Fiscal Year 2011 Annual Report

2011

ANNUAL REPORT

TABLE OF CONTENTS: MISSION VALUES ACCOMPLISHMENTS

: page 2

BOARD OF DIRECTORS STAFF

: page 3

MESSAGE

: page 4

FINANCIALS

: page 5

OVERVIEW

: page 6

IDEA COMPETITION

: page 7

IMPACT 20/20

: page 8

SUSTAINING COMMUNITY SUCCESS

: page 9

FUND DEVELOPMENT OVERVIEW NEW FUNDS

: page 10

NEW FUNDS, continued NATIONAL STANDARDS

: page 11

COMMUNITY & COMPONENT FUNDS 25th ANNIVERSARY EXCELLENCE AWARD RECIPIENTS

: page 16

EXCELLENCE IN LEADERSHIP Florence Hedeen

: pages 17 - 18

ORGANIZATIONAL EXCELLENCE Kittson Memorial Healthcare Center

: pages 19 - 20

INDIVIDUAL EXCELLENCE IN AN ORGANIZATION Sue Liedl

: pages 21 - 22

LOANS & INVESTMENTS

: page 23

PARK RAPIDS ARMORY

: page 24

GRANTS

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: pages 12 - 15

: pages 25 - 28

ONLINE PRESENCE CREDITS

: page 29

NMF CONTACT INFORMATION

: page 30

TABLE OF CONTENTS

2011

ANNUAL REPORT

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

OUR VALUES:

OUR ACCOMPLISHMENTS:

EXCELLENCE

SINCE INCEPTION IN 1986

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

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.

Business loan programs with over $5 million in assets have made 462 loans for a total of more than $21.2 million Creation or retention of almost 2,500 jobs Lending has leveraged more than $62 million in additional funds Made over 4,400 grants totaling $27.3 million Adult and youth leadership programs have provided training for nearly 4,000 leaders

INNOVATION

We are forward thinking and proactive in seeking out opportunities.

WISDOM

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

Specially designed non-profit management and diversity training programs have addressed the special needs of 639 organizations and 92 communities $47 million total assets

PARTNERSHIPS

We are most effective when working in cooperation with others.

More than 350 component funds and sub-funds, with assets totaling $12.3 million

NW MINNESOTA COUNTIES SERVED: Beltrami • Clearwater • Hubbard • Kittson Lake of the Woods • Mahnomen Marshall • Norman Pennington • Polk • Red Lake • Roseau

MISSION • VALUES • ACCOMPLISHMENTS

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2011

ANNUAL REPORT

BOARD OF DIRECTORS:

Eric Bergerson Chair • Fertile

Mark Hewitt Vice-Chair • Park Rapids

Kim Wilson Secretary • Fosston

Gary Purath Treasurer • Red Lake Falls

Robert Hager Greenbush

Jody Horntvedt Baudette

Roger Malm Hallock

Judy Roy Redby

Laurie Wilson Crookston

Jon Quistgaard Bemidji

Faye Auchenpaugh Thief River Falls

Leah Pigatti Park Rapids

NMF STAFF:

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Connie Aguillo Receptionist

Diane Morey Senior Program Officer • Business Development

Lin Backstrom Program Manager • Early Childhood

Lisa Peterson Communications Director

Peggy Crandall Grants Service Associate

Marty Sieve Vice President for Programs

Dawn Ganje Program Specialist • Training & Philanthropic Services

Jim Steenerson Senior Program Officer • Grants

Samantha Hedin Accounting Associate

Amy Tobkin Business Development Specialist

Ritchie Houge Vice President for Philanthropic Services

Holly Tri Administrative Assistant

Barb Lien Administrative Assistant

Caryl Turnow Program Specialist • Business Development

Linde Linde Administrative Assistant

Nancy Vyskocil President

La Rae Maddox Office/Systems Manager

Tim Wang Finance Director

Jane McKelvy Program Officer • Training

David West Senior Program Officer • Business Finance

BOARD OF DIRECTORS • STAFF

2011

ANNUAL REPORT

FROM THE BOARD CHAIR AND PRESIDENT: Hello, all!

A quick read through our annual report will give you a glimpse of the breadth of the activities of the Northwest Minnesota Foundation.

However, it is important to note that in most cases NMF is merely the catalyst for what the people of the region are doing to improve their communities.

Our aim at NMF is to aid and abet philanthropic activity throughout the region. To that end, NMF’s staff is available, both on an ad hoc basis and through formal training, to assist local groups as they strategize, raise funds and implement their projects.

NMF’s every activity involves collaboration.

The IMPACT 20/20 effort has brought together regional business, education and government leaders to identify our most pressing problems and, more importantly, to draft action plans to address those problems. In one of three key identified areas, IMPACT 20/20 has emphasized the importance of broadband internet for our region.

The IDEA competition, supported by the Blandin Foundation, Bremer Banks of Crookston and Warren, and other partners, is a region-wide program to support inventors, innovators and entrepreneurs, the very people who, if they succeed, will create high-quality jobs in our area.

NMF’s business loan program is not designed to stand alone or to compete with banks. Instead, a loan from NMF, because it comes with valuable technical assistance from NMF staff, can make a bank more willing to loan additional funds.

Philanthropy, at least in our region, is not a competition. Instead of scratching and clawing for individual glory, foundations and local funds work together for a common goal: Making Northwest Minnesota a better place to live and work.

The Northwest Minnesota Foundation would not exist if it weren’t for the vision of The McKnight Foundation board of directors who, twenty-five years ago, founded NMF to serve the twelve counties of Northwest Minnesota.

And most of all, NMF would not be able to do its work without those who donate time and money to the literally hundreds of initiatives supported by the foundation.

Pat yourself on the back. NMF is your foundation, and this annual report is merely the tip of the iceberg.

Visit us online: www.nwmf.org MESSAGE

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2011

ANNUAL REPORT

FINANCIAL POSITION: FISCAL YEAR 2011 REVENUE & SUPPORT $12,000,000

ASSETS Cash and Cash Equivalents

$10,186,763 $10,000,000 $8,000,000

$5,688,829

$6,000,000 $4,000,000

$2,109,367

$0

Investment Income

Endowment Contributions

Other

Total

$4,426,877

$4,500,000 $3,540,133

$3,500,000

254,315

Pledges Receivable

395,499

582,118

Accrued Interest Receivable

188,960

172,370

Other Receivables

3,473

7,604

Prepaid Expenses

4,482

5,260

3,960,872

3,932,295

40,637,934

34,976,382

Other Equity Investmants

672,023

463,837

Fixed Assets

641,368

669,441

$ 47,055,555

$ 41,427,451

$

$

Deferred Revenue

478,793

Other Liabilities

222,526

216,439

15,140

85,897

963,393

952,258

50,000

185,000

525,475

542,639

1,738,372

1,547,603

$ 4,159,284

$ 4,291,066

$2,500,000

Loans Payable Granite Equity Partners Subscription Payable

$1,500,000

Annuity Payable

$752,498

$500,000

Agency Endowment Liability

$134,246

$0

Programs

Administration

Fund Raising

Total

282,437

352,321

Mortgage Payable

$2,000,000

292,057

Program Grants/Scholarships Payable

$3,000,000

$1,000,000

363,829

LIABILITIES

$5,000,000

$4,000,000

$

146,938

TOTAL ASSETS

FISCAL YEAR 2011 EXPENSES

404,006

June 30, 2010

Grants/Contracts Receivable

Investments

$786,775 Program Contributions

$

Notes Receivable - Revolving Loan Fund

$1,601,792

$2,000,000

June 30, 2011

TOTAL LIABILITIES

NET ASSETS ENDOWMENT TOTALS 1991 - 2011 $50

2011

2008

$45

2007

2010

$40 2009

MILLIONS

$35 $30

2005

$25 1999

$20 1997

$15

$0

5

$

472,980

$

442,992

Temporarily Restricted

15,288,253

11,264,454

Permanently Restricted

27,135,038

25,428,939

Total Net Assets

42,896,271

37,136,385

$ 47,055,555

$ 41,427,451

TOTAL LIABILITIES & NET ASSETS

PUBLIC DISCLOSURE 990

1995 1993

$10 $5

2001 2003

Unrestricted

1991 YEAR

The Northwest Minnesota Foundation will make available for public inspection the last three years of its tax documents, including Internal Revenue Service Forms 990, 990-T (if applicable), and the Community Foundation’s application for tax exemption, IRS Form 1023, and its most recent audit. If the request for any of these documents is made in person, the requested documents will be provided on the day of the request, if possible. If the request is in writing (including e-mail), copies will be provided within 30 days. The requestor will be charged a reasonable fee for the cost of copying, plus postage. Additionally, the IRS 990 documents will be available on the website at www.nwmf.org through a link to Guidestar.

FINANCIALS

2011

ANNUAL REPORT

FISCAL YEAR OVERVIEW: PARTNERS IN PROGRAMS The information in this Fiscal Year 2011 annual report represents activities for the third year of our current fiveyear planning cycle, covering the period from July 1, 2010 through June 30, 2011; the midpoint in this phase of our organizational life.

