Does corporate responsibility lead to higher profits – or vice versa?

Corporations in virtually every industry and reaching into every corner of the world, from Target and General Mills to Starbucks, Nike and Monsanto, have made their corporate social responsibility initiatives a primary business function. Many of them do so because it’s the right thing to do. But a majority of them also realize a number of business benefits, such as:

Risk management. A culture of transparency and ethics helps companies focus on responsible practices and compliance, and protects them from behaviors that could damage the corporate reputation.

Recruitment and retention. Companies at the top of the moral heap will draw better employees and encourage long-term career paths.

Brand differentiation. A business model built on socially responsible values will drive the development of market-competitive products and services.

Business growth. Statistics from Cone Inc. support the notion that a large percentage of consumers would prefer patronizing companies that support causes.

Perhaps one of the most compelling incentives to institute or maintain a corporate responsibility program is this statistic: Companies that appeared on the CRO 100 Best Corporate Citizens List® over the past nine years have outpaced the rest of Russell 1000® businesses in three-year total return by 26%.

But did these companies outperform the others because they were socially responsible … or were they socially responsible because they had more capital through higher profits and stock prices, and therefore could invest more in those programs?

One example that favors the former argument is the case of Merck, which earned fourth place on the 2009 CRO 100 Best List. The high-profile pharmaceutical company lost considerable market share in mid-2006 amid the controversy that sprang from reported health risks related to its anti-inflammatory drug, Vioxx. Since then, Merck has sought to improve the trust of its stakeholders through greater transparency and better internal and external communications regarding its CSR efforts. On March13, 2009 – the release of the most recent CRO 100 Best List – Merck’s per-share price closed at $27.07, a full $10 per-share better than if it had tracked with the Dow Jones Industrial Average since the beginning of the Vioxx debacle.

Obviously, one example doesn’t tell the entire story. Many believe that ROI should not even be a factor – that companies should exercise corporate responsibility because it’s a moral and/or social obligation.

And then there are those who believe, like Nobel prize-winning economist Milton Friedman, that “only people can have responsibilities. A corporation is an artificial person and in this sense may have artificial responsibilities, but ‘business’ as a whole cannot be said to have responsibilities.” (Apparently Friedman wasn’t consulted prior to the recent Supreme Court ruling.) Friedman also stated that the “corporate executive … has direct re­sponsibility to his employers … to make as much money as possible while con­forming to the basic rules of the society.”

Should corporations set out to be socially responsible in order to improve their bottom line? Or should they seek to make the world a better place without hoping to make a profit on it? Or, finally, do you believe that the only responsibility a corporation has, so long as it stays within the law, is to make a profit? Tell us what you think.

- LuAnne Speeter

Business giving: Know when to say yes – or no – to a charity

You have a limited amount of funds to donate out of the company coffers. But with the economy placing greater hardship on community services and charities, you wish you could say “yes” to every request and avoid the heart-wrenching decision to say “no.” So how do you decide which charities to select? Here are some steps you can take to help ensure your donations give you peace of mind while you make a difference in the community:

• Determine your goals for giving. Establish charitable, social and/or environmental  goals that are most important to you personally and are in alignment with your corporate mission, products and services. Consider youth and education issues, humanitarian aid, health awareness, the arts, community development, environmental concerns, etc.
• Decide if you want employees and/or customers to participate in selecting charitable goals. If so, you may want to distribute a questionnaire asking them to rate their preferences
• Draft a social mission statement that formalizes your company’s goals for giving. This statement should be posted on your Web site and available in hard copy for soliciting organizations to review.
• Research organizations compatible with your social mission. A number of rating systems are available online, but vary according to criteria. The Charities Review Council™(smartgivers.org) reviews Minnesota organizations based on public disclosure, governance, financial activity and fundraising. Charity Navigator is a national rating system that provides easy-to-read financials, charts and comparisons to similar charities. GuideStar is the most inclusive of the systems and serves as a clearinghouse of information on 1.8 million nonprofits.
• Look beyond the financials. Many rating sites now include crowdsourcing, allowing visitors to post comments about the charities.
• Consider how you can make the greatest impact with your donated dollars. Charity Navigator is hoping to roll out such measures as accountability and effectiveness within the next year or so. In the meantime, philanthropic investment advisors are using research to determine giving opportunities that potentially have the greatest effect in solving the most critical social issues facing our world.  Arabella Advisors, for example, has determined these top high-impact giving strategies for 2010:

