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KEY FINDINGS
Giving in Minnesota, 2007 Edition analyzes grantmaking in the state in 2005, which is the year with the most recent comprehensive data available. This report provides an overview of giving by individuals and organized philanthropy in the state. It also provides an in-depth analysis of trends and patterns of giving according to subject area, geographic service area, intended beneficiary and support type for the Giving in Minnesota sample, which comprises the 100 largest active grantmakers in the state by grants paid. Although the organizations in this sample represent just 7 percent of grantmakers in the state, they gave 78 percent of all Minnesota grant dollars in 2005.
MINNESOTA GIVING OVERVIEW
In 2005, individuals, foundations and corporate giving programs gave a total of $5.1 billion in charitable contributions, up 4.9 percent from 2004, compared to an increase of 12 percent between 2003 and 2004. The significant increase in giving in 2004 was due primarily to a one-time Blandin Foundation grant of $20 million and the E.M. Pearson Foundation's spending down of all of its assets
through $30.9 million in grants. Thus, the 2-percent increase in 2005 speaks to stable growth in charitable giving, even without large one-time grantmaking by a few organizations.
Increase in individual giving. Individual charitable Giving in Minnesota rose 6.8 percent in 2005, increasing from $3.86 billion in 2004 to $4.1 billion in 2005. The average contribution per itemized return was $3,693, a 4.7-percent increase from 2004. The average contribution in Minnesota was lower than the national average of $4,388, a continuing trend due at least in part to more Minnesotans itemizing deductions on their federal tax returns than in most other states.
Foundation and corporate giving remains over $1 billion. In 2005, foundation and corporate grantmaking once again passed the billion-dollar mark, with Minnesota's 1,378 active grantmakers giving a total of $1.02 billion. This amount represents a decrease of 1.9 percent from 2004, due primarily to an exceptionally high, one-time level of grantmaking by two foundations in 2004, rather than to any specific negative impacts on Minnesota grantmaking in 2005.
Foundation assets increase. Minnesota foundation assets increased to $15.7 billion in 2005 from $14.7 billion in 2004, a 7.3-percent increase, which was slightly less than the 9-percent increase the previous year.
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GRANTMAKING BY GIVING IN MINNESOTA SAMPLE
The Giving in Minnesota sample consists of the 100 largest grantmakers in the state by grants paid. This sample accounted for about 78 percent of the total grantmaking in the state in 2005, despite comprising just 7 percent of the state's grantmakers. Analysis focused on the sample's $704 million of grants made in amounts over $2,000.
Private foundations increased their share of grants paid. From 2004 to 2005, private foundations increased their share of total grants paid in Minnesota (from 48 percent to 50 percent of all grant dollars), while community/public foundations posted a decrease (from 15 percent to 13 percent), and corporate grantmakers maintained the same share of grants (37 percent).
Average size of grants decreased. From 2001 to 2004, there had been a slow, yet gradual, growth in the average grant size made by the Giving in Minnesota sample. But in 2005, the average grant size dropped to its lowest point since 2001. Specifically, the average grant size decreased by 13 percent, from almost $34,000 in 2004 to less than $30,000 in 2005. Private foundations continued to provide larger average grants ($61,118) than corporate grantmakers ($19,552) and community/public foundations ($17,156).
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GRANTMAKING BY SUBJECT AREA
Human Services, Education and Public Affairs received the most grants. Human Services, Education and Public Affairs continued to rank as the three subject areas receiving the largest shares of the state's grant dollars, although Human Services and Education traded places.
Because of disaster relief funding, Human Services received the most grants. Grantmakers gave 25 percent of the state's 2005 grant dollars, the largest share, to this category partly due to the response to the South Asia tsunami and Hurricanes Katrina and Rita.
Grantmaking to Education and Religion declined. Continuing a multi-year trend, Education's share of the state's grant dollars decreased from 25 percent in 2004 (the largest share) to 21 percent in 2005 (the second-largest share), marking only the second time that Education was not the top-rated category since the Council began this research. Total grant dollars to Education also declined in 2005. The share of grant dollars to Religion decreased by 2 percentage points in 2005, to 3 percent, after three consecutive years of a 5-percent share.
Increased support for Environment/Animals and International Affairs. Both Environment/Animals (4-percent share) and International Affairs (2-percent share) saw an increase in their shares of the state's grant dollars for the first time since 2001, although by only 1 percentage point in each case. Total grant dollars to International Affairs doubled between 2004 and 2005.
