The future of Minnesota depends on the strength, leadership, and innovation of Greater Minnesota. As the Northland Foundation and five other Minnesota Initiative Foundations mark 40 years of service, the McKnight Foundation has announced a $6 million investment in the people, ideas, and locally led solutions shaping rural communities across the state. Each of the six foundations will receive $1 million in McKnight Foundation funding in 2026 which includes $500,000 in additional general operating support.
The grants reflect McKnight’s enduring partnership with the six rural, place-based foundations—and a belief that rural people and places deserve investments that match their contributions and importance.
Born in the 1980s amid the farm crisis and broader economic upheaval across rural Minnesota, the Minnesota Initiative Foundations were created after McKnight leaders spent a year traveling the state, listening in school gyms, community centers, and local diners. What emerged was not a short-term program, but a long-term commitment: six independent, locally governed institutions rooted in place and built to endure.
Today, the Minnesota Initiative Foundations represent a nationally recognized model for rural investment. By combining philanthropic grantmaking, business lending, donor partnerships, and community leadership, they help attract and deploy resources in ways few rural regions can. Their ability to leverage public, private, and philanthropic capital has made them a powerful engine for community development across Greater Minnesota.
Over four decades, the Minnesota Initiative Foundations have made an extraordinary impact on their communities, in part by providing more than $439 million in grants, deploying $364 million in local business investments, and leveraging more than $876 million in additional resources for Greater Minnesota. They have supported entrepreneurship, housing, childcare, clean energy, belonging, and civic life—responding not only in moments of acute crisis like COVID-era disruption and more recent housing, food, and cost-of-living pressures, but also in the longer work of helping communities build greater connection, durability, and self-determination over time.
Since 1986, the Northland Foundation has distributed $73 million in grants, closed $82 million in business loans, and raised more than $170 million to power programs, grantmaking, and small business supports across northeast Minnesota counties and neighboring tribal nations.
“Forty years ago, McKnight made a simple but powerful choice: to listen first and trust that the people closest to a place are best equipped to shape its future,” said Tonya Allen, President of the McKnight Foundation. “That belief gave rise to the Minnesota Initiative Foundations, and four decades later, the results speak for themselves. Across Greater Minnesota, rural communities have turned local ideas into thriving businesses, stronger neighborhoods, new housing, civic leadership, and lasting opportunity. This investment is about backing the ingenuity, resilience, and leadership of rural people and places—and ensuring they have the resources they deserve to keep building Minnesota’s future.”
“There is truly nothing else like the Minnesota Initiative Foundations in the country,” said Ted Staryk, McKnight Foundation Board Chair. “For 40 years, they have shown that lasting progress happens when decisions are made close to home and communities have the resources to lead. Across Greater Minnesota, they have helped people weather change, seize opportunity, and build futures rooted in local strengths. This investment celebrates that legacy and reinforces a simple belief: when rural communities have the resources they need, there is no limit to what they can achieve.”
The announcement is also an invitation. Despite being home to roughly 20 percent of the U.S. population, rural America receives just 3.5 percent of philanthropic giving, according to a recent USDA Rural Development study. Yet rural communities are driving innovation, entrepreneurship, and problem-solving across the country.
The Minnesota Initiative Foundations offer a proven model for closing that gap—ensuring resources reach locally led solutions and remain rooted in the communities they are meant to serve. McKnight hopes this investment inspires others to deepen investments in place-based leadership, particularly in rural communities.
The grants provide flexible general operating support, allowing each foundation to respond to emerging opportunities and challenges while deepening investment in the priorities identified by local communities. Each of the six presidents share what this funding makes possible in their regions of Minnesota:
“Our approach is bringing the community together and saying, ‘What do we need to do and how can we help support you?’ to address a variety of issues—from economic development to childcare and from food security to belonging.” stated Tony Sertich, President & CEO, Northland Foundation.
“The investments from McKnight, past and present, make a real difference in the communities we serve, helping local organizations lead the work they know best. We value our long-standing relationship with McKnight and the progress we’ve made together,” Sertich said.
Learn more about the Minnesota Initiative Foundations, their impact at 40 years, and their visions for the future at mcknight.org/mifs.
About the McKnight Foundation: McKnight Foundation, a Minnesota-based family foundation, advances a more just, creative, and abundant future where people and planet thrive. Established in 1953, the McKnight Foundation is deeply committed to advancing climate solutions in the Midwest; building an equitable and inclusive Minnesota; and supporting the arts and culture in Minnesota, neuroscience, and global food systems. Learn more at mcknight.org.
About the Minnesota Initiative Foundations: The Minnesota Initiative Foundations are six regional foundations working to strengthen the communities and economies of Greater Minnesota. Established by the McKnight Foundation in 1986, each foundation is independent and serves its geographic region by delivering grants, business financing, regional programs, belonging work and donor services. Learn more at greaterminnesota.net.
About the Northland Foundation: The Northland Foundation is a publicly supported, place-based foundation serving rural northeast Minnesota and neighboring Native nations, working toward a future where everyone feels they belong and can thrive. Learn more at northlandfdn.org.
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