Minnesota's Charitable Giving Declines for Second Straight Year

Total charitable giving by individuals, foundations and corporations in Minnesota declined for the second year in a row in 2002, reflecting the impact of an economic recession that was exacerbated by the tragic events of September 11, 2001, according to the Minnesota Council on Foundations' latest "Giving in Minnesota" report. The state's charitable giving totaled $4.18 billion in 2002, a decline of less than 1 percent from the previous year, which follows a similar small decline in 2001.

Individuals in Minnesota gave $3.28 billion to charity in 2002, an increase of less than 1 percent from 2001. The state's foundations and corporations awarded $893 million in grants in 2002, which is a 5 percent decline from 2001 (adjusted for inflation). This drop in grants is slightly higher than the 2 percent decline nationwide and is the first such decrease recorded by the Council since 1984.

"The weak economy in 2001 and 2002 has clearly taken its toll on Minnesota's charitable giving, as it has on other sectors in our state and across the country," said Council president Bill King. "Fortunately, the declines in giving have not been severe, and we expect to see an upturn in the near future." The Council expects that giving was flat in 2003 but increased modestly in 2004, according to the latest estimates from grantmakers.

The weakening economy in 2002 had a dampening effect on Minnesota foundation assets, which grew just 2 percent between 2001 and 2002 (a decline of less than 1 percent when adjusted for inflation). This is the second year in a row that the Council has recorded an inflation-adjusted decline in the state's total foundation assets.

In some good news for Minnesota nonprofits, the state's foundations and corporate grantmakers increased their support for organizations that serve the state. Minnesota grantmakers gave 61 percent of their 2002 grants to Minnesota-serving organizations - the highest level since 1990.

Health organizations saw the biggest growth in funding in 2002, according to the report, with a 7 percent increase in grant dollars received. Arts groups, on the other hand, experienced the biggest drop in grants, with a 22 percent decline.

The "Giving in Minnesota" Report, 2004 Edition is available for $20. For an order form, visit the Council's Web site, where you can also download a free report summary.

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