A Twin Cities nonprofit that promised families grants for youth activities is being forced to shut down after Minnesota Attorney General Keith Ellison accused it of dressing up a concession-staffing operation as charity work. The nonprofit, MN Fundraising Initiative, operated across major sports and entertainment venues, where families could work concession shifts in exchange for grants tied to youth expenses.
Under a settlement announced Wednesday, MNFI must wind down and dissolve after Ellison’s office concluded that hundreds of workers were misclassified as volunteers, according to MPR News. Ellison called the organization a “sham charity” and said it functioned as a staffing agency rather than a charitable operation. The announced remedy is a civil settlement requiring the nonprofit to dissolve.
How The Stadium Shifts Worked
The program’s pitch was straightforward: MNFI secured contracts at more than 23 venues, then recruited volunteers to staff food-and-beverage stands. Sacred Heart Catholic School described the arrangement as families working events at Target Field, Target Center, Canterbury Park and U.S. Bank Stadium, with venue donations redirected toward tuition and enrichment grants, according to the school’s tuition page.
MNFI’s own 2019 annual report said it was formed June 14, 2019, and that its first 200 days included 238 volunteer events, $128,318 in donations and $75,696 in grants to 97 individuals, the organization’s report says. The group said its grants were intended to help cover education, sports, music, dance and other youth activities.
Financial Records Show A Substantial Operation
Public tax records show MNFI was not a tiny neighborhood fundraiser. Its 2024 filing reported $3.47 million in revenue, $3.20 million in expenses, $1.72 million in net assets and $177,724 in executive compensation, according to ProPublica’s nonprofit database.
Those figures describe the size of the operation, not whether the organization violated Minnesota law. The Minnesota Attorney General’s Office says it is the state’s chief regulator of charities and that most organizations soliciting contributions in Minnesota must register and file reports, while complaints from the public can help identify potential violations, the office explains.
Families Now Face Questions About Pending Grants
For families who used the arrangement to offset tuition, sports fees, trips or other youth expenses, the shutdown creates an immediate practical question: what happens to pending grants and already-completed shifts? The settlement announcement puts the nonprofit’s future in clear terms, but the transition could be more complicated for the schools and families that relied on its concession-work model.
