Resource Winter 2018

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 2018 | Number 78

Board of Directors Pete Haddeland, Chair Tom Anderson, Vice Chair Leah Pigatti, Treasurer Kristin Eggerling, Secretary Faye Auchenpaugh Jon Linnell Cathy Forgit Edie Ramstad Steven Anderson Todd Beckel Michelle Paquin Jason Brumwell

Developing Community Assets Serving 12 Counties

LOCAL INFLUENCERS STEP UP TO LEAD THE BEMIDJI AREA COMMUNITY FUND NMF is home to 400 community and component funds established by donors for a range of charitable interests that benefit Northwest Minnesota. Ironically, even though it is headquartered in Bemidji, NMF hasn’t had an advisory board committed to leading the Bemidji Area Community Fund (BACF), which was established in 2009. Thanks to the right timing and a high level of interest, the BACF is activating volunteer leaders in the Bemidji community who are eager to help the fund reach its potential for making a difference.

Community funds through NMF are taxexempt 501(c)(3) charitable programs primarily composed of permanent funds endowed by many donors for the long-term benefit of a given town or community (boundaries are determined by area school districts). A community fund is unlike any other philanthropic or nonprofit organization. Its unique role

is to provide a home for hundreds of donors, both living and deceased, who have taken advantage of this tax-favored way to enhance their charitable giving.

Any citizen may become a philanthropist through gifts to a community fund.

The funds and grants of a community fund, however, are only two facets of this program. A community fund is also an information center for both donors and nonprofit organizations to learn about the community and seek resources for its myriad needs. It often serves as a broker between organizations and other funding sources, such as private foundations or government agencies. It is the responsibility of a community fund to anticipate the problems of the next decades and to address root causes. To that end, the BACF will act as a catalyst for positive change and a convener for diverse groups to collaborate on issues of common concern. continued on page 7

MESSAGE FROM THE PRESIDENT

Hello Friends,

Nancy Vyskocil

This winter has been long, cold, and unpredictable. We’ve seen spurts of 45 degrees and sunshine followed by blasts of snow and frigid temps. It seems that spring is teasing us, and just when we think we’ve broken through the Minnesota winter slump, it makes its return to scale back our enthusiasm for a few more weeks.

Here at NMF, we’ve been pushing ahead despite the lingering winter weather. You will see in this issue that we have made strides with our partnerships in various communities, which positions us to make a greater impact as we move forward with our new strategic plan. These partnerships will be critical as we work to address the affordable housing and childcare shortages in our region.

Not only are we working with local leaders to find solutions to these issues, we also brought Northwest Minnesota’s economic priorities to the forefront at the capitol on March 7th. IMPACT 20/20, which comprises an influential group of Northwest Minnesota leaders, met with seventeen legislators about affordable housing, workforce, childcare, and broadband issues. The meetings were productive, and our ideas about how to address these needs at the state level were well received. IMPACT 20/20 is committed to keeping the conversations going well after the legislative session has ended, and we encourage everyone in the region to speak up and hold our representatives accountable.

We are also very excited to have an impressive group of finalists in our 10th Annual IDEA Competition. It always amazes me to see how many innovative entrepreneurs we have in our region, and I am happy that we are able to give them a platform to get their ideas off the ground. This competition is a critical asset to those who have great ideas but may not otherwise have access to industry professionals who can serve as mentors through the business planning process. Please consider joining us in celebrating these finalists and all their hard work at the IDEA Competition Awards Banquet, which will take place in Bemidji on April 23rd. Details on how to register for that event can be found on page 6.

Thank you for supporting the work of NMF. We rely on the committed individuals and families who come together to make positive changes in their communities and use NMF as a tool to keep local dollars invested locally. When you make a gift to NMF, you are ensuring the prosperity of our region for generations to come.

Facebook.com/nwmnfoundation @NWMnF northwestminnesotafoundation.blogspot.com

ECONOMIC DEVELOPMENT PROGRAM

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BUSINESS FINANCE

MICROLOANS

Two loans were made totaling $380,815.

Three microloans were made totaling $35,000.

• Watermark Art Center – Bemidji • Dee, Inc. – Crookston

• Compass Rose, LLC – Bemidji • Alan and Janice Owen – Borup • CJI Trucking, LLC – Perley

INCARCERATED WOMEN RECEIVE DOULA SERVICES IN BELTRAMI COUNTY to support women and break the cycle of addiction,” says Jenny. “I don’t think these women realize that we are just as grateful for them as they are for us.”

