AG shuts down Blaine nonprofit over stadium wage scheme
Minnesota Attorney General Keith Ellison has reached a settlement that orders Blaine-based MN Fundraising Initiative to stop operating in Minnesota and to dissolve.[1]
Ellison's office says investigators found MNFI disguised hundreds of paid stadium workers as 'volunteers' and paid them hourly 'grants' to staff concessions at Target Field, U.S. Bank Stadium and Allianz Field.[1] The probe found MNFI paid more than $1.1 million in 'grants' to current or former board members, including over $237,000 to a single board member.[1] For-profit vendors including Minnesota Sportservice, Levy Premium Foodservice and Aramark Sports and Entertainment benefited from low-cost labor while avoiding payroll and tax obligations, the office said.[1]
Investigators say the 'grants' were paid strictly by hours worked rather than as true grants, a practice that misclassified employees to evade wage and tax rules.[1] The Attorney General says the arrangement deprived workers of minimum wage, overtime and basic protections, and it suppressed wages and opportunities for unionized stadium employees.[1]
Under the settlement MNFI must wind down Minnesota operations and dissolve, a move the office framed as protecting workers and taxpayers.[1]
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📌 Key Facts
- MN Fundraising Initiative (MNFI), a Blaine-based nonprofit, has been ordered to end operations in Minnesota and dissolve under a settlement with the Attorney General’s Office.
- Investigators say MNFI misclassified hundreds of paid stadium workers as 'volunteers,' paying them 'grants' strictly based on hours worked to staff concessions at Target Field, U.S. Bank Stadium, Allianz Field and other venues.
- The AG’s office found MNFI paid more than $1.1 million in 'grants' to current or former board members, including over $237,000 to a single board member.
- For‑profit vendors including Minnesota Sportservice, Levy Premium Foodservice and Aramark Sports and Entertainment benefited from low‑cost labor while avoiding payroll and tax obligations, according to the investigation.
- Ellison says the scheme deprived workers of minimum wage, overtime and basic protections and suppressed wages and opportunities for unionized stadium employees, shifting costs onto taxpayers.
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