All In On Mission

Recently, we shared how the McKnight Foundation remains focused on our mission, values, and partners. Despite emerging and complex challenges, we are focused on an important fact—the future is not finished nor decided. This truth orients us to seeing and seeking extraordinary opportunities that create a stronger future for people and our planet.

We refuse to let go of our vision of the future where every person in our country has what they need to live healthy, meaningful lives and contribute to the greater good, and where we see and value our collective interdependence.

For that reason, we remain steadfast in advancing climate solutions and racial equity across every part of our work, and committed to diversity, equity, and inclusion as core values of our Foundation.

Tayo ay all in on our mission, using every tool in our toolbox as a philanthropic organization to bring about a more just, creative, and abundant future where all people and our planet thrive. And we’re backing up our words with action—increasing resources to support our partners today and build a stronger tomorrow. 2024 was the highest grantmaking year in our nearly-75-year history, exceeding a 7 percent charitable payout, and we anticipate it will remain above 6 percent for the remainder of this decade.

In this moment, foundations like ours have a responsibility to step up and step together, recognizing that we have many ways to directly benefit people in the communities we serve. That’s why we’re taking a comprehensive approach across our organization—from our grantmaking to mission investments in our endowment, from our office space that drives our sustainability and builds community to creating partnerships that make the whole greater than the sum of its parts.

Here’s what being all in on mission means at the McKnight Foundation:

Over the course of McKnight’s history, from the first $1 milyon endowment at the start of the Foundation in 1953, we have given away more than $3.26 billion dollars to strengthen communities and economies from our backyard to places around the globe. These sustained, reliable resources have enabled us to do our part to support vibrant arts and culture ecosystems in Minnesota, expand access to fundamental needs like housing, quality jobs, clean air, water, and food, support researchers helping find cures for diseases of the brain or solutions for local food systems, and strengthen economic development and opportunity in every corner of our state. Over the course of our history and still today, we make long-term investments in organizations and places to help people thrive through times of struggle and hope. We remain committed to staying closely connected to the communities we support, deploying our resources to improve lives today while building a future that is more just, creative, and abundant for all.

In 2023, McKnight’s Board made the decision to increase our grantmaking budget by $200 million, recognizing the incredible, transformational opportunities before us to strengthen our future. By increasing our charitable payout, we are investing in long-term strategies that grow, build, and imagine—while also responding to current events. We aim to ensure every person has a fair shot at achieving their aspirations in life regardless of their race, gender, different abilities, socio-economic status, or place of birth—be it in rural small towns, suburban cul-de-sacs, or urban neighborhoods.

Grantmaking:

• In 2023, McKnight’s Board, recognizing the incredible opportunities before us, approved an increase of $200 million for grantmaking.
• We are on track to have the highest grantmaking payouts of our 75-year history in 2024 and 2025. Last year, we granted $145 million to 725 organizations.
• This increased grantmaking includes supporting the GroundBreak Coalition’s work to transform entrenched systems to open doors to homeownership, help entrepreneurs launch and grow businesses, and bring fresh investments to neighborhoods that have been left out of our region’s abundance. That looks like more families buying their first homes, more flourishing small businesses, and more people embracing opportunity and building lasting wealth that doesn’t just enrich lives—it enriches communities.
• We also increased grantmaking to build a thriving clean energy economy in the Heartland, investing in solutions that make a real difference in people’s lives—like creating good-paying jobs, helping farmers adopt more resilient practices, lowering household energy bills, and improving air and water quality. It’s about strengthening local economies, growing reliable transportation options, and preserving the natural environment that makes our region unique.

Endowment:

• We have doubled our program-related investment (PRI) budget to $100 million. PRIs are a tool to provide less expensive loans, or capital, where other investors see too much risk. These dollars help employees buy their firm from a retiring owner or a local group install energy efficient systems to save homeowners dollars on their utility bills.
• Our endowment is working for our mission, not against it. In the ten years since McKnight began impact investing in 2014, the foundation has gone from having few aligned assets to having half of the endowment aligned with its mission today. This includes investing in organizations like Vistria Housing Fund, which invests nationwide in the preservation, production, and improvement of affordable and workforce housing. We expect market-rate returns on this investment, and real benefits to people. Vistria measures its affordability, access, sustainability, and resident services.

Office Space:

• We are ensuring our new physical headquarters works for our planet, our people and our partners by strengthening our ties to the community and our neighbors and providing more space for our grantee partners to use for their meetings, convenings, and events. We are also weaving climate, equity, and belonging throughout the building, through an aggressive decarbonization strategy, sustainable heating and cooling system, LEED Gold certification, sustainable materials, accessibility features, prayer and wellness rooms, all-gender restrooms, and diverse spaces for collaboration and focus.

We won’t lose sight of the fact that we’re doing this work in support of people working every day with courage, dedication, passion, and conviction. Community leaders, business owners, caregivers, artists, scientists, workers, investors, teachers, culture bearers, farmers, researchers, innovators: To you, we express our deep gratitude for the contributions you make to move inspiration into action.

For that reason and more, McKnight will continue to be all in on mission, working collaboratively with peers and partners to create transformative solutions that improve lives today and position us for a stronger tomorrow.