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Special Edition

2009 Annual Report Northwest Minnesota Foundation

4225 Technology Drive NW • Bemidji, MN 56601 • 218-759-2057 • 800-659-7859 • nwmf@nwmf.org


A Message from the Chair Eric Bergeson

Hello, all! When Forbes publisher Rich Karlgaard spoke at NMF’s “Igniting Innovation” summit last May, he brought a message which surprised many of us who attended: Economic hard times could benefit the rural Midwest.  Karlgaard backed up his claim by showing how many of the nation’s greatest companies were started during economic downturns by people who had to innovate out of necessity: They had lost their jobs.  The rural Midwest, where costs are low and the labor force is wellregarded, is a tempting place for innovators to start new ventures, especially in times when investment capital is hard to come by.  The “Igniting Innovation” summit, in addition to bringing in Karlgaard, concentrated upon uniting our area’s innovators–– people who have invented a new product––with investors. We don’t want any good ideas dying on the vine for lack of capital. To put our money where our mouth is, NMF formed a partnership to launch the IDEA competition for entrepreneurs with a breakthrough idea for a profitable business. With

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our partners, NMF handed out four $10,000 prizes to the winners of IDEA. The inventions which won included two keyboard instruments with key configurations that make it easier to learn to play piano; an ice auger shroud system that prevents ice and slush from falling into a newly drilled ice fishing hole; a rechargeable and recyclable energy pack that helps to start small airplane engines; and, a component for snowboards that improves speed and control. Just as important as cash was the chance for inventors to have their business plans evaluated and sharpened by the judges–– businessmen who have been there before.  The success of the “Igniting Innovation” summit was only a part of what turned out to be a good year for NMF.  Yes, our endowment suffered when the stock market went south. However, thanks to a solid investment strategy, losses were limited and the recovery has been quick.  And our donors, more than 4,900 of them, didn’t miss a beat. Together, they donated $1.6 million. NMF’s component funds gave out nearly one million dollars in grants and scholarships, and NMF also distributed over $400,000 in discretionary dollars in the past year. Remember, when we brag about these numbers, we are really bragging about you. NMF can claim a good year only because you donated, you volunteered, you started projects and you saw them through to completion. We’re just here to help. 

Northwest Minnesota Foundation

Sheila and Laural

A classic example of Northwest Minnesota philanthropy in action: My friends David Murphy and Sheila Capistran started a scholarship fund with NMF in memory of their daughter Laural Capistran Murphy, who passed away in a car accident three years ago. To infuse the fund with cash, last August Sheila organized a Fall Festival at the Norman County Fairgrounds in Ada, which raised over $7,000 in one afternoon! And there wasn’t a single black tie or formal gown on the grounds.  Philanthropy up here isn’t about expensive charity balls. It is about humble people helping other humble people in humble ways which, when added together, bring results which aren’t humble at all.  Thank you for taking part.  Sincerely,  Eric Bergeson


A Message from the President Nancy Vyskocil

Trying new ideas takes courage, especially when as we are faced with the challenging economic issues that we live with today. In 2009, Northwest

Minnesota Foundation supported a wide range of projects that brought together partners with experience, expertise and insight, putting talents into action within our communities. It has been an exciting year investing in projects that illustrate a willingness to try new strategies, with the strength to push innovations into the mainstream and the confidence to test bold ideas with promising potential.

This Fiscal Year 2009 annual report is a snapshot of how the foundation has invested resources, created opportunities and promoted philanthropy to meet our mission. On behalf of the board and staff, thank you for being a part of our success. We cannot do it without the partners who work alongside of us to help to make the region a better place to live and work.

Board

Eric Bergeson Chair, Fertile

Mark Hewitt Vice-Chair, Park Rapids

Kim Wilson Secretary, Fosston

Gary Purath Treasurer, Red Lake Falls

Terri Anderson Director, Ogema

David Bergman Director, Thief River Falls

Robert Hager Director, Roseau

Jody Horntvedt Director, Baudette

Dean Johnson Director, Mahnomen

Roger Malm Director, Hallock

Judy Roy Director, Redby

Laurie Wilson Director, Crookston

Staff

L-R Back: Ritchie Houge, Nancy Vyskocil, LaRae Maddox, Tim Wang Front: Holly Tri, Samantha Hedin, Lisa Peterson

L-R: Linde Linde, Barb Lien, Peggy Crandall

L-R Back: Jim Steenerson, Diane Morey, Jane McKelvy, Dave West Front: Lin Backstrom, Marty Sieve, Caryl Turnow (not pictured, Dawn Ganje)

2009 Annual Report

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Mission, Values and Accomplishments Our Mission

Our Values

The Northwest

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

Minnesota Foundation invests resources,

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

creates opportunities, and promotes philanthropy to make the region

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

a better place to live and work.

