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MINNESOTA GIVING OVERVIEW
This section provides an overview of trends and patterns in total Minnesota charitable giving by individuals, private foundations, corporate foundations and giving programs, and community/ public foundations. Minnesota grantmaking comprises Giving in Minnesota and outside the state, including international giving. The overview includes national comparisons.
TOTAL CHARITABLE GIVING
In 2005, individuals, foundations and corporate giving programs gave a total of $5.1 billion in charitable contributions, up 4.9 percent from the previous year, compared to a 2004 increase of 12 percent (see Table 1 and Figure A). The significant increase in giving in 2004 was due primarily to the Blandin Foundation's one-time 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 4.9-percent increase in 2005 speaks to the stable growth in charitable giving in the state, even without substantial one-time jumps in grantmaking by a few organizations.
Individual charitable giving continued to comprise the highest portion of the state's giving, accounting for 80 percent of the total. The remaining 20 percent represented grantmaking by foundations and corporate giving programs. Private foundations and corporate grantmakers were responsible for 9 percent and 8 percent of all giving, respectively, and community/public foundations accounted for 3 percent (see Figure B).
TOTAL INDIVIDUAL GIVING
Individual charitable Giving in Minnesota rose 6.8 percent (3.7 percent in inflation-adjusted dollars) from $3.86 billion in 2004 to $4.1 billion in 2005. Nationally, during the same year, charitable giving increased about twice as much (12 percent unadjusted for inflation; 8.7 percent adjusted). The growth in individual giving by Minnesotans in 2005 was significantly lower than in 2004 (see Table 2 and Figures C & D).
The total number of Minnesotans claiming charitable contributions on tax returns increased from 896,103 in 2004 to 914,303 in 2005, a 2-percent increase and the highest number since 2002. Of Minnesotans who itemized their tax returns, the proportion who claimed charitable contributions increased from 41.7 percent in 2004 to 42.3 percent in 2005.
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The average contribution per itemized return for Minnesotans in 2005 was $3,693, a 4.7-percent increase from 2004 ($3,528) and a 25-percent increase from 2002 ($2,953). Despite this increase, the average size of contributions by Minnesotans in 2005 remained below the national average of $4,388, a long-term trend. This difference has traditionally been related to Minnesotans itemizing at a higher rate than the national average, a factor that tends to include more individuals with lower charitable giving levels in the average contribution figure for the state. In 2005, Minnesota ranked fourth in the percentage of state residents itemizing their federal returns (37.4 percent), compared to 30.6 percent nationally. In 2005, Minnesota ranked 21st in the percentage of its residents' adjusted gross income given to charity, down from its 17th-place ranking in 2004.
TOTAL FOUNDATION AND CORPORATE GIVING
After a steady increase from 2002 to 2004, total foundation and corporate grants decreased by 1.9 percent in 2005, from $1.04 billion in 2004 to $1.02 billion in 2005 (see Table 3). As stated at the beginning of this section, this decrease is due primarily to the Blandin Foundation's one-time grant of $20 million and the E.M. Pearson Foundation's spending down of all of its assets through $30.9 million in grants, rather than to any specific negative impacts on grantmaking in 2005. If the exceptional one-time grantmaking of these two foundations were removed from the totals, grantmaking in Minnesota would have increased by 3 percent between 2004 and 2005 (and stayed flat in inflation-adjusted dollars).
Although Minnesota foundation grantmaking decreased slightly in 2005, total foundation assets rose by 7.3 percent. The number of grantmakers in the state also continued its increase, climbing 2.8 percent from 1,341 in 2004 to 1,378 in 2005.
A more detailed analysis of giving trends and patterns by the top 100 grantmakers in the state is discussed in the
subsequent sections of this report.
Number of Minnesota Grantmakers
In 2005, Minnesota was home to a total of 1,378 active grantmakers, an increase of 2.8 percent from the 1,341 grantmakers in 2004. In 2005, 85 percent of the grantmakers were private foundations (1,174), 9 percent were corporate foundations and giving programs (119), and 6 percent were community/public foundations (85) (see Table 4 and Figure E).
The increase in the number of total grantmakers in the state continues a consistent upward trend since 2001. However, differences exist in the amount of growth for each type of grantmaker. During this time, the number of private foundations has increased 11 percent, while the number of both corporate foundations and giving programs and community/public foundations have increased 20 percent.
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Total Grants Paid
In 2004, Minnesota grantmaking grew to over $1 billion for the first time. In 2005, grantmaking again passed this mark, with Minnesota's 1,378 active grantmakers giving a total of $1.02 billion (see Table 5).
Between 2004 and 2005, the total grants paid in Minnesota decreased 1.9 percent (4.8 percent in inflation-adjusted dollars) (see Figure F). In contrast, the state's grantmaking grew 10.7 percent (7.6 percent adjusted for inflation) between 2003 and 2004 and 5.4 percent (2.5 percent adjusted for inflation) between 2002 and 2003. Nationally, foundation giving rose 5.5 percent in 20051.
The drop in 2005 grants paid stands in contrast to the predictions of increased grantmaking in 2005 made by 80 percent of the Minnesota grantmakers surveyed the previous year (see the Council's 2005 Outlook Report). However, as mentioned previously in this report, the decrease is due in large part to a substantial one-time increase in giving in 2004 by the Blandin Foundation and the E.M. Pearson Foundation, rather than a significant decrease in giving by grantmakers as a whole in 2005.
