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.
WINTER 2016 | Number 71
Board of Directors Pete Haddeland, Chair Tom Anderson, Vice Chair Faye Auchenpaugh, Secretary Leah Pigatti, Treasurer Judy Roy Jody Horntvedt Jon Quistgaard Jon Linnell Cathy Forgit Kristin Eggerling Edie Ramstad Steven Anderson
Developing Community Assets Serving 12 Counties
PHILANTHROPIC PREPAREDNESS, RESILIENCY, AND EMERGENCY PARTNERSHIP by Dawn Ganje Natural disasters happen. It’s a fact of life on planet Earth. Often, they occur all too unexpectedly. The power and force can leave behind a path of destruction requiring both human and financial resources to achieve recovery. Our Northwest Minnesota region has not been spared from natural and manmade disasters. The floods of 1997 up and down the Red River Valley impacted Ada, East Grand Forks, Warren, Alvarado, Oslo, and St. Vincent; the summer floods in 2002 hit the Roseau and Wild Rice River Watersheds; a severe wildfire raged in October of 2012 near Karlstad; and, the school shooting tragedy in 2004 shocked the Red Lake Reservation. All have left indelible marks.
Unfortunately – or fortunately – however you look at it – NMF has experience in responding to these often life-shattering events. “The assistance provided by the Northwest Minnesota Foundation in the Karlstad fire was used to meet essential needs (food, clothing, shelter) for those who were impacted,” said Randy Nordin executive director, Northwest Community Action, Inc. “Funds were also used to help homeowners with cleanup costs when insurance was not sufficient. Being a local organization, the foundation has an excellent understanding of the needs facing our area communities and Continued on page 7
MESSAGE FROM THE PRESIDENT Greetings, If you are anything like me, you are suffering from spring fever. I can’t wait to see the flowers and trees start to bud and hear the songs of returning birds. We will be seeing many signs of change at the foundation this spring. Marty Sieve, vice president for programs has announced his Nancy Vyskocil retirement and will be leaving the foundation in April. He began working for NMF as a grants officer in 1991. Ten years later, he was promoted to his current position. Much of NMF’s nearly 30year history has occurred during his tenure. Marty stated that his work has been very rewarding because of what was accomplished in partnership with friends and other like-minded organizations. Anyone who worked with Marty over the years knows that he truly believes that the effectiveness of NMF depends on the people we know and work with across the region.
While we are excited for Marty, we are experiencing a feeling of major loss. Marty has been such a strong voice for the region. At the office, we joke that he is “the most interesting man in the world” – we will miss his wisdom and sense of humor. Karen White will be stepping into the role of vice president this spring and is a welcome addition to our team. Karen comes to us from Bemidji State University where she has been the executive director of the 360° Center for Excellence. Read more about her on the following page. We are also eager to host and announce the winners of the 8th Annual IDEA Competition. This is one of the most inspiring and exciting programs the foundation is involved in. The banquet is being held on April 26th at the Beaux Arts Ballroom on the campus of Bemidji State University. Please join us and share the excitement. Tickets are available on the NMF website under the upcoming events calendar. Happy spring to you all!
He has been instrumental in strategic planning for NMF and in convening the regional group of senior executives, IMPACT 20/20, which aligns member resources around a collective vision for the economy of northwest Minnesota. His work with the IDEA Competition over the past eight years is also notable.
THANKS!
Jon Quistgaard will be enjoying his well-deserved retirement as he leaves the NMF board this spring. Jon joined the board of directors in 2010. His service throughout the years to his community and NMF are priceless. Enjoy the good life, Jon and thank you for all that you have done for the foundation. 2
NMF NAMES NEW VICE PRESIDENT FOR PROGRAMS NMF is pleased to welcome Karen White as our next Vice President for Programs. In this position, Karen will have oversight of all programmatic functions within the foundation, including our Grants Program, Entrepreneur Development Program, Business Finance Program, Small Business Development Center, IDEA Competition, the STAR Karen White (youth leadership) Program, our Training Programs, and the Early Childhood Initiative. She will also coordinate the group of regional leaders known as IMPACT 20/20, as well as manage all the foundation’s planning activities. Karen comes to NMF from the 360º Manufacturing and Applied Engineering ATE Regional Center of Excellence, where she has served as executive director since its inception in 2006. Led by Bemidji State University, the Center is a consortium of 15 institutions of higher education from across Minnesota. Its purpose is “to recruit, educate, and train workers for dynamic careers in advanced manufacturing.” It is one of four Centers of Excellence within the entire system of Minnesota State Colleges and Universities.
