Funder Spotlight: How Alaska’s Rasmuson Foundation Backs Arts, Housing and More
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IP Funder Spotlights offer quick rundowns of the grantmakers that are on our radar, including a few key details on how they operate and what they’re up to right now. Today, we take a look at a family foundation that also has the distinction of being the largest private grantmaker in the state of Alaska.
What this funder cares about
Established in 1955, the Anchorage-based Rasmuson Foundation awards grants to Alaska-based artists and nonprofits in fields like health, social services and housing. The foundation also works to cultivate Alaska’s burgeoning philanthropic sector by galvanizing individual giving, seeding community funds and engaging donors from outside the state. As the largest private grantmaker in Alaska, the foundation had $729 million in assets as of December 31, 2020, and has awarded more than $475 million since its inception.
Why you should care
The foundation is a quintessential regional funder, providing critical support to nonprofits and artists in a geographically remote and rural state. This translates into significant impact on the ground. For example, the foundation landed on IP’s 2021 Philanthropy Awards for co-launching a program providing dental care across the state’s tribal lands. The foundation also spearheaded an innovative public-private partnership to address homelessness in Anchorage.
In addition, the foundation has emerged as a strong proponent for the arts during the age of COVID-19. I encourage any arts fundraiser looking to make their case to grantmakers to check out this compelling op-ed by President and CEO Diane Kaplan and Program Officer Enzina Marrari. The foundation has awarded 588 grants totaling over $5.5 million through its Individual Artist Awards.
Where the money comes from
In 1901, a 21-year-old missionary named Jenny Olson made the 4,000-mile journey from her native Sweden to “the last frontier.” Three years later, another Swede, the 22-year-old E.A. Rasmuson, followed in her footsteps to teach in a school for Tlingit children. They met and married in 1905.
In 1918, E.A. took the helm of the Bank of Alaska. When E.A. died in 1949, his son Elmer assumed leadership of the bank. Six years later, Jenny Olson created the Rasmuson Foundation with a $3,000 gift to honor her husband. She died in 1966 and left most of her estate to the foundation.
In 1999, Wells Fargo purchased the Bank of Alaska for $907 million. The proceeds constituted the bulk of the foundation’s endowed assets. That same year, Elmer donated $40 million to the foundation. He died a year later and left much of his $400 million estate to the foundation. In 2012, Elmer’s wife Mary Louise Rasmuson died, leaving $42.5 million to the foundation. Elmer’s son Ed became the foundation’s chair in 2000 and chairman emeritus in 2021. He passed away on January 4, 2022, at the age of 81.
Where the money goes
The foundation awarded $34.3 million in grants in 2021. The top three programs were Human Services at $9.9 million (29%); Arts, Culture, and Humanities at $8 million (23%); and Organizational Development at $5.3 million (16%). (The foundation site also breaks down funding by region.) The $34.3 million in funding represents a whopping 79% increase over 2020, when it disbursed $19.2 million.
Open door or barbed wire?
The foundation makes it easy for Alaskan nonprofits to apply for support. Take its Tier 1 grants, which average $16,700 and are primarily earmarked for capital projects and technology upgrades. Eligible applicants can apply by registering on the foundation’s grants management system. The foundation considers applications on a rolling basis.
Tier 2 grants of more than $25,000 support large capital projects and “projects of demonstrable strategic importance or innovative nature that address issues of broad community or statewide significance.” Qualified applicants must submit a letter of inquiry for this grant. If the foundation is interested in the project, it will invite the organization to submit a proposal.
I should also mention that the foundation has one of the most transparent and informative websites I’ve come across in terms of enabling users to dig into past grantmaking by region, program and year. The site also includes biographies of board members and staff and annual letters to the state’s residents. You can read the foundation’s 2020 Letter to Alaskans here.
Latest big moves
The foundation’s biggest current initiative is a $40 million public-private partnership to tackle the issue of homelessness in Anchorage. It’s been a busy few months. In December of 2021, the Anchorage assembly earmarked $6 million for homeless shelter design and building purchases. A few weeks later, the municipality of Anchorage and the foundation announced plans to purchase a hotel that will be used as a convalescent shelter for the most medically vulnerable individuals experiencing homelessness.
The foundation also helped to start the Anchorage Homelessness Leadership Council to engage the business community on the issue. Leaders advocated for a municipal alcohol tax, some of which is now supporting shelters and other projects.
One cool thing to know
The foundation partnered with the State Department of Health and Social Services, the Municipality of Anchorage, and the Alaska Community Foundation to launch a camps initiative to expand the opportunity for Alaska youth to attend camp, improve the quality of camps, and expand camps that have been under-resourced. The partnership went on to award 85 camps grants totaling $1.5 million—approximately 12,000 kids all over Alaska benefited. Better yet, the foundation board has approved $1 million to continue the camps initiative for another three years.