The most obvious trend that emerged this year is simply growth – of resources and of services. Over the past two fiscal years, we took considerable pride in having weathered the economic downturn while actually expanding the scope of our work. Trends that were less apparent may tell of more profound changes to the foundation and the way we do business: NMF is most effective when engaged at the community and/or regional levels, less so when focusing on efforts that aim to benefit individuals and single organizations.

Examples of successful regional or community engagement: Healthy Lakes and Rivers Partnership Program • convening members of lake associations to adopt and implement lake management plans Community Connections Grant Program • promoting collaboration between public agencies and/or nonprofits in order to achieve greater effectiveness and efficiency Community Planning Grant Program • supporting comprehensive plans for community and economic development Community Vitality Loans • providing capital for acquisition or retention of businesses that are deemed essential community services STAR Teams Program • training for 6th and 7th grade students to help them become school and community leaders Early Childhood Initiative • facilitating coalitions in 12 communities that help promote high-quality early care and education for children from birth to age five IMPACT 20/20 • bringing together some of the region’s top CEOs and executive directors to pursue a common economic vision for Northwest Minnesota IDEA Competition • providing an entrepreneurship contest, conducted by a partnership of the region’s best providers of business assistance NMF Community Funds • retaining regional assets through exceptionally large increases in donations over the past year.

One example of community engagement deserves special mention: our new Sustaining Community Success Program integrates several NMF functions -- including training, technical assistance, fundraising and grant making -- and puts them at the service of groups of local leaders. The basic principle of the program has been adapted from The McKnight Foundation’s pioneering establishment of the Minnesota Initiative Foundations 25 years ago, in which resources and decision making were entrusted to groups of regional leaders from across the state. Our program’s final outcome would be similar, but this time assigned to community stewards and fund advisors from individual communities within Northwest Minnesota.

While the region is still hit hard by the economic woes that plague the country, this has been an exciting time for the foundation. Not only are we celebrating 25 years of making Northwest Minnesota a better place to live and work, we have had strong performance on existing programs and gotten a new, innovative offering well underway.

Within this report are stories of enduring partnerships that have ties to our earliest actions as a new foundation serving the region. With the help of these vital human resources, coupled with a commitment to excellence, our story has become one of progress through partnerships, new and old.

OVERVIEW

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2011

ANNUAL REPORT

IDEA COMPETITION: The IDEA competition, celebrating its third year in 2010-11, was designed for one purpose — to grow the economy of Northwest Minnesota by outfitting the next generation of homegrown innovators for success in the global marketplace. The program identifies the most promising ideas and entrepreneurs through a competitive process, awards cash to winners, and provides intensive follow-up assistance.

2011 Winners (left to right): Jorge Prince, Jason LaValley, Chuck Odegaard, Al Aaseby, Fred Hartmann, Arnold Kleinsasser, Jeff Sullivan, Kenneth Kleinsasser, Kristine Goddard-Anderson, Elizabeth Peterson

2011 WINNERS

The competition showcases entrepreneurs that have innovative ideas to solve unique challenges not currently being served in the marketplace. Since inception, thirteen winners have been selected, and nearly $200,000 has been awarded to help bring ideas to commercialization.

The overarching themes of the judging criteria are: Innovation, Commercial Viability, Financial Attractiveness, and Entrepreneur Team. The judging panelists are bankers, educators, business owners, engineers, entrepreneurs and economic development leaders in the region.

Throughout the first two rounds of judging, two full days of boot camp provide training for writing a business plan, market research, intellectual property, presentation skills, and financial statements. The Northwest Small Business Development Center and other small business support centers are critical resources for the entrepreneur during the business plan writing and development stages, helping them prepare them for advancing in the competition.

The winners and finalists are announced and celebrated at the Awards Banquet where up to five winners receive $10,000 cash and technical assistance for up to two years on individual business development and commercialization of their product.

The post-award technical assistance is provided by staff at the Northwest Minnesota Foundation and they continue to be supported by the NWSBDC.

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Craft Night Out • Kristine Goddard-Anderson (Thief River Falls, MN) and Elizabeth Petersen (Shoreview, MN) Craft Night Out is an innovative business model that brings the joy of crafting to the home-party setting. It turns the home-party sales model on its head by eliminating in-home sales and instead, creating a pre-party, web-based sales model.

Turn@bout • Allen Aaseby, Fred Hartmann, and Chuck Odegaard, Thief River Falls, MN The pallet jack can be difficult and time consuming to maneuver into position without kicking or lifting the front of the pallet jack. The Turn@bout is an add-on accessory for pallet jacks. When installed, the turning radius is cut in half.

The PIPEMATE • Jason LaValley, Jorge Prince, and Roger LaValley, Bemidji, MN LaValley Industries’ PIPEMATE works in conjunction with a CRC-Evans automatic welding unit to dramatically improve both the speed and safety of the tie-in welding process for the pipeline industry. It will reduce time and labor costs and increase worker safety.

EquipAll GrappleHoe • Jeff Sullivan and Arnold Kleinsasser, Bemidji, MN The EquipAll GrappleHoe offers a unique combination of two of the most common attachments: the Grapple for grabbing & carrying, and the Backhoe for digging and trenching.

IDEA sponsors are: Bremer Banks of Crookston and Warren; Midwest Minnesota Community Development Corporation; Northwest Minnesota Foundation; University of Minnesota, Crookston; 360º Center for Manufacturing and Applied Engineering Center of Excellence; Northwest Regional Small Business Development Center. IDEA was made possible by a grant from the Blandin Foundation. For more information, visit: www.ideacompetition.org

IDEA COMPETITION

2011

ANNUAL REPORT

IMPACT 20/20: IMPACT 20/20 is an influential group of Northwest Minnesota leaders representing diverse interests and working together for the region’s economic success.

NMF has been instrumental in convening this group and several NMF staff and board members are highly involved in the accomplishments and work of three IMPACT 20/20 Taskforces. Each of them are winding up the year on a high note.

Members of the IMPACT 20/20 leadership council, including Anne Temte (left) were panelists in an economic development forum with Gov. Mark Dayton (right) in Thief River Falls

The Infrastructure Taskforce has two goals – to expand the federal Universal Service Fund to subsidize broadband installation in underserved areas, and to improve broadband access speeds for businesses and residents of the region. Work on both Taskforce goals took a major step forward recently with an order by the Federal Communications Commission establishing a new Connect America Fund. More than $4.5 billion will be available through this fund annually to extend broadband infrastructure to millions of underserved households and business in rural parts of the country.

IMPACT 20/20’s input with state officials and federal administrators added significant value to the public-policy discussion which led to the FCC’s order.

The Taskforce will now take on a role of monitoring and responding to developments as the FCC implements its rules.

Goals for the Education Taskforce are to increase the 4-year on-time graduation rates of high schools in the region, and to increase the number of individuals graduating from post-secondary institutions. To address these goals, the taskforce has initiated school-community partnerships to test and demonstrate best practices in five local districts – Bemidji, Park Rapids, Naytahwaush, Win-E-Mac and Thief River Falls. The first three districts are focusing on graduation rates, the last two on post-secondary readiness. A major NMF conference that will feature the projects is scheduled for May 2012.

The Workforce Taskforce is seeking to provide ongoing development of the incumbent workforce. Based upon interviews and surveys of area employers, taskforce members have aimed their efforts at improving the leadership skills of first-line and mid-level managers. They have now formed a consortium of higher education institutions to deliver open-enrollment classes to management personnel at various locations around the region and the response of employers and employees has been very positive.

Courses have been offered on Coaching and Customer Service and will be repeated in the spring, along with a new course on Generations in the Workplace. More new courses will added on the topics of Conflict Resolution, Strategic Hiring, and Performance Reviews. The alliance of five higher education institutions (Bemidji State University, Northwest Technical College, Northland Community and Technical College, the University of Minnesota Crookston, and the University of North Dakota) is a remarkable development.

Much has been accomplished and plans for the future remain ambitious. In fact, IMPACT 20/20 has begun a process to determine whether the time has come to address a fourth, new area to augment these robust efforts in broadband, workforce and education.

IMPACT 20/20

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2011

ANNUAL REPORT

SUSTAINING COMMUNITY SUCCESS: Northwest Minnesota Foundation’s strategic plan emphasizes Quality of Place by prioritizing local capacity – the leadership of its residents, the strength of its institutions, and the retention and use of its financial resources. We are partners in our region’s community efforts in a new and innovative way.

The third part of the program is establishing viable and effective community fund programs that help meet the needs of both donors and the communities.

Our support to communities is central to this priority.

We are there assisting every step of the way to guide the growth and development of philanthropic capacity and volunteer commitment. The goal is to see each community engaged in enhancing their own quality of place, with grassroots organizations responding to needs identified by its own residents.