“We at the foundation could not be happier with Karen’s hire,” said Nancy Vyskocil, president. “She arrives at an opportune time for us, as NMF continues to grow and mature, and as our engagement with northwest Minnesota continues to become deeper. Karen truly has a regional perspective on both economic development and social and community needs. And she is a strategic thinker, which will serve us well as we prepare to conduct our next planning process. She will be a tremendous asset to NMF and to all our regional partners.” Karen holds a Master of Science degree in Chemical Engineering from the University of Kentucky. Upon completion of her degree, she spent five years with Imation Corporation’s Wahpeton, North Dakota manufacturing site, where she held various engineering and management positions related to the production of data storage cartridges. Prior to joining Bemidji State University, she held the position of Associate Director for Engineering Operations with the Center for Nanoscale Science and Engineering at North Dakota State University in Fargo. There she led and coordinated a number of large multi-disciplinary federal grants. As executive director of the 360º Center of Excellence, she led the consortium in achieving designation as a National Science Foundation Advanced Technological Education Regional Center in 2012. Karen assumes her new position in April, when she will succeed Marty Sieve, who is retiring after 25 years of service to NMF.
AN INTRODUCTION TO VITAL NONPROFITS Nonprofit organizations continue to experience changes in board and executive leadership, expanding or contracting missions, challenges and necessity for collaboration, financial stability, and shifting community need for services. Identifying, addressing and planning for these emerging and shifting needs is vitally important for the health of nonprofit organizations and the communities served by the Northwest Minnesota Foundation. In order to invest in and build the long term sustainability of the region’s nonprofit organizations, NMF is introducing Vital Nonprofits. This is a new delivery method for nonprofit capacity building services. The program will assist nonprofits to meet their missions through targeted and intensive training, assessment, technical assistance, coaching and peer executive and board learning sessions.
The application process is competitive. NMF will intensely invest in the growth and development of up to five nonprofit organizations over a two-year period. Applicants will be chosen based on need, variety of budget sizes and geographic location. Vital Nonprofits will be introduced at meetings scheduled in April and May in the communities of Bemidji, Crookston, Park Rapids, Roseau and Thief River Falls. Please watch for meeting announcements via email and press releases. If you want to add your organization’s name to the invitation list, please email Dawn Ganje at dawng@nwmf.org.
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ASSET BUILDING GRANTS Grants totaling $269,113 were awarded from December 2015 - February 2016
COMMUNITY CONNECTIONS TOTAL:
$10,000
NATURAL RESOURCES TOTAL: $30,310
Lao Engagement Project in Warroad – Lao Assistance Center of Minnesota
Sustainable Sheep Community Project – Sustainable Farming Association
CARING COMMUNITIES TOTAL: $3,000
Restoring Traditional Ojibwe Food Systems – Bemidji Area Indian Center
Park Rapids Bridges out of Poverty – Park Rapids ISD #309
COMMUNITY PLANNING TOTAL: $53,760 City of Badger, Minnesota – Comprehensive Plan Mahnomen Housing Study and Plan Disaster recovery fund for Madelia fire – Southern Minnesota Initiative Fund Northwest Clean Energy Financing – Bemidji State University – Sustainability Office
COMPONENT FUNDS TOTAL: $187,804 55 GRANTS AWARDED Component Fund Grants are now found online at 4
SCHOLARSHIP AWARD TOTAL: $113,775 124 SCHOLARSHIPS AWARDED NWMF.ORG under the Donor menu.
PHILANTHROPIC SERVICES - NEW COMPONENT FUNDS BGCWER Capital Projects – Provides financial support for capital projects, equipment and furnishings that benefit the Boys and Girls Clubs of the White Earth Reservation.
Ada-Borup Area Community Fund – Supports charitable,
educational and public purpose projects that will enhance or improve the quality of life for residents and/or visitors of the Ada-Borup area.
Thief River Falls Area Community Fund – Supports
Frances McNeill Karlsson Arts Fund – Supports
scholarships to Roseau County graduates or its successors who pursue post-secondary education through a college or university in fine arts.
Hallock Area Community Fund – Supports charitable,
educational and public purpose projects that will enhance or improve the quality of life for residents and/or visitors of the Hallock area.
charitable, educational and public purpose projects that will enhance or improve the quality of life for residents and/or visitors of the Thief River Falls area.
