Asian American communities are among the fastest-growing populations in Minnesota, yet they continue to face systemic underinvestment and some of the widest income disparities. To address these inequities, the Coalition of Asian American Leaders (CAAL) launched the CAAL Ignite Fund in 2025, directing grants to small businesses, nonprofits, and individuals across the state.
“Asian Minnesotans are 7% of the state’s population and of that, an estimated 60% are Southeast Asian,” said ThaoMee Xiong, Executive & Network Director of CAAL. “Our communities live all over the state and play an important role in the state’s economy and growth, yet underinvestment persists. CAAL Ignite is one way we’re responding to the invisibility and disparity.
According to the Women’s Foundation of Minnesota, Asian American women in the state earn about 72 cents for every dollar earned by white, non-Hispanic men, while Southeast Asian women face some of the largest wage gaps in the country with an average of 62 cents to the dollar. These economic disparities are compounded by the sharp rise in anti-Asian hate crimes during the COVID-19 pandemic and persistently high numbers of reported incidents in the years following, which marked 2024 as one of the worst years for anti-Asian hate crimes on record, according to this year’s FBI annual hate crime statistics. These systemic inequities are further reflected in philanthropic support, which remains disproportionately low as research from Asian Americans/Pacific Islanders in Philanthropy (AAPIP) shows that in Minnesota, just 42 cents of every $100 awarded to nonprofits goes to Asian American nonprofits.
In its first year, CAAL Ignite highlighted the critical need for sustained financial support across Asian American communities. With 238 applications from 23 ethnic groups across 39 cities in Minnesota, the fund demonstrated both the demand and the creativity within the community. Grants ranging from $10,000 to $15,000 helped businesses grow their services, nonprofits enhance operations, and individuals launch new initiatives.
The Urgency for Grant Funds like CAAL Ignite
Anti-Asian hate incidents are still alarmingly high, with 2024 being one of the worst years for anti-Asian hate crimes on record. Nationally, Asian American organizations receive just 0.34% of philanthropic funding. The model minority myth continues to silence real struggles around wealth gaps, underinvestment, and access to opportunity.
Mai Ker Hang, owner of Fruitee ‘n the Cake, a small Hmong American owned bakery and CAAL Ignite grantee said, “My community has always been about giving to those in need. I grew up in poverty, and my dream is to give back and support those who have supported me all these years.” With support from CAAL Ignite, she invested in new tools and expanded her services, positioning her business for future growth.
Stories like Hang’s highlight the ripple effect of the fund, where investment in a single idea can generate broader community impact.
“Asian Minnesotans want opportunities to showcase their innovation and ingenuity,” Xiong said. “The CAAL Ignite Fund invests in our community and serves as a platform to elevate their leadership!
Learn more at caalmn.org/caal-ignite and stay updated by following CAAL on social media or subscribing to the newsletter.