Development and growth of a general endowment that will augment a culture of philanthropy and help communities meet emerging needs. The Otto Bremer Foundation grant provides each community with a $50,000 endowment match challenge for dollars donated over a 3-year time frame. In addition, NMF gives a 10% match to all gifts made to the endowment fund.

In the fall of 2010, the Otto Bremer Foundation awarded a grant to NMF for its Sustaining Community Success project. This partnership augments the culture of philanthropy in five communities served by Bremer Banks in Northwest Minnesota: Crookston, Fertile-Beltrami, Fisher, Stephen and Warren.

The main objective of the grant is to kick-start the endowment of each community fund with a one-toone match for contributions, ensuring the funds will continue to grow and be available into the future.

A second portion will be used in the short term to fund community projects that will be recommended to our board of directors by the advisory committees of each of the five funds. These sub-grants will fund some immediate community projects, which will also serve to demonstrate the unique value of the community fund to other residents who are not involved in the process.

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In support of the work, four focus areas are being addressed:

Discretionary grant making that demonstrates the benefits of a general endowment with support that is responsive to the needs of both donors and the communities. The Otto Bremer Foundation grant provides $5,000 a year over three years to enable the fund’s advisory committees to recommend grants to qualifying organizations.

Promotional and training programs supporting local awareness and leadership capacity to continue the community fund programs indefinitely. The Sustaining Community Success process includes a component of four training sessions that focus on assisting Community Fund Advisory Committees with strategic planning, marketing, fund development and creating legacy. NMF staff provides technical assistance to each Advisory Committee.

Development of community priorities through a concerted and targeted community stewardship effort. This process helps communities formulate a plan to move forward in a consistent and strategic manner. The Stewards Councils help the community get traction on projects and work effectively together.

NMF has contracted with the Headwaters Regional Development Commission to facilitate this process in the five communities.

SUSTAINING COMMUNITY SUCCESS

2011

ANNUAL REPORT

FUND DEVELOPMENT OVERVIEW: Northwest Minnesota Foundation received numerous requests in Fiscal Year 2011 for assistance with support for a wide variety of activities and personal interest areas.

The 21 new component funds established each fit underneath one of the categories that we use to classify the field or interest area of the fund’s purpose: community service, cultural, educational, environment and recreation, donor advised, health care, or regional in focus, and/or funds that are part of a community fund.

This year in particular demonstrates that NMF philanthropic services, through its functions as a community foundation, has the flexibility and structure donors and organizations require for meeting their charitable goals. Together with NMF, they are helping the region to be a great place to live and work.

NEW FUNDS: George Pelawa-Calgary Flames Education Fund Supports programs, projects and activities that enhance youth athletic programs in the Bemidji (ISD 31) Public Schools and provides scholarships to qualified ISD 31 student athletes who have participated two years in athletics with demonstrated leadership qualities Stephen Area Golf Fund Supports public golf courses in Stephen, charitable programs and activities that encourage golf participation, or other programs that enhance the quality of life in the Stephen area Badger Veteran's Memorial Fund Supports programs, projects, and activities that recognize the commitment, service and sacrifice of the US Armed Forces personnel from Badger Twin Valley Area Community Fund Supports charitable, educational and public purpose projects that will enhance or improve the quality of life for residents and/or visitors of the Twin Valley area Joseph Urdahl Memorial Fund Supports Twin Valley area programs promoting civic pride, community welfare, cultural and heritage responsibility and national patriotism McIntosh Immanuel Cemetery Fund Supports charitable activities, projects, or programs that benefit the general upkeep, safely, history, education or other public purposes at Immanuel Cemetery in McIntosh Orin J. and Marjorie F. Green Charitable Fund Supports qualifying charitable and educational programs, projects and activities of interest to the Green family

Stephen Area Arts Fund Supports activities, projects, and services for the arts community with preference to the Stephen Arts Council Stephen Area Emergency Medical Services Fund Supports programs, projects and activities for emergency services with preference to the Stephen Volunteer Ambulance service New Life Bible Camp Fund Supports charitable and educational activities, projects, or services benefiting camp services at New Life Bible Camp Friends of the Headwaters Animal Shelter Endowment Fund Supports programs, projects, activities or services that protect and benefit the well being of domestic animals, with preference given to the shelter program of the Headwaters Animal Shelter in Park Rapids, Minnesota White Earth Education Fund Supports activities, projects, or services designed to benefit the area's students, staff educational programs and institutions Fosston Inspiration Trail Fund Supports the development, maintenance and improvements to the Inspiration Trail Bemidji Library Park - Chief Bemidji Fund Supports efforts to commission and install a statue of Chief Bemidji, to publish educational materials, and provide for community dedication of the statue in Library Park

CONTINUED ON NEXT PAGE

FUND DEVELOPMENT OVERVIEW • NEW FUNDS

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2011

ANNUAL REPORT

NEW FUNDS: Union Lake Free Lutheran Cemetery Charitable Fund Supports charitable activities, projects, or programs at Union Lake Cemetery near Winger, MN that benefit the general upkeep, safety of public areas, historic or education aspects and other public purposes Bemidji Community Food Shelf Fund Supports programs, projects, or activities of the Bemidji Community Food Shelf Dragseth Family Charitable Fund Supports qualifying charitable and educational programs, projects and activities with preference to charitable needs in the Crookston, MN area Park Rapids M State Fund Supports higher education initiatives within the greater Park Rapids area that benefit regional Park Rapids residents; funding preference will support M state programs in the Park Rapids area and scholarships

Jacquelyn M. Schaffer Scholarship for Music Fund Supports scholarships for ISD #31students involved in music programs who are elementary or secondary education majors with a focus on music education Blackduck Area History & Art Center Fund Supports programs, projects and activities that promote the arts in Blackduck including art preservation, support for artists, all-age art opportunities, connecting art and history education; preference given to the activities and programs of the Blackduck Area History & Art Center Rural Minnesota Project Lead The Way Fund Supports the Project Lead The Way educational program and its projects and activities within northwest Minnesota, with consideration for expansion beyond the region Donors are not listed in the annual report in the interest of conserving our natural and financial resources. Over 2,300+ donors who generously supported the foundation and all of the NMF funds in Fiscal Year 2011 are found in a linked document on the website at www.nwmf.org – Publications - Annual Report. Thank you.

NATIONAL STANDARDS: The Good Housekeeping Seal indicates those products meeting the Good Housekeeping Institute’s tough consumer policy. The American Dental Association awards products that have met the ADA’s criteria for safety and effectiveness with its Seal of Acceptance. The Energy Star designates those products and services meeting high standards of energy efficiency. These third-party marks attest to the evaluation, testing and endorsement of products and services. As a safeguard against puffed-up promises, empty claims and hollow slogans, each validation provides assurance and inspires trust.

Now, community foundations have their own “seal of approval.”

Northwest Minnesota Foundation is displaying it with pride. The National Standards Seal shown here signifies that NMF has met rigorous National Standards and has demonstrated its commitment to financial security, transparency and accountability.

“This is critically important to our donors,” said Eric Bergeson, board chair. “When people use Northwest Minnesota Foundation to make a charitable bequest, establish a fund, or set up an annuity, they do it knowing that we have met standards for donor services, investment management, grantmaking and administration.”

The process of meeting National Standards is arduous, even by community foundation standards. The program requires community foundations to document their policies for donor services, investments, grantmaking and administration.

Documentation is then reviewed by a national panel of community foundation experts, appointed by the Council on Foundations in Washington, D.C. Northwest Minnesota Foundation was confirmed in compliance with National Standards in April 2006.

“The National Standards Seal says this house is in order” said Nancy Vyskocil, NMF president. “It is excellent validation of the work we do on behalf of our donors and our community.”

