The Charitable Act, introduced this month by 11 senators including Sen. Amy Klobuchar, would allow taxpayers who take the standard deduction to deduct some charitable donations. March 11, 2023 — 2:00pm
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Minnesota nonprofits and foundations are backing federal legislation that would offer a tax incentive encouraging more people to donate to charities. The Charitable Act , recently introduced by 11 Republican and Democratic U.S. senators —  including Minnesota Sen. Amy Klobuchar — would restore the expired deduction for charitable giving passed during the COVID-19 pandemic for the nearly 90% of taxpayers who don't itemize their tax returns. It would allow those who take the standard deduction to deduct some charitable donations starting next year, when they file their 2023 taxes. "It shouldn't just be big donors who are able to access incentives for charitable giving," Klobuchar said last week. "People who are donating their hard-earned resources to charitable causes should see this same tax benefit." Taxpayers who didn't itemize were able to deduct some charitable contributions on their federal tax return during the pandemic thanks to the legislation in 2020 that was extended into 2021. The bill — supported by several Minnesota nonprofits, the Minnesota Council of Nonprofits and Minnesota Council on Foundations — would restore the so-called "universal charitable giving deduction" and raise the cap for individual filers from $300 to about $4,600. For joint filers, the cap would go up from $600 to $9,200. That means a taxpayer taking the standard deduction also would be able to take the charitable deduction, all the way up to a third of the standard deduction. Nonprofit leaders say that the change could spark more contributions at a critical time. While nonprofits in Minnesota and across the nation saw a surge in generosity during the pandemic, the number of donors since has waned even as nonprofits face higher costs because of inflation and increased demand for food assistance and other key services. Minnesota is one of only three states with a nonitemizer deduction for some charitable contributions. In 1999, it became the first state to pass a state-level tax deduction, allowing residents to deduct half of their charitable contributions over $500. About 660,000 Minnesota taxpayers claimed the deduction for tax year 2021. Jeremy Wells, senior vice president of philanthropic services at the St. Paul and Minnesota Foundation, said Minnesota taxpayers would find the federal change to be more generous than the state's deduction. Although large foundations such as his group draw support mostly from wealthy philanthropists and wouldn't see as much of an impact, Wells said the federal tax incentive could be a gamechanger for smaller foundations and nonprofits. "It is meant to democratize the charitable deduction in a much more meaningful way, making it more available to more and more people out there — not just the ultra-high net worth [earners] that are giving more money away and making more money," Wells said. 'Just makes sense'
The bipartisan bill was introduced Feb. 28 in Congress by Sen. James Lankford, R-Okla.,  and was co-sponsored by Klobuchar and nine other senators. The bill has not yet been introduced in the House. A similar bill introduced in 2021 didn't pass, but Klobuchar said this year's bill has broad bipartisan support. "It just rewards giving, which is what we've always believed in in Minnesota," she said. "Whatever charity or religious institution that you want to give to, you should be able to have some benefit and it shouldn't matter if you itemize your taxes or not. That just makes no sense to me." Several local nonprofits signed on to a Charitable Giving Coalition letter backing the bill, ranging from the Greater Twin Cities United Way to the Winona Community Foundation. Nancy Brown, CEO of the Winona Community Foundation, said the change would make charitable tax deductions more equitable. "Fewer and fewer people itemize, so the people who are making less money may be giving a higher percentage of their income to charity, but they're not getting any kind of tax benefit for doing that," she said. "By implementing [this] ... you're recognizing that charitable giving at any level is important." Many donors are inspired to give in support of a nonprofit's mission, but the tax deduction is a bonus, Brown said. According to the Fundraising Effectiveness Project, donations of $300 rose by 7.5% from 2019 to 2021, while donations of $600 jumped by 5% when charitable deductions temporarily were expanded to nonitemizers. Calculations of the cost of lost taxes weren't available yet, but the 2021 bill that failed to pass estimated the cost at $2.9 billion, said Matthew Evans, senior director of public policy at the Washington, D.C.-based United Philanthropy Forum. However, he said, that tax deductions would have stimulated far more economic growth. Evans added that the nonprofit sector had pushed in vain for a universal charitable deduction for years before the pandemic. The temporary deductions finally enacted in 2020 showed that the tax incentive was worthwhile and helped build momentum for this year's legislation. Donations drop off
In a letter to the U.S. senators, the National Council of Nonprofits said more than 42 million households used the nonitemizer charitable deduction in 2020, adding up to nearly $11 billion in donations. About a quarter of those taxpayers made less than $30,000. The council noted that donations declined after the 2017 Tax Cuts and Jobs Act nearly doubled the standard deduction, leaving only about 12% of taxpayers itemizing their tax returns. Instead of pushing affluent taxpayers to be more philanthropic, donations went down, the council said. "To the extent that those large standard deduction limits discouraged people from making contributions because they no longer had tax benefits, this could bring them back again," said John Wilgers, CEO of the Greater Twin Cities United Way, which receives about half its contributions from individuals. "[Donations] are a really important form of civic engagement, so it's one way that people engage with our community." In Bemidji, almost all donations to the Northwest Minnesota Foundation that supports rural community projects are less than $5,000. Without a tax incentive for donors, smaller nonprofits in rural areas potentially are losing out on significant contributions, said Nate Dorr, the foundation's vice president for advocacy. "Being able to provide a tax incentive for smaller donors helps us make projects happen in communities," he added. In St. Paul, the number of visitors to the Science Museum of Minnesota hasn't rebounded to 2019 levels. Yet the museum's expenses have risen as the amount of donations has declined. "That kind of boost of being able to deduct it, we know has an impact on people's giving," Science Museum CEO Alison Rempel Brown said. "It's just that bit of a reminder." Kelly Smith covers nonprofits/philanthropy for the Star Tribune and is based in Minneapolis. Since 2010, she’s covered Greater Minnesota on the state/region team, Hennepin County government, west metro suburban government and west metro K-12 education.