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COMPARISON OF
MINNESOTA AND NATIONAL GRANTMAKING
Human Services ranked first in Minnesota; Education was first nationally. In 2005, the share of grants going to Human Services ranked first in Minnesota (25 percent), while Education ranked first at the national level (24 percent). Holding the second rank, both with a 21 percent share, were Education at the state level and Health at the national level. Public Affairs/Society Benefit ranked third in both Minnesota (18 percent) and nationally (16 percent).
Large differences in Human Services and Health funding. In 2005, the greatest differences in funding for subject areas between Minnesota and the nation were in Human Services and Health. In Minnesota, Human Services received 25 percent of all grant dollars, compared to 15 percent at the national level. In contrast, Health received an 11-percent share in Minnesota, compared to 21 percent nationally. 2005 was also the first time since 2001 that Education received a larger share at the national level than in Minnesota.
GRANTMAKING BY GEOGRAPHIC AREA
Slight drop in grants to Minnesota. In 2005, Minnesota grantmakers gave 58 percent of their grant dollars to organizations serving Minnesota, which was a drop of 1 percentage point from the previous year. However, the share of grants to Minnesota in 2005 was still much higher than 2003 levels, and is consistent with figures throughout the 1990s.
Decreased funding to Greater Minnesota. Within Minnesota, the largest decline in funding was to organizations serving Greater Minnesota. Giving to this area decreased by 2 percentage points, to 11 percent, between 2004 and 2005, while giving to the Twin Cities dropped by 1 percent and giving statewide went up by 3 percent.
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GRANTMAKING BY INTENDED BENEFICIARY
General Public/Unspecified Beneficiary group received the most grants. As was the case the previous year, in 2005, all grantmaker types allotted their highest shares of grant dollars to benefit the General Public/Unspecified Beneficiary group, although the percentage share varied slightly across types and over time. Of the three types of grantmakers, community/public foundations had the largest share (60 percent) in 2005, experiencing a 1-percent decrease from 2004. Private foundations had the second-largest share (56 percent), and experienced the largest increase (about 3 percent). Corporate grantmakers had the smallest share (51 percent), an increase of about 2 percent.
Fewer grants for Children and Youth. Minnesota grantmakers continued to devote their second-highest level of grant support to benefit Children and Youth, but their share of grant dollars to this group declined by 3 percentage points, from 19 percent to 16 percent, between 2004 and 2005. Corporate grantmakers continued to give the largest share of their grant dollars (24 percent) to Children and Youth, compared to private foundations and community/public foundations at about 11 percent.
Increased support for racial/ethnic groups, particularly Native Americans. 2005 saw a notable increase in Minnesota grant dollars to benefit all major racial/ethnic populations. The share of grants to benefit Native Americans/American Indians increased from 2 percent to 3 percent between 2004 and 2005, with an increase in grant dollars of nearly 50 percent. The share of grants also increased for Hispanics/Latinos, Asians/Pacific Islanders and African Americans/Blacks, with grant dollars to Asians/Pacific Islanders increasing by about 75 percent, although these three groups still received less than a 1-percent share.
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GRANTMAKING BY SUPPORT TYPE
Most grants are for Program Support. For the third consecutive year, Minnesota grantmakers devoted the largest share of their grant dollars for Program Support (51 percent), followed by General Support (25 percent) and Capital Support (14 percent). Between 2004 and 2005, the state's grant dollars increased for Program Support and decreased for General Support and Capital Support.
Drop in General/Operating Support, Capital Campaign Funding. 2005 saw notable drops in funding for both General/Operating Support and Capital Campaigns. The share of Minnesota grant dollars for General/Operating Support declined 4 percentage points between 2004 and 2005, from 25 percent to 21 percent, while the share for Capital Campaigns dropped 3 percentage points, from 12 percent to 9 percent.
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Giving in Minnesota
2007 Edition
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Order Information
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Printed copies of Giving in Minnesota, 2006
Edition, Summary Report are available for $5 each.
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In This Document
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About This Report
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The Minnesota Council on Foundations produces
Giving in Minnesota to provide a comprehensive analysis of the trends and patterns of giving by organized philanthropy in the state.
This report provides an overview of giving by Minnesota foundations and corporations domestically and internationally, as well as giving by individual Minnesotans. The report also provides an in-depth analysis of the Giving in Minnesota sample of the largest Minnesota foundations and corporations by subject area, geographic area, intended beneficiary and support type.
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