Northwest Minnesota Foundation
RESOURCE
The Northwest Minnesota Foundation invests resources, facilitates collaboration and promotes philanthropy to make the region a better place to live and work.
FALL 2016 | Number 73
Board of Directors Pete Haddeland, Chair Tom Anderson, Vice Chair Faye Auchenpaugh, Secretary Leah Pigatti, Treasurer Judy Roy Jody Horntvedt John Gonzalez Jon Linnell Cathy Forgit Kristin Eggerling Edie Ramstad Steven Anderson
Developing Community Assets Serving 12 Counties
Northwest Minnesota Foundation celebrated four Quality of Place Award recipients at the annual State of the Foundation luncheon on October 21, 2016. The Quality of Place Award recognizes NMF partners, grantees, training participants, and loan clients who have helped develop community assets to enhance the quality of places in the region through activities supported by NMF. Armory Square, Park Rapids, received the Quality of Place Award for developing economic assets. The project leaders and partners found innovative ways to strengthen and diversify the economy through job creation, income enhancement, and business opportunities that improve community vitality. Armory Square Management Corporation received loan funds from NMF and the Industries for Park Rapids revolving loan fund to finance this
redevelopment project. Armory Square is now a hub for the arts, lifelong learning programs, and local small-business events and trade shows. Peacemaker Resources received the Quality of Place Award for developing social assets. This nonprofit organization supports new approaches to meeting the needs of our citizens through leadership, promotion of effective nonprofit management, and enhanced community character. Peacemaker Resources’ mission is to foster communication, compassion, and connection that leads to respectful relationships and healthier individuals and communities. They achieve this through their work with the youth leadership training called STAR Teams, a program long supported by NMF. STAR students learn crucial social/ emotional skills, and teachers receive valuable training. continued on page 6
MESSAGE FROM THE PRESIDENT
Dear Friends,
The seasons seem to be changing with a blink of an eye. The summer heat lingered longer than anticipated, fall blew in with vibrant colors, and lasted, and lasted. Now —ready or not —the holiday season is upon us. The generosity of people who call Northwest Minnesota home Nancy Vyskocil always comes to light for me during this time. Whether you are a donor living in our region, or grew up here and continue to help sustain your roots, we want to acknowledge you. We want to take the time to offer our sincere thanks. A special thank you to our volunteers, who are most often the unsung heroes; your work in leading the community and component funds is working to make our communities stronger! Thank you to Jody Horntvedt, Judy Roy and Jon Quistgaard for your service on the NMF board. We appreciate your time, expertise and understanding of issues and opportunities in the region. Your guidance and leadership will be missed.
And to our donors, your generous gifts make a difference. Thank you for sharing your resources with the Northwest Minnesota Foundation, our family of funds, and the region. We want to encourage your continued giving, because the reasons to support the foundation endowment are many. The endowment provides the grants that we give to various organizations, the work we do in economic development and business finance, early childhood, natural resources and operations of the foundation, including staff costs. Your gift to the endowment literally helps keep the lights on. Many people do not know that the foundation is not supported by tax dollars. We receive no funding from local, state or federal governments. Our endowment has been built solely from donor support. While we offer many great options to align your giving with your values, we hope that you will also consider supporting the endowment of the Northwest Minnesota Foundation. We have been blessed to receive significant support from the McKnight Foundation in building our endowment to its level today. I ask that you join in the support of the region through a gift to the Northwest Minnesota Foundation Endowment. Visit our website to make a gift today.
We’d like to introduce our newest board of directors.
Photo Credit: Julia Stephanie
Michelle Paquin, Beltrami County
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Michelle Paquin is a tribal legal advisor for the Red Lake Band of Chippewa Indians and adjunct faculty at Red Lake Nation Tribal College. She graduated from University of Minnesota and William Mitchell College of Law and her resume includes employment with Battered Women’s Legal Advocacy Project and Southern Minnesota Regional Legal Services. Michelle also served as Red Lake Nation Chief Tribal Prosecutor and she has been on the Red Lake Political Education Committee since 2002. She currently serves as a Red Lake Indian Child Welfare Act Commission member, Red Lake Commissioner, and is a member of the Tribal Code Committee. Michelle is a mother of two and her interests include travel and cooking.
