“The Minneapolis Foundation has an incredible reputation, so there was an immediate trust and confidence that this was the right place for me.”
David Wilson, Managing Director, Accenture and Minneapolis Foundation Donor Advisor
“We work with The Minneapolis Foundation because our fund is joined with many others to strengthen the fabric of our entire community.”
Charlie Rounds and Mark Hiemenz, Community Leaders, Entrepreneurs, Activists, Philanthropists and Minneapolis Foundation Donors
Support What You Love. Become a Donor.
We are here to make it simple for you to support what you love – in Minneapolis and beyond. Whether you are considering opening a donor advised fund to fund your charitable giving today, or looking into leaving a legacy for the future, we have the vehicle that’s right for you. The Minneapolis Foundation offers convenient, customized giving solutions that enable you to fund your charitable passions while using tax-wise financial strategies. Our professionals can help you and your loved ones create a giving plan that’s thoughtful, meaningful and effective.
Trust us. We’ve been in the donor services business for 100 years.
There are reasons donor advised funds are climbing to the top of the charts. It’s hard not to fall in love with the convenience and flexibility – not to mention the opportunity to send more money to the causes you care about, while paying fewer taxes. Here are a few of the reasons donor advised fund growth is outpacing any other giving vehicle in the United States:
Easy and fast set up
Immediate tax savings
No administrative headaches
Option to remain anonymous
Promotes strategic and proactive giving
Donor Advised Funds in Four Easy Steps:
1. Give Us a Call!
Our Philanthropic Advisors will help you establish a fund with a current or planned gift of as little as $10,000 in assets. We accept cash, credit card donations, marketable securities and mutual fund shares, closely held stock, real estate, interest in a limited liability partnership, life insurance, and other illiquid assets. Bonus: Take an immediate tax deduction when you open your fund!
2. Grow Your Fund
You will accrue non-taxable earnings to your fund, which is professionally managed. You can add to your fund at any time with cash, credit card, or stock transfers. And, we offer all of our donors access to an easy-to-use online fund management system. Bonus: Less paperwork at tax time! Rather than itemized donations, you will only need a record of contributions to your fund.
3. Recommend Grants
Make grant recommendations to qualified charitable organizations securely online. If you prefer to talk someone, we always enjoy phone calls and in-person meetings. Bonus: As a donor advisor, you have the option to be recognized for your gift OR to remain anonymous. The choice is yours.
4. Learn and Connect
Take advantage of our 100 years of philanthropic and community expertise to make the most of your giving. We can educate you about leading community issues, introduce you to philanthropic and community leaders, and keep you updated on exciting and unique local funding opportunities. Bonus: Our staff is trained to help families and businesses navigate multi-generational and strategic philanthropy.
Contact Eric Anderson, Director of Stewardship at 612.672.3842 or email@example.com to discuss how a donor advised fund can benefit you. To learn more about our Donor Advised Fund policies and guidelines click here.
Not sure if a donor advised fund is right for you? Check out this simple comparison between a Donor Advised Fund at The Minneapolis Foundation, a private Foundation, and a fund through a financial institution.
Not sure if a donor advised fund is right for you? Check out this simple comparison between a Donor Advised Fund at The Minneapolis Foundation, a private Foundation, and a fund through a financial institution.
Donor Advised Fund at The Minneapolis Foundation
Donor Advised Fund at a Financial Institution
Income Tax Deduction Limit
Cash Gifts, Percentage of Adjusted Gross Income (AGI)
Amount Deductible (subject to percentage limitations)
Appreciated Publicly-traded Stock
Fair Market Value (fmv)
Other Appreciated Property (long-term)
Administration & Fees
in some cases
Separate Tax Return
Investment Management Fees
Federal Excise Tax Imposed
Charitable Giving Services
Creating a Family Giving Plan
Help with Grantmaking
Connecting with other Donors
Information About Community Issues
Online Fund Management
*Many commercial gift funds do not accept gifts of real property, such as real estate, privately held stock, or S-corporation stock.
**1% on first million dollars; breakpoints apply thereafter.
Are you or your business considering a charitable foundation of $1 million or more? If so, a Signature Fund may be an effective and practical solution for you. Signature Funds combine the name recognition of a private foundation with the privacy, flexibility, and tax advantages of a Donor Advised Fund.
