an increase of 7 percent (5 percent adjusted for inflation). This upturn came after a decline in Minnesota grant dollars in 2002, the first recorded by the Council in 20 years of tracking these figures. "The longer-term trend in foundation and corporate giving has been steadily upward and only briefly interrupted by the recent economic recession," said Council president Bill King. "The state's strong rebound is in contrast to a reported decrease in grant dollars nationwide, indicating that Minnesota has a more diverse and resilient philanthropic sector compared with the nation as a whole." Charitable giving by the nation's foundations and corporations dipped 0.4 percent in 2003. The improved giving picture derived from higher-than-anticipated growth in foundation assets. Because most foundations set grant levels through the year based on an average of past asset performance, typically one to three years, the gain in assets in 2003 had a direct impact on the year's foundation grants. Another reason for the improvements is an increase in corporate profits, the source for most corporate grants. A number of community/public foundations also reported an increase in gifts from individual donors. Grant dollars to nonprofits in Minnesota dropped from 61 percent of the total in 2002 to 54 percent in 2003. The decline represents a continuing trend of corporate grantmakers giving grants where they have local subsidiaries, plants and branches around the country. A second trend relates to the emergence of donor-advised funds within community foundations whose donors tend to base giving on their grantmaking priorities, which can extend beyond community foundation geography. Education again received the largest share, 27 percent, of Minnesota grant dollars. The largest gains were seen in grants to religious organizations, up 32 percent adjusted for inflation, and in grants for public affairs and society benefit, up 25 percent adjusted for inflation. Founded in 1969, the Minnesota Council on Foundations serves the Minnesota community of grantmakers. The Council is a regional membership association working to improve the vitality and health of our communities. Council members include family and private foundations, community and other public foundations, and corporate foundations and giving programs. Media contacts: Jane Ferguson, Vice President of Communications and Information Services, 612.335.3597, jferguson@mcf.org Megan S. Sullivan, Communications Associate, 612.335.3417, msullivan@mcf.org

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