September 1, 2016 | Read Time: 5 minutes
To the Editor:
For decades, philanthropists have weighed two basic demands on their time and money. On the one hand, many (if not most) recognize the importance of addressing society’s current needs, whether their focus is on curing disease or relieving hunger or ending racism. On the other hand, many also see the value of investing in the future. They recognize that as a community, we have benefited from investments that our parents and grandparents made in us and that future generations will likewise benefit from resources that we muster today to help them meet tomorrow’s challenges.
Some philanthropists believe that these demands are always in conflict with each other. They reason that one approach must be better than the other and that they must choose between the two — that leaving a legacy for the future means neglecting today’s needs.
This well-intentioned but simplistic thinking is at the heart of a recent commentary by Alan Cantor, who criticizes the Pay It Forward Forever Fund, a new twist on endowment that the Minneapolis Foundation designed to help local philanthropists ensure a vibrant future for Minneapolis. Mr. Cantor makes the case against investing charitable dollars in a community’s future, arguing that if we give more to address today’s challenges, tomorrow’s problems will be easier and less expensive to solve.
As chair of the Minneapolis Foundation’s Board of Trustees, I wholeheartedly agree with Mr. Cantor that there are a myriad of community needs that cry out for attention now. Addressing those needs is a core value of the foundation and its donors, resulting in distributions of nearly $60 million last year alone.
The problem with Mr. Cantor’s argument is that he presents a false choice. Yes, we absolutely need to work hard and give generously to solve today’s problems. However, that doesn’t mean we shouldn’t also be thoughtful about challenges and opportunities waiting for us down the road.
To give just one example of how this can work, consider the Chain of Lakes in Minneapolis, an urban jewel where thousands of residents and visitors come every day to bike, walk, swim, and otherwise enjoy our city at its best. These lakes were once a swampy area far from the core of Minneapolis, but more than a century ago, civic leaders recognized their long-term potential and began acquiring land around them to create parks and trails that they anticipated would be used and loved for generations to come. If, like Mr. Cantor, they had focused solely on the needs of the day, they might have invested all their resources in developing parks that were much closer to the center of town. But they knew that Minneapolis would grow, and they saw value in providing for future generations as well as their own. I, for one, am deeply grateful that they did.
The success of such forward-thinking investments is a big reason I stand behind the Pay It Forward Forever Fund. With this fund, created in honor of the Minneapolis Foundation’s 100th anniversary, we’re inviting 100 visionary philanthropists to come together with gifts of $25,000 each to establish a lasting legacy for Minneapolis. The foundation will invest those gifts for maximum growth until the year 2065, when conservative estimates predict they will have grown to nearly $29 million. At that time, the foundation will allocate 80 percent of the fund to address community needs and retain the remaining 20 percent to keep growing the fund. Every 50 years, we will do the same thing again — paying it forward, forever.
The Minneapolis Foundation is one of the oldest community foundations in the country, and I believe the Pay It Forward Forever Fund was the perfect way to honor the foundation’s centennial year. There is nothing like having a 100-year history to make one think about legacy, the role of a community foundation, and the future of place-based philanthropy. I was honored to be the first donor to our fund, and I was personally involved in many of the subsequent solicitations. I have been very pleased with its reception by donors of all kinds, including those who describe themselves as anti-endowment.
Why this positive response? I think it’s because this fund represents a one-time opportunity to give a vote of confidence to our community and its future leaders. Our community has a long history of selfless giving — we consistently make “most generous city” lists in multiple publications — and a strong sense that we want this legacy to live on in perpetuity.
It’s important to note that contributing to the Pay It Forward Forever Fund is something donors do in addition to and not instead of addressing current needs. The fund’s contributors already give generously to a host of important causes, locally and globally. These families and businesses need not choose between making a difference now and in the future; they can afford to do both. For them, contributing to the Pay It Forward Forever Fund is a great way to expand their philanthropy to help ensure the continued vitality of our community.
The same principle applies to the Minneapolis Foundation itself. As a community foundation, we have an obligation to invest in both short-term and long-term initiatives to help Minneapolis thrive. With over $700 million in assets under management and nearly $60 million distributed last year alone, we do this in a variety of ways. Our strategies include making grants, conducting research, leading advocacy efforts, and convening residents to tackle immediate challenges such as closing the educational opportunity gap and creating living-wage jobs.
They also include initiatives such as the Pay It Forward Forever Fund, which are designed to help generous Minnesotans provide for our community’s future. Fifty years from now, when the first grants are distributed from the Pay It Forward Forever Fund, the people and organizations who benefit stand to receive nearly $23 million. I’m convinced that they’ll look back on our initial investment of $2.5 million and say it was money well spent.
Norm Rickeman
Chairman, Board of Trustees
Minneapolis Foundation