Taking action through advocacy to propel climate change policy

Supporting strategic restructuring among human services organizations

Partnering with governments to improve education

Leveraging additional assets for community development

• Stay flexible. In spite of all your research and strategizing, emergency situations arise, such as the earthquake in Haiti or a more local need, which may supersede your giving plan. In those cases, let your heart decide.

- LuAnne Speeter

Women entrepreneurs are leaders in charitable giving

It’s no secret that women in households generally are the decision makers when it comes to charitable giving. But as women increasingly create their own wealth as business owners, and are more often the beneficiaries of wealth transfers (because they live longer), women have taken on a leadership role in donating to nonprofits.

Some of these leadership factors were unveiled in a recent study by the Fidelity Charitable Gift Fund. Specifically, the study found:

• While 92% of men name their spouses as the primary influencer in charitable giving, women draw from a number of influencers that include their spouses (84%), extended family (24%),  friends (23%) and co-workers (17%).
• High-income women are more likely to give publicly rather than anonymously when compared to donors in other categories.
• Women have a stronger sense of instilling charitable giving as a valued family tradition, with 48% saying this is critical vs. 39% of men.
• High-income women tend to be more innovative in their giving, saying they want guidance from a financial professional (12% vs. 9% of all donors), and are more likely to use securities for donations (7% vs. 5%) and giving vehicles such as donor-advised funds, charitable remainder trusts and private foundations (5% vs. 2%).

According to a survey by the National Foundation for Women Business Owners, women are more likely to hold leadership positions within charitable organizations, such as serving on boards or fundraising. And, while both women and men business owners are more involved philanthropically than the general population, half of women with assets of $1 million or more contribute at least $10,000 a year compared to 40% of men.

The findings are interesting because they point out the importance of intentionality in our giving – whether we’re male or female. Our donation of time or money can have an impact on the success of our cause, but we can be even more effective by taking on a leadership position. When developing your giving strategy, consider:

1. Which causes should I support and how should I research them?
2. How much do I have to give and how should I allocate those funds among the causes?
3. What other ways should I support the causes, perhaps as a volunteer, fundraiser or board member?
4. How can I better leverage my skills, knowledge and position to benefit my causes?
5. How visible do I want to be about the causes I support in my role as a business leader, community member, friend and/or parent?

- LuAnne Speeter

Top 25 high-impact givers inspire the rest of us

Barron’s recently released its list of the world’s top high-impact givers. These philanthropists focus their donated dollars on addressing root causes of social and environmental problems, thereby having a greater, more long-term effect than simply treating the symptoms.

But it doesn’t require billions – or millions – to be a more effective giver. You and your small business or giving circle can also have an impact that goes far beyond the dollar amount you invest. For example, $65 to Save the Children can educate a girl in an undeveloped country for a year. According to Save the Children, “Statistics show that girls with a good education delay premature marriage and childbirth and provide better nutrition and education for themselves and their children later on.”

The following philanthropists have developed high-impact strategies that lead to impressive results and inspire all of us to think strategically about our giving plans.

“The first thing is in your own community, and then take the next step in poor countries.”