COMPETITION ANNOUNCES 2016 FINALISTS The IDEA Competition has released the names of its 2016 finalists who will now move into the final phase of the competition: 3Suns, LLC – David Bahr, Bemidji AirCorps Aviation, LLC – Dan Matejcek, Eric Trueblood, Erik Hokuf, Mark Tisler, Bemidji b.able – Jana Younggren, Hallock Bare Cloth – Keila McCracken, Bemidji Char Energy Equipment, LLC – Curtis Borchert, Ada Far North Spirits – Cheri Reese and Michael Swanson, Hallock NISKY, LLC – Eric Niskanen, Bemidji Prostrain – Sachel Josefson, Kari Josefson, and Jeff Mackenstadt, Bemidji This year’s winners will be selected by a judging panel comprised of members from the three area equity funds, bankers, successful entrepreneurs, and business development professionals. The panel will choose up to three winners who will each receive $10,000 to advance their business idea, plus additional technical assistance. Winners will be announced at the IDEA Competition Awards Banquet to be held April 26, from 5:00 – 8:30 p.m. at the Beaux Arts Ballroom on the campus of Bemidji State University.
At the banquet, Keith Johanneson will be inducted into the IDEA Hall of Fame. He is President and CEO of Johanneson’s Inc., which was founded by his parents and where he began his career. Johanneson’s Inc., headquartered in Bemidji, employs more than 1,300 associates and operates more than twenty businesses including supermarkets, convenience stores, liquor stores, fast food operations, and real estate development companies, throughout Minnesota, North Dakota, and Wisconsin. For more information on the IDEA Competition Awards Banquet or to register, go to www.ideacompetition.org. IDEA assists the most promising local entrepreneurs in the commercialization of innovative products, processes and deliveries by connecting them to the best resources available along with access to the capital if takes to launch a successful venture. IDEA sponsors are: 360° Manufacturing and Applied Engineering Center of Excellence, Border State Bank, Bremer Bank Crookston and Warren, Minnkota Power Cooperative Inc., Northwest Minnesota Foundation, Northwest Minnesota Small Business Development Center, Security Bank USA, University of Minnesota Crookston, Landsverk and Associates, Inc., LaValley Industries, and Idea Works. 5
THE DONOR ADVISED FUND In the last 30 years, donor advised funds (DAF) have become a popular tool to help people fulfill their charitable goals. A private foundation used to be the typical means by which donors transfer a pool of assets for making grants to charities over time. While private foundations are still a viable option, the time and expense to manage them make it prohibitive for those without a large pool of funds to contribute. A donor advised fund is administered by a qualified 501(c)(3) charity that is experienced in managing the duties, eliminating that time and expense. Many DAF’s pay one percent or less to have their funds managed by the sponsoring organization. In addition, a donor advised fund grows tax-free where private foundations may pay an excise tax of two percent on investment income. Private foundations also have lower limitations on the tax deductibility of contributions. So how is a donor advised fund created? A DAF can be established with a 501(c)(3) charity, like Northwest Minnesota Foundation, which acts as the sponsoring organization and maintains legal control over the assets. The donor receives a charitable tax deduction in the year a contribution to the fund is made. The donor becomes the advisor and makes recommendations for grants to other charities. The donor can choose a successor to advise the fund when he or she is no longer able to perform this function or can name specific charities to receive the remaining assets. Why choose to create a donor advised fund? One reason is to help offset income tax by claiming a large charitable tax deduction in a high-income year. A large spike in income can be caused by liquidating a business, receiving deferred compensation, executing stock options or other types of taxable windfall. The DAF allows you to receive the deduction in the year you need it but gives you time to be more thoughtful about choosing the charities you would like to benefit.
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Donor advised funds can also be a great way to help small charities who do not have the ability to accept appreciated securities or property. These gifts can be made to the donor advised fund, and cash distributions can be passed to those charities. Donor advised funds are also a great tool to teach the family about philanthropy. Family members participate in the recommendation process and learn about the importance of giving back. Some donor advised funds accrue contributions over time, allowing for larger annual grants as the fund grows. Other donor advised funds are established from an estate, allowing children to carry on the donor’s charitable goals. Community foundations, like NMF, have been recognized for working with donor advised funds since they began. Our close work with local nonprofits gives us insight into their needs and how they match your charitable goals. Some of the larger financial institutions have entered the arena and added a nonprofit side to their services offering donor advised funds as an option for clients. Our mission is to improve the quality of life in the communities and the entire region of Northwest Minnesota. If you are interested in helping us strengthen the region, contact Lisa Peterson or Caryl Turnow, Senior Development Officers and learn more about establishing a donor advised fund at NMF.
