5% Club Seeks New Members
By Doris Rubenstein
CityBusiness, February 9, 2001

The Greater Minneapolis Chamber of Commerce Keystone Program has set itself an ambitious goal for 2001: to achieve an increase of nearly 15 percent in membership. While to some this does not seem an unreasonable or particularly daunting accomplish-ment, for the Keystone Program it is a tremendous challenge. Why? Because for more than four years, the membership in this organization that has symbolized Minnesota’s leadership in business philanthropy has been stuck at around 260 and all their most recent efforts to expand the membership have been unsuccessful. What’s wrong?

First, let’s look at a little history. The Keystone Program was founded in 1976 with commitments from 23 Minnesota companies to commit at least two percent of their pre-tax earnings to address community needs. In fact, the program has become known world-wide as the "Two Percent Club" and the "Five Percent Club" (for businesses donating that amount for the communal good) and has been copied extensively.

So, in 1976, there were 23 companies, including H.G. Fuller, Graco, the Carlson Companies, and the predecessors to the Target Corporation and Wells Fargo Bank Minnesota. In 2000, there were 258 participants representing companies of all sizes, ownerships, and industry sectors. In other words, the Keystone Program grew more than ten-fold over a period of 24 years.

But numbers can be deceiving. In 1997, there were 253 members. And of the 23 founding companies, only 14 are still members. At the Keystone Program’s annual celebration last November, partly sponsored by CityBusiness, only five companies were honored for 15 years of consecutive membership; and another nine received recognition for ten consecutive years of participation. A simple analysis says that the program is good, but it’s stuck.

The leadership of the Minnesota Keystone Program, with B.J. French of Dain Rauscher, Inc. as Chairperson, and Dave Jennings as Executive Director, have set a goal of 300 members as the organization moves towards its Silver Anniversary. Where can or should those members come from?

Right now, 23% of Keystone member companies have over 500 employees and over 50% represent just two industry sectors: Business/Professional Services and Finance/Insurance. This is disproportionate to the role these kinds of companies play in Minnesota’s current business economy.

The greatest potential for new members is in the mid-market and small business groups. Why haven’t they joined Keystone? Perhaps it is that they don’t understand the lesson that Keystone members have learned: Doing good for the community is good for business. According to Brian O’Connell in his 1999 book Civil Society: The Under-pinnings of American Democracy, companies that received the Ad Council’s Public Service Award showed annual growth in profits of 11% compounded over 30 years. That is three times better than the growth of the Gross National Product during the same period!

Who are some of the mid-market firms who have stepped up to the plate and pledged two percent? Architects like Ellerbe Becket; manufacturers like Faribault Woolen Mills, Foldcraft, and Homecrest Industries; and building supplier Lyman Lumber. Who has taken the plunge to pledge five percent? Manufacturers like Lindsay Windows and Doors; warehousers Newport-St. Paul Cold Storage; and wholesale grocers Mason Brothers. These are not all household names, but they want to see their names listed as good citizens on the Keystone roster.

Perhaps part of the reason that mid-market companies don’t give and join the Keystone Program is that they don’t know how to give, it’s not in the plan or the budget. There are, however, new and ample ways to learn how to create a plan that is consistent with the Keystone Program. Hamline University and Augsburg College each offer a course, the Minnesota Council for Quality provides guidance, and the Center for Ethical Business Cultures has resources.

The Minnesota Keystone Program is something that our business community can point to with pride. It deserves to grow, because as it grows so does the quality of life for all Minnesotans.