- Bill Gates

Philanthropist	Claim to Fame	Mission and Strategy	Mega-Impact Results
1. Pierre and Pam Omidyar Omidyar Network	Founder of Ebay	Invests in businesses and nonprofits that aim for social change.	A $100 million fund established at Tufts University is set to produce $1 billion in microloans in developing countries while also turning a profit for Tufts.
2. Jeff Skoll Skoll Foundation	Ebay’s second employee	Awards unrestricted three-year grants to 59 entrepreneurial groups trying to build a more peaceful and prosperous world.	One of this year’s grant recipients has trained armies of large rats to sniff for landmines in Africa.
3. Chris and Jamie Cooper-Hohn The Children’s Investment Fund Foundation	Chris is manager of one of Britain’s largest activist hedge funds	Much of the fund’s profits and fees are directed into a foundation run by Chris’ wife Jamie, now totaling $2.5 billion in assets.	The foundation uses various leveraging techniques, such as aiming to save kids by saving their mothers.
4. Eli & Edythe Broad The Broad Foundations	Created two Fortune 500 companies: KB Home and SunAmerica, Inc.	Develops programs for causes that no one else is pursuing.	Projects include: a lending library to galleries and museums; training superintendents to run more efficient schools; funding young doctors’ medical research.
5. Thomas Siebel The Meth Project	Tech billionaire	Funded a massive anti-methamphetamine ad campaign in Montana (2,000 billboards across the state, 61,000 TV spots) to warn teens about the drug’s devastating effects.	Montana dropped from its No. 5 ranking in the U.S. for meth abuse to No. 39. Arizona, Idaho, Illinois, Wyoming, Colorado and Hawaii have replicated the program, with more states to come.
6. Donna & Philip Berber A Glimmer of Hope Foundation	Founded online trading firm CyBerCorp, which he sold to Charles Schwab	Seeks to help Ethiopians lift themselves out of poverty through Integrated Rural Development.	To date, they have financed 3,600 water wells, 400 schools and 6,500 microloans, reaching an estimated two million Ethiopians.
7. Bill & Melinda Gates Bill & Melinda Gates Foundation	Co-founder and chairman of Microsoft Corporation; now dedicated to his foundation full-time.	World’s largest foundation with $34 billion in assets, with ambitious aims such as an AIDS vaccine.	Impressive results in the areas of global health, poverty and development, and education. Malaria cases have declined by 50% in many parts of the world.
8. Paul Tudor Jones II Robin Hood Foundation	Chairman and CEO, Tudor Investment Corporation	Raises money to help address the overlapping issues facing New York’s poorest.	Developed precise metrics for determining most effective programs.
9. Helen and Swanee Hunt Women Moving Millions	Daughters of Texas oil mogul H.L. Hunt	Harnesses the power of other wealthy women to help women’s causes ranging from basic health to job training.	Launched in Nov. 2007, the organization had raised more than $176 million by April 2009.
10. Richard Branson Virgin Unite	British industrialist	Takes an entrepreneurial approach; e.g., in 2006 pledged all his profits from transportation businesses over the next 10 years, estimated at $3 billion, to developing green energy.	His Carbon War Room rewards individuals and scientists for coming up with new ways to control global warming.
11. John Wood Room to Read	Former Microsoft executive	Strives to break the cycle of poverty through childhood education.	Its programs have reached more than three million children and distributes a new book every three minutes.
12. Arpad Busson ARK: Absolute Return for Kids	London-based financier	Focused on meeting strategic goals in the areas of HIV/AIDS (South Africa, Mozambique), Education (UK, India) and Children in Care (Eastern Europe).	The group has freed 1,700 kids in Eastern Europe from institutionalized care, and ensured that 50,000 children of AIDS patients in South Africa can attend school.
13. Bill & Hillary Clinton William J. Clinton Foundation	Former U.S. president/ current U.S. secretary of state	Develops partnerships through the Clinton Global Initiative, challenging governments, business, academics and other leaders to develop innovative solutions to lingering problems.	Provided schooling for 10 million children, safe drinking water for 12 million, and a reduction of 40 million metric tons of carbon-dioxide emissions.