A Few Amazing Benefits (in addition to those of a traditional Donor Advised Fund):
Ability to use “Foundation” in your fund name
Customized reporting and grant correspondence
Access to family meetings/multi-generational workshops
Option to maintain the investment management of your current financial advisor* or take advantage of the Foundation’s professional investment management
To learn more about this unique giving solution, contact Eric Anderson, Director of Stewardship at 612.672.3842 or firstname.lastname@example.org.
Partnering with family foundations
The Minneapolis Foundation is pleased to offer your family foundations resources and support to your charitable giving experience. We know that managing a family foundation can be incredibly rewarding, yet it’s not without its challenges. That’s why we have been refining the services we offer to meet the needs of local family foundations.
To learn more about what The Minneapolis Foundation can do to support your family foundation, please contact Jenny Johnson, Philanthropic Advisor at 612-672-3849 or email@example.com today.
You’ve worked hard to live a meaningful and productive life. We are here to help ensure your legacy lives on for generations. Through one – or a combination – of our planned giving solutions, you can create long-term support for the causes you care about. You can also benefit from tax savings.
Take a look at some of the most popular planned giving vehicles amongst donors today:
A charitable gift written into a will or revocable trust. You retain all assets during your lifetime, and the gift is made upon your death. The estate will receive an estate tax deduction for the bequest.
A simple way to gift retirement plan and life insurance assets at the time of your death without the need for probate or trust administration is to name a fund at The Minneapolis Foundation as the beneficiary. Assets pass automatically to your fund as soon as an application and proper documentation are submitted.
Charitable Remainder Trust
A charitable remainder trust provides an immediate partial tax deduction and capital gains tax will be deferred. You can receive income from your gift for life or for a specific number of years, after which your charitable fund receives the remaining assets that can then be advised by your family or directed by the Foundation consistent with your charitable wishes.
Charitable Lead Trust
A trust that lets you provide income to a designated fund for a period of years. Remaining assets – often appreciated – can be directed to you or your family at the end of a specific term. A charitable lead trust allows you to pass assets on to your children or grandchildren with minimum gift and estate tax liability. By naming a donor advised fund as the charitable beneficiary, you can maintain maximum flexibility in your charitable giving.
Charitable Gift Annuities
A lifetime fixed annuity for one or two people issued by The Minneapolis Foundation in exchange for a contribution of $5,000 or more. Annuitants must be age 55 or older when payments begin.
Create a permanent source of support for worthy causes. Choose from twelve legacy funds, and The Minneapolis Foundation will ensure that your gift goes to the highest and best use for decades.
ANIMAL WELFARE: Support organizations that provide humane care for domestic animals and promote policies to protect them.
ARTS & CULTURE: Support the arts, artists and arts education, and the cultural institutions that enrich our community.
CHILDREN & YOUTH: Support programs and organizations that promote a healthy and safe childhood and offer young people opportunities for growth, leadership and service.
COMMUNITY ENDOWMENT: Support organizations and programs that serve the common good and general welfare of our community as determined from year to year by the Trustees of The Minneapolis Foundation. The Community Endowment provides the most flexible source of support for our community – today and for future generations.
EDUCATION: Support programs that engage families, communities and schools to improve educational access and outcomes for all, from early childhood through post-secondary education.
ENVIRONMENT & CONSERVATION: Support environmental education, protection and stewardship in the metro area and throughout Minnesota.
HEALTH: Support programs that promote wellness and the general health of individuals and families by improving access to quality health care services.
HOUSING AND HUMAN SERVICES: Support programs and organizations that create and promote safe and affordable housing for all, encourage self-sufficiency and provide basic services for people in need.
IMMIGRANTS & REFUGEES: Support programs that help new Minnesotans—immigrants and refugees—acclimate, become self-sufficient and participate fully in the community.
INTERNATIONAL DEVELOPMENT & RELIEF: Support organizations that provide disaster relief, economic opportunities and education in developing countries, and advance the cause of peace in the world.
JUSTICE, EQUALITY AND CIVIC ENGAGEMENT: Support programs that protect the rights of all by promoting justice, cross-cultural understanding and participation in the civic, economic and social life of the community.
SENIOR SERVICES:Support organizations that promote the health and dignity of older individuals, providing safe environments, engaging programs and services so they may continue to contribute to the life of our communities.
An Innovative Investment Option for Charitable Assets
InvestMPLS enables new and existing Donor Advised Funds to nurture small businesses, foster school excellence and more by making hyper-local impact investments in partnership with The Minneapolis Foundation.
