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Northwest Minnesota Foundation ~ Developing Community Assets ~ Serving 12 Counties SPRING 2008

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Number 46

A New Phase of Development in the Ingenuity Frontier You’ve probably heard the quote, “Go West young man, go West,” made famous more than a hundred years ago by Horace Greely. If he were alive today, Mr. Greely might be admonishing young entrepreneurs to seek their fortune in the Northwest…northwest Minnesota, that is – a place where ingenuity thrives.

The region, which has come to be known as the “Ingenuity Frontier,” is an area like no other in the Midwest, dotted with manufacturers and technology companies thriving within a local culture of engineering knowledge and creativity.

IDEA, an acronym for Ingenuity Drives Entrepreneur Acceleration, is a project of the Ingenuity Frontier, a collaboration of partners, convened by the Northwest Minnesota Foundation and joined by a common purpose – to grow the economy of northwest Minnesota by outfitting the next generation of homegrown innovators for success in the global marketplace.

Along with NMF, IDEA partners include Bemidji State University, Center for Research and Innovation/ Custom College, Headwaters Regional Development Commission, Minnesota Department of Employment and Economic Development, Northland Community and Technical College, Northwest Regional Small Business Development Center and University of Minnesota Crookston.

Over the next three years, NMF will receive $300,000 in grant funds from the Blandin Foundation to accelerate the identification and commercialization of promising business ideas within the region.

The centerpiece of the effort will be an annual competition in which as many as five entrepreneurs will be recognized for new buisness concepts that are original, innovative and economically viable. Along with the recognition, the contest winners will receive cash awards of $10,000 each, plus consulting, coaching and technical assistance. This is valued at an additional $10,000. Contestants will also benenfit from networking with other successful entrepreneurs who will act as judges and have the opportunity to present their ideas to equity investors.

“The type of innovative thinking that drives business creation often comes down to the vision of a single individual,” says Wade Fauth, grants director for the Blandin Foundation. “This initiative brings an impressive collaboration between industry, education, economic development and philanthropy together to get behind leading innovators, to accelerate their success, knowing that the whole region benefits.”

IDEA believes in the ingenuity of the people who call northwest Minnesota home. In fact, the region is home to several world-class manufacturers, including Arctic Cat, Central Boiler, Digi-Key, Marvin Windows and Doors, Polaris and TEAM Industries. Without exception, each of these companies was launched by a (Continued on page 4) IDEA partners’ meeting at the NMF office in Bemidji L-R: Dave Hengel, HRDC Director of Community Stewardship Development; Diane Morey, NMF Business Development Specialist; Kari Howe, DEED NW Regional Office Business and Community Division; Nancy Vyskocil, NMF President; Marty Sieve, NMF Vice President for Programs; Anthony Schaffhauser, CRI Executive Director; Michelle Christofferson, UMC Director for the Center for Adult Learning; Michelle Landsverk, IDEA Project Coordinator; Jorge Prince, Director of the NW Regional SBDC.

A Message from the President Nancy Vyskocil

The Northwest Minnesota Foundation invests resources, creates opportunities and promotes philanthropy to make the region a better place to live and work.

BOARD OF DIRECTORS Eric Bergeson Chair Fertile Anne Sand Vice Chair Bemidji Gary Purath Secretary Red Lake Falls Dean Johnson Treasurer Mahnomen Terri Anderson Ogema David Bergman Thief River Falls Mark Hewitt Park Rapids Roger Malm Hallock Kim Wilson Fosston Ann Beck Bagley Robert Hager Greenbush Laurie Wilson Crookston

I searched for the term “invest” on the internet the other day and one of the definitions I found was “to put one’s money into a business or project to make more money.” Another said, “to put one’s money to use in order to receive a return in the future.”

The McKnight Foundation has chosen to invest in Greater Minnesota through the Minnesota Initiative Foundations. NMF has just been awarded a grant of $7.2 million.

McKnight believes they get a return on their investment and trust us at NMF to reinvest in northwestern Minnesota.