14. Jane Rosenthal, Craig Hatkoff & Robert De Niro Tribeca Film Festival	Three filmmakers	Founded in 2001 following the attacks on the World Trade Center to spur the economic and cultural revitalization of lower Manhattan through an annual celebration of film, music and culture.	The first festival, in 2003, generated an estimated $50 million for local merchants. The event has now drawn 2.3 million moviegoers to the downtown neighborhood.
15. Jimmy Carter The Carter Center	Former U.S. president	Champions global peace and human rights; seeks to eradicate treatable diseases.	Monitors elections in more than 70 different nations; helped farmers double or triple grain production in 15 African countries; helped nearly eradicate Guinea worm disease.
16. Sunil Mittal Bharti Foundation	Founder of Bharti Group, India’s largest telecom company	Leverages partnerships with IBM, Vodafone, Oracle and others to spread the country’s economic gains to more of the population.	Opened more than 200 so far, training teachers and setting up libraries nearby.
17. Brad Pitt Make It Right Foundation	Actor	Donated toward 150 new low-income homes in the New Orleans area hit hardest by Hurricane Katrina.	The homes feature innovative design and green technology; the template is now being used by other foundations and governments
18. John Fisher The KIPP Foundation	Founder of Gap stores	Seeks to reenergize America’s public school systems	Launched 82 free schools in 19 states, mostly in inner cities. Gave critical seed money to Teach for America, which sends college grads into the poorest school districts.
19. George Soros Open Society Institute	Hungarian-born hedge fund manager	Has championed nonviolent democratization since the 1970s and operates via a strong network of governments, organizations and individuals around the world.	Helped spark the nation of Georgia’s democracy, financed college scholarships for black students in South Africa and donated $100 million to cushion the impact of the economic crisis on Central and Eastern Europe
20. Howard G. Buffett Howard G. Buffett Foundation	Warren Buffet’s eldest son	A farmer himself, Howard Buffett has been a leader in helping displaced African farmers return to their homes and resume work in areas like Kenya, Somalia and Darfur.	Funded Global Water Initiative for crucial, rural water-projects in 13 countries.
21. Earvin “Magic” Johnson The Magic Johnson Foundation	Former basketball star; currently a corporate endorser	Having tested positive for the HIV virus in 1991, Johnson leveraged his celebrity to help lessen the stigma attached to an HIV/AIDS diagnosis.	Foundation has provided free testing to more than 38,000 Americans in 16 major cities.
22. Marcos de Moraes Zip Educação/Instituto Rukha	Brazilian business mogul	Helps eradicate child labor and addresses issues of violence through humane developmental programs for youth and their families.	Of those children targeted, 97% of have effectively stopped working and 93% are enrolled in school.
23. Jennifer and Peter Buffett NoVo Foundation	Peter is Warren Buffet’s second son	Focuses on helping women and girls in developing nation.	One of the foundation’s microfinance initiatives funneled $3 million in grants to 14,000 Bangladeshi girls, helping them start businesses.
24. William Barron Hilton Conrad N. Hilton Foundation	Hotelier	Has directed that 97% of his wealth, or approximately $2 billion, will be left to the foundation, to be routed to a number of small, high-impact causes.	Foundation’s programs include supplying sewing machines to nuns to run vocational training in Vietnam, educating disabled toddlers across the U.S., and providing housing for homeless, mentally ill individuals in Los Angeles.
25. David and Cheryl Duffield Maddie’s Fund	Founded PeopleSoft Inc., a human resource and CRM software company, now owned by Oracle Corp.	Named after Duffield’s miniature schnauzer, finds homes for some 70,000 dogs and cats each year and fights euthanasia at shelters.	Launched a program at Cornell University that trains veterinary students in medical practices for animal shelters.

