Phase One: 1995-1998
A Quiet Beginning

The Carl and Eloise Pohlad Family Foundation, like most family foundations, had a quiet beginning. After consultations with advisors, family members signed and filed incorporation documents to create the foundation in December 1993. IRS approval of the private foundation application arrived in June 1994. Later that year, the Foundation would hold its first formal meetings and approve a round of grants, before beginning its first full year of operations in 1995.

To organize and lead the foundation’s early giving efforts, the Pohlad family relied on guidance from the family-owned Marquette Banks. They turned to Chris Andersen, a bank employee experienced in community affairs. Chris organized the family’s first foundation meetings, reviewed requests and assisted family members in examining their individual and collective charitable interests.

While their new foundation provided Pohlad family members the opportunity to give in a more structured way, much of the foundation’s giving during its first four full years continued to be quiet and patient, reflecting family members’ personalities and interest in learning more about community needs. It was also somewhat informal, not requiring requestors to complete an application, submit a large amount of information, or participate in extensive due diligence.

Foundation giving during these years supported a wide variety of community services with most grants ranging from $1,000 to $5,000. For the many nonprofits that received support, it was a welcome, new source of unrestricted operating support. Between 1995 and 1998, the total amount granted annually would grow from $247,000 to more than $673,000.

At the close of 1998, the foundation’s assets had increased significantly. Like many individuals and institutions, the foundation benefited from Wall Street’s record-setting performances in the 1990s. Carl and Eloise Pohlad’s initial stock gifts of $4 million grew to $14 million. These increased assets provided a healthy base as the foundation moved into a new giving phase.

Phase Two: 1999-2001
Strengthening Our Commitment to Giving

In August 1998, the directors of the Pohlad Family Foundation decided to increase and formalize the foundation’s philanthropic work. Directors invested in staff and other resources needed to organize and operate a giving program that would distribute significantly more grant funds.

During her first months with the foundation, new director Marina Muñoz Lyon worked with Pohlad family members to define foundation priorities and create a more visible and open framework for grantmaking. Working together, directors drafted and approved the foundation’s first mission statement and three-year giving plan. Governance was improved and staff created needed administrative systems, grant guidelines and an application form.

Among the most important decisions in the three-year plan was a public commitment to make $7.5 million in grants. Representing more than 50 percent of the foundation’s assets at the time, this commitment greatly exceeded required foundation distributions.

With significant assets, policies, systems and personnel in place, the foundation became more open and responsive, giving more and giving differently.

Phase Three: 2002 - Present
Expanding Our Presence in the Community

With a significant percentage of foundation assets committed to grants, foundation directors took time in 2002 to review previous grantmaking efforts and discuss plans for future giving. Specifically, directors focused on how to improve grantmaking so that it could have more impact. During the planning process, Carl and Eloise Pohlad contributed $20 million to the foundation’s assets -- a generous gift that would also allow foundation directors to consider new opportunities and grantmaking strategies.

The completed 2002-2005 plan, made two important changes to the foundation’s giving program:

• Grantmaking would be much more proactive, and
• A small number of capital campaigns would be selected to receive large grants.

Foundation directors also vowed to continue and strengthen their support for economically-disadvantaged youth. And they made a commitment to provide unrestricted annual operating support to a variety of Twin Cities-based non-profit organizations that provide cultural and human services.