At The Saint Paul Foundation, we’re crossing our fingers that adapting the unique toolset of the Minnesota Idea Open platform to our same-old-same-old grantmaking process not only gives the process a refresh but also helps promote the great work of nonprofits in Minnesota.

We call it the SpectrumTrust Multicultural Endowment Micro-Challenge. If you haven’t checked it out yet, hop on at www.MNIdeaOpen.org/multiculturalendowment.

The Need: Connect More Nonprofits to More Funding Opportunities

Minnesota is a generous philanthropic state with more than 1,400 foundations able to provide support to the 30,000+ nonprofit organizations throughout the state.

Nonprofits routinely apply for and receive funding from the foundations that have open applications, but many other foundations (often with limited or no staff) rely on the direction of a volunteer board or the founders to find programs to fund.

No matter how much we try to do otherwise, both processes can (and do) result in giving portfolios that contain the usual suspects, and the usual suspects often have the marketing and outreach campaigns and online presences to make themselves known. They are visible to many. But what about the thousands of nonprofits working to strengthen their communities that are less visible to the broader public - and potential funders?

Many of these nonprofit programs exist within foundation databases and program officers’ files (and encyclopedic minds), where access to that information is limited and cumbersome and getting to it feels a lot like a visit to grandma’s musty attic to try and uncover a treasure long since stored away.

I find it strangely un-mission-like of us to keep using a creaky, bureaucratic process for such inspiring, game-changing work. Why not embrace a dust-free process that packs personality and punch? Shouldn’t our processes also inspire us to action? I would think bringing fresh energy and enthusiasm to an otherwise routine process might inspire other potential funders to join in the excitement.

The Impact: More Programs Receive More Funding

Under our traditional grantmaking process, we accept paper applications for the Multicultural Endowment, one of five endowments specifically designed to build permanent philanthropic resources for Minnesota communities of color.

The old process. Assume we receive 100 paper applications for the Multicultural Endowment per year, and the volunteer advisory board that makes grantmaking decisions, selects six programs to receive funding. The 94 proposals that did not receive funding go into a file, in our database attic.

The new process. Skip forward to October. We have completed our grantmaking process using the micro-challenge format. The advisory board made its six selections, and the 94 programs that were not funded still live online. A few months later, a foundation that does not accept applications is looking for programs to fund that serve communities of color. It has heard about our micro-challenge and decides to peruse the site for inspiration. That foundation ends up funding five more programs that otherwise would not have been funded - or even discovered.

The new world. Fast-forward three years. The number of proposals multiplies - all of them living together online - and other foundations not only have helped fund more programs but also transferred some of their own grantmaking processes to what is becoming a statewide database of ideas for change. Nonprofits use it to spark new ideas or build on existing ones. Program officers at different foundations use it to uncover fresh funding opportunities for donors to support. Nonprofits spend less time buried in paper and more time inspiring their communities to action.

If you’re a foundation, I hope you join us in trying to find more efficient ways to connect more nonprofits to more funding opportunities. If you’re a nonprofit, I hope you watch our first micro-challenge closely and let us know what it looks like from your vantage point. And if you’re a donor, I hope you find something that inspires you to act.