L to R: Nate Dorr, Raelene Baker, Erica Gerrity, Jenny Greenleaf, and Emily Lindell Each woman experiences pregnancy differently. It’s a time of physiological changes and months of anticipation, planning, and preparation. However, for women who are serving time behind bars, it can be a very isolating experience.

There is a stigma around women who have been convicted of crimes, and their needs are often overlooked while they are serving a sentence. Luckily, women of the Minnesota Prison Doula Project are here to advocate for and support this underserved population.

their own independent nonprofit organization called The Ostara Initiative.

The Minnesota Prison Doula Project started in 2008 with a mission to provide pregnancy and parenting support for incarcerated women. Trained doulas provide birth support as well as groupbased and individual education to pregnant women and mothers. The goal is to nurture healthy mother-child relationships and increase parenting confidence and skills. Currently the project is operating in seven facilities in Minnesota. They have been working under the University of Minnesota Foundation, but will soon be launching

Doula Emily Lindell partners with the Prison Doula Project in Beltrami County.

She visits the Beltrami County Jail every Monday and Friday with Jenny Greenleaf, a mentor with the Prison Doula Project. On Mondays, Emily and Jenny hold one-on-one meetings with inmates, and on Fridays they lead a small group about parenting. Although they only see two to four inmates at a time, these women show up weekly and look forward to sharing their feelings and experiences with the community they are creating together. “This is a starting point

NMF granted the Minnesota Prison Doula Project $20,000 to partner with the Beltrami County Jail and Beltrami County Health and Human Services to create pregnancy and parenting education and support for incarcerated women and girls. The program offers weekly individual and group-based learning opportunities that are evidence-informed and have been proven effective with incarcerated mothers in other regions of Minnesota.

Every inmate’s experience is unique and complex. Many incarcerated women are victims of their circumstances, which may include abuse, poverty, and addiction. To uplift these women and help create a new path for themselves and their children, it’s important to meet them where they are and provide them with resources and a sense of hope.

What happens in the home makes a dramatic impact on the trajectory of a child’s life, and the Minnesota Prison Doula Project believes healthy children who become responsible adults are raised by empowered mothers.

“We are so proud of the work Emily and Jenny are doing with this group at the Beltrami County Jail,” says founder of the Minnesota Prison Doula Project, Erica Gerrity. “We will be directing more resources to their program because their work in this region is so needed.”

Photo courtesy of the Minnesota Prison Doula Project

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ASSET BUILDING GRANTS Grants totaling $440,685 were awarded from January 1, 2018 - March 31, 2018 COMPONENT FUNDS

SCHOLARSHIP AWARD

45 GRANTS AWARDED

192 SCHOLARSHIPS AWARDED

TOTAL: $152,235

TOTAL: $239,950

COMMUNITY PLANNING NATURAL RESOURCES TOTAL: $11,500

TOTAL: $5,000

CARING COMMUNITIES

Bemidji Community Theater – Feasibility study for space use and structural investments

Roseau River Watershed District – Recreational water and river trails planning

True Friends – New programming at Camp Courage North

TOTAL: $5,000

Northern Dental Access Center – Growth management planning

COMMUNITY CONNECTIONS TOTAL: $27,000

Beltrami Area Service Collaborative – Mental health care coordination Minnesota Council of Nonprofits – Nonprofit workforce development strategies

Find Component Fund Grants online at 4

NWMF.ORG under the Donor menu.

HALLOCK USES NATURAL RESOURCES TO BEAUTIFY THEIR DOWNTOWN In 2015, the city of Hallock underwent a strategic planning process and identified priorities including business, industry, and community pride. In an effort to increase community pride, the city is on a mission to enhance the appearance of its downtown to make it more inviting. A downtown revitalization group, Hallock Main Street, was created as a part of the effort to address these priorities.

With quality of life in mind, Hallock Main Street has been visioning, researching, engaging the community, strategizing, and pursuing business development. In 2017, the group raised funds to tear down a dilapidated building and create a green space in its place. They plan to further improve the quality of life downtown by enhancing natural resources and adding more green spaces. This strategy includes educating residents and visitors about the history of Hallock and the natural resources that sustain the region.

