Northwest Minnesota Foundation FY08 Annual Report

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Index What we do. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Who are the people working for the region. . . . . . . . . . 4 Board & Staff Message from the Chair & President What was accomplished in 2008 Lakes and Rivers Project. . . . . . . . . . . . . . . . . . . . . . . . . . 8 Bemidji Area Arts Endowment. . . . . . . . . . . . . . 10 Laughing Earth Garden & Gift . . . . . . . . . . . . . .11

Where the funds came from . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Circle of Vision Circle of Vision Leadership Society

How the funds were invested . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Business Grants Community & Component Funds

What was accomplished in 2008 LeaderImpact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Valspar Picture-It-Painted . . . . . . . . . . . . . . . . . . . . . 24

Visit www.nwmf.org for complete information about NMF, planned giving resources, online registration for workshops, and secure online charitable giving.

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Our mission is broad...

Celebrating What’s Right With the Region

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and our programs are many...

Celebrating What’s Right With the Region

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What we do

OUR Mission

OUR

Values

OUR

Accomplishments Since inception in 1986

The Northwest Minnesota Foundation

EXCELLENCE We strive for the highest standards in all our programs and services.

invests resources, creates opportunities, and promotes philanthropy to make the region

INTEGRITY We are a trusted resource demonstrating honesty and fairness in our relationships with partners, clients and colleagues.

PASSION We are committed to the region and mission-driven in all our endeavors.

INNOVATION We are forward thinking and proactive in seeking out opportunities.

a better place to live and work.

WISDOM We apply knowledge of the region and historical perspective to make sound decisions.

PARTNERSHIPS We are most effective when working in cooperation with others.

Business loan programs with over $5.3 million in assets have made 425 loans for a total of more than $18.3 million Creation or retention of almost 2,269 jobs Lending has leveraged more than $74 million in additional funds Made over 3,280 grants totaling over $18.7 million Adult and youth leadership programs have provided training for nearly 3,415 leaders Specially designed non-profit management and diversity training programs have addressed the special needs of 477 organizations and 82 communities $45.2 million total assets More than 250 component funds and sub-funds, with assets totaling $12.4 million 2008 ANNUAL REPORT

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Who are the people working for the region Northwest Minnesota Foundation

Board The Board of Directors establishes the strategic goals and policies that provide a framework for addressing the needs and opportunities it has identified in the region.

The Board strives to maintain gender balance, broad geographic representation, and a wide range of interests and experience.

Eric Bergeson Chair Fertile

Anne Sand Vice­Chair Bemidji

Gary Purath Secretary Red Lake Falls

Dean Johnson Treasurer Mahnomen

Terri Anderson Director Ogema

Ann Beck Director Bagley

Dave Bergman Director Thief River Falls

Bob Hager Director Roseau

Mark Hewitt Director Park Rapids

Roger Malm Director Hallock

Kim Wilson Director Fosston

Laurie Wilson Director Crookston

Staff The staff is headquartered in the Bemidji office. They travel throughout the twelve counties in the region to meet with loan clients, donors, grant recipients, fund advisors and colleagues.

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Top row left to right: Marty Sieve, Lin Backstrom, Barb Lien, Peggy Crandall, Samantha Hedin, Diane Morey, Caryl Turnow, Holly Tri, Dave West, Lisa Peterson.

Bottom row left to right: Tim Wang, Nancy Vyskocil, Jim Steenerson, LaRae Maddox, Ritchie Houge. Not pictured: Jane McKelvy

2008 ANNUAL REPORT

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MESSAGE FROM THE CHAIR AND PRESIDENT

Times they are a changin’ in Northwest Minnesota. Here at NMF, we are working hard to keep ahead of the pace.

In the past year, we unveiled our new leadership program, entitled LeaderImpact, which features a greater emphasis on follow through and contin­ ued support to participants. So far, it has earned rave reviews.

In January, John Ostrem retired as NMF’s president after seven years of pro­ ductive and distinguished service. New President Nancy Vyskocil has grabbed the reins with gusto.

Also this year, we embarked on our new five­year strategic plan. Many orga­ nizational strategic plans sit on a shelf. Ours is dog­eared from use. In it, the board and staff lay out our purpose as an organization and set our goals.

Having a set plan allows us to set priorities. Even with NMF’s vast resources, we cannot do it all.

The changes in our area’s fortunes, almost all for the good, have forced NMF to tweak our mission. We have gone from merely working to stimulate our local economy to emphasizing training for the workforce needed by our many prosperous companies. We have gone from trying to get people to stay in northwestern Minnesota to preparing our area for an increase in popu­ lation which now looks inevitable.

After decades of stagnation, our local economy is benefiting from our Quality of Place. Our lakes, rivers, clean air, good schools and strong communities are drawing in fresh faces. At NMF, we are committed to helping towns not only encourage growth, but manage it when it comes.

Although NMF boasts more than $45 million in assets, perhaps our biggest asset is our experienced and dedicated staff. From technical assistance to businesses, to fundraising help for non­profits, to leadership training, to our Valspar paint program and countless other initiatives, NMF’s staff does just as much for northwestern Minnesota by sharing their expertise as they do through grants and loans.

Celebrating What’s Right With the Region

Another positive change: The people of the region are developing a philan­ thropic culture. No longer can we look to government to solve our problems.

Instead, even those of us with limited means can improve the region we love through philanthropy.

At NMF, we work to make sure that money given here stays here and is used to make our region a better place to live.

Thank you to our donors and partners for helping to make northwestern Minnesota better every day!

Eric Bergeson

Nancy Vyskocil

Board Chair

President 2008 ANNUAL REPORT

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...we are working hard to keep ahead of the pace.

Celebrating What’s Right With the Region

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How the funds are used and accounted Northwest Minnesota Foundation

STATEMENT OF FINANCIAL POSITION June 30, 2008

June 30, 2007

Cash and Cash Equivalents Investments Assets Held in Charitable Remainder Trust Other Equity Investments Grants/Contracts Receivable Pledges Receivable Accrued Interest Receivable Other Receivables Notes Receivable – Revolving Loan Fund Prepaid Expenses Fixed Assets

$

$

TOTAL ASSETS

$ 4 5 ,1 8 0 ,9 9 6

Assets

,000,000

ram tions ent Prongtribu vestme ent In com dowmutions Co In En ntrib Co

Revenue & Support

er Oth

436,730 38,838,364 460,883 125,500 194,794 356,821 181,246 9,693 3,904,912 4,345 667,708

377,392 39,103,988 536,150 125,500 166,057 403,861 208,687 14,621 4,214,713 3,651 701,256

$ 4 5 , 85 5 , 8 76

l Tota

Fiscal Year 2008

$4,5500,0000 $4,0000,0000 $3,5500,0000 $3,0000,0000 $2,50 00,0 000 $2,0000,0000

Liabilities Deferred Revenue Program Grants/Scholarships Payable Other Liabilities Agency Endowment Liability Loans Payable Mortgage Payable Annuity Payable Liability Under Annuity Trust Agreement

$

888,568 470,624 222,824 1,689,901 925,401 219,318 550,957 236,783

TOTAL LIABILITIES

$

5 ,2 0 4 ,3 7 6

$

$

93,434 468,740 248,897 1,788,039 1,450,017 273,898 500,403 232,896 5 , 05 6 , 3 24

$1,500,0000

Net Assets

$1,000,000 0 $500,000

ising Fundra istration ams m d A in Progr Total

Expenses

Fiscal Year 2008

Unrestricted Temporarily Restricted Permanently Restricted Total Net Assets

TOTAL LIABILITIES & NET ASSETS

413,139 15,485,049 24,078,432 39,976,620

475,927 17,489,805 22,833,820 40,799,552

$ 4 5 ,1 8 0 ,9 9 6

$ 4 5 , 85 5 , 8 76

2008 ANNUAL REPORT

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What was accomplished in 2008:

Area Lakes and Rivers Projects Flowing for Healthy Change

A relatively small investment of money and large measure of interest among property owners are working to protect the region’s lakes and rivers. Projects are literally flowing from the Healthy Lakes and Rivers Partnership.

It’s been less than 10 years since Don Hickman and others at the Initiative Foundation for central Minnesota counties recog­ nized that quality of life is an essential economic asset for north­ ern Minnesota. People have been drawn to our lake­ and river­ rich region for many reasons­from recreation to fishing to the view. At the same time, lake associations had become more than coffee klatches. They viewed themselves as communities with volunteers doing water quality monitoring and counting loons.

Hickman, program manager for planning and preservation at the Initiative Foundation, said recognition that lake associations could play a larger role in keeping lakes and rivers healthy was akin to the serenity prayer, applied to lakes: accepting things that can’t be changed, changing the things that can be changed and recognizing the difference. “Ultimately, residents are the stew­ ards and when they set goals, they are more likely to succeed than if they depend on government to do it,” he said.

A process was developed to help lake communities become more involved. And it’s working. Michelle Prosser, former man­ ager of the Hubbard County Soil and Water Conservation District (SWCD), said she most enjoyed working with lake asso­ ciations. “A highlight was seeing retired people, who could be just enjoying their golden years, giving their time and effort to improve their lakes.”