Todd Beckel, Lake of the Woods Todd Beckel is the owner and manager of the Baudette Motel. He served as the Lake of the Woods County Commissioner for 10 years. Todd is a volunteer firefighter and has served on the Lake of the Woods Soil and Water Conservation District. He enjoys, trapping, logging, ranching, and fishing.
COMMUNITY CONNECTION CELEBRATION NMF board members and staff recently gathered with our family of community funds in Crookston for NMF’s annual Community Connection Celebration. This event brings community fund advisory committee members and friends together from across the region. The occasion allows each fund to share their trials and triumphs. Committee members network with people who are looking to establish their own funds in other communities. Most importantly, it is a time to have fun! The community funds generate earnings from endowments. Those earnings are used to support efforts that form the very fabric of a community. The grant dollars strengthen education and health care in the region; improve the parks, theaters, and libraries; and support activities that bring residents together, like sporting events, youth activities, and cultural happenings. Donors to these funds have combined their resources for programs and projects that enhance the places where they live and work. Each has developed strategies to fund priorities in their own communities. Their work matches NMF’s mission. The Crookston Area Community Fund (CACF) was this year’s recipient of NMF’s Community Philanthropy Award. To be a recipient of this award, the fund advisors must meet regularly, promote the fund to actively grow the endowment, and award annual grants that make a positive impact in their community. The CACF reached its endowment challenge of raising $50,000 and now has a total of nearly $75,000 donated by businesses and individuals. With Bremer’s and Northwest Minnesota Foundation’s matching gifts and interest income, the total endowed assets now exceed $150,000. Crookston has achieved the highest percentage of growth over time of all the funds that participated in the Community Success program. They have returned over $28,000 from dividend earnings for grants to many exciting community projects and programs.
Pat and Gary Purath, Red Lake Falls
Crookston Area Community Fund Advisory Committee (Left to Right) Dennis Koch, Dale Knotek, Angel Weasner, Dave Genereux, Tom Jorgens This community also jumped in feetfirst to establish the Crookston Arena or Legacy Fund in 2008. This fund has resulted in 334 gifts totaling $1,061,000. In 2013, the community fund advisors agreed to establish the Crookston Park and Recreation Fund to support the efforts of some determined community boosters who wanted to create the Crookston Splash Park. Shirley Iverson and Ann Longtin spearheaded this project and raised nearly $54,000 through the fund by December 2015. More than $1,250,000 has been raised locally by the Crookston advisory members. Congratulations! Community groups interested in establishing a community fund are encouraged to contact NMF Senior Development Officers Dawn Ganje or Lisa Peterson at (218) 759-2057. Learn more about the component and community funds at www.nwmf.org. Congratulations to all community funds for making Northwest Minnesota a great place to live, work, and play!
Shirley and Kevin Iverson, Crookston 3
ASSET BUILDING GRANTS Grants totaling $327,192 were awarded from July 2016 - October 2016 COMPONENT FUNDS TOTAL: $221,742 69 GRANTS AWARDED
Photo Credit: City of Newfolden
NATURAL RESOURCES TOTAL: $25,000 Newfolden Flood Mitigation Project – City of Newfolden
SCHOLARSHIP AWARD TOTAL: $10,250 7 SCHOLARSHIPS AWARDED
Photo Credit: Brainerd Dispatch
Photo Credit: Northland Community and Technical College
ECONOMIC & COMMUNITY COMMUNITY PLANNING DEVELOPMENT TOTAL: TOTAL: $49,150 $29,800 Newfolden Parks Comprehensive Master Comprehensive Plan Update – City of Fosston
City of Mahnomen Market Area Profiles – City of Mahnomen Thief River Falls Nonprofit Hub Feasibility Study – Inter-County Community Council, Inc.
