Better Way Foundation
Better Way Foundation is a private family foundation headquartered in Minneapolis, Minnesota. The organization supports the positive development of all children through grants and investments, partnering with communities to build a future where child well-being contributes to strong families and communities.
Key facts about Better Way Foundation
- EIN
- 36-3608625
- Latest 990 filing
- Form 990-PF, 2024
- Annual giving (2024)
- $2,695,000
- Grants made (2024)
- 45
- Average grant
- $59,889
- Median grant
- $30,000
- New grantees (estimate)
- 11% first-time grantees (4 of 38, 2024)
- Total assets
- $68,241,965
- Primary geography
- Minnesota (20% of itemized 2024 grant dollars)
Data from IRS Form 990-PF, 2024; updated September 2026. New grantees are estimated by matching recipient names across years (methodology).
Who Better Way Foundation funds
By grant dollars, the top recipient states for Better Way Foundation's 45 itemized 2024 grants were Minnesota (20%), New Mexico (14%) and South Dakota (14%). The most frequent recipient cities were St Paul, MN (4 grants), Notre Dame, IN (3 grants), Milwaukee, WI (3 grants) and Minneapolis, MN (2 grants). 31% of grants with a stated purpose were for general or operating support.
Is Better Way Foundation open to new grantees?
11%
first-time grantees, 2024
In 2024, 4 of 38 grantees (11%) were first-time recipients. First grants averaged $38K; repeat grants $75K. How we count
Medians: $30K first-time, $90K repeat.
- 79% of 2024 grantees were also funded in 2023. Method
- Giving held roughly steady from 2021 to 2024 (+20%). Method
- In 2024 it paid out 108% of its IRS minimum distribution (the 5% rule). Method
Estimate from itemized IRS Form 990-PF grant lists (2020–2024). Recipient names are matched across years, so a renamed or misspelled grantee can look new; grants to individuals are left out. Methodology.
Next steps with Better Way Foundation
- How to evaluate Better Way Foundation as a funder
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Financial Overview
From 2024 IRS Form 990-PF · View filing
Total Assets
$68.2M
+0.0% YoY
Annual Giving
$2.7M
+24.1% YoY
Grant Count
45
+2.3% YoY
Avg Grant Size
$60K
+21.3% YoY
Under IRS private-foundation payout rules, Better Way Foundation reported a distributable amount of $3.2M for 2024 — the minimum it must pay out in qualifying distributions.
Mission & Focus Areas
Better Way Foundation was established to support the positive development of all children. The foundation is rooted in Catholic social values and focuses on supporting early childhood development in disinvested communities.
Primary funding areas include:
- Early childhood development
- Elementary and secondary education
- Higher education
- Human services
- Philanthropy and grantmaking
- Religion and Christianity, with particular emphasis on Catholic initiatives
- Indigenous community support and culturally grounded education
The foundation prioritizes grantmaking to Indigenous communities and organizations, with particular commitment to revitalizing Indigenous languages and creating culturally grounded education that strengthens identity and pride.
Grantmaking
The foundation made 38 grants in 2023, with total giving of $2,695,000.
Ready to take the next step with Better Way Foundation?
Geographic Focus
Where this funder awards grants
The foundation funds projects across multiple U.S. states including Arizona, California, Colorado, Florida, Georgia, Indiana, Massachusetts, Michigan, Minnesota, Montana, Nebraska, New Mexico, Ohio, Oklahoma, Oregon, South Dakota, Washington, and Wisconsin. The foundation also supports international locations including Bukoba and Dar es Salaam.
Grant Distribution by State
Share of all 45 itemized 2024 grant dollars.
States
Cities
Financial History
Multi-year comparison from IRS filings
As of Fiscal Year Ending December 2023:
- Total Assets: $68,241,414
- Total Revenue: $5,095,584
- Total Expenses: $3,617,435
- Total Liabilities: $2,250,000
- Investment Income and Dividends: $450,176
The foundation maintains nearly 40% of assets in values-aligned impact investments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Total Assets | $68,241,965 | $68,241,414 | $63,372,543 |
| Revenue | $1,364,999 | $5,095,584 | $-1,855,368 |
| Expenses | $3,004,642 | $3,617,435 | $2,839,926 |
| Qualifying Distributions | $3,464,464 | $4,233,665 | $2,639,493 |
| Net Investment Income | $1,324,380 | $944,548 | $4,095,857 |
| Distributable Amount | $3,219,359 | $3,281,017 | $3,174,451 |
Data update history
When this profile's IRS filing data changed on Grantable
- IRS filings on file for fiscal years 2020–2024
Giving Over Time
Total grant dollars and number of grants per year
Grant Insights
How this funder distributes its grants
Top Recipients
Top 10 recipients in 2024
Grant Size Distribution
234 grants across all recorded years
Giving History
Grant recipients and amounts by year
Among its reported 2024 grants, the largest recipients include Mashpee Wampanoag Tribe ($200,000), University of Notre Dame ($200,000 across 3 grants), Wicoie Nandagikendan ($200,000 across 2 grants).