According to Hickman, statewide nearly 200 groups have participated in the Healthy Lakes and Rivers Partnership pro­ gram and generally those that complete the process triple the money they get from their respective foundations because they have a clear vision and plan.

lake associations to follow when they choose to participate in the Healthy Lakes and Rivers Partnership. First, several key peo­ ple from each association attend two days of leadership training.

Each group then hosts a visioning session giving property own­ ers a say in priorities. The results are combined into a Lake Management Plan and members move on to implement high priority projects. The Healthy Lakes and Rivers Partnership pro­ vides grants on completion of each milestone: up to $2,500 in base grants and up to $4,000 for special projects.

It works because the process draws together like­minded people and empowers them, Steenerson said. “We try to encour­ age lake associations to take on projects that are achievable.

Success breeds success.”

By all accounts, the Hubbard County Coalition of Lake Associations (COLA) Invasive Aquatic Species Task Force is one of the great success stories.

Representatives from all 11 lakes in Hubbard County, who waded into the Healthy Lakes and Rivers Partnership process, identified invasive aquatic species as a priority, said Ken Grob, Hubbard County COLA president and task force leader. The task force has focused on awareness, education and prevention.

Task force members raised $7,500 in private donations to sup­ port four “stop aquatic hitchhiker” highway billboards and smaller signs on county highways. They worked with the DNR to train volunteer inspectors and conducted boat launch site inspections with DNR interns. Members also made many pre­ sentations and gained newspaper editorial support to increase awareness. Members enlisted the Hubbard County Water Safety Patrol to distribute aquatic invasive species information and pro­ vide instructions to boaters. Now, more than 70 volunteers have been trained and certified to do inspections.

Hickman and Jim Steenerson, grants specialist with NMF, first worked together on the Healthy Lakes and Rivers program when Wadena County, one of the 14 counties in the IF region, and Hubbard County, one of 12 counties NMF serves, shared a round of training in 2004.

Steenerson reports that 16 lake associations in Hubbard and Beltrami counties have finished the initial steps and completed $250,000 in projects with an investment of $99,000 in grant funds from NMF, the McKnight Foundation and Central Region Partnership.

The Minnesota Department of Natural Resources (DNR) and Minnesota Waters assisted IF in developing a template for

.

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Spin­offs from the task force have taken on a life of their own, Steenerson said. The task force has spread the word on aquatic invasive species, helping the Beltrami County Lakes and Rivers Association start its own task force. Grob also presented the task force’s accomplishments and direction to legislators this fall in Walker.

“They tell us we’re having an impact on state agencies,” said Dan Kittilson, who represents Little Sand Lake and serves as Hubbard County COLA vice president.

Little Sand was the first in Hubbard County to complete vegetation mapping, identi­ fying sensitive areas and providing a baseline of data to track changes that may occur.

Another benefit can be early detection of aquatic invasive species. Other lake associations have now completed vegetation mapping or have plans to do so. “Little Sand laid out the model for other lakes to follow,” Grob explained.

In addition to providing some funding for vegetation mapping, NMF has provided money for shoreland restoration projects. One of the most visible is at Wilderness Boy Scout Camp on Bad Axe Lake. Andy Kietzman, camp ranger, said the camp hosted a meeting of the Bad Axe Lake Association and neighbors identified water clarity as one of their concerns. Erosion along the camp’s shoreline was part of the problem. Kietzman contacted the SWCD and Natural Resources Conservation Service for technical assistance and the lake association applied for a grant. With additional state SWCD cost share funds, donated materials and Boy Scouts providing the labor, work to control erosion at seven locations on the shoreline started in the summer of 2006­07.

For decades, Boy Scouts have taken shortcuts to the lake and pounded the vegetation to death, Kietzman said. In places there were 4­ to 5­foot ravines from the bluff down to the water. A trail crew of scouts and a supervisor did the repairs, filling in the ravines and moving walking paths. Last summer the crew did some fine tuning and touch ups. “It will take some annual maintenance but it was a great deal for the camp,” Kietzman said. “The funding was a real blessing for us and the project was a great opportunity for the camp and dozens of kids.”

Dann Siems, aquatic biologist with the Beltrami SWCD, said the president of the Lake Julia Association is taking lakeshore restoration to another level. Last summer, he photographed every property on the lake and this winter will incorporate the images in a presentation on “the good, the bad and the ugly” of lake development. The idea is to show properties that exemplify less desired practices and make it clear what practices could serve as a model, Siems said.

Two lakes ­ one in Hubbard County and one in Beltrami County ­ are the subject of more intense scrutiny related to phosphorus issues that have surfaced. Portage Lake north of Park Rapids received help from the Minnesota Pollution Control Agency to do core sampling for a fossil diatom analysis last spring. The lake association is looking forward to receiving a report back this spring. Grace Lake on the Hubbard­Beltrami boundary experiences extreme changes in clarity due to phosphorous levels. Siems has been working with the Grace Lake Association on steps to “save Grace,” such as naturalizing shorelines, septic system inspection and maintenance and managing phosphorus sources within the entire watershed. As part of an effort to move toward comprehensive whole lakeshed phosphorus management, the association, of which 80 percent of property owners are members, worked with Bemidji State University graduate students to assess groundwater and lake sediment phosphorus contributions.

The Beltrami County Lakes and Rivers Association hopes for a second round of training so more lakes and watersheds can come on board. Merilee Meyers, BCLARA president said, “Development is inevitable. Lake management plans help us do what’s necessary to keep water quality or improve it and to minimize the chance for aquatic invasive species to be introduced. Participation gives us an opportunity to be proactive.”

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What was accomplished in 2008:

Bemidji Area Arts Endowment

Arts programs flourish in the Bemidji community, enriching the lives of residents and visitors, thanks in no small part to the Bemidji Area Arts Endowment.

Created in 1999 as a component fund of the Northwest Minnesota Foundation, the endowment provides support for arts related projects, activities and services.

In 2008, the endowment granted $1,000 to the Bemidji Community Arts Center to start a gallery shop ­ Shop 426. Lori Forshee­Donnay, BCAC executive director, said artists with exhibits in the gallery sometimes have works for sale. Now Shop 426 provides an avenue for them and other artists to sell their works year round. Sales also help diversify income for BCAC and offer visitors something to buy.

In addition to the grant from the arts endowment fund, BCAC received grants from the Bemidji Rotary Club and Nielsen Foundation for the project. The combined grants helped BCAC secure locked cases for small pieces, upgrade the security system, remodel the space so it would be aesthetically pleasing and promote the new gallery shop. Some artists donated pieces to kick start the displays, Forshee­Donnay said.

Bringing world renowned, classical pianist Andre Watts to perform with the Bemidji Symphony Orchestra was a huge undertaking, according to board member Doug Orville. A $1,000 grant from the Bemidji Area Arts Endowment and other additional funding for the subscription concert helped pay the artist’s travel expenses and other costs, including facilities, music and promotion.

“It is great to have the arts endowment as a resource in the community,” Orville said. “We are thankful to have it.”

The Mask & Rose Women’s Theater Collective brought Cosy Sheridan’s onewoman show, “The Pomegranate Seed,” to Bemidji. “She told us it was one of the best audiences she ever had,” said Cate Belleveau, organizer. The Mask & Rose Women’s Theater Collective invited women of all ages from 6 to their 60s. “They brought a lot of life experiences as an audience,” Belleveau said, enriching the

response to Sheridan’s presentation on appetite, body image and myth in modern culture.

“The grant allowed us to bring the artist and to offer a sliding fee charge for tickets, from $5 to $15 or whatever you can pay. We felt very good about the concert,” Belleveau said. The Mask & Rose Women’s Theater Collective is a new organization, obtaining its 501(c)3 status in February 2008. Performances are given at the Wild Rose Theater in the Masonic Temple on Bemidji Avenue.

The Bemidji Area Arts Endowment awarded scholarships from the Everett Wilimek Endowment for Orchestral String Studies to Brad Olson, 12, Bemidji, and Jessica Pickett, 14, Laporte, to continue their violin lessons through the Headwaters School for Music and the Arts. The school also received $1,500 to support annual administrative and management expenses.

With an endowment of more than $200,000 the Bemidji Area Arts Endowment has nine subfunds.

Some of these subfunds may be used for specific programs; others may be allotted for new and innovative programming.

Jeanette Halcrow succeeds Sandy Kaul, who recently stepped down after 10 years as president of the endowment advisory board which oversees fundraising and awards grants and scholarships.

Since 2003, the advisory board has hosted donor recognition events at the homes of various board members to thank donors and give them an update on Bemidji Area Arts Endowment activities. The June 2008 event was “The Lake, the Pines, The Arts” at the home of Pat and Patty Knoer with the two Wilimek String Scholarship recipients performing.

The board also hosts the annual Oompah for the Arts, a public fundraising event, and distributes an end­of­the­year appeal. One hundred percent of donations from the appeal go directly into endowment principal.