Lisa Peterson
Caryl Turnow
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organizations. This understanding allows the foundation to act swiftly on projects which are being proposed to address area needs. Additionally, having the foundation’s support for various projects lends credibility in the eyes of other funders, which is critical when other funding is necessary.”
The conference will focus on ways communities can engage stakeholders and community members to prepare a disaster plan, before disaster strikes. Doing this important preparatory work ensures that a recovery plan is created while thinking clearly and rationally.
In order to prepare for future disasters, NMF has been participating in the Philanthropic Preparedness, Resiliency, and Emergency Partnership (PPREP) cohort since 2014. This group of community foundations from across the Missouri River Basin has been convened by the Funders’ Network for Smart Growth and Livable Communities.
By setting up a disaster recovery fund, your community is creating the means for outside donations to stay local. Generous and empathetic people want to help when a community is in crisis – so the disaster recovery fund is vital.
The Northwest Regional Development Commission and the Headwaters Regional Development Commission are NMF’s local partners who have a similar stake in disaster recovery and response. Together, we are hosting a regional conference to open the conversation of disaster philanthropy with partners in our region. The Community Response and Disaster Recovery Conference – Maximizing Resources through Partnership and Communication will be held on June 7 at the Shooting Star Casino in Mahnomen.
We invite community members, elected city and county officials, nonprofit organizations, church leaders, public health officials and others to attend this important conference. Speakers have been invited from the Center for Disaster Philanthropy, Public Affairs from Mayo Clinic and past community disaster responders. In the years to come, the region is certain to confront the devastation of natural disasters, and may well have to respond to man-made catastrophes again. The donor community will continue to play a vital role in disaster response by filling funding gaps for their community, region and state.
NMF RECEIVES A SIGNIFICANT DONATION The most welcome news was relayed to Northwest Minnesota Foundation President Nancy Vyskocil. It was revealed that Charles Swanson, a Red Lake Falls, MN farmer bequeathed a gift of just over $360,000 to NMF. “We regularly receive donations supporting our 345 component funds,” Vyskocil said, “but it isn’t often that such a large gift is given to support the overall work the foundation does within the region. Growth in our endowment allows us to continue to address changing needs.” Upon learning of Swanson’s generosity “the development team and I could not contain our delight,” Vyskocil added. “It is gratifying when people choose to help us fulfill our mission to make the region a better place to live and work. We will honor this gift and represent the values and hard work of Charles Swanson.” Swanson was born in 1926 in Red Lake Falls and attended church and high school in St. Hilaire, MN. He graduated in
1947 from the Northwest School of Agriculture in Crookston, MN, where he participated in basketball, track and band. He served in the U.S. Army during World War II then returned home to run the Swanson family farm, which bordered Red Lake and Pennington Counties. Swanson raised livestock, small grains, and enjoyed the farm life. In his spare time, he liked reading, bird-watching and traveling. Long-time Red Lake Falls resident Allen Bertilrud said that Swanson was not well known; he was a quiet, private man who kept mostly to himself. Swanson’s financial advisor, Pat Thibert of Edward Jones was instrumental in connecting Swanson to NMF after learning of his desire to leave a legacy that would benefit Northwest Minnesota. Caryl Turnow, NMF senior development officer said the staff is grateful to have good working relationships with professional advisors in the region. “Many people learn about how they can partner with the work done at NMF through our network of accountants, financial institutions and attorneys,” Turnow said. “It’s wonderful when a person like Charles comes forward to help us with such a generous bequest. It will continue to improve the quality of life in our region for years to come.” 7
NONPROFIT ORG U.S. POSTAGE
PAID
Mailed From Zip Code 56601 Permit No.36
201 3rd St. NW • Bemidji, MN 56601
MAXIMIZING RESOURCES THROUGH PARTNERSHIP & COMMUNICATION
COMMUNITY DISASTER RESPONSE & RECOVERY
Conference
Photo by: David Saville, FEMA News Photo
Please join us June 7 at the Shooting Star Casino in Mahnomen. ABOUT THE CONFERENCE
Attendees will learn about effective community response and resource management in times of crisis. Experts and emergency managers will share tools for dealing with disasters. Participants will build networks and leave with actionable tools to enhance community preparedness.
PRELIMINARY AGENDA HIGHLIGHTS
• Managing Volunteers • Multi-jurisdictional Partnerships • Learning from Emergency Managers: Exploring past disasters • Communication strategies for effective messaging • Funding strategies and resources for recovery
Please visit www.nwmf.org - View Full Calendar under Upcoming Events to register by June 1, 2016.