Charitable giving in Minnesota grew 5 percent in 2003 to $4.39 billion dollars, reversing two years of declines, and grantmakers expect the trend to continue, according to two new reports.
“Giving in Minnesota, 2005 Edition,” published by the Minnesota Council on Foundations, analyzes IRS data on charitable giving by foundations, corporations and individuals during 2003.
Adjusted for inflation, giving grew 2.9 percent, with individuals accounting for eight in 10 dollars donated, or $3.43 billion.
Foundations and corporate giving programs accounted for the remaining $958 million given to nonprofits, the report says, up 5 percent after adjusting for inflation.
The increase in giving is due to an improved economic climate and growth in foundation assets and corporate profits, the report says.
Education-oriented nonprofits received more than one in four grant dollars, more than any other issue area, while religious groups saw the largest jump in grant dollars, with an increase of 32 percent, adjusted for inflation.
About 54 cents of each $1 granted by Minnesota funders stayed in the state, down from 61 cents per $1 in 2002.
The “Minnesota Grantmaking Outlook Report,” also released by the Minnesota Council on Foundations, says foundations and corporations do not expect their support of 2005 natural disaster relief efforts to affect the nonprofits they ordinarily support.
More than eight in 10 grantmakers expect to grant more dollars in 2006 if economic conditions remain stable, the report says, with half predicting a 4 percent increase in total grants.
More than six in 10 funders say their disaster-relief giving did not replace regular giving, and almost three in four say disaster relief will not affect 2006 grants.
The positive outlook for 2006 is due in part to growth in the value of foundation assets, the report says, as well as an increase in gifts from individuals to community and public foundations.