Equity in Minnesota State Grantmaking

Abstract

The state grantmaking process was not originally designed with equity as the organizing principle. As such, it is unsurprising to learn that nonprofit organizations in Minnesota led by and/or serving Black, Indigenous, and People of Color (BIPOC) receive less state funding than white-led organizations. Equity does not occur on its own, it must be cultivated. In recent years, there has been an increasing focus on community involvement when it comes to social service provision. Grassroots activism has elevated participatory funding as an equitable solution to the inequities present in grantmaking processes across the board, whether coming from the state or foundations. Communities know best what they need, and embedded community organizations are well-positioned to communicate these needs and execute the programs necessary to meet them. Unfortunately, the state of Minnesota takes a top-down approach, with agency personnel specifying what programs will be created, and thus funded, rather than asking communities what their needs are. In addition, this disconnected top-down approach leads to an application process that is overly burdensome and does not accurately capture the success of the organizations applying for state funding. Several foundations, both local and national, have taken up the call for centering racial equity in earnest and have implemented innovative giving models that directly engage community members. Three of these foundations are discussed in this report, to illustrate the potential frameworks the state of Minnesota could adopt to increase racial equity in the state grantmaking process.