The board also grants awards and scholarships, first offering competitive grant rounds in the spring of 2005, to fulfill the endowment’s mission of strengthening the long­term financial viability of the Bemidji area arts community.

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What was accomplished in 2008:

Laughing Earth Garden & Gift Janis Lee and Mindy Kinkade, Ada, contacted the Entrepreneur Development Program staff in October 2007, at the suggestion of Chris Odden, president of Community Bank of the Red River Valley in Ada. They were interested in purchasing an existing greenhouse busi­ ness in Ada, but needed more information on the best way to develop their business idea and finance the startup.

secured vendors, devised marketing and promotion activ­ ities and the many other tasks required of a new business owner.

“We could not have begun the business without Diane,” said Lee. “Her work with the bankers and putting together the package insured our success.”

Neither of the women were strangers to business man­ agement. Kinkade’s family has owned and operated sev­ eral businesses, primarily in the food industry. Lee and her husband farm west of Ada. She has past experience as a bookkeeper and is a Master Gardener.

A congenial relationship with the former owner allowed them to start readying the greenhouse before the purchase was official. Along with family members, they put in many hours getting their new business prepared for the 2008 spring opening. Even a broken foot in March didn’t slow Lee down too much.

Diane Morey, NMF business development specialist, provided coaching on negotiating purchase terms, strate­ gy for development, and documentation and business requirements to research. According to Lee, there was a lot of paperwork and legwork required for the NMF business finance programs. “It really makes you think about your goals and planning and gets you off on the right foot,” she said.

By the end of the first season, the lenders were smiling and the owners were satisfied and tired. Sales projections were exceeded, inventory was sold and customers were happy. Many homes in Ada and around the area were adorned with pretty flower beds, courtesy of Laughing Earth Garden and Gift. And the owners? There’s not a lot of time to slow down and savor the success. The 2009 flower season will be here soon.

Morey assisted the two women with the business plan and coordinated information for each of the lenders: Community Bank of the Red River Valley, Ada Economic Development Authority and Northwest Minnesota Foundation. Loans from both the NMF Business Financing and the Entrepreneur Development Programs were structured to enable purchase of the real estate and provide as much technical assistance as possible.

During the loan packaging phase, the two owners also planned their day to day management, located and

2008 ANNUAL REPORT

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Where the funds came from

Real philanthropy – powerful philanthropy...

Circle of Vision The Circle of Vision was established to recognize those people who see the possibili­ ties of tomorrow by acting today; who believe in their communities, and share of themselves and their resources.

In 2008, Mary and Robert Johnson joined the Circle of Vision in recognition of their current gifts, planned gifts or will bequests of $100,000 or more made in direct support of the Northwest Minnesota Foundation or any of its com­ ponent funds.

HONOREES

Anonymous Maggi Adams – LifeCare Medical Center H.C. “Bill” Baer, Jr. and Jessie Baer The Helleckson Family ­ Courage Center North Frances Drivold Lyle H. Engelstad Robert F. and Marian Foley Gaylord A. Gunderson Mark and Peggy Hewitt Mary and Robert Johnson Sam and Peggy Johnson Leonard and Rosemond Kucera Arnold F. Lund, Sr. Eldor and Stella Omdahl Red Lake Band of Chippewa Indians Elsie Semrau Employees of TEAM Industries/TEAM Foundation LuVerne Trogstad Ole and Ruth Tweet

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2008 ANNUAL REPORT

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

A donor advised fund was established this past year by Mary and Robert Johnson, who recently connected with the foundation. Their goal is to provide funding for a variety of non­ profit programs in and around Pennington County. With the assistance of their attorney, Paul Ihle, their wishes for supporting causes in the region became possible with the Robert J. and Mary L. Johnson Charitable Fund.

Simply stated, a donor­advised fund is a charitable vehicle in which a donor contributes cash or assets to create a fund with the Northwest Minnesota as the “sponsoring organization.” The donor makes recommendations to the foundation about how the funds should be used.

The Johnsons believe that they have been very blessed in life. “We are so grateful to God,” they wrote in a note to the foundation. “He has blessed us beyond our wildest dreams. It is only fitting to give back to help others.”

The Johnson’s main interests are in helping the Northland Community and Technical College Foundation, St. Bernard’s Catholic Church, and Thief River Falls Education Foundation in areas such as scholarships, tuition assis­ tance, and musical pro­ gram needs, along with others not typically financed by the schools.

Also of interest is the Rydell National Wildlife Refuge, Erskine; Pioneer Village, and Pennington County Humane Society, Thief River Falls.

Mark Hewitt, NMF board member, presented Mary and Robert Johnson, with the Circle of Vision award.

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Fiscal Year 2008 Donors Circle of Vision Leadership Society

Members are individual donors, not associated with another foundation or organization, who have reached a giving level of $1,000,000 or more in contributions to the Northwest Minnesota Foundation, a component fund or program.

Honorees Arnold F. Lund, Sr. (2005) William S. and Margaret W. Marvin (2007)

William S. and Margaret W. Marvin became the second benefactors to reach the $1 million mark in donations to the Northwest Minnesota Foundation or one of its components. To recognize this con­ tribution, Bill and Margaret are included as mem­ bers of the Circle of Vision Leadership Society.

Sadly, Margaret passed away at the age of 90 this past winter.

The Marvin’s gift, which established the Warroad Swim Program Fund, supports activities associated with the Warroad Public Schools swim program or the Warroad Outstanding Warriors Swim Club. Generous grants were made in 2008.

Due to funding cuts to education, the swim pro­ gram was in jeopardy. The Marvins felt it was imperative to fully fund the swim program to pro­ vide Warroad with instructors and coaches, along with the resources needed to help it thrive. They have learned that transferring assets in this way ­­ as a philanthropic gift benefiting their community for years to come ­­ not only adds financial value, but sets the example of how to make a difference.

Warroad Community Fund Advisory Committee Member Mike Bahnmiller said Bill and Margaret’s gift came at a time when the WACF was just start­ ing to grow. “The endowment certainly raised the community’s awareness of the WACF as a good place to create programs to help others.”

Bahnmiller added that Warroad has always had a strong program that sends many swimmers to the Minnesota State High School swim meet. He said, “We believe our pool to be the finest in Northwest Minnesota. However, maintaining such a facility in top condition can strain the resources of a small community. Bill and Margaret recognized the need and provided a gift that will help support the pool for generations to come.”

Our Sincere Thanks To Our Donors

We are grateful and appreciative to every one of you for your contributions, large and small.

To date, NMF has received char­ itable gifts from nearly 6,250 individuals, organizations, agen­ cies and others. Please know that your donations to the founda­ tion or any of its component funds are making a difference in the quality of the places in northwest Minnesota – making the region a better place to live and work.

Bill Marvin with Warroad High’s Head Swimming Coach Rebecca Fischer.

For a complete list of Fiscal Year 2008 endowment and component fund donors, please visit the NMF Web site at www.nwmf.org.

2008 ANNUAL REPORT

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How the funds were invested: Business Business Loans & Investments Fiscal Year 2008 $1,632,842 GENERAL BUSINESS LOANS

Harlan’s Boats R Us, Polk

Mentor

$1,188,741

Financing is available for business start­ups and expansions that create new jobs leading to long­term community impact, diversification of the economy and that leverage other sources of funds to increase total capital investment in the region.

To purchase an existing marine sales, repair and storage business.

Kittson

McIntosh Machine and Manufacturing, McIntosh

For purchase of an existing business.

Mattracks, Karlstad

Mahnomen

For new products and expansion.

For purchase of an existing business.

A.A. Rantanen, Inc. Thief River Falls Pennington

River Cinema, Inc.,

For a new product development.

East Grand Forks

For construction of a multi­plex movie theater in a remodeled space at RiverCenter.

Kittson

Kristen Hultgren, Kennedy

EXB Solutions For a new business providing engineering services and development of testing software.

Polk

Kittson

Roseau Lake of the woods

Marshall Pennington

Betrami

Norman Mahnomen

Hubbard

Polk

Pine to Prairie Angel Fund, LLC

Clearwater

Red Lake

For an equity fund that will invest in businesses locating in the region.

Roseau

One loan was made this fiscal year from Fannie Mae funds to the Headwaters Regional Development Commission for the development of affordable hous­ ing totaling $200,000.

Glen Brazier, Greenbush

For purchase of a building for Mattracks expansion.

For the purchase of the Kittson County Abstract Company, an existing business.

Ada Building Center, Ada For purchase of an existing business.

Norman

Northwest Minnesota Foundation received a $500,000 line of credit through Fannie Mae, a major funder of housing, financial products and services, that works to expand home ownership opportunities.

Tulaby Lake Inn,

Polk

Loans totaling $1,188,741 were made to:

HOUSING

Hallock

To provide gap financing for expansion and new construction of a garage door factory.