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NEW FUNDS • NATIONAL STANDARDS

2011

ANNUAL REPORT

COMMUNITY & COMPONENT FUNDS: COMMUNITY FUNDS

Mahnomen Area Community Fund Mahnomen Health Care Fund

Badger Area Community Fund Badger Education Fund Badger Veteran's Memorial Fund

Park Rapids Area Community Fund Fireworks Fund Friends of the Headwaters Animal Shelter Endowment Fund Heartland Homes Fund Hewitt Family Charitable Fund Kinship of Park Rapids Fund Matthew Spangler Hockey Fund Park Rapids Education & Activities Fund Park Rapids Area Drug-Alcohol Awareness Fund Park Rapids Early Childhood Initiative Fund Park Rapids M State Fund Park Rapids Memorial Scholarship Fund Park Rapids Rotary Charitable Fund Positively Park Rapids Fund

Akeley Area Community Fund

Bagley Area Community Fund Bagley Area Scholarship Fund Bagley Beautification Fund Bagley Community Playground Fund Bagley Education Fund Bagley Technology Advancement Fund Nola Ellis Memorial Fund Bemidji Area Community Fund Bemidji Community Food Shelf Fund Bemidji Jaycees Education and Scholarship Fund Earle and Mariann Dickinson Family Education Fund Rosselet-Hickey Charitable Fund Blackduck Area Community Fund Blackduck Academic and Character Scholarship Fund Blackduck Area History & Art Center Fund Crookston Area Community Fund Crookston Arena Fund Dragseth Family Charitable Fund Fertile-Beltrami Area Community Fund Fisher Area Community Fund Fosston Area Community Fund Arvid Clementson Veterans' Memorial Fund Cameron Badurek Peace Award Fund Dean and Joyce McNelly Vocational Scholarship Fund Dean Clementson Scholarship Fund East Polk Heritage Center Fund First Care Fosston Area Fund Fosston 21st Century Fund Fosston Education Foundation Fund Fosston Inspiration Trail Fund Fosston Livestock Shipping Association Animal Science Scholarship Fund Jim Miller Memorial Math Scholarship Fund LuVerne Trogstad Education and Scholarship Fund Terry Stout Memorial Scholarship Fund Vikan Scholarship Fund Greenbush Area Community Fund Greenbush Education Fund Keith and Ellen Kapphahn Family Scholarship Fund

Red Lake Band of Chippewa Indians Red Community Fund Red Lake Band of Chippewa Indians Education Fund Red Lake Band of Chippewa Indians Recovery and Renewal Fund Red Lake Tribal Information Center, Archives, & Library Fund Youth Initiative Fund Red Lake Falls Area Community Fund Kim Knaack Music Fund Roseau Area Community Fund A.J. and Eleanor Kramer Scholarship Fund Charles "Nick" Peterson Memorial Fund Four Season Senior Center Fund Joseph Schneider Scholarship Fund Malung PTO Scholarship Fund Marian Foley Memorial Fund Marvin LaRue Memorial Fund Roseau Adult Education Fund Roseau Area Community & Education Fund Roseau Area Friends of the Library Fund Roseau Lions Club Scholarship Fund Roseau Parks & Recreation Fund Wannaska PTO Scholarship Fund Stephen Area Endowment Fund Robert C. and Mona Rae Johnson Family Charitable Fund Stephen Area Arts Fund Stephen Area Emergency Medical Services Fund Stephen Area Golf Fund Stephen Curling Fund CONTINUED ON NEXT PAGE

COMMUNITY & COMPONENT FUNDS

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2011 Twin Valley Area Community Fund Joseph Urdahl Memorial Fund Warren Area Community Fund Warroad Area Community Fund Ann and Les Henderson Scholarship Fund Betty Bahnmiller Memorial Fund Bruce and Ellen Atwater Education Fund Dorrance H. Johnston Scholarship for Engineering Fund Edward and Agnes Brandli Scholarship Fund Farmer's Union Oil Co. Scholarship Fund Gaylord A. Gunderson Memorial Fund Jennifer Grove Memorial Scholarship Fund Justin Knebel Memorial Fund Katie Jo Olafson Memorial Scholarship Fund Lee Hafdahl Memorial Scholarship Fund Margaret Ann and Paul Samuel Johnson Family Charitable Fund NAPA Ride to Reading Fund Nick Moyer Memorial and Scholarship Fund Nick Moyer Memorial Fund Patrick O'Donnell Memorial Scholarship Fund Rainbow Park Restoration 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 Senior Living Center Fund Warroad Swim Program Fund Warroad Women of Today Community Project Fund White Earth Reservation Area Community Fund White Earth Education Fund White Earth Oshki Manidoo (New Spirit) Fund

COMMUNITY SERVICE FUNDS

ANNUAL REPORT Fertile-Beltrami Early Childhood Education Fund Full Stride Fund Headwaters Regional Development Commission Headwaters Regional Development Commission Leadership Fund HRDC Successful Communities Challenge Fund Headwaters Unitarian Universalist Fellowship Fund Hopes, Dreams and Smiles Fund Kelliher Area Seniors Fund Lake of the Woods County Humane Society Fund Lake of the Woods Early Childhood Initiative Fund Marshall County Early Childhood Initiative Fund McIntosh Immanuel Cemetery Fund Naytahwaush Area Early Childhood Initiative New Life Bible Camp Fund Norman County East Early Childhood Initiative Fund Nymore Dog Park Fund OPTIONS Fund Ralph and Ruth Shoemate Fund Seniors Trust Fund of Beltrami County Strong Youth Fund Support Our Troops Fund

Bagley Early Childhood Initiative Fund

Thief River Falls Early Childhood Initiative Fund

Beltrami Humane Society Fund

Thrive Initiative Fund (Bemidji, Blackduck, Kelliher)

Bemidji Area Early Childhood Initiative Fund

Union Lake Free Lutheran Cemetery Charitable Fund

Clearbrook-Gonvick Early Childhood Initiative Fund

Warren Senior Center Endowment Fund

Clearwater County Humane Society Fund Crookston Early Childhood Initiative Fund Evergreen House Fund (Bemidji Area) Fertile Armed Forces Veterans Fund

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CULTURAL FUNDS

Beltrami County Historical Society Fund Bemidji Area Arts Endowment Fund Bemidji Community Arts Center Fund Bemidji Community Theater Fund Bemidji Symphony Orchestra Fund Ernie Rall Children's Performing Arts Fund

COMMUNITY & COMPONENT FUNDS

2011 Everett Wilimek Endowment for Orchestral String Studies Frederick Marshall Fund for the Headwaters School of Music and the Arts H.B. and Ina T. Roholt Family Fund for the Arts Lake Bemidji Summer Opera Festival Fund North Star Arts Fund Paul Bunyan Playhouse Fund Richard and Pam Nelson Family Fund for the Visual Arts Sandy Kaul Fund for the Arts Bemidji Area Public Library Foundation Fund Dorothy Breen Fund for the Visually Impaired Hazel I Shimmin Fund Ruth Stenerson Project Support Fund Clearbrook-Gonvick Performing Arts Fund Lake of the Woods County Historical Society Fund Roseau County Historical Society Fund Two Rivers Area Theatre Endowment and Project Fund Two Rivers Area Theatre Scholarship Fund

DONOR ADVISED FUNDS Backstrom Family Charitable Fund Baer Family Fund Fourth & Robbins Fund John and Eloise Ostrem Charitable Fund

ANNUAL REPORT EDUCATION FUNDS

Bemidji Lumberjack Foundation Fund Amy Anderson English Fund Bemidji All School Reunion Fund Buck Robbins Scholarship Fund Bun and Alvera Fortier Scholarship Fund Des Sagedahl Scholarship Fund First National Bank Bonspiel Fund Food Service Fund General Scholarship Fund George Pelawa-Calgary Flames Education Fund Heidi Bitzer McClure Memorial Scholarship Fund Jacquelyn M. Schaffer Scholarship for Music Fund Joe Plummer Music Fund John F. Breen Scholarship Fund K.E. "Red" Wilson and Ruth Shannon Wilson Athletic Fund Security BankUSA Lumberjack Scramble Fund Pat Campbell String Fund Ray F. Breen Scholarship Fund Rick Lee Memorial Fund Tom Gardner Memorial Fund Troy Nelson Memorial "Character" Scholarship Fund Clearbrook-Gonvick Education Fund Clearbrook-Gonvick Playground Fund Mary Jo Klinger Scholarship Fund Olga Peterson Scholarship Fund Swanson Family Fund Thorbeck Field Fund District #593 (Crookston) Education Foundation Fund Frances Drivold Special Education Fund East Polk County Fair Scholarship Fund

Meade Family Fund Ole and Ruth Tweet Family Fund

Heartland Christian Academy Fund James and Sylvia Sande Scholarship Fund

Oja Family Fund Orin J. and Marjorie F. Green Charitable Fund Robert J. Johnson and Mary L. Johnson Charitable Fund Rongen Family Fund

ECONOMIC DEVELOPMENT FUNDS Park Rapids Revolving Loan Fund

Lake of the Woods Industrial Park Development Fund Lake of the Woods Area Industrial Development Fund Lake of the Woods Revolving Loan Fund

Julie Holmquist Memorial Scholarship Fund Kyle A. Myhre Memorial Fund Laporte Education Fund Laporte-Benedict VFW Scholarship Fund Community Playground Fund Tonia Johannsen Memorial Fund Lester Norris Dale, MD Scholarship Fund Luther Younggren Memorial Scholarship Fund Laural Capistran Murphy Scholarship Fund CONTINUED ON NEXT PAGE

NORTHWEST MINNESOTA FOUNDATION

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2011 Mahnomen Education Fund Gen. Ike and Maj. Bruce Isaacson Scholarship Fund Leslie Hanson Scholarship Fund Milton Hockel Scholarship Fund Night Riders Sno-Club Scholarship Fund Merle and Mildred Rundell Education Fund Red Lake Falls Education Fund Richard Bresnahan "Leadership in the Arts" Fund Kris Fontaine Scholarship Fund

