Minnesota Council on Foundations

The Minnesota Council on Foundations was formed in June of 1972 from the Ad Hoc Committee on Foundation Legislation. The committee was formed to advise the Minnesota State Legislature's Joint House and Senate Subcommittee on Tax Exemption. The Council was incorporated in 1975. It provides a means for foundations to enact self-regulation; furnishes a venue for discussing issues and legislation; and serves as a public access point for information on Minnesota foundations.

In 1969 the U.S. federal government enacted changes in the tax laws pertaining to nonprofit and charitable institutions. These changes included a federal tax on foundation income, filing fees, and required completion of the 990-PF form and disclosure of other fiscal reports.

Concurrently, many nonprofit institutions received public attention and censure because of their financial scandals and abuses of the tax exempt status such as using foundations for tax evasion or failing to distribute foundation funds. The Minnesota State Legislature, spurred by public interest and a budget short on cash, also took an interest in tax exempt nonprofit institutions. State Representative Ernest A. Lindstrom was the chairman of the Joint House and Senate Subcommittee on Tax Exemption which began a study of existing exemption statutes and tax exempt organizations in Minnesota. This committee became known as the "Lindstrom Committee."

On February 13, 1970 the Joint House and Senate Subcommittee on Tax Exemption conducted a hearing to receive testimony from individuals representing private tax exempt foundations regarding the current state tax exempt laws and recent changes in the federal laws. Representative Lindstrom encouraged "responsible" foundations to guide and advocate provisions and regulations which would prevent such abuses and foster accountability by requiring that fiscal reports be made public information.

Because of the changes in the federal laws, some Minnesota foundation leaders, significantly A. A. Heckman, Robert W. Bonine, James P. Shannon, and James A. Norton, had been meeting, independently of the "Lindstrom Committee," during 1969. On June 17, 1970 they met to discuss current Minnesota state legislation affecting their Minnesota-based foundations. The result of this meeting was the formation of an ad hoc steering committee populated by representatives from various Minnesota foundations. This group was charged with advising the "Lindstrom Committee;" drafting model legislation; establishing and maintaining a liaison with appropriate legislative and government agencies; facilitating and expediting communication between foundations, legislators, interested parties, and the public; and reporting to foundations all relevant information concerning tax and other legislation. It named itself the Ad Hoc Committee on Foundation Legislation.

The committee continued to meet after the "Lindstrom Committee" was dissolved, and through 1971 described itself as a "trade or professional association." In June of 1972 the committee changed its name to the Minnesota Council on Foundations (MCF), and became incorporated as such in 1975. Judith Healy was hired as the Council's first executive director in 1975, followed by Jacqueline Reis in 1979. The council provides a means for foundations to enact self-regulation; furnishes venues for those working in foundations and other grant making charitable organizations to meet and discuss issues; keeps them informed of current legislation; and serves as a public access point for information about Minnesota foundations. The majority of their efforts are directed toward member institutions, though they hold open and public meetings as well.