Kittson

Mahnomen

Caribou Grill,

The MATTRACKS© Black Diamond Powerboard is an engine and track­propelled machine that carves through snow like a snowboard. This fun and powerful snow vehicle is great for snowbound regions without big hills or mountains and can offer riders snow­ boarding excitement without going to the ski slopes.

The “G “side­b each oth ary fea system concept the abi design utility ground in­hous

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ss ENTREPRENEUR DEVELOPMENT PROGRAM Loans up to $35,000 are available to help develop small businesses and self­ employment opportunities. Staff works directly with entrepreneurs to develop business plans and provide ongoing assistance and training.

Loans totaling $244,100 were made to: Big Bear Sealcoating & Striping, Wilton (Beltrami)

H3 Performance, Park Rapids (Hubbard)

DuWayne Olson Septic Pumping, Ada (Norman) Laughing Earth Garden & Gift, Ada (Norman)

MATTRACKS ©

Tom’s Tackle, Inc., Baudette (Lake of the Woods) Four L’s Inc., East Grand Forks (Polk) Finishing Touches, Stephen (Marshall)

North Country Service, Hines (Beltrami)

2 Guys Garage of TRF, Inc., Thief River Falls (Pennington)

The “Gladiator TUV” (Tracked Utility Vehicle) is a completely new concept in “side­by­side” utility vehicles (an ATV vehicle in which two passengers sit next to each other), designed for efficient operation on tracks and packed with revolution­ ary features including four­track steering and a “walking beam” suspension system . The “Gladiator TUV” is a concept vehicle that demonstrates the ability of Mattracks to design and build a tracked utility vehicle from the ground up entirely in­house.

technical assistance counseling

• $13,370 supported consulting to assist 14 entre­ preneurial businesses

• 38 people attended the classroom training

KC’s Flat Concrete & Bobcat, Bemidji (Beltrami) Ideal Diamonds & Gifts, Roseau (Roseau)

The Northwest Minnesota Foundation provides assistance in the loan application process and after the loan is made. Staff provides technical assis­ tance to increase a business owner’s capacity to successfully manage and operate their business and increase its prospects for long­term success.

Assistance is provided by staff or consultants and may include workshops, classroom training and individual counseling.

• 227 businesses and individuals received personal

Keith Christianson, Bemidji, (Beltrami)

The Dive Depot, Bemidji (Beltrami)

TECHNICAL ASSISTANCE

workshops NMF sponsored

The Business Development Programs of the Northwest Minnesota Foundation receive funding and support from the Minnesota Department of Employment and Economic Development and United States Department of Agriculture Rural Development as well as the Small Business Administration and Fannie Mae.

Richard D. McFarland, McKnight Foundation board member, had a chance to experience northwestern Minnesota winter fun on a Mattracks equipped ATV. McKnight staff and McFarland were in Bemidji for a site visit and the ATV, a Hummer and a Powerboard were brought from Karlstad to the NMF office by Dean Gorder and Del Wright to demonstrate their products.

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How the funds were invested: Grants Fiscal Year 2008 Total Grants $1,256,618 Nonprofit Excellence Program Peacemaker Resources . . . . . . . . . . . . . . .$540

STAR A total of $1,350 was granted to the following schools for follow­up activities: Bagley, Bemidji, Franklin Middle School, Naytahwaush Community Charter School, Nevis, Red Lake County Central, St. Philips School, Warroad

Organizational Effectiveness Awarded for activities related to nonprofit train­ ing Beltrami Humane Society . . . . . . . . . .$5,000 Boys & Girls Club of the Bemidji Area . . . . . . . . . . . . . . . . . . .$3,257

Caring Communitites Total: $321,762 Children & Families

Early Childhood Initiative

A Chance To Grow . . . . . . . . . . . . . . .$25,000

Minnesota Humanities Center . . . . . . . .$500

To provide continued training to help the school develop a Stimulating Maturity through Accelerated Readiness Training (S.M.A.R.T.) Team approach

For Reading with Dad initiative

Boys & Girls Club of the Bemidji Area . . . . . . . . . . . . . . .$25,000 To hire a new full­time Teen Services Director

Boys & Girls Club of White Earth Reservation . . . . . . . . . .$25,000 For Boys & Girls Club of the White Earth Reservation, Rice Lake unit expansion

B­WELL . . . . . . . . . . . . . . . . . . . . . . . .$25,000 For tackling the challenge of childhood obesity in Bemidji and surrounding communities

Girl Scouts of Minnesota & Wisconsin Lakes & Pines . . . . . . . . . .$23,000

Emergency Assistance Awarded for flood relief and/or crisis needs of low­income families and individuals Bi­County CAP, Inc. . . . . . . . . . . . . . . . . . . . .$22,300 Inter­County Community Action Council . . .$11,800 Mahube Community Council, Inc. . . . . . . . . .$12,800 Northwest Community Action Program . . . . .$7,200 Tri­Valley Opportunity Council, Inc. . . . . . . .$10,900

Support for the implementation of a Family Mentoring Program as part of the Our Children Succeed Initiative

White Earth Band of Chippewa . . . .$12,512 To implement a Youth Leadership Project that includes activities in six communities, youth leadership training and cultural awareness

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2008 ANNUAL REPORT

To complete a comprehensive plan including addressing the core issues of growth management and land use, the downtown, housing and capital improvements

Headwaters Regional Development Commission . . . . . . . .$20,000

For HMN­MN website development and design

For Shared Vision! race relations action plan

Northwoods Interfaith Volunteer Caregivers . . . . . . . . . . . . . . . . . . . . . . .$22,000

Leech Lake Band of Ojibwe . . . . . . . .$2,500

For the youth garden project

For Northern Minnesota Reservation Economic Development Conference

Northwest Minnesota Foundation . . .$1,060 For Renewable Energy Conference

Growth Management Lake of the Woods County . . . . . . . .$12,000 For Lake of the Woods County growth management project

For Clearbrook/Gonvick Early Childhood Initiative Fund

Tri­Valley Opportunity Council, Inc. $25,000

City of Mahnomen . . . . . . . . . . . . . . . .$15,000

Health Ministries Network of Minnesota . . . . . . . . . . . . . . . . . . . . . . .$750

Sahkahtay Indigenous Preservation Society . . . . . . . . . . . . . .$21,500

For Norman County East Early Childhood Initiative Fund

For improving and enhancing green space and resources in the community parks

Park Rapids comprehensive plan update

Mahube Community Council, Inc. . . .$1,500

NMF Early Childhood Initiative Program . . . . . . . . . . . . . . . .$25,000

City of Bemidji . . . . . . . . . . . . . . . . . . .$25,000

City of Park Rapids . . . . . . . . . . . . . . . .$5,000

For caregiver assistance, respite, and education in Clearwater County

NMF Early Childhood Initiative Program . . . . . . . . . . . . . . . .$25,000

Economic & Community Development

The Elderly

To focus on helping Junior High School girls build a vision of themselves moving on to and completing high school For non­standard hour childcare ­ MARS Study

Community Planning $108,460

Training $13,802

Housing Bridges Medical Center . . . . . . . . . . . .$6,400

Individual Effectiveness

To perform market research, planning, and a feasibility study in the Ada service area

Awarded for professional development of non­ profit managers and executive directors

Hubbard County HRA . . . . . . . . . . . .$15,000

Bemidji Area Habitat for Humanity . . . . . .$1,280 B­WELL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$825 JoAnne Kellner . . . . . . . . . . . . . . . . . . . . . . . . .$330 Wee Care Early Learning Center . . . . . . . . . .$1,220

For Hubbard County housing study and housing plan

Oklee Economic Development Authority . . . . . . . . . . . . . . . . . . . . . . . . .$6,500 For assisted living feasibility study for the City of Oklee

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Grants continued: Healthy Lakes & Rivers $30,250 Healthy Lakes & Rivers Partnership Program Beltrami Soil & Water Conservation District . . . . . . . . . . . . .$12,750 For Lake Julia Aquatic Management Plan, for Lake Plantagenet Water Quality Monitoring and Aquatic Vegetation Mapping; for Grace Lake Phosphorus Mass Balance Study

Hubbard County Soil and Water Conservation District (5 grants) . . . . . .$18,500 For Bad Axe Lake shore land restoration and reforestation; for Big Mantrap Lake shore land restoration/erosion control; for sub­sized septic pumping, membershp campaign, and water quality testing for 8th and 9th Crow Wing Lakes; for Big Sand Lake water quality preservation projects; for Little Sand Lake shore land restoration project.

Component and Community Funds are established with the Northwest Minnesota Foundation for a specific purpose. A donor or group of donors helps to build a permanent endow­ ment from which interest earnings are used to fund projects, programs or activities and/or scholarships that support the mission of the fund. A local fund advisory committee recommends distributions based on specific purposes and criteria. The NMF board, for purposes of IRS regulations, approves the advisory rec­ ommendations for grants, but the component funds are the source of the grant dollars. For more informa­ tion about individual funds and what their grants support, visit www.nwmmf.org.

