Bush Foundation changes its focus and the way it will issue grants

The Archibald Bush Foundation, one of the state's largest philanthropic organizations, is changing the way it hands out money.

The foundation, which serves nonprofit groups in Minnesota and the Dakotas, has changed its strategy to focus on only three areas of giving, forge longer-term commitments with fewer partners and increase grant amounts.

That means there will be fewer recipients and not all programs will fit into the new framework.

"We want to make sure our work makes a difference," Bush president Peter Hutchinson said Tuesday. "And you need to be more committed. It's hard to imagine making much of a difference in two years."

Bush intends to continue funding two long-term arts programs. It will continue paying out about $40 million per year, but now its 10-year strategy will focus on:

• Leadership development for individuals and communities;

• Supporting the self-determination of American Indian nations and

The three areas rose to prominence after a two-year study.

There was a long list of possibilities, Hutchinson said, but after repeatedly asking, "What difference do we want to make?" and "What difference do we think we can make?" the three areas stood out.

Perhaps the change will spur some organizations to reconfigure to meet the foundation's goals, said Bush spokeswoman Victoria Tirrel.

"We did not decide this overnight. We did not decide this lightly," she said. "We know in the short term this may have an impact on the people who have relied on us for grant-making, but while we don't discount that, we believe if we continued in that direction we'd actually be falling behind."

No new applications

New partnerships probably won't be formed until 2009, Tirrel said.

"Nobody from this point is either in or out," Hutchinson said. "From our point of view, we want to be open to anyone who believes they can help us accomplish these goals."

In uncertain economic times, philanthropic foundations want to maximize their resources, said Bill King, president of the Minnesota Council on Foundations. Oftentimes, being more focused and making larger grants to fewer organizations can have bigger effects, he said.

"I think the really good news about the 10-year strategy is that, for however they work out the details, there will be longer-term commitments that organizations can rely on as long as they're effective," King said.

Staff members at regional arts and social service agencies are still digesting the implications of the foundation's new strategic goals. Several said Tuesday that it was too soon to speculate about how funds might be allocated or for what sort of programs.

"But there is no real mention of capital support in their program so we don't know how this is going to shake out," said Carla McGrath, Highpoint's executive director. "Bush is a major funder in this region, and when they shift their focus, it changes the environment."