ANNUAL REPORT HEALTHCARE FUNDS

Bridges Medical Services Foundation Fund Clearwater Area Health Care Fund Clearwater County Emergency Services Fund Clearwater Health Services Hospice Family Room Fund Clearwater Health Services Cancer Screening Fund Clearwater Hospice Fund Clearwater Senior Care Fund First Care Medical Services Fund First Care Hospice Fund

St Mary's Mission School Fund Warren-Alvarado-Oslo Education Foundation Fund Lyle H Engelstad Scholarship Fund Music Advancement Fund Myron and Margaret Carlson Scholarship Fund Wells Academy Fund

ENVIRONMENT & RECREATION FUNDS

Bemidji Area Parks and Trails Fund Bemidji City Parks and Trails Operation and Maintenance Fund Bemidji Community Biomes Outdoor Classroom Fund Bemidji Curling Fund Bemidji First City of Lights Fund Bemidji Library Park – Chief Bemidji Fund Bemidji in Bloom Fund Bemidji Sculpture Walk Fund Bemidji Waterfront-Paul and Babe Maintenance Fund Freedom Defenders Veterans' Memorial Fund Lake Bemidji Waterfront Fund Big Bog State Recreation Area Fund

LifeCare Health Fund LifeCare Manor Greenbush Fund LifeCare Hospice Fund LifeCare Manor Roseau Fund Eagles Auxiliary Diabetes & Dialysis Fund Maggie Adams Medical Equipment Fund Parish Nursing Fund Think Pink Breast Cancer Fund Kelliher Area Health Care Fund Kittson Memorial Healthcare Center Foundation Fund North Valley Health Center Fund

REGIONAL FUNDS

Bronko Nagurski Education Fund Courage Center Programs and Camps Fund Giziibii Resource Conservation & Development Fund Ingenuity Frontier Fund

Big Sand Lake Charitable Fund Hubbard County COLA Charitable Fund

Leonard J. and Rosemound Kucera Memorial Scholarship Fund Major Robert Olson Memorial Fund

Grace Lake Charitable Fund Greater Bemidji Outdoor Foundation Fund

Mike Staples Memorial Scholarship Fund

Potato Lake Charitable Fund

Northwest Minnesota Women's Fund Northwest Minnesota Women's Scholarship Fund University of Minnesota Crookston Women's Scholarship Fund

Omdahl Environment and Conservation Fund

Rural Minnesota Project Lead The Way Fund

Rydell Refuge Fund

Ruth Edevold Awards for Excellence Ruth Edevold Endowment for Excellence

Lake Plantagenet Charitable Fund

Upper Mississippi Watershed Fund Wetlands Pines & Prairie Audubon Sanctuary (Eldor and Stella Omdahl)

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Red River Valley Emerging Leadership Fund

COMMUNITY & COMPONENT FUNDS

2011

ANNUAL REPORT

25th ANNIVERSARY AWARD RECIPIENTS: PARTNERS IN EXCELLENCE The Northwest Minnesota Foundation knows the important contributions individuals and nonprofit organizations make in every community and recognizes that their dedication and commitment is often unseen and rarely acknowledged. Since 1992, the Foundation has reinforced these efforts by identifying outstanding leaders, organizations, individuals in an organization, component funds’ philanthropy and special projects that enhance Quality of Place.

To commemorate our 25th anniversary, we asked all of our past honorees to submit questionnaires about their ongoing impact in the region. The NMF Board of Directors reviewed the submissions, and from them, identified two individuals and one organization that demonstrated their continued excellence in leadership and commitment to helping Northwest Minnesota be a great place to live and work. They are: Florence Hedeen • 1993 Excellence in Leadership Award Kittson Memorial Healthcare Center • 1999 Organizational Excellence Award Sue Liedl • 1997 Individual Excellence in an Organization Award (Conflict Management Program) “Northwest Minnesota Foundation and the Women’s Fund have given me the opportunity to get to know and work with people who believe as strongly as I do that ‘together we can make a difference.’ NMF helps give small communities and small nonprofits the support they need to make Northwest Minnesota a safe, viable, attractive place to live, work, play and raise a family.”

- Florence Hedeen “Northwest Minnesota Foundation has directly and indirectly made a difference in Kittson Memorial Healthcare Center’s ability to not just survive, but rather to thrive over the past 20 years in meeting the primary health care needs of the citizens in and around Kittson County.”

- Rick Failing, CEO “Northwest Minnesota Foundation’s continued support and belief in our work has helped take a vision that started in one school and expand it to 18 other schools in 12 communities. We went from one school, to one community, to creating a nonprofit, to twelve counties, to now fielding requests for services from around the world.”

- Sue Liedl

AWARD RECIPIENTS

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2011

ANNUAL REPORT

EXCELLENCE IN LEADERSHIP: FLORENCE HEDEEN

Northwest Minnesota Foundation Excellence Award recipient Florence Hedeen of Park Rapids recognizes the reality that contributing one’s time and talents may be the best gifts one can give a community.

An early participant in NMF’s Leadership Development Training Program, she remains a supporter of the Foundation and its mission to this day.

Florence signed up for leadership training to sharpen her skills on behalf of the Headwaters Intervention Center (HIC), a non-profit dedicated to helping victims of domestic violence and child abuse, which she has served as a volunteer, part time employee and board member. Once Florence completed the training, she made sure other HIC employees were given the advantage, too.

In 1993, Florence nominated herself for an NMF Outstanding Leadership Award, not for the recognition but for the $1,000 grant given to the recipient’s choice of charitable activities. She was selected from more than 200 people who had participated in the leadership training and directed $200 to go to the Park Rapids Schools and $800 to Kinship.

Once Florence was introduced to NMF, she and her husband Carter had become interested in the Foundation’s work and it became one of their charities. Florence continued to participate in NMF training opportunities and was invited to join the Women’s Fund advisory committee shortly after it was established. She became a Founder, served as secretary and then as president, before stepping down after 10 years. During her tenure, she made other women in the Park Rapids community aware of the Women’s Fund. One of her proudest accomplishments is that 16 women from the Park Rapids area have become Women’s Fund Founders or Visionary Partners.

Among them is Nancy Carroll. Florence successfully nominated Nancy for a Women’s Fund Community Builder award and the next year Nancy joined the advisory committee. They served on the first grants committee and Nancy credits Florence for designing a rating system to evaluate applications.

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EXCELLENCE IN LEADERSHIP

2011

ANNUAL REPORT

PASSION AND COMMITMENT When observing Florence’s work, two passions become apparent: To help those who are less fortunate by creating a more peaceful society and to educate.

Florence has made a lifelong commitment to improve human-kind by working with: Headwaters Intervention Center; Kinship of Park Rapids; as a member of the Park Rapids School Board; fostering world peace through advocacy and education efforts with the Peace Lantern Program; advocating for Life Source – a non-profit organization dedicated to saving lives through tissue and organ donations; involvement in re-starting the Park Rapids Area League of Women Voters; becoming a sponsor-level donor of the Northwest Minnesota Women’s Fund and in service to its mission.

In addition to supporting the Women’s Fund, Florence and her husband Carter have also been very generous donors to NMF through contributions to the Park Rapids Community Fund; Kinship of Park Rapids Fund; Heartland Homes; the Spangler Hockey Fund; the Red Lake Recovery and Renewal Fund; and NMF’s endowment.

A new PACER puppet program against bullying received the grant funds awarded as part of Florence’s recognition. It will be used to train volunteers as puppeteers and to cover expenses to bring the program to Park Rapids, Nevis, and Laporte elementary schools, reaching up to 18 classrooms of children each year with a critical violence prevention message.

- Contributed by Leah Pigatti

“Florence is one to see the big picture. The need for a way to evaluate grants, keeping the Women’s Fund’s mission and vision in mind, is a good example,” Nancy said.

Florence’s other interests and pursuits have evolved from efforts to foster world peace to election to the school board and work on behalf of the North Country Trail Association. She helped restart the Park Rapids League of Women Voters and was elected to the state board. Her work on increasing League membership in Minnesota resulted in her nomination to become a Ruth S. Shur Fellow in 2009 and she was among the first class of 12 national coaches serving state and local Leagues.

“NMF relies on contributions, adds value and turns it back to those who don’t have the money,” Florence said. “That is why their work matches my values and is what I support.”

Nearly 25 years after her first contact with NMF, Florence’s connection has come full circle. She responded to a call for nominations for a second Anniversary Excellence Award in hopes of winning a grant and has asked that it go to HIC.

NORTHWEST MINNESOTA FOUNDATION

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2011

ANNUAL REPORT

ORGANIZATIONAL EXCELLENCE: KITTSON MEMORIAL HEALTHCARE CENTER

Nearly 20 years ago, Kittson Memorial Healthcare Center was admittedly a relatively stagnant organization; one that could have followed the path of closure like a number of small rural hospitals had done in the 90s. However, the Board of Directors, the staff and the community were not about to give up that easily. In the early 1990s, the Board hired Rick Failing as its new Chief Executive Officer and commissioned a new strategic and marketing plan. They also conducted a complete physical facility and equipment assessment.