 - LuAnne Speeter, President, Minnesota Cause Connection Inc.

Finding fulfillment with “enough”

Do you have enough? I mean, really enough of what you need to survive and thrive?

We go through our day telling ourselves that we don’t have enough. We wake up in the morning thinking we didn’t get enough sleep. We don’t have enough time to get ready for work. We don’t have enough food in the house in case company stops by. We don’t have enough friends or daylight or hair or money.

The truth is, we’ve programmed ourselves to think in terms of never having enough and that, if we had more, only then would we be truly happy.

The Global Sufficiency Network is a movement that calls us to break free from living in a context of “scarcity” – of never feeling like we have enough. By living in scarcity, we over consume, chase money and material things and still never feel like we have enough. It erodes our relationships, our job satisfaction and our sense of self-worth.

According to Lynne Twist, special advisor to the Global Sufficiency Network, “If you let go of trying to get more of what you don’t really need it frees up oceans of energy to pay attention to and make a difference with what you already have. When you make a difference with what you have, it expands.”

The mission of the Network, therefore, goes beyond self-actualization. Broadly, the practice of sufficiency would have a positive impact on our environment, spirituality and peace and justice issues by allowing us to make better use of our resources through a realignment of our priorities.

Shakti Gawain, in her classic book “Creative Visualization,” explains our misplaced priorities in this way:

“Often people attempt to live their lives backward: They try to have more things, or more money, in order to do more of what they want, so that they will be happier. The way it actually works is the reverse. You must first be who you really are, then do what you need to do, in order to have what you want. “

As you prepare for the holidays, consider ways to avoid the seduction of “abundance” and instead focus on sufficiency. Concentrate less on having to do it all and buy it all and bake it all and wrap it all and replace it by being there for others – and for yourself. It just might be the most satisfying holiday you’ve ever had.

- LuAnne Speeter, President, Minnesota Cause Connection Inc.

High-impact giving: Get more bang for your bucks

Small businesses are notoriously generous and they often don’t receive the credit. While large corporations tend to get the press for their philanthropy, they in fact contributed only 5% of the $307 billion donated in 2008.* Individual donations amounted to 75% of total dollars donated, and much of that was from small business owners.

But large corporations are strategic in how much they give and who they give to – they have to be, in order to accommodate budgets, boards of directors, compliance parameters and more. Small companies, on the other hand, usually don’t have a philanthropic mission and goals in place, making unplanned donations out of compassion to solicitors. And while those donations may not seem like a lot at the time, they can add up to a large percentage of your bottom line.

If you’re a small business owner, would you be more strategic with your giving if you knew how profound of an impact you could have?

The Center for High Impact Philanthropy, a department of the University of Pennsylvania’s School of Social Policy & Practice, recently released a guide for donors who want to ensure their dollars produce maximum results. “High Impact Philanthropy in the Downturn” focuses on three areas of need that are most critically affected by the recession:

• Housing: preventing foreclosures
• Health: sustaining primary and preventive programs
• Hunger: ensuring access to food

This well-researched, evidence-based guide gives specific solutions to the need areas, the impact the donation amounts would have, and the real costs that are incurred by individuals and our society without the donations.

For example, one solution to the foreclosure problem is to provide homeowners with access to nonprofit housing counselors. In order to keep a client at risk of foreclosure in his or her home for at least 12 months, it would cost between $300 and $3,800 for effective counseling.

However, compare this to the costs of a single foreclosure: up to $34,000 in municipal costs, a reduction of $7,200 on average in property values of neighboring homes, and a rise in violent crime at a rate of 2.33% per percentage point increase in the neighborhood’s foreclosure rate. Add to that the direct costs to the individual and, indirectly, society – increased risk of homelessness, financial distress, stress and mental illness and loss of learning and development in children.

As you put together a giving strategy for 2010 – as a business or as an individual – think about those areas that can deliver the greatest impact. Where to put your money is as important as, if not more important than, how much you give.