“Residents are not fully aware of the natural resources that surround us, their importance, or the benefits they could have on economic development, quality of life, and recreational opportunities. It is our goal to make Hallock a better place to work and live. We believe this project will help do that,” says David Treumer, mayor of Hallock.

Hallock couple enjoys walking their dogs around the town’s green spaces.

Hallock has recently seen a boost in economic development.

In 2016, brewery Revelation Ale Works opened in a historical building that was slated to be torn down. They have had tremendous success attracting visitors from all over to downtown Hallock on weekend evenings. The town’s engaged citizens are committed to making the downtown space more appealing for all ages. Exciting new businesses include a recently opened flooring store, an electronics store that is projected to open this fall, and a coffee shop and art space that will occupy a soon-to-be-renovated historical building.

An Airbnb space will be available in the apartment above the coffee shop.

Downtown Hallock

NMF has granted $25,000 to Hallock Main Street to invest in improving natural resources and green space throughout the town. Additionally, NMF granted $10,000 to the city of Hallock for downtown business planning. With new businesses coming in and warmer weather just around the corner, this is a perfect opportunity to spend time beautifying the downtown area of Hallock. Small aesthetic improvements can make a major difference in livability for Northwest Minnesota towns.

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FINALISTS ANNOUNCED FOR 10TH ANNUAL IDEA COMPETITION • EthnoTrax is an ecotourism business that provides adventurous travelers the opportunity to live with a huntergatherer group in a remote part of the world. The value of the experience for the traveler is that they will find themselves in a real-life context beyond their comfort zone where learning to trust their host is vital.

On Friday March 2nd, the 10th Annual IDEA Competition announced its 2018 finalists. The following projects will compete in the final round for a chance to win $10,000 to kick-start their idea: • Boffins Technologies is a pre-startup financial services technology firm dedicated to investment management for individuals and families not meeting the minimum income, liquidity, or net worth requirements for managed portfolio accounts. Personnel will be made up of statisticians, mathematicians, computer scientists, economists, and people in other related scientific disciplines collaborating in a think-tank-like environment.

• Caroline Hayden is a clothing label that sells bridal and evening attire. After twelve years of working with brides on custom gowns, Caroline launched a collection in 2016 and was named “Bridal’s New Guard” by Harper’s Bazaar magazine. Her collections take aim at a growing market need for fashion-focused bridal gowns and separates that are orderable in sizes 0–12 and sold via bridal boutiques and online luxury retailers.

• Real Good Bath and Body produces high-quality, naturebased, handmade soaps, bath bombs, lotions, and other bath and body products. What began as a hobby in the Crookston, Minnesota kitchen of Carol Simmons is now a thriving business with retail locations in Beijing, Minnesota, and North Dakota. They donate to worthy causes with every purchase.

• Safe-D-Transfer specializes in developing equipment for patient transfer in the healthcare industry that alleviates the pain that normally accompanies patient transfer when done by human to human contact.

• Summer Kitchen Supplies Inc. is all about making it easy to enjoy a degree of self-reliance. The GardenStream™ is a self-watering planter system that will supply water to a daisy chain of planters for days—or even weeks—at a time. Now anyone with a level surface in the sun can simultaneously enjoy a bountiful garden and their time away from the garden.

The winner will be announced at the 10th Annual IDEA Competition Awards Banquet, which starts at 5:00 p.m. on Monday, April 23rd at the Bemidji State University Beaux Arts Ballroom. Tickets are $20 per person. This year we will also be inducting the Batchelder family into the IDEA Hall of Fame, and awarding Grant Oppegaard with our new Regional Impact Award. To register, please visit www.IdeaCompetition.org.

JOIN US AT

FOR COMMUNITY PINT NIGHT!

Wednesday, April 25, 2018

$1 for every pint sold between 4:00-7:00 p.m. will be donated to the Northwest Minnesota Foundation.

We hope to see you there!

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211 America Ave NW, Bemidji, MN 56601

continued from cover

The BACF advisory committee is responsible for the day-to-day operations, including fund development and grant-making activities. They will conduct reviews on funding proposals and submit funding recommendations to NMF for final approval. This group will soon undergo a visioning session where they will work with a professional consultant to establish the Bemidji community’s current needs, and envision Bemidji’s future. The BACF seeks to build philanthropic capital and a greater philanthropic culture throughout the area. Establishing a general community endowment fund supported through

annual grant making ensures that almost everyone will benefit from a variety of programs, projects, and activities.