Using the strategic plan and facility assessment, the Board began to develop a sense of what Kittson Memorial needed to do in order to not just survive, but to thrive and deliver quality services, with a focus on being professional, yet personal. The Board also recognized that not only did the organization need to consistently meet the expectations of patients (today referred to as “patient centered”) but, just as important, the organization needed to be “staff focused.” They realized that only satisfied staff will be motivated and have the level of dedication to exceed patients’ expectations.

It was during this self assessment time that Rick attended a week long NMF grant writing workshop. He said this workshop played a critical role in Kittson Memorial’s success over the years because the skills he learned from the workshop allowed him to successfully acquire over three million dollars in grants for the organization. Funds were used to financially assist in the renovation of nursing home space; the creation of a satellite medical clinic; establishment of a home health agency and a dedicated memory care nursing home unit; the creation of a community accessible fitness center within the facility; expansion of clinical service offerings; the rebuilding of the hospital “from the inside out” as Rick would characterize it; construction of an attached medical clinic as well as an assisted living center; and numerous acquisitions of new equipment and various physical plant infrastructure improvements.

Over the years, Kittson Memorial also participated in other NMF programming such as training on developing a foundation, which led to the establishment of an endowment fund with NMF. Kittson Memorial’s managers have also attended leadership training programs to enhance their managerial skills.

It is because of these facility improvements and expanded services, coupled with a staff centered management approach and a focus on exceeding patient expectations, that Kittson Memorial is indeed thriving today.

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ORGANIZATIONAL EXCELLENCE

2011

ANNUAL REPORT

Kittson Memorial Healthcare Center is an asset to Kittson County, as well as serving residents from the eastern North Dakota area.

The non-profit corporation was formed in 1919 The new hospital opened in 1922 New 36- bed hospital opened in 1958 A new 40-bed skilled nursing home opened in 1968 In 1970 remodeling was done for clinics, and, A new 55-bed intermediate care facility opened in 1981 Kittson Memorial continues to be updated for whatever services are needed for patients. Year after year, the quality of services has increased and new services acquired either through a satellite service offered with another facility or adding new professionals to the staff.

Rick Failing runs a tight and very clean ship, so to speak -- people from all over talk about how nice our facility is, which is probably why we have received Medicare and State awards as being one of the ‘best’ nursing homes in Minnesota.

The facility strives to keep in-service classes ongoing for employees and brings new programs for the public.

Kittson Memorial is a major employer in Kittson County, with over 100+ full and part time people, along with a volunteer ambulance crew of about 18 EMTs. Rick doesn’t like to take credit for much, but he is very valuable to the facility and the community was very glad to see him return after a four-year period (2006-2010) of being gone.

As Kittson Memorial’s motto says: Personalized professional care close to home.

The staff is to be commended for their personalized and professional care, and having that care close to home has been achieved because of the administration and board of director’s visions to keep patient care ‘close to home’ and providing the services that are needed without traveling a great distance.

- Contributed by Gail Norland

Rick said he is especially proud of the quality care and services provided at Kittson Memorial. His pride has been validated by three consecutive Medicare 5 Star Overall Ratings for the nursing home, four Minnesota Hospital Association awards for safe practices, and a recent mention

by US News and World Report as one of seventy “best” nursing homes in Minnesota.

However, Rick is quick to say that this has only been possible because of the quality, character, and dedication of the staff he is privileged to lead. He said the residents in and around Kittson County can be confident they will receive quality, personalized service, from people who take their roles very seriously as trusted health care professionals at Kittson Memorial Healthcare Center.

NORTHWEST MINNESOTA FOUNDATION

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2011

ANNUAL REPORT

INDIVIDUAL EXCELLENCE IN AN ORGANIZATION: SUE LIEDL

Sue Liedl received the foundation’s 1997 Individual Excellence in an Organization Award for conducting the Conflict Management program at St. Philips School in Bemidji.

When NMF decided to support a youth leadership program, the foundation asked Sue to develop a program that would build students’ skills to model respectful attitudes.

Sue has modeled respect and is a living example of the ripple effect that she promotes in Students Teaching Attitudes of Respect (STAR). Sue brought together a team of varied professionals to teach 6th & 7th grade students how to understand and teach the concepts of respect. STAR then evolved to bring in college students so they might learn to facilitate processes in the STAR program -- modeling the behaviors and catching those “teachable moments.”

The involvement of the STAR trainers supported the beginning of Peacemaker Resources, a new nonprofit. Peacemaker Resources has created a ripple effect to schools and nonprofits in the region as well as other organizations asking for a process that encourages a healthy working environment.

A STAR team led by Sue was invited to a national conference where they delivered breakout sessions about STAR.

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INDIVIDUAL EXCELLENCE IN AN ORGANIZATION

2011

ANNUAL REPORT

INSIGHT AND INNOVATION

When I think of Sue Liedl, three words come to mind: curiosity, compassion and commitment. The conflict management skills and training programs she has developed over her career have been driven by her curiosity in human behavior, carried out with compassion for others and sustained through her commitment to building a peaceful community. I first learned of Sue’s work while working as a Youth Advocate for Students Teaching Attitudes of Respect (STAR). In one of her trainings, Sue told us a story of how her interest in conflict management began.

She described a story in which all of us can relate and many of us dread recounting-- picking teams in gym class. She noticed that one girl was always picked last, and was met with snickers and sneers by the team so unfortunate to get “stuck with her” in the end. Fascinated by this behavior and curious about the consequences of an alternative scenario, Sue decided, when it was her turn, she would pick the girl first. Her classmates were astounded and speechless. No one knew quite what to do or how to react. The game went on and Sue thought little of the action she had taken.

Many years later she received a letter in the mail. It was from the girl so many years ago, now a grown woman, and it read “Thank you for picking me first”.

Sue acknowledges the incredible impact empathy and respect can have on the empowerment of individuals. The programs she has since developed apply the lessons of peer leadership, compassion and empathy. Through her insight and innovation she has developed curriculum that trains children to be the teachers in their own classrooms, teaching lessons of victim empowerment as a form of bully prevention, cooperation and communication.

One of the greatest lessons I, and so many others, have learned from Sue is that peace does not come from the absence of conflict; it comes from our ability to handle conflict with respect and empathy for others.

Sue has been committed to our children for over 20 years. Like the ripples on a pond, the use of these skills send ripples of peace and hope throughout our schools, families, communities, and world.

- Contributed by Anna Carlson

Sue’s latest ripple has reached the international level with a nonviolent communication program designed by Marshal Rosenberg, who has worked with conflicting governments assisting warring people with an effective peace process. Rosenberg was fascinated by the idea of students teaching peace skills. People from various countries came to Bemidji to experience a program set up by Sue to support nonviolent communication and the STAR program.

Now we look forward to the completion of a curriculum that can spread STAR even further. Sue has begun an amazing ripple effect and gives that incentive to all of those lives she touches.

NORTHWEST MINNESOTA FOUNDATION

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2011

ANNUAL REPORT

BUSINESS LOANS & INVESTMENTS: LOANS AND INVESTMENTS TOTALING $938,750 GENERAL BUSINESS LOANS

ENTREPRENEUR DEVELOPMENT PROGRAM

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

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 $633,750 were made to: Occupational Development Center, Bemidji To finance a building purchase in a partnership among three local gap financing partners to accommodate expansion of the Center.

Pine to Prairie Angel Fund, LLC, Fosston For equity investment on behalf of Ingenuity Frontier.

Northland Kilns, Inc., Bagley For working capital to support the production of new products.

Occupational Development Center, Thief River Falls For purchase of equipment to better serve clients.

McIntosh Machine & Manufacturing, McIntosh For purchase of equipment for expansion.

Three Community Vitality loans were made for financing retail and other operations that are vital for the health of communities: Haugen Hardware & Home, Inc., Red Lake Falls For the purchase and rehabilitation of an existing hardware store.

Splitz Bowling, LLC, Baudette For maintaining an essential service for entertainment through a collaborative community effort.

Mentor Store, LLC, Mentor For reconstruction of the store following demolition by a tornado.

One loan was made from the Industries for Park Rapids Loan Fund: Echopoint Design & Development, LLC, Park Rapids For help with the development of the Armory Building project.

One loan was made from the Lake of the Woods Revolving Loan Fund: The Wesley Graves Brokerage, Roosevelt For the start-up of a new trucking brokerage in Williams.

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Loans totaling $304,000 were made to: Interiors by Decorating Den, Bemidji Minnesota Nice Cafe, Bemidji North Country Food & Fuel, Inc., Waskish Big Bear Sealcoating & Striping, Wilton Preservation Place, Bagley Brons Recycling, Karlstad Jennifer A. Burkel and Michael J. Johnston, Roseau Xtreme DnA, East Grand Forks Rejuv Salon and Spa, Crookston Leah Lynn Pike, Park Rapids Althea’s Cakery, LLC, Bagley Geller Properties of Bemidji, LLC, Laporte Laverne H. Pederson, Bemidji Espresso 34, Park Rapids Laporte Grocery & Meats, Inc., Laporte

TECHNICAL ASSISTANCE The Northwest Minnesota Foundation provides assistance in the loan application process and after the loan is made. Staff provides technical assistance to increase a business owner’s capacity to successfully manage and operate their business and increase its prospects for long-term success. Assistance is provided by staff or consultants and may include workshops, classroom training and individual counseling.