The McKnight Foundation is not the only funder that places its trust and invests in us. The statewide Early Childhood Initiative recently received an investment in the form of a $100,000 grant from the Bremer Foundation, adding to generous ECI support from McKnight. At NMF, we then invest in our regional early childhood programs that give a return when our children enter school better prepared to learn, and we get additional payback when those children develop and complete their education, joining the economy as members of a skilled workforce.

Every day at the foundation, we invest in our region and we see a return on that investment in so many ways. We invest in planning grants that make our communities better places to live. We invest in leadership training and get a return on our investment when communities, businesses and organizations are made more effective by having stronger leaders. We put our money into projects that enhance and preserve our natural resources and we see a payback every time we enjoy the lakes, rivers and prairies that clearly define our region. The foundation invests dollars through loan programs into area businesses with a return on investment coming through the creation of new jobs, resulting in a better standard of living through those jobs, or in some cases, the return is essential services remaining in our small towns.

The Blandin Foundation has seen fit to invest in NMF through their allocation of 2

generous grant dollars, which we use for a variety of projects, including Ingenuity Frontier. This helps NMF and our partner organizations spotlight applied engineering, manufacturing and entrepreneurial activities in northwest Minnesota.

All of these investments lead to many great things, which we call Quality of Place.

Clean water, beautiful prairies coming to life with spring flowers, well educated children, well planned communities, growing businesses, good jobs, all make northwest Minnesota a great place to call home.

The foundation offers you a chance to be a part of this investment and join with all foundations and individuals who have used NMF as vehicle to invest in our region. With every dollar you invest in the foundation through general endowment donations or gifts that support component funds specific to your interest, you invest a dollar in the future of northwest Minnesota. Get involved and see what kind of returns you and your community can see on this investment.

Free Computers Available to Nonprofits

Nonprofit organizations are invited to call the NMF office at 218-759-2057 or 800-659-7859 to be included on a list to receive free computer equipment.

NMF periodically upgrades computer workstations and then makes some available for free to nonprofits in the region.

Philanthropic Services Passions with a Purpose

At the Northwest Minnesota Foundation, we believe real philanthropy happens when you encourage people to truly connect to their community and ultimately, connect their passions with a purpose. The time we spend with each donor, our support of community needs, the knowledge we share with others – all of this helps us to better understand the individual parts of our community and helps others unleash their philanthropic power.

Philanthropy is not one person’s job, it is not one organization’s responsibility and it is not something that we can do alone.

Real philanthropy – powerful philanthropy – happens when we connect with one another, share our resources of time, finances and knowledge, and inspire one another.

Over the past year NMF has been fortunate to work with four different families and donors to establish donor-advised funds benefiting a variety of charitable interests in our region.

Each fund reflects a strong desire to make a difference in the donors’ areas of interest, a businesslike approach for fund administration, and the desire to share interests and work through NMF to make our region a better place to live and work.

NMF serves to educate donors about community needs and about the charities that are working effectively to meet those needs.

The sponsoring organization also takes care of the administrative details—tax, legal, and accounting matters.

One very special NMF donor advised fund, The Full Stride Fund, was established by the children of the late Curtis and Marlene Johnson, a couple who lived their lives in the Thief River Falls area. The Full Stride Fund honors their parents’ belief that participation in organized activities help children to develop their skills and talents.

Through the Full Stride Fund, children’s participation in early childhood, extracurricular and after school activities, Boys and Girls Clubs, 4-H and other programs will be supported. The Johnson children will annually review programs of interest and award funding.

About their relationship with NMF, fund advisor Paul Johnson said, “Working with the foundation helps us remember our parents in a very active way, without having to take on the administrative burdens of starting our own 501(c)3.” Johnson added, “We had initially considered making the Full Stride Fund a stand-alone nonprofit. After we learned about the legal and IRS implications, we knew partnering with NMF would help us achieve the same goals without having to become charitable experts. We’re very pleased with the services NMF provides and its knowledge of the needs throughout northwest Minnesota.”

Donor Advised Funds Simply stated, a donor-advised fund is a charitable vehicle in which a donor contributes cash or assets to create a fund in a “sponsoring organization,” specifically, Northwest Minnesota Foundation. The donor, or someone the donor names, makes recommendations to NMF about how the funds should be used. Some donoradvised funds will be fully expended during the donor’s lifetime; others will be a permanent legacy, benefiting communities into the future.

