Informed philanthropy: make information your catalyst for innovation.

MANY EXECUTIVES WOULD GLADLY TAKE FULL CREDIT IF THEIR associations more than doubled total revenues under their leadership. Not Emmett D. Carson, president and CEO of The Minneapolis Foundation, a statewide philanthropic organization that helps Minnesotans make a difference in their communities.

Instead, he shrugs off any credit. Acknowledging that the foundation's total assets jumped from $169 million to a high of $570 million in his decade of leadership, Carson instead pays homage to outstanding staff leaders in the investment and development processes, an extraordinary board of volunteers on the investment committee, an unprecedented market boom, and the foundation's increased visibility when it comes to the community's local issues.

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Recognized several times by The NonProfit Times as one of the 50 most influential nonprofit leaders in the United States, Carson, who holds a doctorate in public and international affairs from Princeton University, shares with ASSOCIATION MANAGEMENT his enlightening views about embracing inventive philanthropy and directing fundraising efforts to diverse groups.

ASSOCIATION MANAGEMENT: You've been able to establish a distinguished reputation for innovative philanthropy. What's your secret?

Carson: We listen carefully. Often we hear about [emerging] trends before they become trends. We get information from multiple sources on a daily basis. As a community foundation, we [also] have access to three unique sources of information about developing trends in our community.

First, our donor advisers are routinely identifying and recommending support for [what they consider to be] innovative projects before they become well known to the public. Second, nonprofit organizations are submitting proposals to better serve the community based on their experiences. And, third, we evaluate and monitor the success of [those] projects that we have funded.

By collecting this information from several sources, our staff is able to link the pieces together, to see trends emerge, and, we hope, to direct our resources in ways that promote their acceptance. For example, someone might say, "Immigration is becoming a huge issue for this community." And another staffer, who is monitoring another source, will add, "Yes, I heard the same thing last week."

By having an early-warning system about challenges facing the community, we're able to convene people, confirm that their impressions are accurate, and then begin to brain-storm how to address an issue. That's where the real creativity comes--not just in identifying the problem but finding a way to make change in it. This foundation's board has been willing to support the staff in some very visible and highly successful grant-making ideas that were not uniformly embraced by the general public.

ASSOCIATION MANAGEMENT: Describe some examples of innovative grant making and the results that have been achieved.

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Carson: Two examples come to mind. Affordable housing is a major concern in Minnesota. Housing advocates were divided [on this issue] and delivered a mixed message to the state legislature about the nature of the housing crisis. The Minneapolis Foundation successfully established a statewide coalition of more than 70 urban and rural housing advocates that has crafted a single message and successfully secured additional state funding for affordable housing.

With the support of our donors, significant things can also happen with more limited resources. The foundation effectively partners with LensCrafters to annually provide free eye exams and glasses for poor and homeless children. Many of these children and their families have no idea that the child is in need of glasses, and through this project we are able to open up a new world for them that forever changes their lives.

ASSOCIATION MANAGEMENT: How do you encourage your board members to embrace your ideas?

Carson: We've been able to take on tough issues in innovative ways with the full support of our board, because we make sure that board members have the facts to justify what we want to do and that they understand the consequences of inaction.

We have a very diverse, 30-member board of trustees, but every board vote on key issues has been unanimous. We fully apprise every member of the board of all the facts--not just the facts from the left, the right, or the center. We confirm these facts with multiple sources and point out the risks, the upside, and the downside [of any decision]. We [also] determine the likelihood of different scenarios. Reasonable people committed to the health and welfare of the metropolitan community will agree to facts [when they are] laid out in such a way.

For example, in late 2001, then Governor Jesse Ventura proposed responding to a state budget shortfall by cutting funding to nonprofit organizations. We mounted a public information campaign, "Think Twice Before You Cut," that successfully prevented the proposed cuts to the nonprofit organizations and the communities that they serve.

On another occasion, in 2003, a similar campaign, "Deleted for Budgetary Purposes," was unsuccessful in forestalling the proposed budget cuts, although it did provoke widespread public debate. Because the foundation board members represent our community's cultural, political, and economic diversity, they also recognize the significant impact that the budget cuts would have on the quality and fabric of life in our community. For that reason, they unanimously supported both efforts.

ASSOCIATION MANAGEMENT: You've conducted extensive research on trends in black philanthropy; what have you learned?

Carson: At the time I started writing about black philanthropy in the late 1980s, the uniform view among most fundraisers was that African-Americans didn't give, that they had no giving traditions. My research challenged that assumption, finding that if you [use research parameters that] control for income, African-Americans and white Americans give about the same percentage of their incomes to charity.

After this research discovered that, "Wow, African-Americans do have giving traditions," fundraisers wondered, "How come they don't give us their money?" The second phase of my research explained why [African-Americans] don't give you their money: You don't serve their communities; they aren't on your boards; and you're not focusing on issues that people of color care about.

The third phase of my research examines ways organizations can attract those dollars [given that] America is becoming a more diverse place. If an institution is going to survive, it likely will have to target fundraising to a diverse population. That means you need to understand diverse traditions and nuances and make sure your organization is responsive to diverse needs.

ASSOCIATION MANAGEMENT: So should fundraisers target their constituencies by ethnicity?

Carson: No, I'm not suggesting that. I'm suggesting that you understand whom your association affects and how you serve them. That's part of your case statement for getting money from [all] potential donors. Every fundraiser tries to find the connection between the potential donor and the organization and its work. For example, people who have a loved one or relative in need of a medical advance often fund science.

You have to know your audience. You have to determine your market. You have to understand the values of that market. There's a reason why African-American athletes are asked to promote gym shoes. That doesn't happen by accident. It's because they are effective spokespeople to young consumers who want to emulate them.

Margo Vanover Porter is a freelance writer based in Locust Grove, Virginia. E-mail: mvporter@aol.com.