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Minnesota Foundations and Corporations
Anticipate Drop in Grantmaking in 2009
Jan. 8, 2009
 After several years of increased giving, Minnesota foundations and corporate giving programs expect a decline in grantmaking to nonprofit organizations in 2009 versus 2008. According to the
2009 Outlook Report released today by the Minnesota Council on Foundations, 40 percent of grantmakers anticipate a decrease in giving, 41 percent expect their giving to remain the same, and 15 percent hope to increase their grantmaking in 2009.
“Overall, the report data show that grantmaking is expected to decrease about 4 percent in 2009,” says Bill King, MCF president. “This is, of course, a snapshot in time. The giving picture may change with the economy throughout the year.”
Based on a survey of grantmakers that represent 70 percent of the approximately $1 billion in grants paid annually in Minnesota, the report indicates the enormous effect of asset declines on foundations’ ability to give. “More than half of the survey respondents expect further declines in 2009,” reports King. “Corporate grantmakers are slightly more optimistic than private and community foundations, but their shrinking profits may negatively impact giving in 2009 as well.”
Grantmaking this year will decrease at a somewhat lower rate than that of asset declines because payouts are typically based on one- to three-year rolling averages, explains King. “Unfortunately, this same factor may negatively affect grant levels in 2010 and beyond.”
Other grantmaking changes anticipated by 2009 Outlook Report survey respondents include awarding fewer grants, adjusting priorities to meet shifting community needs, and offering more nonmonetary and in-kind support to assist nonprofits that face economic challenges. A complete copy of the report can be found at www.mcf.org/outlook.
Giving in Minnesota Report Shows Past Growth
 MCF also released its annual
Giving in Minnesota, 2008 Edition report. This analysis of charitable giving in Minnesota in 2006, the most recent year for which comprehensive data are available, shows that individuals and grantmakers gave $5.2 billion in charitable contributions that year, an increase of 1.8 percent from 2005.
While individual giving in Minnesota decreased 1.2 percent in 2006, to $4.07 billion from $4.12 billion in 2005, foundation and corporate giving showed a notable increase. In 2006, the state’s grantmakers gave $1.16 billion, an increase of 13.8 percent from 2005.
Foundation assets also increased to $17.1 billion in 2006 from $15.7 billion in 2005, an 8.4-percent increase. This asset growth suggests that grantmaking likely increased in 2007 and 2008 as well, although final numbers have not yet been tallied.
Other key report findings about Minnesota philanthropy:
- The share of grant dollars going to education increased in 2006 to 26 percent. Another top subject area was human services, which received a 22-percent share.
- Giving to organizations serving Minnesota dropped slightly, from a 58-percent share in 2005 to 54 percent in 2006.
- Children and youth received a larger share of grant dollars, 22 percent in 2006 versus 16 percent in 2005.
- More than half (56 percent) of Minnesota grant dollars were allocated to program support that year, while general operating support declined to 22 percent.
In 2006, Minnesota was home to 1,398 active grantmakers, an increase of 1.4 percent from 2005. While private foundations made up the largest proportion (85 percent) of grantmakers, Minnesota’s corporate grantmakers gave 42 percent of the $1.16 billion granted.
“This look back to 2006 helps us examine long-term trends and gives some perspective on the inevitability of charitable giving cycles,” comments King. “Although our members are concerned about their capacity to give in the near-term, they remain committed to our community for the long-term.”
A summary and full report of Giving in Minnesota, 2008 edition, is available at www.mcf.org/gim.
The Minnesota Council on Foundations, a regional association of grantmakers, works actively to expand philanthropy and increase the vitality of our communities. MCF members represent three quarters of all grantmaking in the state, awarding more than $850 million to nonprofits annually. Members include family and private independent foundations, community and other public foundations, and corporate foundations and giving programs. For more information, visit www.mcf.org.
Media contact:
Wendy Wehr, vice president of communications and information services, 612.335.3597,
wwehr@mcf.org
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