Outlook for Minnesota Grantmaking Improves for Second Straight Year

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 state's 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. That figure is lower than the 28 percent of grantmakers that expected declines a year ago and is a significant improvement from the 53 percent that expected declines 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."

About one-quarter (24 percent) of grantmakers said they plan to think about ways to respond to circumstances resulting from reduced government funding and the unstable economy in recent years. Another 65 percent said they expect to continue with their giving priorities and programs in 2005 with no changes.

The Minnesota Grantmaking 2005 Outlook Report can be downloaded from the Council's Web site. Print copies are available for $5 from the Council (612.338.1989, info@mcf.org).

top