(Continued on page 4)

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“We’re very pleased with the services NMF provides and its knowledge of the needs throughout northwest Minnesota.”

– Paul Johnson

Philanthropic Services

“The type of innovative thinking that drives business creation often comes down to the vision of a single individual.”

Wade Fauth Blandin Foundation

(Continued from page 3)

establish a donor-advised fund that will allow them to actively support charitable interests during their lives.

The fourth donor-advised fund established this year represents a very generous heart, a thoughtful process of identifying initial areas of interest, and the opportunity to quietly make a difference.

The Fourth and Robbins Fund will have a dramatic impact on area nonprofits. This fund, established by a donor who wishes to remain anonymous, will work through NMF and use its expertise to gather information from nonprofit organizations working in specific areas of interest and then make supporting grant awards.

As a community foundation, we have always known that our donors make it possible for us to make a difference in our community. Our donors’ passions combined with our knowledge of the community and dedication to service will keep our region growing stronger every year. That’s what makes philanthropy happen.

For more information on the Full Stride Fund, please visit www.fullstride.org.

Two donor-advised funds were established by working in partnership with the donors’ legal advisors. Thief River Falls Attorney Paul Ihle called to inquire about the process of establishing a donor-advised fund.

Through discussion about the main interests of his clients, this conversation led to the establishment of the Robert J. and Mary L. Johnson Charitable Fund. With their fund, Robert and Mary will be able to recommend funding for a variety of nonprofit programs in and around Pennington County. They will be recognized as Circle of Vision recipients at the NMF Annual Celebration Dinner in May. Bemidji Attorney Adam Christopher advised his clients Sue and Stu Rosselet to contact NMF to discuss options in meeting their charitable goals. While actively engaged in retirement and estate planning, the Rosselets identified several charitable goals they initially thought would be met upon their passing. Working through the foundation, the Rosselets were able to

A New Phase of Development home grown innovator who had a dream and was able to access adequate resources to make that dream a reality.

We might call IDEA a competition, but it is so much more. IDEA is here to assist 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 it takes to launch a successful venture.

There are a lot of good ideas out there, but only a handful who are able to take a breakthrough idea from concept to profitable venture. Our goal is to truly impact the economy of our region by bringing business people, educators and investors together.

“The whole purpose of IDEA is to keep northwest Minnesota supplied with innovative entrepreneurs,” said Marty Sieve, NMF vice president for programs. “The kind of entrepreneurs that earned our reputation as one the the country’s premier manufacturing centers.”

(Continued from page 1)

One of Ingenuity Frontier’s goals is to “create new wealth in Greater Minnesota.”

While much has been done to accomplish this goal, it remains a major area in which project partners see an opportunity for further growth, particularly in assisting local innovators in the commercialization of products, processes and deliveries. The partnership is well-poised to seize this opportunity: the region’s four higher educational institutions have developed good working relationships, a state-of-the-art research facility has become a major part of the equation, and Ingenuity Frontier has begun to establish strong brand equity in the region and throughout the state.

Whether you have never started a company or you’re already in business and generating revenue, the future of northwest Minnesota depends on your passion to create ideas that can become profitable ventures and that produce value in the marketplace for your customers and your investors.

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Grants Grants totaling $370,165 were made from January-March 2008 Caring Communities Total:$127,762 Children & Families A Chance To Grow Minnesota Learning Resource Center............................... $25,000 Provides continued training to help the school develop a Stimulating Maturity through Accelerated Readiness Training (S.M.A.R.T.) Team approach Boys & Girls Clubs of White Earth

Reservation...................................... $25,000 For Boys & Girls Clubs of the White Earth Reservation, Rice Lake Unit Expansion B-WELL................................................ $25,000

for Tackling the Challenge of Childhood Obesity in Bemidji and Surrounding Communities

Center for Research and Innovation Bemidji State University ............................. $330 For professional development -Joanne Kellner

STAR $900 was awarded to Bagley, Bemidji, Nevis, Red Lake County Central, St. Philips Schools for follow-up activities for the STAR Program

