2017 ANNUAL REPORT. Donaldson Foundation Supporting Education Strengthening Our Communities 2017 ANNUAL REPORT

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1 2017 ANNUAL REPORT Donaldson Foundation Supporting Education Strengthening Our Communities 2017 ANNUAL REPORT 1

2 A Message From THE FOUNDATION 50 Years of Giving Back Founded in 1966, the Donaldson Foundation strives to make a meaningful impact in our communities. We proudly support programs and organizations that direct time and effort towards education. Program grants provided by the Donaldson Foundation impact a broad range of educational interests in our communities including early childhood development, K 12, post-secondary, adult learner and self-sufficiency education. Our philanthropy focuses on: Supporting educational opportunities for those who otherwise would not have them Providing matching grants to educational institutions Providing scholarships for post-secondary education Partnering with our plant communities to address local community needs We are extremely proud of the generations of employees who have established an expansive history of philanthropy, generously giving their time, energy and aid to various local and regional organizations and projects. 2 DONALDSON FOUNDATION

3 Education Organizational Grants The Foundation seeks to make a meaningful impact in the communities in which Donaldson employees live and work by providing funding to non-profit organizations and programs that further educational initiatives for students of all ages. The Foundation strives to provide equitable access to STEM disciplines (Science, Technology, Engineering and Math) through grants that will increase youth engagement and teach effectiveness in these areas of study. Scholarships I want to bring back my journey to show people in my community that my host country is made of real people and real places, just like here. ANNA STONE 2017 scholarship recipient studying in Spain The Foundation established its scholarship program in the fall of The program is administered by Scholarship America, and provides scholarships to children of Donaldson employees enrolled in accredited two or four year postsecondary institutions. The amount awarded is based on academic achievement, leadership and participation within school and the community, and the financial need of the applicant. The scholarship can range from $1,000 to $3,000, and may be renewed for up to three additional years. Since 1981, Donaldson Foundation scholarships have assisted over 2,000 students in their post-secondary schooling. Educational Matching Gifts To additionally support education, each year the Foundation makes contributions to eligible educational institutions equal to the amount donated by a Donaldson employee. Gifts are typically matched in any amount from $25 up to $1,000. Spotlight Genesys Works The Donaldson Foundation has supported Genesys Works with financial grants for the last five years. Genesys Works enables under-served high school students to break through barriers and discover that they can succeed as professionals in the corporate world. Along with skills training, each student is provided with a meaningful, paid internship at a major corporation (including Donaldson), college and career counseling and continued support as they pursue post-secondary credentials and first professional jobs. Donaldson employees have been enriched by mentoring and working with some of the brightest young minds in our community ANNUAL REPORT 3

4 At a Glance The Donaldson Foundation and Donaldson employees are committed to making a difference and strengthening the communities of which we are a part by supporting education. During fiscal year 2017, the Donaldson Foundation distributed grants and matching gifts totaling $1.2 million to non-profit organizations. This total includes supporting the annual Science Fusion events in partnership with the Science Museum of Minnesota, our corporate United Way campaign match and the annual $100,000 Foundation Challenge with U.S. employees. GRANTS UNITED WAY SCHOLARSHIPS 10% $100K CHALLENGE EXCHANGE PROGRAM 3% 50% 26% 10% 1% MATCHING GIFTS $1.2 million Educational Giving in Fiscal Year % Pre-K 12% Post Secondary 62% K 12 2% Sponsorships 18% Adult Learner 4 DONALDSON FOUNDATION

5 Plant Communities Strengthening our Plant Cities $61,369 United Way Plant Campaigns $47,500 Plant Community Grants Donaldson financially supported education needs in the communities where we have manufacturing and distribution locations. Grants in fiscal year 2017 totaled $108,869. Making a Difference Family Resource Center St. Croix Valley, Inc. (Baldwin, WI) United Way of St. Croix Valley (Baldwin, WI) Howard-Winneshiek Community School Fdn (Cresco, IA) United Way of Lee County (Dixon, IL) Junior Achievement of the Heartland (Dixon, IL) United Way of Clinton County (Frankfort, IN) Rensselaer Central Elementary Schools (Rensselaer, IN) United Way of Greene County (Greeneville, TN) Portage County Literacy Council (Stevens Point, WI) United Way of Greater Lafayette Area (Rensselaer, IN) American Cancer Society (Valencia, CA) United Way of Portage County (Stevens Point, WI) Science Fusion Science Fusion Event Each year the Science Museum of Minnesota hosts a four-part Science Fusion event where students connect with professionals from the Twin Cities through science experiments and activities. The mission is to introduce youth of underserved communities to the vast career opportunities available in STEM. Donaldson has sponsored Science Fusion for eight years. Donaldson Science Award Donaldson formally rewards Minnesota high school students of African-American, Hispanic, American Indian and Asian heritage $500 for their achievements and interests related to STEM. Students are nominated for the award by teachers and mentors, and are publicly recognized at one of the four Science Fusion events ANNUAL REPORT 5