Component Fund $720,646 Backstrom Family Charitable Fund . . . . .$1,500 Bagley Area Community Fund Bagley Beautification Fund . . . . . . . . .$1,778

Clearwater County Humane Society Fund$1,000 Clearwater Health Care Fund Clearwater Hospice Fund (5 grants) .$10,000 Crookston Early Childhod Initiative Fund (7 grants) . . . . . . . . . . . . . . . . . . . . .$4,370 District #593 Education Foundation Fund . . . . . . . . . . . . . . . . . . .$4,043 Frances Drivold Special Education Fund . . . . . . . . . . . . . . . . . . . . . . . . .$3,500 Fertile Area Armed Forces Veterans Fund . . . . . . . . . . . . . . . . . . . .$34,580 Fertile­Beltrami Early Childhood Initiative Fund (4 grants) . . . . . . . . . . . . .$1,007 Fosston Area Community Fund Fosston Education Foundation Fund (4 grants) . . . . . . . . . . . . . . . .$2,900 Fourth & Robbins Fund (6 grants) . . . . .$6,000

Bagley Early Childhood Initiative Fund (7 grants) . . . . . . . . . . . . .$6,360

Greenbush Area Community Fund (2 grants) . . . . . . . . . . . . . . . . . . . .$600 Greenbush Community Education Fund . . . . . . . . . . . . . . . . . . . . . . . . . . .$250

New Technologies

Beltrami Humane Society Fund . . . . . . . . .$296 Ralph and Ruth Shoemate Fund . . . . .$2,589

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

Marshall County . . . . . . . . . . . . . . . . . .$25,000

Bemidji Area Arts Endowment & Project Fund (3 grants) . . . . . . . . . . . .$2,151 Ernie Rall Children’s Performing Arts Fund . . . . . . . . . . . . . . . . . . . . . .$300 Everett Wilimek Endowment for Orchestral String Studies (2 grants) . . . . . . . . . . .$526 Frederick Marshall Fund . . . . . . . . . . .$1,500 H.B. and Ina T. Roholt Family Fund for the Arts . . . . . . . . . . . . . . . . . . . . .$617 North Star Arts Fund . . . . . . . . . . . . .$1,800 Richard and Pam Nelson Family Fund for the Visual Arts . . . . . . . . . . . . . . . .$232

Hopes, Dreams and Smiles Fund . . . . . . .$3,400

Lake of the Woods Area Industrial Development Fund (2 grants) . . . . . . . . . . . . . . . . . . . .$35,000 LOW ­ Industrial Development Education Fund . . . . . . . . . . . . . . . .$1,000 LOW ­ Industrial Park Development Fund . . . . . . . . . . . . . . . . . . . . . . . . .$20,000

Bemidji Area Early Childhood Initiative Fund (6 grants) . . . . . . . . . . . . . . . . . . . . .$8,298

Lake of the Woods Early Childhood Initiative Fund (13 grants) . . . . . . . . . . . . . . . . . . .$16,690

Bemidji Area Parks and Trails Fund Bemidji Waterfront­Paul and Babe Maintenance Fund (2 grants) . . . . .$52,737 First City of Lights Fund (5 grants) .$22,421 Freedom Defenders Veterans’ Memorial Fund (2 grants) . . . . . . .$46,210

Laporte Education Endowment and Project Fund . . . . . . . . . . . . . . . . . . . . . . . .$500 Tonia Johannsen Memorial Fund (2 grants) . . . . . . . . . . . . . . . . . .$234

Natural Resources $75,500

To draft a renewable energies plan for the county

The Nature Conservancy, Minnesota Chapter . . . . . . . . . . . . . . .$25,000 For a biofeed feasibility project

University of Minnesota Crookston . . . .$500 For the Home Grown Economy Conference

White Earth Land Recovey Project . .$5,000 To support a small scale feasibility study and business plan, using regional market data and technical resources to access capacity, resource, and capital meeds for a biodiesel program

White Earth Land Recovery Project $17,500 For funding a feasibility study for the development of a White Earth Food Program

Promotion & Preservation Headwaters Science Center . . . . . . . . .$2,500 To evaluate the potential for reestablishing the River Watch Program in the Bemidji High School and creating new part­ nerships with the Blackduck, Kelliher, and Red Lake School Districts

Caring Communities, Community Planning and Natural Resources grants require pre­proposals, which will be accepted at any time.

Forms are available to down­ load from www.nwmf.org. If projects are eligible, full applications are invited.

Bemidji Area Public Library Foundation Fund (2 grants) . . . . . . . . . . . . . . . . . . . .$17,233 Bemidji Curling Fund . . . . . . . . . . . . . . .$1,500 Bemidji Lumberjack Foundation Fund Amy Anderson English Fund . . . . . . . .$176 Rick Lee Memorial Fund . . . . . . . . . . . .$858 All School Reunion Fund (2 grants) .$11,996 First National Bank Bonspiel Fund (2 grants) . . . . . . . . . . . . . . . .$17,079 Security Bank USA Lumberjack Scramble Fund (4 grants) Clearbrook­Gonvick Education Fund . . . . .$600

HRDC Leadership Fund HRDC Successful Communities Challenge Fund (3 grants) . . . . . . .$21,000

LifeCare Health Care Fund . . . . . . . . . . . . .$558 LifeCare Hospice Fund . . . . . . . . . . . .$1,350 LifeCare Roseau Manor Fund . . . . . . . . .$765 Maggie Adams Medical Equipment Fund (3 grants) . . . . . . . . . . . . . . . . .$9,115 Lake of the Woods Humane Society Fund$1,500 Marshall County Early Childhood Initiative Fund (5 grants) . . . . . . . . . . . . .$9,225 Mississippi Headwaters Area Dental Health Center Fund . . . . . . . . . . . . . . . . . . . . . .$12,500 Naytahwaush Area Early Childhood Initiative (2 grants) . . . . . . . . . . . . . . . . . .$2,800 Northwest Minnesota Women’s Fund (3 grants) . . . . . . . . . . . . . . . . . . . . . . . . .$7,158 2008 ANNUAL REPORT

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Grants continued: Ole and Ruth Tweet Family Fund (9 grants) . . . . . . . . . . . . . . . . . . . . . . . . .$6,582 Park Rapids Area Community Fund Heartland Homes Fund (4 grants) . .$17,766 Hewitt Family Charitable Fund (2 grants) . . . . . . . . . . . . . . . . . . . . .$1,435 Park Rapids Early Childhood Initiative Fund (3 grants) . . . . . . . . . . . . . . . . . . . . .$3,602 Park Rapids Revolving Loan Fund . . . .$10,000 Red Lake Falls Education Fund Richard Bresnahan “Leadership in the Arts” Fund . . . . . . . . . . . . . . . . . . . . . . . . . . .$140 Roseau Area Community Fund (3 grants)$1,477 Roseau Parks & Recreation Fund . . . . . .$173 Roseau County Historical Society Endowment Fund . . . . . . . . . . . . . . . . . .$4,200 Ruth Edevold Endowment/Awards for Excellence (4 grants) . . . . . . . . . . . . . . . . .$4,000 St. Mary’s Mission School Fund . . . . . . .$40,000 Thief River Falls Early Childhood Initiative Fund (2 grants) . . . . . . . . . . . .$21,000 Upper Mississippi Watershed Fund . . . . . .$250 Warroad Area Community Fund (4 grants) $7,700 Gaylord A. Gunderson Education and Scholarship Fund (2 grants) . . . . . .$11,000 Margaret Ann and Paul Samuel Johnson Family Charitable Fund (10 grant) $24,292 NAPA Ride to Reading Fund (2 grants) . . . . . . . . . . . . . . . . . . . . .$5,427 Rainbow Park Restoration Fund (2 grants) . . . . . . . . . . . . . . . . . . . . .$2,500 Warroad Early Childhood Initiative Fund . . . . . . . . . . . . . . . . . . . . . . . . . . .$100 Warroad Education Fund . . . . . . . . . .$5,443 Warroad Memoriual Arena Fund . . .$20,000 Warroad Point Area Restoration and Community Recovery Fund . . . . .$12,500 Warroad Swim Program Fund . . . . .$48,000 Wetlands Pinees & Prairie Audubon Sanctuary Fund . . . . . . . . . . . . . . . . .$15,500 William A. and Eloise E. Nelson Fund . .$1,500

Scholarship Funds: 147 awards totaling $108,525 Bagley Education Endowment and Project Fund Bagley General Scholarship Fund (10) . .$4,600 Bemidji Lumberjack Foundation Fund Buck Robbins Scholarship Fund . . . . . . . .$150 Bun & Alvera Fortier Scholarship Fund . . .$500 Des Sagedahl Scholarship Fund . . . . . . . . .$500 General Scholarshuo Fund (11) . . . . . . . .$8,000 K.E. “Red” Wilson Athletic Fund (2) . .$1,500 Pat Campbell String Fund . . . . . . . . . . . . .$300 John F. Breen Scholarship Fund (5) . . . . .$5,000 Ray F. Breen Scholarship (2) . . . . . . . . .$14,000