| Recipient | Purpose | Amount |
|---|---|---|
| Mashpee Wampanoag Tribe Mashpee, MA | Cultural Curriculum for Weetumuw School and Beyond! | $200,000 |
| University of Notre Dame Notre Dame, IN | American Indian Catholic Schools Network (AICSN) Support 2020-2024 | $185,000 |
| Lower Sioux Indian Community Morton, MN | Transition Grant - Lower Sioux | $160,000 |
| Hearts Gathered Omak, WA | Building for the Future | $150,000 |
| Oceti Sakowin Community Academy Rapid City, SD | Innovative Approaches to Teaching and Community-based Indigenous Education | $150,000 |
| Thunder Valley Community Development Corporation Porcupine, SD | Transition Grant - Thunder Valley CDC | $120,000 |
| Amani Girls Home | Transition Grant - AGH | $100,000 |
| Comanche Language and Cultural Preservation Committee Lawton, OK | Building the Capacity of CLCPC | $100,000 |
| Keres Children's Learning Center Cochiti Pueblo, NM | Indigenous Montessori Institute Strategic Growth Phase | $100,000 |
| Mama's Hope Organization for Legal Assistance | Transition Grant - MHOLA | $100,000 |
Leadership & Key People
Leadership team and compensation from IRS filings
- President/Chair: Karen Rauenhorst
- Vice President: Nicholas Banovetz (highest compensated staff member at $182,634 annually)
- Board of Directors: Includes family and community representation, with members including Sarah Rauenhorst, Andreas Hipple, and Nat Robinson
The foundation was founded by Gerald and Henrietta Rauenhorst, who built a legacy of civic leadership, business impact, and philanthropy.
Compensation Overview
From 2024 IRS filing
From 2024 IRS filing
| Name | Title | Hours | Compensation |
|---|---|---|---|
| Nicholas Banovetz | Vice President | 40 | $202,965 |
| Kristen Grubb | Tax Officer | 6 | $13,333 |
| Karen Rauenhorst | Chair/President | 1 | — |
| Judy Rauenhorst Doerr | Chair-elect | 1 | — |
| Janine Geske | Vice Chair/Secretary | 1 | — |
| Stephanie Russell | Treasurer | 1 | — |
| Anita Fineday | Director | 1 | — |
| Cary Buzzelli | Director | 1 | — |
| Gia Rauenhorst | Director | 1 | — |
| Shamsia Ramadhan | Director | 1 | — |
| Tarajean Yazzie-Mintz | Director | 1 | — |
Frequently Asked Questions
What does Better Way Foundation fund?
Better Way Foundation was established to support the positive development of all children. The foundation is rooted in Catholic social values and focuses on supporting early childhood development in disinvested communities. Primary funding areas include: • Early childhood development • Elementary and secondary education • Higher education • Human services • Philanthropy and grantmaking • Religion and Christianity, with particular emphasis on Catholic initiatives • Indigenous community support a…
How do I apply for a grant from Better Way Foundation?
**Grant Amounts:** Typical awards range from $5,000 to $200,000. **Recent Grants (2023):** • University of Notre Dame: $183,000 (American Indian Catholic Schools Network Support 2020-2024) • Hearts Gathered: $150,000 (Building for the Future) • Montessori American Indian Childcare Center: $100,000 (Continuity, Growth & Vision) The foundation made 38 grants in 2023, with total giving of $2,695,000. **Partnership Approach:** The foundation emphasizes 9-year partnerships with grantees to help adva…
Where does Better Way Foundation make grants?
The foundation funds projects across multiple U.S. states including Arizona, California, Colorado, Florida, Georgia, Indiana, Massachusetts, Michigan, Minnesota, Montana, Nebraska, New Mexico, Ohio, Oklahoma, Oregon, South Dakota, Washington, and Wisconsin. The foundation also supports international locations including Bukoba and Dar es Salaam.
What size grants does Better Way Foundation award?
In 2024, Better Way Foundation awarded 45 grants totaling $2.7M — an average of about $60K per grant, based on its IRS Form 990 filings.
How much is Better Way Foundation required to give away each year?
Private foundations must generally distribute about 5% of their assets annually. For 2024, Better Way Foundation reported a distributable amount of $3.2M on its IRS Form 990-PF — the minimum it must pay out in qualifying distributions.
What is Better Way Foundation's EIN?
Better Way Foundation's EIN (Employer Identification Number) is 36-3608625. IRS Form 990 filing data is available on this page for 2020–2024.
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Data last updated September 2026. Sourced from IRS Form 990-PF filings. Research dossier generated April 2026.