Minnesota nonprofits backing federal charitable deductions for non-itemizers

After another year of declining revenue, the Greater Twin Cities United Way is continuing to retool how it draws in revenue to meet a growing need for services during the COVID-19 pandemic. In newly released financial information , United Way’s revenue dropped by more than $7 million last year at a time when the need for services, such as its 211 helpline, rose. But CEO John Wilgers said the nonprofit, one of the largest of 1,200 United Way chapters in the country, was only in the second year of a long-term plan to rely less on its longstanding workplace giving campaigns. “We continue to see pressure on workplace giving ... and I think we will continue to see that, but I do think that as these strategies continue to take hold we’ll see recovery,” he said Tuesday. “It will be a United Way that’s working in different ways.”
This year, United Way boosted its services and grants due to the pandemic, raising $5 million for COVID-19 grants, distributing more supplies such as food and hygiene items and expanding the 211 helpline that connects people to housing, mental health and other resources. United Way also teamed up with the Minneapolis Foundation and St. Paul & Minnesota Foundation on a fund for businesses damaged in the civil unrest after George Floyd’s death and reform the criminal justice system. “We have a moment in time here to really have high impact,” Wilgers said. There are more than 30 United Ways in Minnesota but the Twin Cities is the largest in finances and the number of people served — 500,000 last year. In August, the organization reworked its largest volunteer event of the year, Action Day; instead of thousands of volunteers filling a sports stadium to fill backpacks for students in need, volunteers helped mostly at home. Now, Wilgers said, as nonprofits enter the critical year-end fundraising season, he worries donors may be tapped out after giving more in 2020. “We enter into the campaign season this year in a really uncertain environment,” he said. ‘More relevant’ than ever
As donor demographics have changed and donors have sought to be more involved in philanthropy instead of just cutting a check, United Way has reworked revenue tactics as it has continued a downward trend. United Way’s revenue peaked in 2014 at $102 million but by 2017, revenue fell to about $76 million , prompting United Way to cut grants and lay off nine employees . United Way drew in $61 million in 2019, a drop from $69 million in 2018 , the organization released last week. But Wilgers said the tax form doesn’t account for a $4 million grant to expand the 211 hotline over five years or for planned giving that donors have vowed to give in wills. United Way’s expenses also dropped in 2019 to $69 million from $77 million the year before, mostly from reducing grants from $54 million to $48 million. Wilgers said the organization has started to diversify its funding through its online workplace giving tool called Salesforce Philanthropy Cloud, which four companies last year and a dozen companies this year paid for to help employees research charities, target donations and sign up for volunteering. United Way is also encouraging more giving year-round online and through social media. A volunteer coordination consulting program aimed to boost fees was delayed to 2021 due to COVID-19. “We’re more relevant in the community than ever,” Wilgers said. “We’re excited about the transformation we’re in. That’s not to say we’re not without challenges ... but our impact continues to grow.”
 
