1 2017 ANNUAL REPORT

Donaldson Foundation2017 ANNUAL REPORT

Supporting EducationStrengthening Our Communities

2 DONALDSON FOUNDATION

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.

A Message From THE FOUNDATION 50 Years of Giving Back

3 2017 ANNUAL REPORT

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

The Foundation established its scholarship program in the fall of 1981. The program is administered by Scholarship America, and provides scholarships to children of Donaldson employees enrolled in accredited two or four year post-secondary 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.

Education

“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 STONE2017 scholarship recipient

studying in Spain

SpotlightGenesys 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.

4 DONALDSON FOUNDATION

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

$100K CHALLENGE

MATCHING GIFTS

EXCH

ANGE

PRO

GRAMSCHOLARSHIPS

50% 26% 10% 1%

3%

10%

18%Adult Learner

62%K–12

12%Post Secondary

6%Pre-K

2%Sponsorships

$1.2 millionEducational Giving in Fiscal Year 2017

5 2017 ANNUAL REPORT

Plant Communities

Science FusionScience 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.

Strengthening our Plant Cities

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 DifferenceFamily Resource Center St. Croix Valley, Inc. (Baldwin, WI)

Howard-Winneshiek Community School Fdn (Cresco, IA)

Junior Achievement of the Heartland (Dixon, IL)

Rensselaer Central Elementary Schools (Rensselaer, IN)

Portage County Literacy Council (Stevens Point, WI)

American Cancer Society (Valencia, CA)

MATCHING GIFTS

$61,

369

United Way Plant Campaigns

$47,500 Plant Community G

rant

s

United Way of St. Croix Valley (Baldwin, WI)

United Way of Lee County (Dixon, IL)

United Way of Clinton County (Frankfort, IN)

United Way of Greene County (Greeneville, TN)

United Way of Greater Lafayette Area (Rensselaer, IN)

United Way of Portage County (Stevens Point, WI)

6 DONALDSON FOUNDATION

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.

$391kTotal

Giving

360 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

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 2017.

United Way Partners Funded in Fiscal Year 2017

$391,369 TOTAL UNITED WAY AFFILIATED GIVING

$27,500 United Way Greater Twin Cities

$61,369 United Way in Donaldson Plant Communities

$302,500 United Way Partners

7 2017 ANNUAL REPORT

$100k Challenge27,000

New Books

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.

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.

2017 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 2017-2018 school year.

School: Como Park Senior High School, St. Paul, MNNumber of Students: 25 Students

$302,500 United Way Partners

8 DONALDSON FOUNDATION

UNITED WAY PARTNER ORGANIZATIONS

360 CommunitiesAmerican Cancer Society - CA Division

Big Brothers Big SistersCatholic Charities of St. Paul & MinneapolisCLUESCollege PossibleDivision of Indian WorkEmma Norton ServicesGoodwill-Easter Seals MN Joyce PreschoolMerrick Community ServicesPillsbury United Communities Full CycleSummit AcademyThe Arc Greater Twin CitiesThe Family PartnershipYouthLinkYWCA

ORGANIZATIONS ArtistryBest Prep - eMentorBest Prep BusinessBoys & Girls Clubs of the Twin CitiesBSA (Boy Scouts of America)Cristo Rey Jesuit High SchoolDress for SuccessDunwoody College of TechnologyEducation Foundation of BloomingtonFamily Resource Center - St. Croix ValleyGenesys WorksGuadalupe Alternative ProgramsHands of Hope FoundationHoward-Winneshiek Community School Foundation

Junior Achievement of the HeartlandJunior Achievement of the Upper MidwestMN Children’s MuseumMN Council on Economic Education

Normandale Community College FoundationPACER CenterPortage County Literacy CouncilRensselaer Central Elementary SchoolsScience BuddiesThe MN ZooThe Works MuseumUniversity of Minnesota FoundationUrban VenturesWallin Education Partners

SPONSORSHIPS Apple Valley, MN High School AVIDMill City Museum STEM Family Day, MN Historical SocietySTEM Fest, Northern Illinois UniversitySouthwest Best Robotics, Southwest High SchoolMN 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:

Organizations

DONALDSON FOUNDATION SUPPORTING EDUCATION.

STRENGTHENING OUR COMMUNITIES.For more information about any of these programs, please contact us at:

The Donaldson FoundationPO Box 1299, MS 100Minneapolis, MN 55440 donaldsonfoundation@donaldson.com

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 2017. 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.

• 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.

October 2017