The Power of Impact Investing
Traditionally, philanthropy and investing have been thought of as two separate disciplines, one promoting social change, the other financial gain. That’s changing fast with the rise of impact investing.
Originally used by large national foundations such as Ford and Rockefeller, impact investments aim to produce a financial return and a social benefit. This strategy has caught on with a wide range of investors, including large-scale financial institutions, pension funds, private wealth managers, and commercial banks.
Since 2012, The Minneapolis Foundation has taken a leading role in making this powerful tool available to individuals and families with Donor Advised Funds. In 2016, we built on that success by launching InvestMPLS.
How it Works
InvestMPLS is a $10 million revolving loan pool with a fixed interest rate paid to participating investors. Your Donor Advised Fund can join a cohort of charitable investors on January 1 or July 1 each year until the pool is fully subscribed. Assets are invested with InvestMPLS for five years, with interest paid annually. At maturity, principal is returned to the Donor Advised Fund for future investment or grantmaking.
InvestMPLS assets are invested with highly qualified intermediary organizations, including Community Development Financial Institutions (CDFIs), mostly located here in the Twin Cities. CDFIs, which are recognized by the U.S. Treasury Department, are private institutions dedicated to providing responsible, affordable financing to disadvantaged people and communities. These CDFIs use InvestMPLS assets to make loans to small businesses, schools or other organizations that are strengthening our community in ways that align with the Foundation’s mission.
The Minneapolis Foundation chooses CDFIs and other InvestMPLS partners through an invitation-only application process. The fund is carefully stewarded by our Impact Investment committee, which uses a rigorous process to evaluate the risks and opportunities associated with each prospective loan. The committee makes loan recommendations to The Minneapolis Foundation’s President and CEO for final approval.
We regularly review our portfolio performance and loan criteria to ensure that we’re having the desired impact in the community. Our initial investments through InvestMPLS focus on two specific areas: economic vitality and education.
Economic Vitality The Foundation is committed to building a workforce that reflects our changing demographics and a business climate that fosters innovation, entrepreneurship and self-sufficiency. That’s why we’re working to create 1,500 new living-wage jobs by 2020. To help achieve this goal, InvestMPLS makes loans to CDFIs and other partners that offer technical assistance and capital to minority-owned businesses and entrepreneurs of color, especially in high-needs Minneapolis neighborhoods.
We envision an education system that prepares all children to compete in a global economy and pursue their dreams. To help realize this vision, we’re working to create 10,000 high-quality school seats for low-income students of color. InvestMPLS supports this goal by making strategic investments in the creation and expansion of high-performing schools in our community.
Is This for You?
Donors make impact investments for a variety of reasons. Here are a few signs that InvestMPLS might be a great tool for your Donor Advised Fund:
You care about making positive change in your own backyard, on issues like education and economic vitality.
You’re interested in pooling your Donor Advised Fund assets with the Foundation and other Donor Advised Funds to increase your impact.
Your Donor Advised Fund has a balance of at least $50,000, and you want to dedicate at least $10,000 to impact investing for 5 years.
You have a private or family foundation and are interested in exploring new ways to leverage your charitable assets for maximum impact.
A Proven Model
We first invited Donor Advised Funds to participate in impact investments in 2012, when we placed a $1 million, five-year note with the Nonprofits Assistance Fund (now Propel Nonprofits). Propel provides capital and short-term financing to Minnesota nonprofits. Its loans, which are evaluated by Propel’s investment professionals, help organizations in all fields of service, including health care, education and the arts. In 2013, a second five-year note added $800,000 to the loan portfolio.
In 2014, the Foundation and several Donor Advised Funds teamed up again to create a three-year, $1 million Working Capital Loan Fund to provide cash-flow loans to minority contractors bidding on construction of U.S. Bank Stadium. All three of these investments met their financial objectives and delivered a strong social benefit. They provided an annual return, and at the end of their terms, principal returned to the Donor Advised Funds. This model worked so well that we created InvestMPLS in 2016 to give donors more options for putting their Donor Advised Funds to work in the community.
Impact Investing at Work
After the Legislature approved a billion-dollar stadium for the Minnesota Vikings, the Minneapolis Foundation used impact investing to help more local business owners take advantage of the project’s economic opportunities. Here’s how we did it >
We’d love the opportunity to tell you more about the power of impact investing. If you have any questions about InvestMPLS, please call us at 612-672-3878 or call your Foundation representative directly.