Organizational Effectiveness Boys and Girls Club of the Bemidji Area... $3,257 For staff development and in-service training

Bi-County CAP, Inc................................$500 For emergency assistance funds from Paul Bunyan Telephone Coop

Component funds are established with the Northwest Minnesota Foundation for a specific purpose. A donor or group of donors helps to build a permanent endowment from which interest earnings are used to fund projects, programs or activities that support the mission of the fund. A local fund advisory committee recommends distributions based on specific purposes and criteria. The NMF board, for purpose of IRS regulations, approves the advisory recommendations for grants, but the component funds are the source of the grant dollars.

Thrive Initiative (Early Childhood Mental Health)

Component Fund Total: $207,648

Tri-Valley Opportunity Council, Inc... $25,000 For support of a Family Mentoring Program as part of the Our Children Succeed Initiative

Emergency Assistance

Bi-County CAP, Inc........................... $43,600 For early childhood mental health practitioner

Community Planning Total: $55,000 Economic & Community Development City of Bemidji..................................... $25,000

For a market survey and plan for improving and enhancing green space and resources in the community: Paul Bunyan and Library (Waterfront) Parks

City of Mahnomen............................$15,000 To complete a comprehensive plan including addressing the core issues of growth management and land use, the downtown, housing and capital improvements

Housing Hubbard County HRA.......................$15,000 For a housing study and housing plan for Hubbard County

Natural Resources Total: $500 Natural Resources - New Technologies University of Minnesota Crookston........ $500 For the Home Grown Economy Conference

Training Total: $5,767 Individual Effectiveness Bemidji Area Habitat for Humanity........ $1,280

For personal/professional coaching - Geri Hickerson

Backstrom Family Charitable Fund $1,500

To support the Marshall County ECI FundImagination Library

Bagley Early Childhood Initiative Fund..........................................................$1,010 To Bagley School District for welcome new baby packets Bemidji Area Early Childhood Initiative Fund (3)........................................................ $7,048

To Bemidji Area Schools for FRED (Fathers Reading Every Day); to Headwaters School of Music & Arts for Tiny Tots Expo; to Headwaters Science Center for science exploration - caregiver focus Bemidji Area Parks and Trails Fund First City Lights Fund (2)......................................... $3,430 For Kuhn fireworks; for Bemidji Pioneer Freedom Defenders Veterans’ Memorial Fund........................................$15,130 For Freedom Defenders Veterans Memorial Bemidji Area Public Library Foundation Endowment and Project Fund....................$1,233 To Kitchigami Regional Library for technology sustainability Bemidji Curling Fund................................ $1,500 To the Bemidji Curling Club-Jr. Committee for general junior curling program support

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Our donors’ passions combined with our knowledge of the community and dedication to service will keep our region growing stronger every year.

Grants - Scholorships

Bemidji Lumberjack Foundation Fund Amy Anderson English Fund........................$176

To Ken K. Thompson Jewelry for engraving

Clearwater Health Care Fund CHS Hospice Fund.............................. $1,000 To Clearwater County Hospice, Inc. for Hospice Aid

“With every dollar you invest in the foundation ... you invest a dollar in the future of northwest Minnesota.”

Nancy Vyskocil

Crookston Early Childhood Initiative Fund................................................. $600

To Tri-Valley Opportunity Council, Inc. for ECI Community Resource Directory District #593 Crookston Education Foundation Fund$4,043 For School Round Grant Frances Drivold Special Education Endowment and Project Fund.............. $3,500 To Crookston High School for Special Education Needs

Greenbush Area Community Fund (2)....................................................... $600 To Greenbush-Middle River School for Ballpark Enhancement; for Greenbush Safety Town Greenbush Community Education Fund............................................................$250

To Greenbush-Middle River School for Mixed Blood Theatre-Dr. King’s Dream

Headwaters Unitarian Universalist Fellowship Fund................................................................ $448

To Headwaters Unitarian Universalist Fellowship for religious education program HRDC Leadership Fund

