Millionaire club charts a new course for The club will continue recruiting Minnesota
giving millionaires, much like Microsoft founder Bill Gates
began doing with the world's billionaires this year.
But it also wants to crank up its public profile, enlist
The One Percent Club, seeking to revive younger leaders and prod its members to volunteer
momentum, is reaching out to younger, more with their chosen charities.
tech-savvy partners.
This month it joined forces with Social Venture
Partners, a relatively new Twin Cities organization
By JEAN HOPFENSPERGER, Star Tribune that links philanthropists with high-performing
charities.
Last update: October 17, 2010 - 10:36 PM Putting wealth to the test
The One Percent Club began with a burst of publicity
in 1997, when a group of the richest Minnesotans The One Percent Club was the brainchild of Joe
pledged to donate 1 percent of their net worth each Selvaggio, a Twin Cities nonprofit leader, and Tom
year to charities. Lowe, chairman of the Lyman Lumber Co. They were
inspired by research showing the richest Americans
It was the first such club in the nation, attracting donated a smaller share of their wealth than others.
1,000 members over the next decade. But the club's
momentum has faded in recent years, and its leaders They persuaded a small group of wealthy
now are trying for a revival, reaching out to younger, Minnesotans to pioneer the experiment, starting with
more tech-savvy partners. former Dayton Hudson CEO Ken Dayton. Armed with
a 39-page list of prospective members, the club
"The role of the One Percent Club is to honor the mailed out hundreds of brochures and pledge forms
legacy of philanthropy in Minnesota," said Peter to rustle up broader interest.
Heegard, a retired Wells Fargo executive and club
member, at the annual board meeting this month. It was an untested concept. Groups asking
corporations to donate up to a certain level existed, s
"Pillsbury. Hill. McKnight. Loring. Dayton. Walker. uch as the Five Percent Club in Minnesota.
Crosby. Bell. ...'' He went on to list family names that Nationally, there was a "Give Five" campaign launched
appear on street signs, schools and public buildings by the Independent Sector, a national coalition of
across the state. nonprofits and philanthropies, said Steve Paprocki,
who teaches philanthropy at Hamline University.
"Those early philanthropists took risks and changed
with the times,'' he said later. "We should, too."
Advertisement
-1-
But personally targeting rich people to give away a whom are alive."
certain amount of money was new, said Paprocki.
And until Bill Gates and Warren Buffet launched their Catching a new wave
billionaire philanthropy campaign this year, there
was really nothing quite like it, he said. The board debated its options, members said.
Should the club just close its doors? Chart a new
The goal was actually 1 percent of net worth or 5 direction? It concluded the club continues to enjoy
percent of income. Targeting net worth brought far strong "brand" recognition and has the potential to
more money to Minnesota charities, said Selvaggio, rally even more funds to Minnesota charities and
since many club members were retirees or didn't nonprofit institutions.
have particularly high incomes. But they did have
millions of dollars in assets. Enter the "partnership" -- not merger -- with Social
Venture Partners. The arrangement offers the club
The club suited the low-profile giving style of access to a younger generation of philanthropists, a
Minnesota's rich. Members weren't hounded to raise different style of philanthropy, and an administrative
money for the club or write checks to certain causes. home. Social Venture Partners, a group of about 75
Membership lists were not shared. "investors" who focus on charities with potential for
high growth and effectiveness, gains access to some
In its first seven years, members donated more than of Minnesota's biggest philanthropists.
$100 million, said Jud Dayton, president of the club's
board today. How much money would have been "The power of this partnership is it joins traditional
donated without the club is an open question. philanthropy with the new wave," said Brad Brown,
Social Venture's executive director.
But this loose coalition may have suffered from a
shortage of glue, members admit. There was no Now what? For starters, the partnership will create
single cause to unite members. No common vision. educational programs next year to introduce more
Not many activities that brought members together. Minnesotans to philanthropy's historic role in
The departure of Selvaggio, who was willing to shaping Minnesota and its institutions, said Brown.
"harangue and twist arms" to sign up new members,
left a real leadership void, members said. Plans are also underway for a public campaign to
encourage more philanthropy, he said.
Check out the club's website today and see the drift.
Its last newsletter was published in March 2009. Its Dayton, meanwhile, dreams of making the club and
last annual meeting drew about 80 people. Dayton its partner the premier philanthropy education group
now jokes that the club has 1,000 members, "700 of in the Twin Cities. He'd love to bring in Bill Gates for
Advertisement
-2-
a conversation on philanthropy.
Heegard said he'll work to help recruit younger
leadership to the board, particularly with some high-
tech savvy. He's also pushing for the club to look
more closely at the effectiveness of the charities it
funds.
Both groups would like to eventually transplant the
One Percent model to other cities. In fact, a group of
wealthy folks in La Crosse, Wis., contacted the club
last year, asking how to create their own branch. It's
now the club's first official chapter.
"Minnesota has been a national leader in so many
categories --the arts, education, health --in large
part because of philanthropy," said Heegard. "If we
don't keep trying to expand philanthropy, that could
change."
Jean Hopfensperger • 612-673-4511
Advertisement
-3-