Minnesota Grantmakers Optimistic About 2006 Grantmaking (1/26/06)

After a year of major natural disasters in the U.S. and overseas, Minnesota foundations and corporate giving programs, which have given significantly to disaster relief, do not foresee a negative effect on the nonprofits they traditionally support, according to a new report from the Minnesota Council on Foundations. What’s more, if current economic conditions hold, 84 percent of Minnesota foundations and corporate giving programs expect to increase their grant dollars in 2006.

The Minnesota Grantmaking 2006 Outlook Report notes that 49 percent of grantmakers expect up to a four percent increase in total grants and 35 percent anticipate increases of 5 percent or more, for a projected 4 to 7 percent average increase in Minnesota grantmaking from a year ago.

Sixty-one percent of funders continued to fund traditionally supported nonprofits in addition to disaster-related funding in 2005, and 73 percent project no impact from disaster giving on their normal grantmaking in 2006.

“For a third year in a row, our members are optimistic about improvement in grantmaking,” said Bill King, Council president. “Steadily improving forecasts over time are good news for the nonprofits that benefit from Minnesota foundation and corporate giving program funding.

“The even more robust outlook for 2006 is doubly significant because it comes after our state grantmakers have made generous contributions for relief efforts following last winter’s tsunami in South Asia and the more recent hurricane devastation in the Gulf Coast region,” King added.

One major reason for the state’s optimistic grantmaking outlook is growth in the value of the state’s foundation assets. Forty-two percent of endowed foundations surveyed cited an increase in assets as the top reasons for giving more in 2006. The improved grantmaking outlook for 2006 can also be attributed to a reported increase in gifts to community/public foundations from individual donors, as well as an increase in corporate profits, which is the main source for most corporate grants. A few grantmakers also appear to be intentional about increasing their grant dollars, citing board decisions as the main reason for increasing philanthropic support in 2006.

The Minnesota Grantmaking 2006 Outlook Report derives from a December 2005 survey of Council members. The report can be downloaded at mcf.org/MCF/giving/outlook/outlook_2006.htm.

Founded in 1969, the Minnesota Council on Foundations, a membership organization that works actively to strengthen and expand philanthropy, 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.

Jane Ferguson, Vice President of Communications and Information Services, 612.335.3597, jferguson@mcf.org