Private Independent Foundations: Dedicated to Minnesota

Source: Giving Forum Fall 2011 10/19/2011

By Anne Bauers

Of the nearly 1,500 foundations in Minnesota, about 85 percent are private family and independent organizations. Of these, most are family grantmakers – foundations in which the original donor or donor’s family is still involved. So the number of private independent foundations is small, but their philanthropic impact and influence is large.

Often, family foundations and private independent foundations are grouped together, so it can be challenging to determine the exact number of independent foundations in Minnesota. Nine percent, or 19, of MCF’s members are independent grantmakers. Eleven independent foundations were among the 100 largest grantmakers in the 2009 Giving in Minnesota research sample. Collectively, they gave $103.9 million, or 8 percent, of the sample’s grant dollars.

Human Services Tops Giving

MCF’s Giving in Minnesota, 2011 Edition research shows that although independent foundations award grants across all eight major subject areas, they gave the largest shares of their grant dollars to human services and public affairs/society benefit, at 31 and 22 percent, respectively (see Figure A). They also gave more to these two subject areas than their family, corporate or community/public counterparts.

But independent foundations appear to be somewhat less focused on education giving; they gave a relatively lower share to education, at 20 percent.

Funds Stay in Minnesota

In 2009, 59 percent of funds granted by Minnesota independent grantmakers in the sample stayed in the state, significantly more than the 48 percent of overall grant dollars that remained in Minnesota (see Figure B). Independent grantmakers gave just 3 percent of their grant dollars to national services, and 1 percent to international causes – in both cases, less than grantmakers overall.

Targeting Diverse Populations

In 2011, MCF conducted the Working Towards Diversity IV survey to paint a comprehensive picture of Minnesota grantmakers’ demographics, policies and practices on diversity and inclusion. As part of this research, MCF asked grantmakers to examine their mission statements and grant guidelines and report on which population groups they specifically name as key constituencies for their grantmaking.

Independent grantmakers were more likely than grantmakers in general to specifically name key constituencies that they serve through their grantmaking (see Figure C). They are more likely to name every key constituency group than grantmakers overall except youth or children.

Grantmakers More Diverse than Workforce

In general, independent grantmaker boards and staff appear more racially and ethnically diverse than the Minnesota workforce population as a whole. According to MCF’s 2011 Working Towards Diversity IV research: 40 percent of independent foundation board members and 22 percent of staff were people of color, compared to 13 percent of the state workforce.

Are independent foundations more likely than other grantmaker types to target diverse constituencies because their boards and staff are diverse, or vice versa? While further research is needed to understand the nature of the relationship between diverse constituencies and diverse boards and staff, the two appear to be correlated.

For more in-depth information about grantmaking by these and other types of foundations, see the full Giving in Minnesota, 2011 Edition report at: www.mcf.org/research/giving

To learn more about philanthropy’s progress in upholding the values of diversity and inclusion, see the Working Towards Diversity IV materials at: www.mcf.org/research/diversity

Anne Bauers is MCF’s research manager.