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

Our Accomplishments Since inception in 1986: - Business loan programs with over $5.1 million in assets have made 421 loans for a total of more than $19.4 million - Creation or retention of almost 2,353 jobs - Lending has leveraged $74.8 million in additional funds - Made over 3,597 grants totaling over $24 million

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Northwest Minnesota Foundation

- Adult and youth leadership programs have provided training for nearly 3,541 leaders - Specially designed non-profit management and diversity training programs have addressed the special needs of 513 organizations and 84 communities - $41.7 million total assets - More than 270 component funds and sub-funds, with assets totaling $14.9 million


General Overview and Retrospect Marty Sieve, Vice President for Programs especially hard-hit by the recession, NMF actually found the means to create a completely new grant program unforeseen by our current strategic plan – the Community Connections Program, which now awards grants to nonprofits for joint ventures and mergers that increase efficiency and effectiveness of services. Our STAR Program went from strength to strength, reaffirming itself as one of the country’s outstanding leadership programs for youth. The number of college scholarships from our educational funds rose to more than 160, compared to an annual average of 100 in previous years. Contributions to our Community Funds increased by 260 percent from FY 08, while those to our Public Service Funds increased by 285 percent.

Fiscal Year 2009 marked the start of our new five-year plan. It also saw the most precipitous economic decline in recent American history. Needless to say, the philanthropic world was not left unscathed by the consequent downturn in charitable giving and investment earnings. NMF was hardly unique in witnessing declines in the number and size of contributions to some of its component funds and in seeing an erosion of its endowment. Nevertheless, thanks to wise stewardship of its resources, farsighted investment policies and the watchful oversight of a dedicated board of diCertainly the past year was not rectors, the foundation has weathered altogether smooth sailing for NMF, the storm remarkably well. nor can it be denied that some of As markets plummeted by more our programs were adversely affectthan 50 percent last winter, the val- ed by internal and external financial ue of NMF’s endowment portfolio conditions (our fee-based training declined by less than one-third, and programs for nonprofits suffered we’ve since recovered nearly half of from a lack of demand), but stakeholders in the region would never that loss. have thought for an instant that our No staff were laid off, no programs vigor and influence had suffered were eliminated, and grantmaking rethe slightest decline. The followmained robust. Lending activity in the Business Finance and Entrepreneur Development Programs reached near-record levels. Our Early Childhood Initiative continued to grow in scope and impact, contributions to our Early Childhood Coalition Funds far exceeded expectations, and grants from those funds outstripped projections. With local nonprofits being

ing pages with highlights of the year provide a snapshot of what was accomplished. It cannot be overstated how much NMF’s ongoing vitality is due to the careful stewarding of resources. The mission of the foundation is to invest resources, create opportunities and promote philanthropy to make the region a better place to live and work. This is our pledge to the people of Northwest Minnesota as well as to the McKnight Foundation. In the conscientious investment of resources (where a balance must be struck between caution and risk), our board has taken to heart one of its most crucial responsibilities. Fiduciary oversight and sound investment policies are not often the stuff of exciting annual reports, but in FY 09 they told much of the story for NMF.

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Highlights of the Year Lake of the Woods County consolidated three separate zoning ordinances into one, which will help to eliminate confusion among the general public and county officials. The County also adopted a new Comprehensive Land Use Plan to control development along the high-growth corridor from Baudette to Wheeler’s Point. The vision of the Plan is “to offer an exceptional quality of life to existing residents, future residents, and tourists interested in taking advantage of the unique natural resources and opportunities in the county.” This plan, for which the County received a $10,000 grant, will help make that vision a reality during the ensuing years. (1) NMF awarded a $15,000 grant for at-risk youth programs through the Rabideau Conservation Academy. Youth are working together to rehabilitate and renovate the Rabideau Civilian Conservation Corp Camp while learning about gardening and conservation. Substantial federal grant dollars have been received to create a new residential center for youth programming.

