MINNEAPOLIS, Minn. (January 25, 2005)  The outlook for giving by Minnesota’s foundations and corporate grantmakers shows signs of improvement for the second year in a row, according to a new report by the Minnesota Council on Foundations. In a December 2004 Council survey, 80 percent of Minnesota grantmakers said they expect to increase their 2005 grant dollars from 2004 levels, with 45 percent expecting increases of 0 to 4 percent and 35 percent expecting increases of 5 percent or greater.

One major reason for the state’s improved grantmaking outlook is the growth in foundation assets, due in large part to the recovering economy. In the survey, 84 percent of foundations reported increases in their assets over the past year, compared to 58 percent last year. Other reasons for the improved outlook include a reported increase in donations to community/public foundations and improved profits for many corporations.

“Based on these findings, in 2005 we hope to see a more steady increase of perhaps 3 to 6 percent by the states foundations and corporate giving programs,” said Council president Bill King.

In another sign of a brighter outlook, only 19 percent of those grantmakers surveyed expect declines in their giving in the coming year, compared to the 28 percent that expected declines a year ago, and a significant improvement from the 53 percent that expected declines in their giving in 2003.

“The positive outlook for Minnesota grantmaking in 2005 is welcome news for nonprofits and communities,” said King. “But it is important to remember that charitable contributions are just one of several sources of funding for nonprofits. The modest increase we expect in charitable contributions can never fill the gaps left by reduced funding from government and other sources.”

Nearly two-thirds (65 percent) of grantmakers surveyed said they expect to continue with their giving priorities and programs in 2005 with no changes. A much smaller group (24 percent) said they plan to think about ways to respond to circumstances resulting from the unstable economy of the recent past and/or reduced government funding.

Founded in 1969, the Minnesota Council on Foundations’ mission is to strengthen and expand philanthropy. The Council is a regional membership association of grantmakers 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.

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More Information:

• Highlights: Minnesota Grantmaking 2005 Outlook Report

• Download: Minnesota Grantmaking 2005 Outlook Report (PDF, 4 pages).

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