322 people received personal technical assistance counseling $69,225 supported consulting to assist 21 entrepreneurial businesses and $40,000 was awarded to four IDEA competition winners Eighteen classroom training workshops were sponsored for 114 attendees Nine workshops with various entities or trainers were delivered for 56 attendees 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.

LOANS & INVESTMENTS

2011

ANNUAL REPORT

PARK RAPIDS ARMORY RESTORATION PROJECT: Question: What has a legacy value of $4 million and a taxable value of zero?

Answer: A 24,000 square foot vacant building in the heart of downtown Park Rapids.

Demolition crews from North Country Structures, Inc. clean up and remove debris from the old Armory after the completion of asbestos removal and lead paint abatement.

The original coal fired boiler operated at 50% efficiency and heated the uninsulated armory by sheer brute force; note the asbestos insulation on the old steam pipes.

For twenty years the former National Guard Armory in Park Rapids was unfit for public use and remained a dark conundrum. What do you do with a building that is too big to renovate and too expensive to tear down? How do you deal with the asbestos, lead paint, PCBs, and abandoned underground fuel storage tanks?

clean up, installation of new utility services, including state of the art storm water abatement infrastructure, energy efficiency upgrades and accessibility improvements, Phase One of “Armory Square” opened to the public in May 2011, featuring an expansion by Summerhill Farm, a well regarded local retailer, into a new year-round facility on the corner of Second Street and Park Avenue.

In 2009, with no clear path to anywhere -- other than a commitment to solve this riddle -- the City of Park Rapids Economic Development Authority and the Hubbard County Regional Economic Development Commission began a collaborative effort with Echopoint Design and Development LLC, a local developer, to try and find an adaptive reuse for this historic landmark building.

From that inception, the redevelopment strategy that emerged was funded by an initial loan investment of $75,000 from Industries for Park Rapids, a Northwest Minnesota Foundation managed fund.

The project has continued to attract investment and support in the form of grants and loans from the following agencies and partners: Midwest Minnesota Community Development Corporation; Minnesota Department of Employment and Economic Development; Headwaters Regional Finance Corporation; Clean Energy Resource Teams and the Office of Energy Security; Minnesota Historical Society; an additional business development loan provided by Northwest Minnesota Foundation; and significant loan guarantees and equity contributions by the local developer.

After more than two years of planning, environmental

“Summerhill on Second,” a high quality women’s clothing and accessories retailer, anchors prime commercial space at the new “Armory Square” in downtown Park Rapids.

Phase Two, scheduled for 2012, includes plans for a fullservice restaurant serving Mexican cuisine, studio spaces for offices, education, visual artists, music and dance instruction, gallery spaces, workshops, and an event pavilion for community events, conferences and performing arts.

Even after the project is complete, the vision for “Armory Square” is to become a place where commerce and the arts thrive together in a collaborative mixed-use private and public space. It is an amazing story of community collaboration to solve a complex and difficult redevelopment problem. It restores a unique historic landmark to the tax rolls and to public service. This is what “Partners in Progress” is all about.

PARK RAPIDS ARMORY

- Article and photos contributed by Alan Zemak

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2011

ANNUAL REPORT

GRANTS:

FISCAL YEAR 2011 TOTAL GRANTS $1,106,678 Caring Communities Total:

$76,000

Stephen Area Endowment Fund Community Stewardship Program

$6,000

$25,000

Warren Area Community Fund Community Stewardship Program

$6,000

Children, Family & Elderly

Boys & Girls Club of the Bemidji Area Volunteer Partnership Project Minnesota Fathers & Families Network NW MN Fall Fatherhood Seminar Series

$1,000

Economic & Community Development

$3,000

Park Rapids School Dist #309 $25,000 Park Rapids Community Student Success Initiative

City of Park Rapids Park Rapids/Hubbard County Regional Area Economic Development Planning

Prevent Child Abuse Minnesota Red Lake Teen Parent Support

Fertile Economic Development Authority Fertile Assisted Living

$2,700

$25,000

Community Connections Total: $120,246 Bemidji Area Race Relations BARRC/Shared Vision Alliance

$25,000

Clear Waters Life Center $20,246 CWLC Gonvick Community Engagement Project $25,000

Red Lake Homeless Shelter Adult Rehabilitative Mental Health Services Coordinated Services Project

$25,000

Tri-Valley Opportunity Council, Inc. Family Voice & Choice Network

$25,000

Community Development

$117,200

City of Baudette $10,000 Baudette and Lake of the Woods Area Trails Plan City of Bemidji $20,000 Bemidji Area Parks, Trails and Open Spaces Plan Update City of Mahnomen City of Mahnomen Parks and Trails Strategic Plan

$5,000

Crookston Area Community Fund Community Stewardship Program

$20,000

Fertile-Beltrami Community Fund Community Stewardship Program

$6,000

Fisher Area Community Fund Community Stewardship Program

$6,000

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$20,000

Red Lake Band of Chippewa Red Lake CEDS

$12,500

Internal Programs Total:

$40,000

Project Support for Regional Initiatives

Northwest Regional Development Commission Bemidji Palliative Care Initiative

Community Planning Total:

Headwaters Regional Development Bemidji Student First! Initiative

IDEA

Grand Steer Inc. $10,000 IDEA - Northwest Minnesota Foundation Award Winner Kristine Goddard Anderson $10,000 IDEA - Midwest Minnesota Community Development Corp. Award Winner LaValley Industries, LLC $10,000 IDEA - Bremer Bank, Crookston Award Winner NID $10,000 IDEA - University of Minnesota, Crookston Award Winner

Natural Resources Total: Promotion & Preservation Initiative Foundation River Partnership

Lake of the Woods Soil and Water Bostic and Zippel Comprehensive Watershed Assessment Project

New Technologies

$61,460 $2,000 $10,000

AURI $21,000 Increasing Biomass Yield and Economic Efficiency of Herbaceous Energy Crops in NW Minnesota

GRANTS

2011 The Nature Conservancy, Minnesota Chapter Biomass and Waste to Energy Business Development Survey

$25,000

University of Minnesota CERTS 2011 Conference

$1,000

Healthy Lakes & Rivers Partnership Program Hubbard County Soil &Water Conservation Aquatic Vegetation Survey of Long Lake

Training Total:

$2,460

$3,200

Nonprofit Excellence Program

Upper Mississippi Mental Health Center External Billing Assessment

$2,000

STAR

A total of $1,200 was awarded for student follow-up projects to 11 STAR Teams schools throughout the region: Bemidji, Blackduck, Kelliher, Lake of the Woods, Laporte, Naytahwaush, Nevis, Red Lake County Central, WalkerAkeley-Hackensack,Warroad and Waubun.

Component Fund Total:

$601,247

Component funds are established with NMF for a specific purpose. A local fund advisory committee recommends distributions based on their funds’ purposes and criteria. The NMF board, for purposes of IRS regulations, approves the advisory recommendations for grants, but the component funds are the source of the grant dollars.

Akeley Area Community Fund Backstrom Family Charitable Fund (2 Grants) Badger Area Community Fund Badger Veteran's Memorial Fund

$2,000 $2,200 $4,500

Bagley Early Childhood Initiative Fund (6 Grants)

$4,788

Beltrami Humane Society Ralph and Ruth Shoemate Fund

$750 $3,000

Bemidji Area Arts Endowment & Project Fund (6 Grants) $4,950 Ernie Rall Children's Performing Arts Fund $500

ANNUAL REPORT Everett Wilimek Endowment for Orchestral String Studies (2 Grants) Frederick Marshall Fund H.B. and Ina T. Roholt Family Fund for the Arts North Star Arts Fund Richard and Pam Nelson Family Fund for the Visual Arts

$500 $1,395 $500 $1,695 $500

Bemidji Area Early Childhood Initiative Fund Bemidji Area Parks and Trails Fund Bemidji Community Biomes Outdoor Classroom Fund (2 Grants) Bemidji in Bloom Fund

$500

$4,100 $939

Bemidji Area Public Library Foundation Endowment and Project Fund Hazel I Shimmin Endowment Fund $1,900 Ruth Stenerson Project Support Fund $100 Bemidji Lumberjack Foundation Fund Bemidji All School Reunion Fund Rick Lee Memorial Fund Tom Gardner Memorial Fund First National Bank Bonspiel Fund Security Bank USA Lumberjack Scramble

$14,556

Clearbrook-Gonvick Early Childhood Initiative Fund (2 Grants)

$1,938

Clearwater County Humane Society Fund

$1,000

Clearwater Health Care Fund Clearwater Hospice Fund (2 Grants) Clearwater Senior Care Fund