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Twelve lake associations from past HLRP Programs continued to conduct implementation activities related to lake management plans, including water quality monitoring. (2) NMF continued the development of its Healthy Lakes and Rivers Program by actively encouraging the establishment of charitable funds. One such fund, the Potato Lake Charitable Fund, was created, along with the Bemidji Outdoor Classroom Fund. The Red Lake Band of Ojibwe received a $25,000 grant to develop a new transportation and land-use plan for the reservation’s core communities, including Red Lake, Redby, Ponemah, and Little Rock. A new Continuous Quality Improvement training-and-technicalassistance program for component funds was developed. This program will be piloted through NMF’s twelve Early Childhood Initiative Funds in FY 10 and then made available to all component funds.

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NMF awarded a $25,000 grant for a pilot program to address the issue of noxious and invasive species in Polk County. This project

Northwest Minnesota Foundation


Highlights of the Year is representative of the larger invasive species issues being addressed throughout our region. (3) NMF delivered LeaderImpact to 35 people in FY 09. The large majority of participants indicated that the training deepened understanding of what leadership can be. They also felt that they benefited from the opportunities for self-reflection and growth and gained an enhanced sense of core values and how they relate as leaders. Evaluators reported that although subtle, an obvious theme running throughout is one of self-awareness and improved leadership abilities. Each participant has a nominator. Their comments indicate that participants are more aware of their weaknesses, are more likely to be working on their weaknesses, have more confidence, and are able to use their strengths more effectively.

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(4) One hundred and seventeen students in 6th and 7th grades, along with their adult advisors and youth advocates, participated in the residential STAR Team leadership program. All STAR Teams delivered training on STAR concepts to fellow students and/or community members. Many projects involved teaching younger students about topics addressed in the STAR Team training sessions, such as dealing with bullies, conflict styles, listening skills, and cooperative games. (5) The Northwest Minnesota Women’s Fund continued with its priority programs recognizing women for their contributions and extraordinary accomplishments in the region. Two women were inducted into the Northwest Minnesota Women’s Hall of Fame: Dr. Patricia Rosenbrock and Dolores Clack. Three women were

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Highlights of the Year recognized as Outstanding Community Builders: Audrey Eickhof, Mary Campbell and Sister Dolores Norman. (6) Early Childhood Coalitions were expanded from ten to twelve. NMF partnered with two new communities, helping them move through the organizing steps of the Early Childhood Initiative. The newest coalitions, Norman County East and Clearbrook-Gonvick, are in full implementation mode and have each completed two grant projects.

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Each of our twelve ECI coalitions has a plan with a clear list of priorities for its work. All are implementing activities that derive from the priorities and are designed to meet identified needs of local children birth-to-age-five and the people who care for them. Eleven separate component funds continue to provide administrative support services for coalition communities and to receive and distribute charitable contributions. (7) Evergreen House received a $25,000 grant through the Community Connections Program for bridge funding to integrate the suicide prevention and Kinship North mentoring programs from Healthy Communities Healthy Kids to Evergreen. Both programs are now operating very successfully with Evergreen demonstrating substantial cost savings within their administrative structure.

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FY 09 contributions to Community Funds totaled $65,665, representing a 260 percent increase in the value of contributions. FY 09 contributions to Public Service Funds totaled $457,700, representing a 285 percent increase in the value of contributions. Three of the loans that were made from the Revolving Loan Fund were largely the result of new technologies (some of which are green), and job creation is expected to rise substantially, with higher-than-average wages providing additional disposable income. While manufacturers have suffered a decline in business, the NMF loan client River Cinema (movie theater in East Grand Forks), has flourished, seeing extremely high revenues for rural Minnesota. They are planning to add three more theaters to their existing 12-plex.

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(8) FY 09 marked the inauguration of the IDEA Competition – a

Northwest Minnesota Foundation


Highlights of the Year brand new initiative of Ingenuity Frontier – in which local entrepreneurs and inventors compete to develop promising business and product ideas. At stake are cash awards of up to $10,000 each, along with access to valuable training and technical assistance and investment capital. Last year, 61 participants were narrowed down to four prize winners. All of the winners are expected to reach the commercialization stage of their products within two years, with the first making product sales this holiday season.