Kelly Smith covers nonprofits/philanthropy for the Star Tribune and is based in Minneapolis. Since 2010, she’s covered Greater Minnesota on the state/region team, Hennepin County government, west metro suburban government and west metro K-12 education.

Greater Twin Cities United Way's revenue continues decline, dropping $7 million in 2019

After another year of declining revenue, the Greater Twin Cities United Way is continuing to retool how it draws in revenue to meet a growing need for services during the COVID-19 pandemic. Newly released financial information shows that United Way's revenue dropped by more than $7 million last year at a time when the need for services, such as its 211 helpline, rose. But CEO John Wilgers said the nonprofit, one of the largest of 1,200 United Way chapters in the country, was only in the second year of a long-term plan to rely less on its long-standing workplace giving campaigns. "We continue to see pressure on workplace giving ... and I think we will continue to see that, but I do think that as these strategies continue to take hold, we'll see recovery," he said Tuesday. "It will be a United Way that's working in different ways." This year, United Way boosted its services and grants due to the pandemic, raising $5 million for COVID-19 grants, distributing more supplies such as food and hygiene items and expanding the 211 helpline that connects people to housing, mental health and other resources. United Way also teamed up with the Minneapolis Foundation and St. Paul & Minnesota Foundation on a fund for businesses damaged in the civil unrest after George Floyd's death and to reform the criminal justice system. "We have a moment in time here to really have high impact," Wilgers said. Wilgers , president and CEO of Greater Twin Cities United Way
There are more than 30 United Ways in Minnesota but the Twin Cities is the largest in finances and the number of people served — 500,000 last year. In August, the organization reworked its largest volunteer event of the year, Action Day; instead of thousands of volunteers filling a sports stadium to fill backpacks for students in need, volunteers helped mostly from home. Now, Wilgers said, as nonprofits enter the critical year-end fundraising season, he worries donors may be tapped out after giving more in 2020. "We enter into the campaign season this year in a really uncertain environment," he said. 'More relevant' than ever
As donor demographics have changed and donors have sought to be more involved in philanthropy instead of just cutting a check, United Way has reworked revenue tactics as it has continued a downward trend. United Way's revenue peaked in 2014 at $102 million but by 2017, revenue fell to about $76 million , prompting United Way to cut grants and lay off nine employees . United Way drew in $61 million in 2019, a drop from $69 million in 2018 , the organization said last week. But Wilgers said the tax form doesn't account for a $4 million grant to expand the 211 hotline over five years or for planned giving that donors have pledged in wills. United Way's expenses also dropped in 2019 to $69 million from $77 million the year before, mostly from reducing grants from $54 million to $48 million. Wilgers said the organization has started to diversify its funding through its online workplace giving tool called Salesforce Philanthropy Cloud, which four companies last year and a dozen companies this year paid for to help employees research charities, target donations and sign up for volunteering. United Way is also encouraging more giving year-round online and through social media. A volunteer coordination consulting program to boost fees was delayed to 2021 due to COVID-19. "We're more relevant in the community than ever," Wilgers said. "We're excited about the transformation we're in. That's not to say we're not without challenges ... but our impact continues to grow." Kelly Smith covers nonprofits/philanthropy for the Star Tribune and is based in Minneapolis. Since 2010, she’s covered Greater Minnesota on the state/region team, Hennepin County government, west metro suburban government and west metro K-12 education.