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2008 ANNUAL REPORT

Blackduck Area Community Fund Academic and Character Scholarship Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$500 Clearbrook­Gonvick Education Fund Mary Jo Klinger Scholarship Fund . . . . . . .$500 Olga Peterson Scholarship Fund . . . . . . .$1,500 East Polk County Fair Scholarship Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,500 Fosston Area Community Fund Dean and Joyce McNelly Family Vocational Scholarship Fund . . . . . . . . . . . . . . . . . . . . .$650 Dean Clementson Scholarship Fund . . . . . . .$300 Fosston Educstion Foundation Fund . . . . .$1,500 Fosston Livestock Shipping Association Animal Science Scholarship Fund . . . . . . .$150 Jim Miller Memorial Math Scholarship Fund . . . . . . . . . . . . . . . . . . . . .$450 LuVerne Trogstad Scholarship Fund (2) . . . . . . . . . . . . . . . . . . . . . . . . .$10,000 Terry Stout Memorial Scholarship Fund . .$1,000 Vikan Scholarship Fund . . . . . . . . . . . . . . . . .$450 Greenbush Area Community Fund . . . . . . . . . .$500 Keith and Ellen Kapphahn Famly Scholarship Fund (2) . . . . . . . . . . . . . . . . .$500 Julie Holmquist Memorial Scholarship Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$500 Laporte Education Fund (5) . . . . . . . . . . . . . . .$2,500 Laporte­Benedict VFW Scholarship Fund (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$500 Tonia Johannsen Memorial Fund (2) . . . . .$1,000 Laural Capistran Murphy Scholarship Fund (2) . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,000 Leonard J. Kucera Memorial Scholarship Fund (4) . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,000 Luther Younggren Memorial Scholarship Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000 Mahnomen Education Endowment and Project Fund General Ike Isaacson and Major Bruce Isaacson Scholarship Fund (2) . . . . . . . . . .$750 Leslie Hanson Scholarship Fund . . . . . . . .$500 Mahnomen Education Fund (10) . . . . .$5,750

Amy Erickson received a $500 scholarship from the A.J. Kramer Scholarship Fund, part of the Roseau Area Community Fund.

The Kramer Fund supports scholarships to graduates from Roseau who are pur­ suing their junior or senior year in college, majoring n Education, Health or Physical Education, or earn­ ing a Coaching certificate.

Amy is pictured with Mrs. Eleanor Kramer.

Night Riders Sno­Club Scholarship Fund (2) . . . . . . . . . . . . . . . . . . . . . . . . .$500 Major Robert Olson Fund . . . . . . . . . . . . .$1,000 Mike Staples Memorial Scholarship Fund .$1,000 Red Lake Falls Education Fund Kris Fontaine Memorial Scholarship Fund (6) . . . . . . . . . . . . . . . . . . . . . . .$3,000 Kyle A. Myhre Memorial Fund (2) . . . .$1,000 Lester Norris Dale, MD Scholarship Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . .$400 Roseau Area Community Fund A.J. Kramer Scholarship Fund . . . . . . . . .$500 Charles “Nick” Peterson Memorial Fund .$125 Joseph Schneider Scholarship Fund . . . . .$125 Marian Foley Memorial Fund (4) . . . . .$4,000 Marvin LaRue Memorial Fund . . . . . . . . .$500 Warren­Alvarado­Oslo Education Foundation Fund Lyle H. Engelstad Scholarship Fund(8) ...$8,000 Myron and Margaret Carlson Education Scholarship Fund ....................................$400 Warroad Area Community Fund Bruce and Ellen Atwater Education Fund ........................................................$500 Edward and Agnes Brandli Scholarship Fund (2) ..............................$400 Gaylord A. Gunderson Education and Scholarship Fund(10) ........................$10,000 Jennifer Grove Memorial Scholarship Fund ........................................................$500 Justin Knebel Memorial Fund ..................$250 Katie Jo Olafson Memorial Scholarship Fund (5) ............................$1,250 Lee Hafdahl Memorial Scholarship Fund ........................................................$750 Nick Moyer Memorial Scholarship Fund ..$200 Patrick O’Donnell Memorial Scholarship Fund ....................................$500 Warroad Education Endowment and Project Fund (2) ..................................$1,000 Warroad Farmer’s Union Oil Company Scholarship Fund ....................................$500

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How the funds were invested: Community and Component Funds What is a Component Fund: Philanthropic Services The component and community funds established and administered by the foundation make a huge contribution to the region’s quality of place. The extra benefits are that they keep local resources in the com­ munities where they are actually earned and are contributed by gen­ erous donors, stay where they are needed funding local projects, and where they continue to give back through their endowment earnings.

The resources remain in northwest Minnesota, making a difference for generations to come.

In some cases, the foundation’s own discretionary grant programs work in tandem with the component funds’ priorities. The founda­ tion’s staff advise one another and the fund’s advisors when opportuni­ ties for co­funding arise. This strategy serves to strengthen each of the programs and impacts the region’s quality of place in a powerful way.

For a complete list of Fiscal Year 2008 endowment and component fund donors, please visit www.nwmf.org.

Community Service Funds

Bagley Early Childhood Initiative Fund Beltrami Humane Society Fund Ralph and Ruth Shoemate Fund Bemidji Waterfront­Paul and Babe Maintenance Fund Clearwater County Humane Society Fund Clearbrook­Gonvick Early Childhood Initiative Fund Crookston Early Childhood Initiative Fund The Evergreen House Fund Fertile Area Armed Forces Veterans Fund Fertile­Beltrami Early Childhood Initiative Fund Full Stride Fund Headwaters Regional Development Commission Leadership Fund HRDC Successful Communities Challenge Fund HRDC Leadership Fund Headwaters Unitarian Universalist Fellowship Fund Lake of the Woods County Humane Society Endowment Fund Marshall County Early Childhood Initiative Fund Naytahwaush Area Early Childhood Initiative Norman County East Early Childhood Initiative Fund North Border Interfaith Coalition Fund Northland Community & Technical College Strong Youth Fund OPTIONS Endowment and Project Fund Senior Trust Fund of Beltrami County Kelliher Area Seniors Fund Thief River Falls Early Childhood Initiative Fund Warren Senior Center Endowment Fund WEE­Care Children’s Center Fund

Community Funds

The Safety Town program received a grant from the Greenbush Area Community Fund. Preschool age children are taught hands­on approaches to safety on the bus, bike, with strangers, animals, playground, and fire and water safety, to name a few. The kids implement what they have learned on a traffic course set up outside.

Badger Area Community Fund Badger Education Fund Bagley Area Community Fund Bagley Area Scholarship Fund Bagley Beautification Fund Bagley Education Endowment & Project Fund Bagley Technology Advancement Fund Bagley Area Scholarship Fund Nora Ellis Memorial Fund Bemidji Area Community Fund Honor the Guard Fund Rosselet­Hickey Charitable Fund Blackduck Community Fund Blackduck Academic and Character Scholarship Fund Crookston Area Community Fund Crookston Arena Fund Fosston Area Community Fund Cameron Badurek Memorial Fund 2008 ANNUAL REPORT

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Community & Component Funds Arvid Clementson Veterans’ Memorial Fund Dean Clementson Scholarship Fund East Polk Heritage Center Fund First Care Fosston Area Fund Fosston 21st Century Endowment and Project Fund Fosston Education Foundation Fosston Livestock Shipping Association Animal Science Scholarship Fund Dean & Joyce McNelly Vocational Scholarship Fund Jim Miller Memorial Math Scholarship Fund Terry Stout Memorial Scholarship Fund LuVerne Trogstad Education and Scholarship Fund Wilma & Franklin Vikan Scholarship Fund Greenbush Area Community Fund Greenbush Education Fund Keith and Ellen Kapphahn Family Scholarship Fund Mahnomen Area Community Fund Mahnomen Health Care Fund Park Rapids Area Community Fund Heartland Homes Endowment and Project Fund Hewitt Family Charitable Fund Kinship of Park Rapids Fund Park Rapids Early Childhood Initiative Fund Park Rapids Education & Activities Foundation Fund Park Rapids Memorial Scholarship Fund Matthew Spangler Hockey Fund Fireworks Fund Park Rapids Rotary Charitable Fund Red Lake Band of Chippewa Indians Community Fund Red Lake Band of Chippewa Education Fund Red Lake Band of Chippewa Indians Renewal and Recovery Fund Red Lake Tribal Information Center, Archives, & Library Fund Youth Initiative Fund Red Lake Falls Area Community Fund A.J. Kramer Scholarship Fund Four Seasons Senior Center Fund Marian Foley Memorial Fund Marvin LaRue Memorial Fund Malung PTO Scholarship Fund Nick Peterson Scholarship Fund Roseau Adult Education Fund Roseau Area Friends of the Library Fund Roseau Area Education Fund Roseau Lions Club Scholarship Fund Roseau Parks and Recreation Fund Joseph Schneider Memorial Scholarship Wannaska PTO Scholarship Fund Stephen Area Endowment Fund Warroad Area Community Fund Bruce and Ellen Atwater Education Fund Betty Bahnmiller Memorial Fund Edward and Agnes Brandli Scholarship Fund Farmers Union Oil Co. Scholarship Fund Jennifer Grove Memorial Scholarship Fund Gaylord Gunderson Memorial Fund Lee Hafdahl Memorial Scholarship Ann and Les Henderson Scholarship Fund Margaret Ann and Paul Samuel Johnson Family Charitable Fund Dorrence H. Johnston Scholarship for Engineering Fund Justin Knebel Memorial Fund