*Source: www.givingusa.org

- LuAnne Speeter, President, Minnesota Cause Connection Inc.

CDFIs: Banking on a better community

Imagine investing in community improvement – while your money stays put in your bank account! That’s what you’re doing when you stash your cash in a community development financial institution (CDFI).

A CDFI is a financial institution whose primary mission is to provide credit, capital and financial services to individuals and businesses in underserved communities. Nationwide, there are more than 1,000 CDFIs that operate as banks, credit unions, loan funds or venture capital companies. You can find them in every state, serving both rural and urban communities.

In 2007 alone, CDFIs have*

• Leveraged $621 million with private investments.
• Opened more than 800 accounts for the previously unbanked.
• Financed the construction or rehabilitation of more than 4,000 affordable housing units.
• Financed businesses that created or maintained nearly 30,000 full-time equivalent jobs.

While CDFIs have been around for many years, they’re needed now more than ever to enable growth in communities that would otherwise not have access to financial services. Some of the many success stories CDFIs have brought their communities include:

• Micro enterprise development loans in rural Arizona.  
• Credit union access for remote Mississippi communities.
• Boston business start-up and job creation through venture capital financing.
• Working capital funds for women’s transitional housing in New York City.

If you’re considering a CDFI for a personal or business account, you can search by state or “impact sector,” such as small business or housing, at communityinvestingcenterdb.org. It’s a good idea to check bankrate.com’s Safe & Sound ratings to ensure the CDFI you choose merits at least three stars.

*Source: www.cdfifund.gov

- LuAnne Speeter, President, Minnesota Cause Connection Inc.

Award programs spotlight ethical, socially responsible companies

Have you had the privilege of working with a business that provides exceptional service in an ethical and socially responsible manner? Well, not only can you patronize the company – and provide valuable referrals – you can also go to the next level by nominating it for an award.

A number of programs recognize businesses that go the extra mile through corporate volunteerism and charitable contributions, as well as demonstrate a high level of ethics, community leadership and professional integrity. While recognition programs are not usually a motivation to act in an ethical manner, they can reward businesses by helping them retain customers, attract new clients and recruit quality employees. Even more important, recognition programs remind businesses that they can make a real difference in our communities.

The following are a few recognition programs that express appreciation for the positive impact of Minnesota’s businesses:

The Jefferson Awards were founded in 1972 by Jacqueline Kennedy Onassis, U.S. Senator Robert Taft, Jr. and Sam Beard as a national recognition program for individual and corporate volunteerism.  Beginning in 2008, the Minneapolis/St. Paul Business Journal teamed up with the Wilmington, Del.-based program to present awards to Twin Cities businesses for their outstanding public and community service. This year, 12 companies received the award – one per month – and will be honored at a reception at the Hotel Ivy in Minneapolis on Wednesday, Dec. 9.

The Minnesota Keystone Program recognizes and honors companies that donate at least 2% of their pre-tax earnings to the community.  The program was begun over 30 years ago and is offered through the Minneapolis Regional Chamber of Commerce. It also serves as the basis for Minnesota Business Gives, a Minnesota Chamber of Commerce Foundation initiative. Businesses that enroll in the Keystone Program can choose to participate without public recognition. In-kind donations can be considered in the calculations, and closely held businesses can include personal as well as business donations. See worksheet for more information about calculations.

Now going into its 11^th year, the Better Business Bureau Integrity Awards are presented to companies in Minnesota and North Dakota that have demonstrated a commitment to conducting daily business operations in an ethical manner. The BBB invites nominations by individuals who feel a company has shown an exceptional degree of ethics. Nominees are then categorized according to company size, based on number of employees. A panel of independent volunteer business and community leaders reviews the entries and decides on the winners.