“Bemidji is full of concerned citizens who have a vested interest in continually improving the quality of life for everyone here,” says Nancy Vyskocil, NMF President. “I am excited to see these individuals step up and get this fund off the ground. There is plenty of opportunity for partnerships and many initiatives happening that this fund could be critical in supporting.”

NMF is a steward through which private assets are invested to meet Bemidji

community needs. We are able to inform and educate the fund advisory committee about giving options and funding opportunities. We provide materials, training opportunities, leadership, and advice to committee members and volunteers. NMF provides the staff for administrative, financial, and professional services required to maintain the BACF. If you’re a resident of the Bemidji area and you’d like to get involved with BACF or serve as a fund volunteer, contact Lisa Peterson at lisap@nwmf.org or 218-759-2057.

NORTHWEST MINNESOTA LEADERS AT THE CAPITOL On March 7th, members of IMPACT 20/20 spent the day at the state capitol engaging lawmakers about the issues impacting economic prosperity and growth in Northwest Minnesota.

IMPACT 20/20 is an influential group of Northwest Minnesota leaders who represent diverse interests and work together for the region’s economic success. Since 2008, IMPACT 20/20 members have collaborated to improve economic conditions in the region by focusing on four key areas: education, workforce, broadband, and housing.

The goal of this visit was to highlight issues in these key areas and offer legislative solutions to help promote the economy of Northwest Minnesota.

The group raised awareness and discussed policy statements about access to high-speed broadband and its importance in rural communities, the shortage of childcare in our region and how it affects families and employers, ideas to spur workforce and affordable

housing projects in our region, and ideas to provide better access to career advising for our region’s high school students.

“The IMPACT 20/20 members had a very productive day speaking with the region’s representatives, senators, and chairs of subcommittees,” said Northwest Minnesota Foundation’s Vice President for Programs, Karen White.

“It’s important we raise awareness and

offer legislative solutions that will help our region grow.”

For more information about IMPACT 20/20’s policy initiatives, you can request a copy of the 2018 Economic Priorities booklet that was provided to legislators by contacting Kari at karic@nwmf.org or calling 218-759-2057. A link to the booklet is also available on the Northwest Minnesota Foundation’s homepage (www.nwmf.org).

L to R: Tim Flathers, Missy Okeson, Nancy Vyskocil, Mike St. Onge, Karen White, and Craig Nathan. Not Pictured: Dennis Bona, Cam Fanfulik, Dan King, Kristine Anderson, Mark Finstad, Pete Haddeland, Robert Hager, Faith Hensrud, Mary Holz-Clause, Bruce Jensen, Michelle Landsverk, Jon Linnell, Jorge Prince, Edie Ramstad, Richard Sjoberg, Dan Wenner, Delore Zimmerman 7

NONPROFIT ORG U.S. POSTAGE

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Mailed From Zip Code 56601 Permit No.36

201 3rd St. NW • Bemidji, MN 56601

NEW TAX LAW FAVORS QUALIFIED CHARITABLE DISTRIBUTIONS QUESTION: Has my ability to make direct charitable donations from my IRA when I reach the age of 70 1/2 been affected by the new tax law?

ANSWER: In short, the strategy of donating to charities directly from an IRA after age 70 1/2 is still around under the new tax laws. The qualified charitable distribution (QCD) has been around for years, but was only codified as a permanent law a few years ago. A QCD allows those age 70 1/2 to give money to charities directly from their IRAs in a tax advantageous manner. This allows IRA owners who have attained age 70 1/2 to distribute money directly from the IRA to a qualified charity. Total annual QCDs from all IRAs cannot exceed $100,000 for an individual. Spouses can each make up to $100,000 of QCDs. Making a QCD as opposed to a normal charitable gift has two main advantages. First, a QCD counts toward satisfying the individual’s required minimum distribution for that year.

Second, the distribution is excluded from the taxpayer’s income. It is this second benefit that really shines under the new tax bill. With very few individuals expected to itemize

(some estimates say around 5% of filers), the income tax deduction for contributions to charities will be lost for many people. However, if you make a QCD, you get a full exclusion of that income from taxes. So, for any retiree that is 70 1/2 or older, owns an IRA subject to RMDs, and is charitably inclined, a QCD really works out as a way to preserve an income-taxreducing charitable deduction under the new tax law.

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