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(9) Another venture of Ingenuity Frontier is the Northwest Minnesota Regional Economic Alliance. Modeled after the Itasca Project, the REA is a group of senior executives and elected officials who first came together one year ago to explore the possibility of developing a collective vision for the economy of Northwest Minnesota. Participants included many of the region’s top leaders in business, higher education, tribal councils, utility cooperatives, healthcare institutions, economic development commissions, workforce development organizations, school districts, a K-12 service cooperative, a foundation, and a state commission. After considerable discussion, they agreed to a purpose statement, a set of core values, and three areas in which they would seek to exercise leadership and align resources.

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(10) The NMF Regional Summit Igniting Innovation: Starting, Sustaining & Growing Business was held May 12, 2009 at the University of Minnesota Crookston. The keynote speaker was Rich Karlgaard, publisher of Forbes magazine, followed by Jeffrey Stamp and Bill Payne. Two panel discussions were included on the agenda: for entrepreneurs, a Business of Innovation panel shared successful business owners’ experiences; for angel investors and those seeking financial help, an Innovations in Investment panel shared expertise from seasoned financial backers and angel investors. (11) Awards were again a big part of NMF’s celebrations and recognition of regional partners. Jorge Prince of the Northwest Regional Small Business Development Center was presented with a Quality of Place award; a second Quality of Place award was presented to Ideal Aerosmith of East Grand Forks and a Community Philanthropy award was presented to LifeCare Health Care Funds of Roseau, Warroad, and Greenbush.

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Fund Development Overview Over the years NMF has sought to use public charitable foundation status, regional commitment and expertise to help donors, organizations and communities make Northwest Minnesota a better place to live and work. NMF’s mission to promote philanthropy played a key role during the past fiscal year as NMF component funds focused largely on raising spendable project funds. The contributions and use of these funds helped the component funds keep

pace with their FY 07 and FY 08 grant making, despite the economy’s impact on endowed funds. While NMF continues to encourage the creation and gifting to endowment funds, we also see a need respond to the critical issues of today and the opportunity to support donor interest in providing direct support for public or community projects. These “public-private” partnerships are helping our communities continue on their Quality of Place journey.

NEW FUNDS: Sandy Kaul Fund for the Arts Supports programs, projects, activities and organizations that benefit the Bemidji arts community and complement the purpose of the Bemidji Area Arts Endowment Potato Lake Charitable Fund Supports efforts to protect, preserve and enhance the quality of Potato Lake and its environs Northland Community & Technical College Strong Youth Program Fund Provides scholarships for participants and financial support for the Northland Community and Technical College Strong Youth Program’s projects. Support Your Troops Supports and honors Bemidji Area Veterans Warroad Women of Today Community Project Fund Supports projects that foster and cultivate Women of Today’s values of service, growth and fellowship within the community Paul Bunyan Playhouse Fund Supports performances, production, marketing and development for the Paul Bunyan Community Theater and for promotion of theatrical arts in. Swanson Family Education Fund Supports special activities or projects within the Clearbrook-Gonvick Elementary School

Park Rapids Area Drug-Alcohol Awareness Fund Support for substance abuse awareness programs in the Park Rapids area Robert C. and Mona Rae Johnson Family Charitable Fund Supports qualifying charitable and educational programs, projects and activities Merle and Mildred Rundell Education Fund Supports charitable and educational programs, projects and activities, including scholarships to students over age 30 who are attending Bemidji State University and Northland Community and Technical College, studying nursing or natural resources Bemidji Jaycees Education and Scholarship Fund Provides scholarships to qualified Bemidji area students attending Bemidji State University, Northwest Technical College or Oak Hills Christian College Bemidji Community Biomes Outdoor Classroom Fund Supports biome based outdoor classrooms serving the Bemidji area Lake Bemidji Summer Opera Festival Fund Supports local opera productions and the opportunity for local residents to learn about producing professional musical events

The full list of component funds can be found on the NMF website www.nwmf.org/comm.php

HIGHLIGHTS: Crookston Arena Fund Created as part of the Crookston Area Community Fund, the arena fund provides the opportunity for private contributions to support relocation and construction of new hockey facilities. As of June 30, 2009, more than $700,000 was committed despite tough economic times. Fund advisors envision a permanent endowment supporting future use of the facility. Potato Lake Charitable Fund The establishment of this fund represents the entirety of NMF’s mission working together. Resulting from NMF’s Healthy Lakes and Rivers Program, this fund is encouraging donations of spendable funds to be used in the fight against invasive species, and endowment funds to ensure future generations will benefit from this beautiful Minnesota asset. First City of Lights Fund and the Park Rapids’ Fireworks and Rotary Charitable Funds These funds provide annual support for community celebrations enjoyed by thousands. Small town life at its finest is preserved when

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Northwest Minnesota Foundation

projects and programs such as the Night We Light in Bemidji and the 4th of July Celebration in Park Rapids are supported through charitable funds at NMF.