Grants Paid by Grantmaker Size and Type
Most of Minnesota's total grants paid in 2005 came from a small number of grantmakers (see Table 6), continuing a long-term trend. Slightly less than 10 percent of the grantmakers (129) gave 85 percent of all grants paid ($863.6 million), and about 2 percent of grantmakers (32) provided two-thirds of all grants paid ($676.5 million).
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Of the 23,020 grants given in 2005, corporate grantmakers made just over half of these grants, while private foundations and community/public foundations accounted for about one-fourth each (see Figure G).
Of the $1.02 billion in grants paid in 2005, 46 percent was given by private foundations, 41 percent by corporate foundations and giving programs, and 13 percent by community/public foundations (see Figure H).
Although corporate foundations and giving programs make up a small percentage of Minnesota grantmakers, they provided a significantly higher proportion of the total amount of grants paid in 2005, continuing a long-term trend. Specifically, corporate grantmakers comprised 9 percent of all grantmakers but gave 41 percent of all grants paid. While private foundations make up the vast majority of grantmakers (85 percent), they accounted for just 46 percent of the grants paid, due to the fact that the majority of private foundations are small family foundations making $50,000 or less in annual grants. Community/public foundations represented 6 percent of the grantmakers in 2005 and paid 13 percent of the total grant dollars.
From 2004 to 2005, the total amount of grants paid decreased for all three grantmaker types (see Table 7 and Figure I). Private foundations experienced the largest decline in grantmaking (-8.3 percent), followed by corporate grantmakers (-1.7 percent) and community/public foundations (-1.4 percent).
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Private foundation grantmaking decreased from $508 million in 2004 to $466 million in 2005. This 8-percent drop reflects, in large part, a return to previous giving levels after an anomalous spike in 2004 giving by the Blandin Foundation and E.M. Pearson Foundation.
Corporate grantmaking declined slightly from $431 million in 2004 to $424 million in 2005, following steady increases since 2002. While many of the state's corporate foundations and giving programs increased their grants paid substantially in 2004, most saw their giving stay relatively flat in 2005.
Community/public foundations also saw a slight drop in their grantmaking, from $134 million in 2004 to $132 million in 2005, following a slight increase (0.4 percent) the previous year.
Foundation Assets
Minnesota foundation assets grew to $15.7 billion in 2005 from $14.7 billion in 2004, a 7.3-percent increase (4.2 percent adjusted for inflation), which was slightly less than the 9-percent increase the previous year (see Table 8 and Figure J) and similar to the national average of 7.1 percent2. Since growth in a foundation's assets in one year can lead to an increase in the foundation's grantmaking a year or more in the future, the increase in Minnesota assets in 2004 and 2005 could be an indication of increases in grant dollars in a few years.
Grantmaking by Congressional District
Foundations and corporate givers in Congressional District 5, which includes Minneapolis and surrounding suburban areas, made the most grants ($537 million) in the state in 2005, followed by Congressional District 4 ($240 million), which covers St. Paul and its surrounding suburbs (see Table 9). The remainder of the districts each made less than $100 million in grants. Congressional District 7, which covers most of the western side of the state, made the smallest amount of grant dollars, at $8.5 million.
Congressional District 5, Congressional District 3 (suburban Hennepin County) and Congressional District 4 had the most grantmakers housed in their areas (383, 329 and 276, respectively). Congressional Districts 5 and 4 were home to the foundations with the highest total assets ($5.7 billion and $4.5 billion, respectively), followed by Congressional District 1 ($2.2 billion), which extends across southern Minnesota.
Top Five Minnesota Grantmakers
Minnesota's five largest grantmakers in 20053:
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The McKnight Foundation
$90,710,176
Private foundation
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General Mills Foundation & Corporation
$53,331,232
Corporate foundation and giving program
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Medtronic Foundation & Corporation
$40,865,7984
Corporate foundation and giving program
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The Saint Paul Foundation5
$38,074,453
Community foundation
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Cargill Foundation & Cargill Incorporated6
$36,285,000
Corporate foundation and giving program
For a list of the top 50 Minnesota grantmakers by grants paid in 2005, see
Appendix ii [PDF].
Top Five Minnesota Grant Recipients
The following Minnesota nonprofit organizations received the largest total grant dollars from Minnesota's 100 largest grantmakers in 20057:
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Greater Twin Cities United Way
$17,976,015
Philanthropy: community fund and federated giving programs
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Minnesota Public Radio
$9,346,246
Arts, Culture & Humanities
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Bush Leadership Fellows Program
$8,122,850
Public Affairs/Society Benefit: Multipurpose
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Greater Minnesota Housing Fund
$7,005,000
Housing/Shelter
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Family Housing Fund (Minneapolis & St. Paul)
$6,661,500
Housing/Shelter
1 Foundation Yearbook, 2006 Edition, The Foundation Center.
2 Foundation Yearbook, 2006 Edition, The Foundation Center.
3To maintain consistency across years, dollar amounts include cash contributions
only; neither in-kind nor cash contributions are included. Information based on
available grant lists. Target Foundation & Corporation reported combined cash
and in-kind contributions of $147 million, but didn't provide a separate cash
contribution total and, thus, is not included.
4 Includes corporate foundation's grant dollars but not corporate giving program
grants.
5 Includes the Minnesota Community Foundation, J. Paper Foundation and A.F.
Paper Foundation.
6 Includes foundation and corporate grants but not business unit contributions.
7 Includes only grants of $2,000 and larger.
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Giving in Minnesota
2007 Edition
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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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