HRDC Successful Communities Challenge Fund(2)...............................................$15,000 To the City of Mahnomen for a comprehensive plan; to Hubbard County HRA for Hubbard County housing study and housing plan

Lake of the Woods Early Childhood Initiative Fund (3) . ..................................................... $1,800

To Baudette Chamber of Commerce for Santa Day project; to Lake of the Woods School for early childhood event/fund development; and for expenses Marshall County Early Childhood Initiative Fund...........................................$1,500 To Warren-Alvarado-Oslo School for FRED program funding Park Rapids Area Community Fund Heartland Homes Endowment and

Project Fund (2).................................. $9,114 To Heartland Homes, Inc. for van replacement; for technology related expenses

Roseau County Historical Society Endowment Fund........................................................ $4,200 To Roseau County Historical Society for Pinecreek Lutheran Church restoration Warroad Area Community Fund NAPA Ride to Reading Fund$1,292 To Warroad Schools for library books

The Foundation has administered funds that award scholarships since 1994. The top ten schools attended by recipients are: University of North Dakota, Bemidji State University, North Dakota State University, Northland Community & Technical College, Minnesota State University-Moorhead, University of Minnesota Duluth, Concordia College, Northwest Technical College of Bemidji, University of Minnesota Twin Cities, and St. Cloud State University.

This quarter alone, 132 scholarships totaling $90,425 were awarded to area students.

# Awarded

Fund Name

Amount

Bagley Education Endowment and Project Fund 6 Bagley General Scholarship Fund $4,000

Bemidji Lumberjack Foundation Fund 1 Buck Robbins Scholarship Fund $150 1 Bun & Alvera Fortier Scholarship Fund $500 1 Des Sagedahl Scholarship Fund $500 8 General Scholarship Fund $6,500 1 Heidi Bitzer McClure Memorial Scholars $1,000 2 K.E. “Red” Wilson Athletic Fund $1,500 1 Pat Campbell String Fund $300 5 John F. Breen Scholarship Fund $5,000 9 Ray F. Breen Scholarship $9,000 Blackduck Area Community Fund 1 Academic and Character Scholarship Fund

$500

Clearbrook-Gonvick Education Endowment and Project Fund 1 Mary Jo Klinger Scholarship Fund 1 Olga Peterson Scholarship Fund

$500 $1,500

East Polk County Fair Scholarship Fund 2 East Polk County Fair Scholarship Fund

$1,500

Fosston Area Community Fund 1 Dean and Joyce McNelly Family Vocational Scholarship Fund $650 1 Dean Clementson Scholarship Fund $300 1 Fosston Education Foundation Endowment and Project Fund $1,500 1 Fosston Livestock Shipping Association Animal Science Scholarship Fund $150 1 Jim Miller Memorial Math Scholarship Fund $450 1 Terry Stout Memorial Scholarship Fund $1,000 1 Vikan Scholarship Fund $450 Greenbush Area Community Fund 2 Keith and Ellen Kapphahn Family Scholarship Fund $500

Julie Holmquist Memorial Scholarship Fund 1 Julie Holmquist Memorial Scholarship Fund $500

Laporte Education Endowment and Project Fund 5 Laporte Education Endowment and Project Fund $2,500 2 Laporte-Benedict VFW Scholarship Fund $500 2 Tonia Johannsen Memorial Fund $1,000

Laural Capistran Murphy Scholarship Fund 1 Laural Capistran Murphy Scholarship Fund $500

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McKnight Foundation Announces $7.2 Million for NMF NMF will receive $7.2 million from the McKnight Foundation over five years to support NMF’s programs, build the organization’s endowment and support its development as a community foundation.

“We at McKnight are pleased to continue

our partnership with the Northwest Minnesota Foundation,” said McKnight President Kate Wolford. “We’re delighted that Nancy Vyskocil hit the ground running this year, and is already building upon the foundation’s legacy of skilled leadership. For over 20 years,” Wolford added, “NMF has built prosperity and vitality throughout the state’s northwest. By focusing resources through its Quality of Place initiative, NMF is developing community assets to make the entire region a better place to live and work. We are delighted to contribute to such creative and productive efforts.”

