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Why Do We Give? There are as many motivations for a person’s charitable giving as there are people. While each giving story is unique, they likely share one or more of the these motivations. • To help fulfill lifetime goals and passions. • To feel a sense of value and satisfaction. • To leave a lasting imprint on society while making a significant difference. • To perpetuate a certain viewpoint or philosophy. • To unite family members around a purposeful mission. GLADYS PAULSON: “Giving something was always important, no matter the amount.”
• To honor or memorialize a friend or loved one. • To give something back to a community. • To fulfill a responsibility or desire to be a leader in a community.
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tories of unassuming farmers who have left thousands— and in some cases, millions—to their hometown schools, churches and favorite charities will become increasingly common, according to the recently published “Minnesota Generational Transfer of Wealth” (TOW) study commissioned by the Minnesota Initiative Foundations. “Farmers and business owners, who retire and sell their assets because their children don’t want to carry on, often find themselves with sizeable estates,” said Bill King, president of the Minnesota Council on Foundations (MCF). Such windfalls can trigger introspective moments when people consider whether or not charitable giving is something they value and want to pursue. “Every person, no matter how much or how little they have, reaches a moment in their lifetime where they consider doing something greater than themselves,” said Matt Kilian, Initiative Foundation vice president for external relations. “In the next 20 or so years, many will have the financial resources to bring their dreams to life, thanks to the hard work of their parents and grandparents.” Between 2011 and 2030, as an entire generation of Baby Boomers reaches retirement age and beyond, the TOW research estimates that the historic sum of $47.9 billion will be passed on. In the 14 central Minnesota counties, that wealth transfer is approximated to be $5.8 billion. “Now, think if a tiny portion of those dollars—say, five percent—were to be invested in permanently endowed funds,” Kilian added. “What a gift from one generation to future generations.”
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• To connect with others who share your interests and passions. • To benefit from tax advantages. • To express gratitude or say “thank you.” Source: Minnesota Council on Foundations “Toolkit for Giving.” Access the entire toolkit at www.mcf.org/donors.
ECONOMIC IMPACTS Those optimistic numbers, however, don’t tell all there is to know about giving trends across central Minnesota. The truth is that when it comes to charitable giving, the toll of the recession still lingers. Individual giving in the state sank 7.7 percent from $4.19 billion in 2007 to $4.02 billion in 2008, the start of the downturn and the most recent year for which complete giving data are available. That’s a significant statistic, when you consider that individual contributions account for nearly 75 percent of all giving in Minnesota, with the remainder coming from foundations and corporations. Philanthropy, however, tends to trail behind measurable improvements in the economy and consumer confidence. According to the “Current Conditions Report” published by the Minnesota Council of Nonprofits (MCN), 31 percent of nonprofits saw an uptick in individual contributions in 2010, compared to just 21 percent in 2009. The survey also found that 40 percent of organizations predict a rise in individual giving in 2011, which could be among the positive signs for economic recovery in the state.