New Giving Circle Channels IRAs Into Local Change 

But they had a few things in common: A love of learning, a curiosity about collaborative grantmaking, and Individual Retirement Accounts (IRAs) they wanted to use for good.  

IRAs offer a unique opportunity for charitable giving. For donors in their seventies and beyond, making charitable rollovers from an IRA is a powerful way to combine tax efficiency with community impact. This is especially valuable for donors over 73, who can count these gifts toward their required minimum distributions (RMDs).  

That’s how the RMD Giving Circle began. Our Philanthropic Services team spotted a meaningful opportunity for community members to give together, and they worked with colleagues on our Collective Giving team to bring it to life.

“We have fundholders who give generously and need to take distributions from their IRAs,” said Paul Odegaard, a Philanthropic Advisor at the Foundation. “And we have many who care deeply about local communities and want to connect with one another. All the ingredients were there for a powerful collective giving experience.”  

Philanthropic Advisor Paul Odegaard

The result? A new giving circle that enables people to pool contributions from their IRAs and invest in the community together. Each participant in the inaugural grant round pledged a contribution to the group’s giving, with a suggested gift of $2,500.

This fall, after four monthly meetings, the RMD Giving Circle celebrated its first grants. Together, the group awarded $34,000 to three local organizations.  

Reading Partners Minnesota is among the nonprofits they chose to support. Their grant is making a real difference in local classrooms, said Brooke Rivers, the organization’s Executive Director. “This support will allow us to continue to provide individualized and targeted literacy support to hundreds of Minnesota students, accelerating their learning and growing their love of reading throughout the year and beyond.”

“This group is a powerful example of how a giving circle can amplify your impact in the community,” said Sara Lueben, the Foundation’s Senior Director of Impact & Collective Giving. “It’s inspiring to work with donors who are eager to learn and engage with the communities most affected by issues they care about.” 

Meeting 1: Introductions  Members got to know each other, learned about the giving circle process, and chose education as their focus area.  

Meeting 2: Exploration  Guest speaker Patrice Relerford, the Foundation’s Vice President of Collective Impact and Giving, shared insights about education gaps and opportunities in the Twin Cities. Group members and the Foundation team identified 17 local organizations aligned with the group’s interests, and members invited 8 to submit proposals. 

Meeting 3: Discussion  Guest speaker Kenneth Eban joined to talk about education advocacy. Members practiced reviewing grant proposals using bias checks and an informal rubric.  

Meeting 4: Decision-Making The group discussed each proposal and voted on which organizations to support—and how much to give.  

For participant Tom Klein, being part of a giving circle brought to mind a lecture he recently attended on how democracies work. “Collective decision-making, though slower than fiat decisions, helps prevent wild swings and catastrophic mistakes.” With support from the Foundation’s Collective Giving team, the group found a great balance between encouraging open dialogue and reaching decisions, he said.   

The process was equally rewarding for our team. “It was exciting to see fundholders connect their RMDs to work that matters deeply to them,” Paul said. “Everyone came with an open mind and a willingness to learn. Together, they are supporting organizations addressing critical needs right here in the Twin Cities.”  

Giving circle participant Tom Klein (left) was among the donors who came together to support three local education nonprofits, including Reading Partners Minnesota (right).

Reading Partners empowers K–5 students from under-resourced communities to build foundational reading skills through volunteer tutoring. A grant of $17,000 will support the Take Reading With You program, helping students create in-home libraries.  

Summit Academy OIC provides free training and GED programs to equip students with technical skills and professional networks to launch high-wage careers. A grant of $8,500 will help cover tuition gaps and provide emergency support for students.  

Wallin Education Partners provides financial aid and holistic support to underrepresented students, ensuring they have equitable access to college and career success. A grant of $8,500 will sustain its Emergency Support Fund and Persistence/Completion Fund for scholars. 

If you’d like to be part of the next RMD Giving Circle, connect with Paul Odegaard at podegaard@mplsfoundation.org.  

Learn more about giving circles at the Minneapolis Foundation.