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2008 ANNUAL REPORT

Nick Moyer Scholarship Fund Nick Moyer Memorial Fund Napa Ride to Reading Fund Patrick O’Donnell Memorial Scholarship Fund Katie Jo Olafson Memorial Fund Rainbow Park Restoration Fund Warroad Care Center Fund Warroad Early Childhood Initiative Fund Warroad Education Fund Warroad Heritage Center Fund Warroad Lost River Sportsmen Complex Fund Warroad Memorial Arena Fund Warroad Point Area Restoration and Community Recovery Fund Warroad Swim Program Fund Warroad Women of Today Community Project Fund White Earth Reservation Area Community Fund White Earth Oshki Manidoo (New Spirit) Fund

Cultural Funds

Beltrami County Historical Society Endowment Fund Bemidji Area Arts Endowment Fund Bemidji Community Arts Center Fund Bemidji Community Theater Fund Fred Marshall Fund for the Headwaters School of Music and the Arts Richard and Pam Nelson Family Fund for the Visual Arts North Star Arts Fund Ernie Rall Children’s Performing Arts Fund HB and Ina T. Roholt Family Fund for the Arts Everett Wilimek Endowment for Violin Studies Sandy Kaul Fund for the Arts Paul Bunyan Community Theater Fund Bemidji Area Public Library Foundation Endowment Fund Dorothy Breen Fund for the Visually Impaired Hazel I. Shimmin Endowment Fund Ruth Stenerson Project Support Fund Clearbrook­Gonvick Performing Arts Fund Lake of the Woods County Historical Society Endowment Fund Roseau County Historical Society Endowment Fund Two Rivers Area Theatre Endowment and Scholarship Fund

Economic Development Funds

Ingenuity Frontier Fund Lake of the Woods Area Industrial Development Fund Lake of the Woods Industrial Park Development Fund Park Rapids Revolving Loan Fund

Education Funds

Bemidji Lumberjack Foundation Fund All School Reunion Fund First National Bank, Bemidji Bonspiel Fund John F. Breen Scholarship Fund Ray Breen Scholarship Fund Amy Anderson English Fund Food Service Fund Bun and Alvera Fortier Scholarship Fund Tom Gardner Memorial Fund General Scholarship Fund First National Bank Foundation Scholarship

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Community & Component Funds National Honor Society Scholarship (Rural Cellular Corporation) Paul Bunyan Telephone Cooperative Beltrami Electric Cooperative Scholarship George Pelawa/Calgary Flames Scholarship Ken VanWilgen Memorial Scholarship Rick Lee Memorial Fund Heidi Bitzer McClure Memorial Scholarship Fund Pat Campbell String Fund Joe Plummer Music Fund Buck Robbins Scholarship Fund Des Sagedahl Scholarship Fund Troy Nelson Memorial Character Scholarship Endowment Fund Lumberjack Security Bank Scramble Fund K. E. “Red” Wilson Athletic Fund Ruth Shannon Wilson Scholarship in Music Fund Laurel Capistran Murphy Scholarship Fund Clearbrook­Gonvick Education Endowment and Project Fund Mary Jo Klinger Scholarship Fund Olga Peterson Scholarship Fund Clearbrook­Gonvick School Playground Fund Thorbeck Field Fund District #593 (Crookston) Education Foundation Endowment Fund Frances Drivold Special Education Fund East Polk County Fair Scholarship Fund Heartland Christian Academy Endowment Fund Julie Holmquist Memorial Scholarship Fund Leonard J. and Rosemond Kucera Memorial Scholarship Fund Lake of the Woods Industrial Development Scholarship Fund Laporte Education Fund Laporte­Benedict VFW Scholarship Fund Tonia Johannsen Memorial Fund Community Playground Fund Mahnomen Education Fund General Scholarship Fund Les Hanson Scholarship Fund Milton Hockel Scholarship Fund Gen. Ike and Maj. Bruce Isaacson Scholarship Fund Night Riders Sno­Club Scholarship Fund Red Lake Falls Education Fund Richard Bresnahan Leadership in the Arts Fund Lester Norris Dale, MD Scholarship Fund Kim Knaack Music Fund Kris Fontaine Scholarship Fund Kyle A. Myhre Memorial Fund St. Mary’s Mission School Endowment & Project Fund James and Sylvia Sande Scholarship Fund Mike Staples Memorial Scholarship Fund Two Rivers Area Theatre Endowment and Project Fund – Scholarship Fund Warren­Alvarado­Oslo Education Foundation Lyle H. Engelstad Scholarship Fund Myron and Margaret Carlson Scholarship Fund Music Advancement Fund Luther Younggren Memorial Scholarship Fund

Environment and Recreation Funds

Bemidji Area Parks and Trails Endowment and Project Fund Bemidji First City of Lights Fund Bemidji In Bloom Fund Bemidji Sculpture Walk Fund Freedom Defenders Veterans’ Memorial Fund Lake Bemidji Waterfront Fund Bemidji Curling Fund Big Bog State Recreation Area Endowment and Project Fund Giziibii Resource Conservation & Development Fund Greater Bemidji Outdoor Foundation Omdahl Environment & Conservation Fund Potato Lake Charitable Fund Rydell Refuge Endowment and Project Fund Upper Mississippi Watershed Endowment and Project Fund Wetlands, Pines, & Prairie Audubon Sanctuary Fund

Health Care Funds

Bridges Medical Services Foundation Clearwater County Area Health Care Fund Clearwater Emergency Services Fund Clearwater Cancer Screening Fund Clearwater Hospice Fund Clearwater Memorial Fund Clearwater Senior Care Fund Clearwater Hospice Family Room Fund Courage Center Programs and Camps Fund First Care Medical Services Foundation First Care Hospice Endowment Fund Kelliher Area Health Care Fund LifeCare Medical Center Care Fund Maggi Adams Medical Equipment Fund Eagles Auxiliary Diabetes & Dialysis Fund Life Care Medical Center Hospice Fund Parish Nursing Fund LifeCare Greenbush Manor Fund LifeCare Roseau Manor Fund Think Pink Fund North Valley Health Center Endowment Fund Kittson Memorial Healthcare Center Foundation Fund

Donor Advised Funds

Backstrom Family Charitable Fund Baer Family Fund Meade Family Fund David Meade Scholarship Fund William A. and Eloise E. Nelson Fund Oja Family Fund Major Robert Olson Memorial Fund John and Eloise Ostrem Charitable Fund

Rongen Family Fund Ole and Ruth Tweet Family Fund

Regional Funds

Fourth and Robbins Fund Hopes, Dreams and Smiles Fund Red River Valley Emerging Leadership Fund Northwest Minnesota Women’s Fund Northwest Minnesota Women’s Scholarship Fund University of Minnesota Crookston Women’s Scholarship 2008 ANNUAL REPORT

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NMF LeaderImpact – Learn to Lead and Succeed What was accomplished in 2008:

Success starts with great leadership, and the Northwest Minnesota Foundation is giving business owners and others a fresh opportunity to become better at what they do. During the past two years, NMF has been redesigning and improving upon its already impressive leadership program.

LeaderImpact is a one­of­a­kind training program that features one­on­one professional coaching, personal assessments to identify strengths and leadership qualities, and an online technology platform that allows participants to apply what they have learned and network with fellow participants. LeaderImpact is arming participants with critical leadership skills and strategies to improve the efficiency of their business or organization.

Whether success is measured in profits, community impact or success stories, organizations are benefiting from the improved leaders that are coming out of LeaderImpact.

LeaderImpact is One of a Kind

LeaderImpact is special. It's not like other leadership training. In fact, it is distinctly different from any other type of leadership development existing today, and that is exactly how it was designed to be.

What makes LeaderImpact so unique is the fact that it is experiential, transformational and competency based, all at the same time. This means that attendees aren't simply spectators – they are participants. They can expect to learn how to build specific leadership skills, such as communicating effectively and developing successful work teams through firsthand experience, through interaction with others and by putting what they've learned into action, immediately.

Furthermore, this training doesn’t simply give attendees tips on leadership; it reconstructs how they view leadership and revamps their leadership capabilities. It will transform them into great leaders who can make an impact.

LeaderImpact is changing the way people think about leadership.

It's changing the manner in which we grow as leaders. It is a remarkable program, and the impact it is having on individuals and organizations is just as special.

Anchor Marketing Takes Advantage of Innovative Leadership Training Steve Eickman is a man who has earned a reputation for giving 110 percent. He is focused on success in every aspect of his life, especially his business.