6 United Way Giving to Those in Need Donaldson U.S. employees, along with the Foundation, provide significant support to communities where we live and work through contributions to the United Way. The United Way campaign is the company s single largest community outreach effort. $391k Total Giving Donaldson United Way Campaign Through an employee matching gift program to United Way and their affiliated organizations, the Foundation and Donaldson employees donated over half a million dollars to United Way programs in fiscal year 2017, of which the Foundation contributed $391,369. United Way Partner Organizations United Way works with companies, nonprofits and other organizations to improve lives by mobilizing the caring power of communities around the world to advance the common good. In total, the Donaldson Foundation funded $302,500 through United Way partner organizations in fiscal year $391,369 TOTAL UNITED WAY AFFILIATED GIVING $61,369 United Way in Donaldson Plant Communities $27,500 United Way Greater Twin Cities $302,500 United Way Partners United Way Partners Funded in Fiscal Year Communities American Cancer Society Big Brothers Big Sisters Catholic Charities of St. Paul & Minneapolis CLUES College Possible Division of Indian Work Emma Norton Services Goodwill-Easter Seals MN Joyce Preschool Merrick Community Services Pillsbury United Communities Full Cycle Summit Academy The Arc Greater Twin Cities The Family Partnership YouthLink YWCA 6 DONALDSON FOUNDATION

7 $100k Challenge 27,000 New Books Donaldson Foundation $100,000 Challenge Grant Annually, the Donaldson Foundation challenges three non-profits to propose how they would further educational initiatives in U.S. cities where our employees live and work if they were given $100,000. Donaldson Bloomington and U.S. employees vote which organization most deserves this funding Challenge Winner First Book This year, with a theme of Early Childhood Education, the three non-profits challenged were: First Book, focusing on giving books to impoverished children Pacer Center, preventing and educating on bullying PBS Kids, promoting science education to adolescent girls First Book was voted as this year s winner, and the others were each awarded a $10,000 grant. First Book delivers over 18 million educational resources annually to children in need. With the help of Donaldson employees, First Book will distribute 27,000 brand new early childhood books to children within our Donaldson communities during the school year. Making a Difference Junior Achievement USA, our 2016 $100,000 Challenge winner, teamed up with Donaldson to provide career planning and higher education planning opportunities at Donaldson locations across North America. With the assistance of Donaldson volunteers, middle school and high school students had the opportunity to job shadow and engage in STEM related career exploration. School: Como Park Senior High School, St. Paul, MN Number of Students: 25 Students 2017 ANNUAL REPORT 7

8 Organizations Supported in Fiscal Year 2017 The Donaldson Foundation approved over 50 Twin Cities and plant-area organizations to receive grant donations and scholarships in fiscal year In addition, many Donaldson employees contributed their time, money and talents in support of these great organizations. This community involvement is what sets Donaldson apart. UNITED WAY PARTNER ORGANIZATIONS 360 Communities American Cancer Society - CA Division Big Brothers Big Sisters Catholic Charities of St. Paul & Minneapolis CLUES College Possible Division of Indian Work Emma Norton Services Goodwill-Easter Seals MN Joyce Preschool Merrick Community Services Pillsbury United Communities Full Cycle Summit Academy The Arc Greater Twin Cities The Family Partnership YouthLink YWCA ORGANIZATIONS Artistry Best Prep - ementor Best Prep Business Boys & Girls Clubs of the Twin Cities BSA (Boy Scouts of America) Cristo Rey Jesuit High School Dress for Success Dunwoody College of Technology Education Foundation of Bloomington Family Resource Center - St. Croix Valley Genesys Works Guadalupe Alternative Programs Hands of Hope Foundation Howard-Winneshiek Community School Foundation Junior Achievement of the Heartland Junior Achievement of the Upper Midwest MN Children s Museum MN Council on Economic Education Normandale Community College Foundation PACER Center Portage County Literacy Council Rensselaer Central Elementary Schools Science Buddies The MN Zoo The Works Museum University of Minnesota Foundation Urban Ventures Wallin Education Partners SPONSORSHIPS Apple Valley, MN High School AVID Mill City Museum STEM Family Day, MN Historical Society STEM Fest, Northern Illinois University Southwest Best Robotics, Southwest High School MN Gopher Sports Formula SAE, University of MN Applying for an Organizational Grant Donaldson Foundation invites grant applications that are educational in nature. The Foundation limits its support to local or regional non-profit organizations in those communities where Donaldson employees live and work. Grant recipients must qualify for tax exemption by the IRS. The completion of the Minnesota Standard Grant Application is preferred and proof of tax exemption status is required. Applications are evaluated for the following criteria: Educational focus Degree of need for those benefited Impact Sustainability Connection to Donaldson communities Grant applications that focus on impactful programs are preferred over funding requests for general operating expenses. Typical grant awards range from $5,000 to $50,000. DONALDSON FOUNDATION SUPPORTING EDUCATION. STRENGTHENING OUR COMMUNITIES. For more information about any of these programs, please contact us at: 8 DONALDSON FOUNDATION The Donaldson Foundation PO Box 1299, MS 100 Minneapolis, MN donaldsonfoundation@donaldson.com October 2017