$100 $8,140 $1,200

Crookston Area Community Fund Crookston Arena Fund Crookston Early Childhood Initiative Fund (5 Grants)

$5,000 $297 $297 $7,277

$150,800 $12,502

Fertile-Beltrami Early Childhood Initiative Fund (3 Grants)

$1,650

Fourth & Robbins Fund

$5,000

Greenbush Area Community Fund (7 Grants) Greenbush Community Education Fund

$4,725 $500

CONTINUED ON NEXT PAGE

NORTHWEST MINNESOTA FOUNDATION

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2011 Headwaters Unitarian Universalist Fellowship Fund HRDC Leadership Fund HRDC Successful Communities Challenge Fund (5 Grants) John and Eloise Ostrem Charitable Fund

$450

$23,000 $700

Kittson Memorial Healthcare Center Foundation Fund

$3,245

Lake of the Woods Early Childhood Initiative Fund (6 Grants)

$8,200

Laporte Education Endowment and Project Fund

$500

LifeCare Health Care Fund (4 Grants) LifeCare Greenbush Manor Fund LifeCare Hospice Fund

$3,000 $100,038 $4,000

LOW County Humane Society Fund

$10,000

Marshall County Early Childhood Initiative Fund (5 Grants)

$16,250

Naytahwaush Area Early Childhood Initiative

$20,000

Norman County East Early Childhood Initiative Fund (2 Grants)

$750

Northwest Minnesota Women's Fund (3 Grants)

$6,220

Ole and Ruth Tweet Family Fund (5 Grants)

$6,651

Park Rapids Area Community Fund Friends of the Headwaters Animal Shelter Endowment Fund Heartland Homes Endowment and Project Fund Hewitt Family Charitable Fund (2 Grants) Positively Park Rapids Fund (3 Grants)

$5,000 $3,799 $12,500 $20,172

Park Rapids Revolving Loan Fund

$10,000

Roseau Area Community Fund (3 Grants) Roseau Parks & Recreation Fund

$2,000 $21,467

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ANNUAL REPORT Ruth Edevold Endowment for Excellence Ruth Edevold Awards for Excellence (2 Grants)

$2,000 $2,000

St Mary's Mission School Fund

$7,651

Support Your Troops

$751

Thief River Falls Early Childhood Initiative Fund (2 Grants)

$800

Thrive Initiative Fund

$800

Tonia Johannsen Memorial Fund

$1,045

Warren Senior Center Endowment Fund

$1,861

Warroad Area Community Fund (5 Grants) $7,500 Gaylord A. Gunderson Education and Scholarship Fund (2 Grants) $3,500 Warroad Education Endowment and Project Fund $2,150 Warroad Senior Living Center Fund $1,300 Warroad Swim Program Fund $40,000 Warroad Women of Today Community Project Fund $3,000

Scholarship Fund Total:

$87,325

Bagley Education Endowment and Project Fund Bagley General Scholarship Fund (7 Grants) $4,200 Nola Ellis Memorial Fund $100 Bemidji Area Community Fund Bemidji Jaycees Education and Scholarship Fund (2 Grants) Earle and Mariann Dickinson Family Education Fund Bemidji Lumberjack Foundation Fund Buck Robbins Scholarship Fund Bun & Alvera Fortier Scholarship Fund Des Sagedahl Scholarship Fund General Scholarship Fund (13 Grants) Heidi Bitzer McClure Memorial Scholarship K.E. "Red" and Ruth Shannon Wilson Athletic Fund (2 Grants) Pat Campbell String Fund (2 Grants) George Pelawa-Calgary Flames Education Fund

GRANTS

$1,000 $500 $150 $500 $500 $7,750 $1,000 $1,000 $600 $1,000

2011 John F. Breen Scholarship Fund (6 Grants) $4,500 Ray F. Breen Scholarship (8 Grants) $6,000 Troy Nelson Memorial "Character" Scholarship Fund $150 Blackduck Area Community Fund Academic and Character Scholarship Fund

$250

Clearbrook-Gonvick Education Fund Mary Jo Klinger Scholarship Fund Olga Peterson Scholarship Fund

$500 $1,500

East Polk County Fair Scholarship Fund (2 Grants)

$1,500

Fosston Area Community Fund Dean and Joyce McNelly Family Vocational Scholarship Fund Dean Clementson Scholarship Fund

$1,000 $150

Fosston Education Foundation Endowment and Project Fund $1,500 Jim Miller Memorial Math Scholarship Fund $400 LuVerne Trogstad Scholarship Fund (2 Grants) $5,000 Terry Stout Memorial Scholarship Fund $1,000 Vikan Scholarship Fund $200 Greenbush Area Community Fund Keith and Ellen Kapphahn Family Scholarship Fund (3 Grants)

$750

Julie Holmquist Memorial Scholarship Fund

$250

Laporte Education Endowment and Project Fund (4 Grants) Laporte-Benedict VFW Scholarship Fund (2 Grants)

$1,750 $500

Laural Capistran Murphy Scholarship Fund

$500

Leonard J. Kucera Memorial Scholarship Fund (4 Grants)

$800

Luther Younggren Memorial Scholarship Fund (2 Grants) $2,700 Mahnomen Education Endowment and Project Fund (11Grants) $4,100 General Ike Isaacson and Major Bruce Isaacson Scholarship Fund (2 Grants) $500 Leslie Hanson Scholarship Fund (2 Grants) $500 Major Robert Olson Fund

$1,000

ANNUAL REPORT Merle and Mildred Rundell Education Fund (2 Grants)

$1,000

Mike Staples Memorial Scholarship Fund

$1,000

Northwest Minnesota Women's Fund Northwest Minnesota Women's Scholarship Fund (2 Grants) University of Minnesota Crookston Women's Scholarship Fund

$1,000 $500

Red Lake Falls Education Endowment and Project Fund Kris Fontaine Memorial Scholarship Fund (4 Grants) $2,000 Kyle A. Myhre Memorial Fund (4 Grants)

$2,000

Lester Norris Dale, MD Scholarship Fund

$250

Roseau Area Community Fund Charles "Nick" Peterson Memorial Fund $100 Joseph Schneider Scholarship Fund $125 Malung PTO Scholarship Fund (5 Grants) $1,250 Marian Foley Memorial Fund (4 Grants) $4,000 Marvin LaRue Memorial Fund $400 Roseau Lions Club Scholarship Fund (3 Grants) $750 Wannaska PTO Scholarship Fund (3 Grants) $750 Tonia Johannsen Memorial Fund

$500

Warren-Alvarado-Oslo Education Foundation Fund Lyle H Engelstad Scholarship Fund (3 Grants) $3,000 Myron and Margaret Carlson Education Scholarship Fund $400 Warren-Alvarado-Oslo Education Foundation Endowment and Project Fund $800 Warroad Area Community Fund Bruce and Ellen Atwater Education Fund (2 Grants) $600 Edward and Agnes Brandli Scholarship Fund (2 Grants) $300 Gaylord A. Gunderson Education and Scholarship Fund (8 Grants) $8,000 Jennifer Grove Memorial Scholarship Fund (2 Grants) $600 Justin Knebel Memorial Fund $400 Lee Hafdahl Memorial Scholarship Fund $175 Nick Moyer Memorial Scholarship Fund $125 Patrick O'Donnell Memorial Scholarship Fund $500 Warroad Education Endowment and Project Fund (2 Grants) $1,000 Warroad Farmer's Union Oil Company Scholarship Fund $500

NORTHWEST MINNESOTA FOUNDATION

28

2011

ANNUAL REPORT

ONLINE PRESENCE: VISIT OUR WEBSITE

Visit www.nwmf.org for complete information about the Northwest Minnesota Foundation, planned giving resources, online registration for workshops, and secure online charitable giving. You can easily make a donation to any of the funds in the NMF family of funds. Online giving is fast, convenient, secure and easy on our website!

CREDITS: PHOTOS: Joe Rossi Photography, LLC DESIGN: Jones Graphics PRINTING: North Star Publishing Thank you, friends and colleagues, for contributing to this report.

29

ONLINE PRESENCE • CREDITS

2011

ANNUAL REPORT

NMF CONTACT INFORMATION:

4225 Technology Drive NW Bemidji, MN 56601

CONTACT US 218-759-2057 Phone Number 800-659-7859 Tollfree from within Minnesota 218-759-2328 Fax Number info@nwmf.org E-mail www.nwmf.org Website

QUALITY OF PLACE The Northwest Minnesota Foundation is a public community foundation serving twelve counties. NMF invests resources, creates opportunities and promotes philanthropy to make the region a better place to live and work.

NMF CONTACT INFORMATION

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

4225 Technology Drive NW Bemidji, MN 56601

EXCELLENCE INTEGRITY PASSION

INNOVATION WISDOM PARTNERSHIPS

PARTNERS IN PROGRESS • 25 YEARS OF MAKING A DIFFERENCE •

2011

ANNUAL REPORT