Minnesota Business Ethics Award was established in 1999 by the Twin Cities Chapter of the Society of Financial Service Professionals and the Center for Ethical Business Cultures at the University of St. Thomas. The MBEA Program seeks to raise the standards for business ethics in Minnesota and to recognize businesses that reflect the highest standards of ethical performance.  Like the BBB’s Integrity Awards Program, MBEA recipients are selected based on company size. A business may be nominated for an award by a customer, client, employee, vendor or a private citizen who is impressed with a company’s ethical business conduct. Local finalists may also move on to compete at the national level.

- LuAnne Speeter

Giving circles wield greater influence, stronger advocacy

When it comes to charitable giving, most of us assume that corporations and foundations carry the load. However, according to the Giving Institute/Giving USA Foundation, 75% of the $307 billion contributed in 2008 came from individuals and 7% from bequests. Corporations and foundations provided 5% and 13% of charitable contributions, respectively.

Individuals tend to be even more generous when they take part in an increasingly popular phenomenon known as “giving circles.”

A giving circle is a social group in which individual participants pool their donations and decide together where the money should be distributed. A study released in May 2009, “The Impact of Giving Together,” shows that those within a giving circle tend to contribute more than if they were to give on their own. Giving circles exert significant influence in other ways, as well. According to the study:

• Giving circle participants are more strategic about cause selections. Members put more effort into researching organizations and give toward a specified vision for change.
• They have a more long-term perspective and are more likely to make multi-year gifts.
• Members give to a broader array of causes, especially those that support women, ethnic and minority groups, the arts and culture, neighborhood development, advocacy and international aid.
• Giving circle members also express a stronger sense of civic responsibility, channeling their energies into community involvement and changing government policies.
• Participants gain a greater understanding of philanthropy and the issues that nonprofits face in serving their constituencies.
• They believe they have better leverage in affecting change in the community, that giving can have a positive impact on the health of the community, and government should do something to reduce income differences.

If you’re interested in starting your own giving circle, start by researching through the Minnesota Council on Foundations or your own regional resource. Make it your primary goal to help foster a greater level of commitment from members, thereby increasing your ability to influence positive results. Also, think about the size of the group; larger groups tend to focus more on the strategic giving aspects, whereas smaller circles value civic engagement and volunteerism.

- LuAnne Speeter

Charitable giving in the “new economy”

When was the last time you read a money-advice article that didn’t start out with the words, “In these tough economic times”? That phrase makes it sound like we just need to trudge through this; it assumes we’ll eventually return to the good old days of relative abundance.

In reality, though, life going forward may be quite different, and that will greatly affect our charitable giving.

The “new economy” will require us all to redefine abundance. We may never return to the days when we had the discretionary dollars that allowed us to merely skim from the top in order to feed a substantial giving portfolio. From now on, we may need to form new guidelines for giving by examining our lifestyle and deciding “how much is enough?” – and “how much is more than enough?”

Minnesota’s nonprofits are redefining themselves in the new economy, too. Dealing with the effects of rising unemployment, tighter household budgets and reduced government assistance, many of the state’s charitable programs are cutting their budgets and staff, and consolidating efforts. Others are being forced to dissolve, leaving the most vulnerable in our communities with fewer resources.

As a result, our donated dollars are more necessary than ever.

You can still be an effective giver in this economy – it just may require you to be more strategic in your philanthropy. Talk to your financial advisor and tax professional about how to make the most of your donation. Ask how to better time your gifts, which assets to select, and if you should consider a trust fund (such as a charitable remainder trust or charitable lead trust) or a donor-advised fund.

Nov. 17 is Give to the Max Day!

Minnesota’s new online giving Web site, www.GiveMN.org, makes giving to your favorite charities easier than ever. And on Nov. 17, 2009, every donation made through the site will receive a portion of a $500,000 match by The Saint Paul Foundation, Minneapolis Foundation and Bush Foundation. Donations must be $10 or more and paid online through the GiveMn.org site to be eligible. Learn more about making your donation more effective on Nov. 17.

- LuAnne Speeter