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Certainly, businesses have been an important source of resource for assets – whether it be creating new assets or
improving existing ones. The real key is for companies to be convinced of the case for an asset and about why it
makes sense for them to support it. In post-war Minnesota, the Dayton Company, 89 owners of department stores
in and around Minneapolis, took the view that “what is good for the community is good for the business.” They
wanted to attract and retain productive workers and to have a strong local market that viewed them positively.
The company, run by five brothers, gave generously to their metro area and state. Not all of their giving was on
community and civic assets – but much of it was. Major beneficiaries of their giving included the Minneapolis
Art Institute, Walker Art Center, Minnesota Symphony and what is now the Twin Cities Y.
Figure 3.24: The Dayton Company – “what is good for the community is good for the business”
In 1946 the Dayton Company was the first Minnesota-based and second American company to establish a preset amount of annual giving. In their case
the decision was to give 5% of their pre-tax profits to charitable causes (the maximum amount allowable by law). 90 Other Twin Cities companies began to
follow suit in the 1950s albeit not always as generously. The strategy is smart as you only give if you make profit and you only give a lot if you make a lot.
(source: Target Corporation)
89
Dayton’s department stores merged with Detroit’s Hudson department stores in 1969 and is now the Target Corporation.
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Their current giving level is still high, see http://philanthropy.com/article/How-America-s-Biggest/132785/#id=101032.
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