Eickman owns Anchor Marketing, a full­service advertising company located in Grand Forks, North Dakota. He is always on the lookout for ways to make his company bigger and better. “I wanted to be a better leader for my company and improve my personal leadership skills,” says Eickman. “When I learned about this training, I felt it would help me be a better supervisor and run a more productive company.”

Eickman was energized almost immediately by the environment of LeaderImpact. It all started with the location – at the beautiful Swenson House in Thief River Falls, Minnesota. “I didn't have to travel very far, and everything was comfortable, from the atmosphere to the furnishings to the casual dress code,” said Eickman. “Plus, everything was included in the cost, along with some of the most amazing food I've had in a long time.”

The real reward for Eickman, however, was the knowledge he took home from having the retreat's unique combination of integrated learning, small group interactions and professional coaching.

According to Eickman, he found a powerful tool to help improve his business. “LeaderImpact gave me a chance to identify where I could improve, and how I could change things by building upon what I was already good at,” says Eickman. “It was a tremendously positive experience. I couldn't wait to put my newfound knowledge into action.”

He brought this new energy back to his crew at Anchor Marketing. “We've spent time connecting and focusing on our strengths rather than our weaknesses,” Eickman says. “The feedback so far has been outstanding. Whether we are having a company barbecue or a mini­retreat, our staff has embraced the concepts of LeaderImpact.”

Eickman has been enjoying positive feedback from his staff and encouraging results throughout his business. “Much of our management energy goes towards finding positives rather than negatives,” says Jay Mindeman, vice president and creative director at Anchor Marketing. “It's allowed everyone to become better at what we do.”

Eickman's improved leadership skills have even inspired other staff members to become leaders in their own right. In fact, as a direct result of Steve's LeaderImpact project, a number of the staff has formed a committee to enhance relationships and build harmony throughout Anchor Marketing's growing ranks. There is no doubt that the wisdom Eickman gained from LeaderImpact has inspired and energized everyone at Anchor Marketing.

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Great Leaders Inspire Great Leadership ­ Experience Makes All the Difference

LeaderImpact is a one­of­a­kind program that is experiential, transformational and takes leadership abilities to the next level. To implement this diverse set of development strategies, it takes an experienced leader. That's why LeaderImpact not only creates great leaders, it utilizes them as well.

LeaderImpact is co­facilitated by Dr. Okokon Udo along with DeAnna Murphy, in conjunction with Northland Community and Technical College and NMF. He is the President and CEO of Distinctive Leader Options, a consulting firm focused on innovative leadership training. With an extensive background in leader development, Udo utilizes a combination of cutting edge strategies, skills and competencies that are proven and instrumental for leadership training.

“Leadership has been one of the most consistent things in my life. It's been an essential part of everything, from my upbringing to my education. It's my passion,” says Udo. “At LeaderImpact, we offer techniques and experiences that participants will apply both consciously and unconsciously. We teach them real­life ways to enhance their leadership abilities and make an impact on everyone around them.”

LeaderImpact Makes “The Bigger Picture Brighter”

A career change is oftentimes a challenge. So when Ann Beck switched from being a Community Education Director in Bagley to becoming the Administrator of Senior Living at Edgewood Vista in Hermantown (Duluth), she was glad she had some newfound tools to help her along the way.

Her experience and the knowledge she gained from LeaderImpact gave her the confidence that enabled her to make the switch, and to do it successfully. In her new role at Edgewood Vista, Beck brings with her effective leadership skills that give her the means to oversee the large staff.

teaches you how to become grounded so that you don't spin out of control,” says Murphy. “You're able to handle the difficult situations calmly and confidently.”

Life­changing Leadership

Norma Smith knows a thing or two about corporate America.

She's lived and breathed it for more than 20 years, most recently as a marketing strategist for Microsoft®. When she was asked to participate in LeaderImpact, she thought that a boost in her leadership development couldn't hurt. After attending the retreats, meeting with her personal life coach and experiencing LeaderImpact firsthand, she knew she was involved in something that would change her life.

“LeaderImpact isn't your typical classroom­like training that most people are accustomed to, with PowerPoint™ slides and manuals,” says Smith. “It is an experience, and one that sticks with you. It’s something that you can't help but utilize every day.”

“After attending LeaderImpact, I went back to Microsoft®, and I was able to initiate projects faster and get them completed quicker,” says Smith. “I was able to do everything in a much more productive fashion because I was smarter about how I was delegating, who I was using and where we were going.”

Today, Smith has been so motivated by the results and quality of training from LeaderImpact that she has become part of the team. She is a leadership trainer for Northland Community & Technical College, and she embraces the opportunity to share the same knowledge, insight and value that she herself experienced at LeaderImpact.

Visit www.nmfleaderimpact.com to learn more, to view a short video, and to download application forms.

In addition, she now has the ability to recognize and capitalize on other staff members’ strengths to make the senior living facility even more successful – something that she credits to LeaderImpact.

“LeaderImpact is about learning how to strengthen your team and build upon everyone's strengths to make the bigger picture brighter,” says Beck. “You don't just spend a day or two learning about becoming a better leader. The things you learn and the relationships you build at LeaderImpact don't get put on a shelf. They're too valuable to leave behind.”

Navigating Complex Realities

NMF LeaderImpact's leaders are passionate about what they do, and maybe no one more than DeAnna Murphy. Murphy is the co­ designer and co­facilitator of this innovative training. A continuous improvement specialist at Northland Community & Technical College in Thief River Falls, she has always had an intense interest in leadership development and how it functions within organizations. Murphy has been delivering leadership training since 2000 and has shared her knowledge throughout Minnesota and its surrounding states.

To Murphy, LeaderImpact is about creating grounded leaders.

“When complex reality strikes, when adversities come, LeaderImpact

Eickman and LeaderImpact instructor Dr. Okokon Udo enjoy a laugh. Even games can be part of leadership training.

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What was accomplished in 2008:

Valspar Program Paints the

For more than 11 years, Valspar Corporation has provided paint in every color possible to community projects in the 12­County NMF service area and in regions of the other Minnesota Initiative Foundations.

This unique partnership was created out of a desire by Valspar to have a greater presence in rural Minnesota. “Our partnership with the Initiative Foundations allows us have an impact on communities throughout the entire state,” said Valspar’s Gwen Leifeld.

A fresh coat of paint can make a remarkable difference in the appearance of community structures, neighborhood facilities and parks, while adding to a sense of civic pride.

Awards of free paint, stains or sealants have been made by Valspar and NMF for restoration or beautification efforts that best meet eligibility criteria.

Selection is based on the visual impact of the proposed projects, potential advantages to the public, volunteer participation and support, intended use of the restored building, and benefit to underprivileged persons.

Projects have included those involving historic structures, senior citizen and community centers, facilities for the disabled, publicly owned build­ ings, murals, and other visual­impact designs.

In May 2009, NMF announced that a whopping 795 gallons of paint was going to be distributed for 25 awarded projects. Among them was the Lake Pleasant Town Hall in Red Lake Falls. The building, known as the Perault School, was constructed in 1880 and used as a school until 1948. It remains on the original site on Highway 32.

Much of the original classroom is still intact, including the teacher’s desk, chair, and the student desks. The original chalk­ board that wraps around two walls of the classroom remains.

Other useful and decorative items include a bookcase that served as the library, a pendulum clock, a globe, map racks and pictures of Presidents Washington and Lincoln. Also inside the building is an enormous working wood­burning stove.

The structure is currently used as the Lake Pleasant Town Hall, where meetings and elections are held. It is also used by the local school districts for field trips.

While there, students spend all day in the classroom, as they would have while the school was still open.

They ring the bell to indicate the beginning and end of the school day. Senior citizens also enjoy visiting the facility to reminisce.

These three have donated over 100 hours of time to painting the interior of the Gonvick Community Center. From the top: Eileen Lien, Jeannie Sorenson and Evon Quern

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2008 ANNUAL REPORT

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Town Red (and White, Blue, Green, Yellow...)

Township residents received grants from the Red Lake County Historical Society and the Minnesota State Historical Society to update and repair the town hall. The NMF/Valspar application provided paint for the finishing touches.

Residents of the township volunteered for repairs and the Huot Hustlers 4-H club worked on the building as a 4-H Community Pride Project.

Another project, the Gonvick Community Center, was accomplished by a small group of hardworking volunteers, who put in a total of 242 hours.

The city had limited sources of income for the upkeep of the building. The people who took on the project said they feel very fortunate to live in a community so giving and supportive and wanted to give back through the work of this project.

Interior painting in the building included the Auditorium, which is open to the public and used for various activities, the kitchen, City Clerk’s office, Council chambers and the Gonvick Library Link Site.

In the NMF region, Valspar has donated over 5,700 gallons of paint for 141 projects in the Minnesota Beautiful PictureIt-Painted program. Many residents, visitors, and especially project volunteers can attest to the beautiful difference that’s been made by painting our towns.

Lake Pleasant Town Hall, the former Perault School in Red Lake Falls has been in use since its construction in 1880. Valspar provided paint for the exterior, interior, and some outbuildings.

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