Target to continue funding Minnesota arts

Twin Cities arts organizations won't lose the support of Target -- at least not soon -- despite the company's recent decision to channel most of its future philanthropy to early education, especially reading programs.

"We are not making any changes to Target Foundation's guidelines through 2011," said company spokesman Joshua Thomas. Because the company reviews its programs annually, he would not speculate about future changes, "but we're looking to align with education," he said.

The foundation, which serves only the seven-county Twin Cities area, is a leading source of arts and social-service funding. Last year it gave $9.75 million to about 200 such organizations in the metro area. "A little under half" of that money went to the arts, Thomas said, with the bulk going to social programs.

Target recently announced plans to give $500 million to education by the end of 2015, raising questions about what other programs might be cut back. The company gives 5 percent of its pre-tax profits to charity following a philosophy established more than 60 years ago by its founders, the Dayton family. Last year the corporation distributed $187 million in cash and noncash donations to organizations around the country. Target Foundation, which has no endowment of its own, gets a chunk of the corporate money to distribute every year.

Target is such a heavyweight among local charities that every decision it makes has repercussions, especially now when arts funding is declining. According to the Minnesota Council on Foundations, the percent of Minnesota's philanthropic dollars dedicated to the arts has dropped in recent years, from 16 percent in 2005 to 13 percent in the fiscal year ending May 31, 2008, the most recent figures available. Some of the drop, however, resulted from the completion of major capital campaigns -- including new buildings for the Guthrie, Walker Art Center and Minneapolis Institute of Arts -- that temporarily drove up donations.

Together, Target Foundation and Target Corp. are the largest funders of the arts in Minnesota, followed by the McKnight, Minneapolis, Bush and St. Paul foundations. Those five organizations accounted for 56 percent of all the money given to the arts and humanities in Minnesota in 2007. Since then, however, the Bush Foundation has similarly refocused its spending on non-arts issues.

The recent passage of the Legacy Amendment to the Minnesota Constitution may further alter the future of arts funding because it dedicates a fraction of state sales-tax revenue to outdoor and cultural programs. The amendment, which went into effect this year, is expected to produce about $21 million annually for arts and culture. While some speculate that the guarantee of state money might prompt corporations or foundations to stop funding the arts, the amendment was not a factor in Target's decision to redirect its giving, Thomas said.

"We have received no word from the Target Foundation about any changes in their grantmaking policy," said Emily Galusha, executive director of the Northern Clay Center, which has gotten $35,000 from the foundation annually for several years.

Target has provided "extremely important" support for her organization since its inception 20 years ago, Galusha said. Target has never asked the organization to channel its donations into particular programs, but its money does help pay for classes and extended "residencies" for about 6,000 kids each year.

Aiming for a 'win-win'

Target did recently shift its support at Children's Theatre Company. Previously it funded a two-for-one ticket program that provided discounts on the opening weekend of new shows. About a year ago, in consultation with CTC officials, Target redirected the money into other efforts at the theater.

"They didn't prescribe it or dictate it. They just asked what would happen for the greater good," said Michael Harryman, CTC's marketing director. He immediately asked if the foundation would underwrite school matinees, where attendance had been dropping because schools could no longer afford them.

That is the kind of win-win outcome that fits Target's goals too.

"Education is the number one social issue of the guests who shop our stores," said Target spokesman Thomas. "The idea is to align our work to education so we can have the greatest impact."