Plan – City of Newfolden
Multi-Event Center/City of Thief River Falls Strategic Plan – City of Thief River Falls Park Rapids Arts and Culture Road Map – Park Rapids Arts and Cultural Commission
Crookston Food Hub feasibility study/ business plan – Tri-Valley Opportunity Council
Component Fund Grants are now found online at 4
NWMF.ORG under the Donor menu.
NEW COMPONENT FUNDS Ada-Borup Recovery & Resiliency Fund
Northwoods Bank Charitable Fund
A sub-fund of the Ada-Borup Area Community Fund, providing funding for the immediate and long-term needs of the AdaBorup area recovering from a natural or man-made disaster
A sub-fund of the Park Rapids Area Community Fund, with the purpose of providing support for charitable and educational programs, projects, and activities that enhance or improve economic and community development in the Park Rapids and Nevis areas
Crookston Area Recovery & Resiliency Fund A sub-fund of the Crookston Area Community Fund, providing funding for the immediate and long-term needs of the Crookston area recovering from a natural or man-made disaster
Fosston Area Recovery & Resiliency Fund A sub-fund of the Fosston Area Community Fund, providing funding for the immediate and long-term needs of the Fosston area recovering from a natural or man-made disaster
Warroad Economic Development Loan Fund A sub-fund of the Warroad Area Community Fund, with assets held and administered for the purpose of acquiring, establishing, and/or expanding businesses in the geographic area of Warroad ISD #690 with a preference for businesses within city limits of Warroad, Minnesota
Greenbush Area Recovery & Resiliency Fund A sub-fund of the Greenbush Area Community Fund, providing funding for the immediate and long-term needs of the Greenbush area recovering from a natural or man-made disaster
RESPONSIVE PHILANTHROPY AWARD The Minnesota Council of Nonprofits presented the Minnesota Initiative Foundations (MIFs) with the Responsive Philanthropy Award at their annual conference, held on October 7th. The Northwest Minnesota Foundation (NMF) is one of six regional foundations working to strengthen the communities and economies of Greater Minnesota.
Together, the MIFs have awarded more than 34,000 grants totaling $203 million, $252 million in business loans and have combined endowment assets totaling $270 million.
The MIFs have demonstrated responsive philanthropy since their inception. They were created to be responsive agents to the farming, mining and community crisis devastating rural Minnesota 30 years ago. Designed to empower and organize local people to address issues they faced, each MIF has developed uniquely over the years in response to key issues in their respective regions. Their determination and prudent use of assets help to ensure that the people in their regions have more opportunity and the best possible start in life. MIF Presidents and staff 5
continued from cover The City of Ada received the Quality of Place Award for developing structural assets. This award recognizes Ada’s efforts to enhance and create an attractive, vibrant community with adequate housing, health care, and education opportunities. In 2016, Ada set a goal for “Continued Growth, Development and Transformation for Minnesota’s Finest Small Town.” They are giving the commercial district a facelift and focusing on job creation and economic development, improvements to community development and recreation, new housing starts and land sales, and city service and financial improvements. The Red River Valley Emerging Leadership Program (ELP) received the Quality of Place Award for developing natural assets. ELP promotes the sustainable use and preservation of our natural resource base, and their leaders develop new strategies that add value to our natural resources, as related to the agricultural community. ELP exists to sustain and create a network of community leaders in Northwest and West Central Minnesota. The goal of the ELP is to provide opportunities for individuals to develop their leadership potential, and a structure to bring together leaders of the region to address rural issues, especially agriculture and natural resources.
Peacemaker Resources, Left to Right: Candy Roberts, Celine Graham, Barb Houg, Sue Liedl
The award includes an unrestricted grant from the foundation to the nonprofit of the recipients’ choice. The following organizations each received a $1,000 grant: Red River Valley Emerging Leadership Program, Ada-Borup Community Fund, Peacemaker Resources, and Park Rapids Lakes Area Arts Council Great American Story project. Red River Valley ELP, Left to Right: Bryan and Stephanie Ramsrud, Bruce and Aase Hamnes, Deb Zak, Jody and Ken Horntvedt, Brian Fredrickson City of Ada, not pictured. Due to a tragic loss in their community, the City of Ada was unable to attend. NMF will celebrate the Quality of Place Award in their town, in the near future.
