Minnesota nonprofits hit hard by COVID-19 make pitch to donors ahead of annual Give to the Max Day

Many Minnesota nonprofits hoping to match 2020's unprecedented surge in donations are falling short, but they're still banking on donors giving generously this month and in December — the critical year-end fundraising period.

On Thursday, thousands of schools and nonprofits will make their pitch to donors on the 13th annual Give to the Max Day, the statewide giving "holiday" organized by GiveMN that drew a record-breaking $30 million last year — the fifth consecutive year of increased giving.

Donations to GiveMN's site so far are surpassing pre-pandemic levels but may fall short of the historic levels of 2020, said Jake Blumberg, executive director of GiveMN.

"It's really hard to predict what's going to happen," he said. "We'd anticipate that giving will continue to be higher than pre-pandemic levels … [but] last year was a very unique year."

Many local nonprofits are still in recovery mode after getting hit with rising expenses and shrinking revenue during the pandemic. Theaters, museums and arts organizations lost ticket revenue, while social services programs such as food shelves helped a record number of people in need.

In a new report, the Minnesota Council of Nonprofits found that 20% of 300 nonprofits surveyed anticipate being in financial distress in six months or less. That's fewer nonprofits fearing financial distress than in March or in 2020, but the pandemic has left its mark: After last year's furloughs and layoffs, the nonprofit workforce has shrunk by nearly 30,000 jobs, according to the report.

Donors stepped up in response to the pandemic and boosted racial justice organizations after George Floyd was murdered in May 2020. Philanthropy often spikes in a crisis but declines sharply after the emergency subsides, Blumberg said. A report by Giving Tuesday forecasts that charitable giving nationally will return this year to pre-pandemic levels after rising 5% last year.

"What's different about this disaster is that it's not really over," Blumberg said. "The problems aren't going away and we need donors to recognize that."

In a GiveMN survey of about 1,000 nonprofits, nearly 40% of organizations participating in Give to the Max Day said it will be their biggest fundraising campaign of the year.

Loaves & Fishes, a free meal program in Minneapolis, is skipping a gala or fundraising event again this year and will rely on Give to the Max Day to bring in $100,000. Executive Director Cathy Maes said she will send cheeky invites to donors for the "nonevent," asking for a donation in lieu of a fancy gala.

"It takes a lot out of our staff to put an event on, and right now everyone is so focused on the need at hand," Maes said. "Put on your slippers and please give."

Give to the Max Day has always been mostly online, with organizations sending out a flurry of social media posts and e-mails soliciting money — a method that's pandemic-proof. With the COVID outbreak, most nonprofits shifted fundraisers entirely online until this summer, when they resumed hybrid events as coronavirus cases dropped.

Another spike in cases this fall, however, has spurred many nonprofits to revert to online-only events or to implement new rules for events, such as requiring proof of vaccination or a negative COVID-19 test.

That's what Prepare and Prosper is doing for Give to the Max Day, mandating vaccinations and masks at a happy hour Tuesday. The St. Paul nonprofit is hoping to drum up $100,000 to fund free tax preparation, mentorship and other financial resources for low- and moderate-income Minnesotans. It's the organization's largest fundraiser of the year, typically bringing in about half its annual individual donations.

"It's the biggest day of the year for almost every nonprofit that you're connected to," said Madilynn Garcia, assistant director of development at Prepare and Prosper.

Garcia said donations have continued coming in higher than in 2020, helping the organization to withstand added expenses for new technology for virtual programs and stave off furloughs or layoffs for its 22 full-time staff.

"We feel very fortunate," she said. "Our work is more important than ever."

Minneapolis-based Migizi Communications, which works with Native American youth, has seen donations drop this year — but only because the nonprofit drew a staggering $2 million in donations after its building burned down in the civil unrest following Floyd's death.

Kelly Drummer, Migizi's president, said donations right now are still up over 2019 ahead of Give to the Max Day, which is their largest fundraiser.

"If we were just trying to do it ourselves, it would be really hard. But the whole state knows it's Give to the Max Day," Drummer said. "That collective effort brings in more donations."

Migizi is fundraising for a new building off E. Lake Street, but with supply chain delays and construction costs nearly doubling, the project's price tag has jumped from $3.5 million to $5.3 million.

Loaves & Fishes is slated to dish out 4 million meals this year, triple the number in 2019, but is falling behind in the number of donations and volunteers. Maes said she's counting on Give to the Max Day: "It's a great shot in the arm for us at this time of the year."

Nonprofits have been soliciting donations since Nov. 1, when the early giving period began. Donations come with a 6.9% fee, though GiveMN says most donors pay that fee on top of their contribution.

"What we need donors to think about is the importance of a resilient nonprofit sector that cannot only weather this ongoing storm but continue to support people well past it," Blumberg said. "And for nonprofits, it's continuing to have to be nimble and adaptive."

Kelly Smith • 612-673-4141