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Acooa Ellis
We can’t be physically close to one another right now, but that doesn’t mean we can’t be there to support others. Greater Twin Cities United Way partners with 95 direct service organizations across the metro area – 25 of these organizations work specifically to advance economic opportunity for Minnesotans facing financial crisis. Needs are particularly heightened right now, but we are strengthened and elated by the thousands of people stepping up to volunteer with our 211 resource helpline (211) or through donations. In this time of need, Minnesota’s nonprofits have pulled together to provide critical services for our state’s health and well-being. Many Minnesotans in low-wealth households face loss of income as we all take measures to reduce risks to health and our healthcare system. Closures of restaurants, small business and other employers have put hourly workers in challenging positions when it comes to paying rent, mortgages and bills. Immediate support
In what can feel like a time of isolation, we must unite to support those who need our help. That’s why we created the Greater Twin Cities COVID-19 Response and Recovery Fund. Contributions to the fund provide immediate support such as food, shelter, child care, sanitary and hygiene supplies and financial assistance to those most vulnerable to issues caused by the COVID-19 pandemic. 100% of donations go directly into the community. Contributions can be made online at gtcuw.org . Greater Twin Cities United Way’s 211 resource helpline is also an important resource. Our 211 staff and volunteers provide referrals to health care services, child care, food, transportation, utility assistance, and eviction prevention. Callers also can get information on mental health counseling, job training and substance use recovery. The 211 resource helpline also provides us with data to help identify and address emerging needs. The chart below shows rent assistance referrals made by 211 helpline specialists for five Twin Cities metro counties during the last two weeks of March 2020 compared to the same period in 2019. In the last two weeks of March 2020, our 211 team referred callers from Hennepin and Ramsey Counties to rent assistance resources at a much higher volume than last year, but that need wasn’t contained just to what we think of as the core cities of Minneapolis and St. Paul, it also extended into the suburbs. We are seeing staggering increases in rent assistance referrals to callers from Dakota, Washington, and Anoka Counties. Greater Twin Cities United Way
This increase in requests for rental assistance is concerning because it indicates a significant increase in individuals and families at risk of housing instability, and that this is a growing issue. This increase in referrals is a nod to trouble on the horizon. Two recommendations for Walz and the Legislature
Gov. Tim Walz and the Legislature have worked together to take early action to support nonprofits and the people we serve during this crisis, but more needs to be done. We would like to highlight two specific recommendations:
Creation of a Nonprofit Recovery Fund. Thus far, actions have wisely been focused on the immediate term. However, it’s clear this crisis will impact individuals and families well after the state’s peacetime emergency ends. A Nonprofit Recovery Fund would help address those mid- to longer-term needs, including job training and reentry, stable housing, and mental health support. Significant investment in emergency funding for the Family Homeless Prevention and Assistance Program (FHPAP). FHPAP is an extremely important program that can be used for direct assistance – such as rent, utilities and other expenses – or services like housing search or navigation for low-wealth families and individuals at imminent risk of homelessness. The need for emergency FHPAP funding is supported by a wide variety of organizations, including the Homes for All statewide coalition and the Minnesota Multi-Housing Association. As our community navigates the COVID-19 crisis, Greater Twin Cities United Way is committed to supporting those impacted by its effects and bringing the community together in the face of this unprecedented pandemic. We invite you to join us by taking action in solidarity with our neighbors who need our help now more than ever. Find out how at gtcuw.org . Acooa Ellis is senior vice president of community impact at Greater Twin Cities United Way. WANT TO ADD YOUR VOICE? If you’re interested in joining the discussion, add your voice to the Comment section below — or consider writing  a letter  or a longer-form  Community Voices  commentary. (For more information about Community Voices, see our Submission Guidelines .) Share this:

In a time of isolation, Minnesotans must unite to support those who need our help

| Source: KARE 11
MINNEAPOLIS, April  15, 2020  (GLOBE NEWSWIRE) -- KARE 11 will air a virtual benefit concert titled KARE 11 PRESENTS: MN BANDS TOGETHER on Friday, April 17th at 6:30 p.m. The concert will air on KARE 11, YouTube and Facebook. The lineup will include original performances by Soul Asylum, Chris Hawkey, Ka Lia Universe, Chris Kroeze, Nur-D, Kyle Skye, NunnAbove, Matthew Griswold, Emily Haavik & The 35s, The Bazillions and Mostly Trees. “We are excited to offer a way for the community to gather for an uplifting celebration of local talent,” said KARE 11 President and General Manager John Remes. “The idea for this concert came from music fans at our station and local artists that wanted to do something good for our community and neighbors.”
Viewers are asked to donate to the Greater Twin Cities United Way COVID-19 Response and Recovery Fund. 100% of the funds donated will be granted to local nonprofits providing immediate support such as food, shelter, childcare, supplies and financial assistance to those most vulnerable to issues caused by the COVID-19 pandemic. In addition to grant funding, the United Way offers a 211 number for guidance and support to those in need. Families and individuals in Minnesota can call 24/7 to obtain free and confidential information on health and human services. The TEGNA Foundation and KARE 11 have donated $5,000 to the United Way fund and hope to raise $50,000 from this event. In addition, they will also be donating $5,000 to the Twin Cities Music Community Trust in appreciation and support for the artist community. KARE 11 and the TEGNA Foundation, supported by TEGNA Inc. (NYSE: TGNA), has contributed over $500,000 in local grants since 2015. Additional information can be found at www.kare11.com/bandstogether . About KARE 11
KARE 11, owned by TEGNA Inc., is the NBC affiliate in Minneapolis/St. Paul, Minn. The station’s mission is to serve the greater good and make our community a better place. Recognized for outstanding journalism, a commitment to excellence, and dedication to the community. For media inquiries, contact:

Kare 11 Partners With Local Artists to Raise Funds for the Greater Twin Cities United Way COVID-19 Response and Recovery Fund

Minnesota State operates in the education sector. It offers higher education courses to its students. It was founded in 1995 and is based in Saint Paul, Minnesota.

Minnesota State

The partnership with Greater Twin Cities United Way 's 211 is just one example of how Minnesota State has worked to create a comprehensive response to helping students meet basic and mental health needs .

Minnesota State, Greater Twin Cities United Way’s 211 Resource Helpline Partner to Address Students’ Basic Needs - GTCUW

Securian Financial provides products and services in the financial institution market. It offers financial security products such as mortgage accidental death insurance, accidental death, and dismemberment coverage, and individual term life insurance. The company was founded in 1880 and is based in Saint Paul, Minnesota.

Securian Financial

The Minneapolis Foundation is a non-profit organization that emphasizes the civic, social, and economic needs of the community. It administers charitable funds that enable individuals, families, and businesses to support their passions. It was established in 1915 and is based in Minnesota, Minneapolis.

The Minneapolis Foundation

Medtronic (NYSE: MDT) operates as a healthcare solutions company. It develops technologies, including implantable mechanical devices, drug and biologic delivery devices, and more such technology-based surgical instruments. The company was founded in 1949 and is based in Minneapolis, Minnesota.

Medtronic

Oregon State University

Greater Twin Cities United Way is a non-profit organization with a mission to galvanize the community to build pathways toward prosperity and equity for all.

Name	Meghan Barp
Work History	Oregon State University
Title	Senior Vice President
Status	Former

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