Armory Square, Pictured Left to Right: Paul Dove, Keiko Zemek, Patricia Dove, Alan Zemek, Nicole Lalum, Jerry Mevisson, Lowell Wolff 6
BUSINESS DEVELOPMENT PROGRAM BUSINESS FINANCE
MICROLOANS
One loan in the amount of: $100,000
Business counseling and loans are available to help entrepreneurs develop small business and self-employment opportunities. Four loans were made totaling: $109,000.
Park Rapids Aviation, Inc. received capital to construct a new building and purchase equipment.
TECHNICAL ASSISTANCE Five businesses from Bemidji, Crookston and Lake of the Woods received a total of $2,356.
Calling all innovators… IDEA is a Northwest Minnesota competition that turns great ideas into great businesses. The annual competition provides training, business coaching, and capital to participating entrepreneurs who want to turn an idea into a fast-growth business. Successful businesses require hard work, the right connections, and a flash of inspiration. If you have an innovative business idea, the IDEA Competition will add momentum to your business strategy, whether you’ve never started a company or you’re already in business and generating revenue. Participants enjoy these benefits: • Valuable tools and business development resources • A business coach • Open access to all IDEA Labs • A chance to receive attention in the media • A chance to present your business idea to potential investors and business leaders • A chance to win one of our $10,000 cash prizes to get your business moving • A chance to win a spot as a semi-finalist in the statewide MN Cup
ideacompetition.org
The competition accepts applications between September 1st and January 3rd. For more information about the competition, you are encouraged to check out the FAQS page – at www.ideacompetition.org. It will also help you to determine if you are eligible for the competition. You are also encouraged to study the Judging Rounds page and the Judging Criteria page, which explains what the judges are looking for when they score applications.
Northwest Minnesota’s • P R E M I E R • ENTREPRENEUR COMPETITION
Turning great ideas into great businesses. 7
NONPROFIT ORG U.S. POSTAGE
PAID
Mailed From Zip Code 56601 Permit No.36
201 3rd St. NW • Bemidji, MN 56601
CHARITABLE GIVING THROUGH INDIVIDUAL RETIREMENT ACCOUNTS If you are over age 70½, the federal government permits you to roll over up to $100,000 from your IRA to charity without increasing your taxable income or paying any additional tax. These tax-free rollover gifts could be $1,000, $10,000 or any amount up to $100,000 this year. The gift satisfies your RMD (required minimum distribution) for this year.
IRA Rollover
Your IRA may have increased in value over the years and you have more income than you need. The IRA rollover gift is a simple and easy way to provide for your favorite charity while not increasing your taxable income. Simply contact your custodian and request that an amount be transferred to charity. The nonprofit receives a nice gift and you avoid any additional tax and satisfy your RMD for the year.
Major Gift
Perhaps you are considering your tax planning goals and would like to make a major gift to charity. Like many individuals, your IRA may be the largest asset in your estate. Your CPA may be looking for ways to save taxes. By making an IRA charitable rollover gift of up to $100,000, you can reach your goal of helping charity in a significant way and reducing taxable income.
Future IRA Gift Options
While you have the opportunity to give through your IRA now, there are other options available for making future gifts from your individual retirement account to charity.
Bequest of IRA
One option is to designate charity as the beneficiary of your IRA. This permits you to continue to take withdrawals from your IRA during life and then leave the remaining value of your IRA to charity.
Testamentary IRA Gift Annuity
Another option is to make a future gift of your IRA to charity while providing life income to your heirs. Your family members will receive fixed payments based on their ages.
Testamentary IRA Unitrust
An IRA could also be transferred to a special “Give It Twice” trust that usually provides income to children for a period of up to 20 years. After that time, the trust may pass to charity, creating a wonderful way for you to make a charitable gift. To learn more about making an IRA gift to NMF’s endowment or to one of our component funds, contact Development Officers Lisa Peterson, or Dawn Ganje at (218) 759-2057 or visit our website at www.nwmf.org.