In celebration of the The Minneapolis Foundation’s centennial year, we have created the Centennial Pay it Forward FOREVER Fund, a new twist on endowment that will maximize the impact of your giving for centuries to come.
With a gift of $25,000, you can join other visionary philanthropists to establish a powerful, lasting legacy for future citizens of Minneapolis that will provide significant grantmaking funds and a permanent endowment at the Foundation.
A New Twist on an Old Idea
Founding Father Benjamin Franklin called compounded interest the “eighth wonder of the world.” After years extolling the virtues of penny pinching, in 1789 Franklin wrote a codicil to his will that combined his investment philosophy with his philanthropy by establishing a 200-year endowment to benefit the communities of Boston and Philadelphia. He included broad direction on how to spend some of the principle after the first 100 years, and 100 years after that. His resources, compounded over the decades, helped build museums and colleges and provided hundreds of scholarships. Today, some Franklin funds held by community foundations continue to support nonprofit organizations in Pennsylvania.
Philanthropy’s New Math
Endowments provide a secure, consistent source of income and a lasting legacy, but, since most institutions spend income at a rate of about 5 percent per year, the impact is slow. In contrast, non-endowed gifts can meet immediate needs and fund dramatic change, but once the money’s gone, it’s gone.
The Pay It Forward FOREVER Fund offers the best of both worlds: Perpetual fund growth and dramatic impact in partnership with a trusted community leader, The Minneapolis Foundation.
The Pay It Forward FOREVER Fund is a financial time capsule of sorts. The Foundation is investing 100 new gifts of $25,000 for maximum growth until the year 2065. At that time, Trustees will allocate 80 percent of the fund to community impact grants and retain the remaining 20 percent to grow the fund. Each 50 years, we will do the same thing again, in perpetuity. The compounded impact is astounding.
Timeline for Growth
2015 100 individuals, families and corporations invest $25,000 in new gifts to form the $2.5 million Pay It Forward FOREVER Fund.
2065 After 50 years of investment, the fund will reach nearly $29 million.* Eighty percent of the fund’s value – nearly $23 million – will be shared with the community through grants.
2115 By the Foundation’s bicentennial, the fund will have reached nearly $66 million. Eighty percent of the fund’s value will again be granted out to the community and the remaining 20% will be invested for another 50 years.
Only a community foundation like The Minneapolis Foundation can offer you an opportunity like the Pay It Forward FOREVER Fund. The Minneapolis Foundation has connected people, charitable resources and ideas for 100 years, and we plan to do that for another century. We’re the guardians of your generous gifts, your vision and your hope for the greater Minneapolis area. Our donor advisors and Trustees are united behind common goals and driven to spark positive change in our community.
We don’t know what the future will hold for the greater Minneapolis area or what challenges and opportunities our descendants and successors will face in 50, 100 or 150 years. But, like Benjamin Franklin, we know that careful stewardship and creative generosity today can have a powerful impact tomorrow. Please join us in this exciting, centennial-year opportunity at The Minneapolis Foundation.
Become A Centennial Futurist!
Contact us today to learn more about this once-in-a-century opportunity to change lives and shape the future.
Your Minneapolis Foundation Philanthropic Advisor will serve as your personal liaison to the resources of the Foundation: administration and reporting, fund management, community connections, grantmaking expertise and opportunities, secure online access to your account(s), family services, gift planning and more. Our Philanthropic Advisors office out of the heart of downtown Minneapolis. They are always just a phone call away. And they love when donors drop by to say hello.
We are proud to redefine donor services by offering special added value, including:
After 100 years of service, The Minneapolis Foundation really knows the community. Our Philanthropic Advisors will happily research and vet prospective grantees, helping you make informed charitable decisions. They’ll also keep you in the loop about unique funding opportunities based on your individual interests.
We invite donors who are interested to co-invest with us. Learn from our well-informed Community Impact team about exciting, high-impact projects being supported through the Foundation’s competitive grants. No obligations, just opportunities.
We organize briefings and social gatherings where like-minded donors come together to learn about some of the community’s most pressing issues. Hear from leading experts and representatives from the organizations that are making change on the ground.
Consider us your matchmaker in philanthropy. We build connections between generous citizens, nonprofit leaders, and community change-makers to provide creative, collaborative philanthropic opportunities for donor advisors. As stewards of more than 600 donor advised funds, we love to create relationships between donors with similar interests.
Ready to Make a Difference?
Make a gift online to a charitable fund at The Minneapolis Foundation.