Scholarships continued: Leonard J. Kucera Memorial Scholarship Fund 4 Leonard J. Kucera Scholarship Fund $4,000 Luther Younggren Memorial Scholarship Fund 1 Luther Younggren Scholarship Fund $2,000 Mahnomen Education Endowment and Project Fund 2 General Ike Isaacson and Major Bruce Isaacson Scholarship Fund $750 1 Leslie Hanson Scholarship Fund $500 8 Mahnomen Education Fund $4,500 1 Milton Hockel Scholarship Fund $750 2 Night Riders Sno-Club Scholarship Fund $500 Major Robert Olson Fund 1 Major Robert Olson Fund

Business Development Activity Business Loans Three loans were recently made from the Revolving Loan Fund totaling $380,000

$1,000

Mike Staples Memorial Scholarship Fund 1 Mike Staples Memorial Scholarship Fund $1,000

Tulaby Lake Inn, Mahnomen River Cinema, Inc., East Grand Forks Kristen Hultgren, Kennedy

Red Lake Falls Education Endowment and Project Fund 6 Kris Fontaine Memorial Scholarship Fund $3,000 2 Kyle A. Myhre Memorial Fund $1,000 1 Lester Norris Dale, MD Scholarship Fund $400 1 A.J. Kramer Scholarship Fund $500 1 Joseph Schneider Scholarship Fund $125 4 Marian Foley Memorial Fund $4,000 1 Marvin LaRue Memorial Fund $500 Roseau Area Education Fund 1 Charles “Nick” Peterson Memorial Fund

Microloans Business counseling and loans are available to help entrepreneurs develop small business and self-employment opportunities. Three loans were recently made totaling $88,500.

$125

H3 Performance, Logan and Sarah Hanisch, Park Rapids New business that repairs ATV’s and snowmobiles DuWayne Olson Septic Pumping, Ada Purchase of existing business Laughing Earth Garden & Gift, Ada, Purchase of existing gardening business

Warren-Alvarado-Oslo Education Foundation Endowment and Project Fund 8 Lyle H. Engelstad Scholarship Fund $8,000 1 Myron and Margaret Carlson Education Scholarship Fund $400 Warroad Area Community Fund 1 Bruce and Ellen Atwater Education Fund $500 2 Edward and Agnes Brandli Scholarship Fund$400 10 Gaylord A. Gunderson Education and Scholarship Fund $10,000 1 Jennifer Grove Scholarship Fund $500 5 Katie Jo Olafson Scholarship Fund $1,250 1 Lee Hafdahl Memorial Scholarship Fund $75 1 Nick Moyer Memorial Scholarship Fund $200 1 Patrick O’Donnell Scholarship Fund $500 2 Warroad Education Endowment and Project Fund $1,000 1 Warroad Farmer’s Union Oil Company Scholarship Fund $500

Technical Assistance Six businesses from Bemidji, Park Rapids, Thief River Falls and Warroad received $4,260 in outside consulting for management and technical assistance.

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“For over 20 years, NMF has built prosperity and vitality throughout the state’s northwest.”

Kate Wolford McKnight Foundation

NONPROFIT ORG. U.S. Postage PAID Bemidji, MN 56601 Permit No. 36

4225 Technology Drive NW Bemidji, MN 56601 CHANGE SERVICE REQUESTED

Contact us: 218-759-2057 • 800-659-7859 • nwmf@nwmf.org

Upcoming Events Individual Excellence

Adult Leadership

Organizational Excellence

Session I: September 10, 11 & 12, 2008 (11:30 a.m. start time on the 10th through 4:00 p.m. on the 12th

Legal Issues for Management May 1, 2008 8:30a-3:45p Location: Community Room, Beltrami Electric Co-op, Bemidji Organizational Effectiveness Workshop May 16, 2008 8:30a-4:00p *Nonprofit Executive Director and a board member should both attend.

Location: Northland Inn, Crookston

NMF LeaderImpact© - participants must attend both sessions

Session II: December 4 & 5, 2008 Location: Swenson House, Thief River Falls For more information or to download forms, visit Events & Workshops at www.nwmf.org – online registration available for most courses.

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www.nwmf.org