Donors are not listed in the annual report in the interest of conserving our Community Philanthropy Award: natural and financial LifeCare Health Care Center Funds resources. Over 4,900 donors who generously supported the foundation and all of the NMF funds in Fiscal Year 2009 are found in a linked document on the website at www.nwmf.org – Publications - Annual Report. Thank you.


Statement of Financial Position

Program Contributions Investment Income Endowment Contributions Other Total $2,941,056 -$3,960,010 $319,739 $506,266 -$192,949

Fiscal Year 2009 Revenue & Support Fiscal Year 2009 Revenue & Support

Assets

June 30, 2009

Cash and Cash Equivalents

$

June 30, 2008

$4,000,000 $3,000,000

$2,941,056

$

436,730

Grants/Contracts Receivable

179,956

194,794

Pledges Receivable

690,001

356,821

Accrued Interest Receivable

160,204

181,246

Other Receivables

7,604

9,693

-$2,000,000

Prepaid Expenses

4,461

4,345

-$3,000,000

Notes Receivable – Revolving Loan Fund

-$4,000,000

Investments

$2,000,000 $1,000,000

$506,266

$319,739

$0

-$192,949

-$1,000,000

-$3,960,010 -$5,000,000

Administration Fund RaisingInvestment Total Program Endowment Contributions Income Contributions 07 722,702 137,644 4,407,158

Other

Total

4,192,848

3,904,912

32,404,735

38,838,364

Assets Held in Charitable Remainder Trust

377,929

460,883

Other Equity Investments

625,500

125,500

Fixed Assets

658,556

667,708

$ 39,788,547

$ 45,180,996

$ 232,437

$ 888,568

TOTAL ASSETS

FiscalFiscal YearYear 2009 2009Expenses Expenses

Liabilities

$5,000,000 $4,407,158

$4,500,000 $4,000,000

Deferred Revenue $3,546,807

$3,500,000

Program Grants/Scholarships Payable

466,189

470,624

$3,000,000

Other Liabilities

182,718

222,824

$2,500,000

Mortgage Payable

154,015

219,318

$2,000,000

Loans Payable

984,644

925,401

Granite Equity Partners Subscription Payable

250,000

-

$1,500,000 $1,000,000

$722,702

Annuity Payable

$500,000 Year Amount

$137,644 Liability Under Annuity Trust 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 $0 1,069,933 4,039,702 7,362,198 ######## ######## ######## ######## ######## ######## ######## Program Administration Fund Raising Total Agency Endowment Liability

TOTAL LIABILITIES Endowment 1991-2009 Endowment TotalsTotals 1991-2009 2007

$40,000,000

$30,000,000 2005 1999

$20,000,000 1997

$15,000,000 $10,000,000 $5,000,000

2001

1995

2003

1991

$0

550,957 236,783

1,367,226

1,689,901

$ 4,412,034

$ 5,204,376

409,396

413,139

Temporarily Restricted

10,581,286

15,485,049

Permanently Restricted

24,385,831

24,078,432

Total Net Assets

35,376,513

39,976,620

TOTAL LIABILITIES AND NET ASSETS

1993

569,984 204,821

2009

Unrestricted

$35,000,000

$25,000,000

Agreement

Net Assets

$45,000,000

Amount

486,753

$ 39,788,547 $ 45,180,996

Year

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Business Loans and Investments Fiscal Year 2009 Total Loans and Investments: $1,428,679

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 $1,152,710 were made to:

Interiors by Decorating Den, Bemidji Gregoire Agency, Inc., East Grand Forks Bad Cat Creations, Bemidji Tom’s Tackle, Baudette B & E Fiberglass, Park Rapids TRF Welding, Inc., Thief River Falls Leon Osmundson Services, Bemidji Trandem Custom Upholstery, Thief River Falls Hot Shots Tanning & Video, Inc., Roseau Denny’s Outdoor Sports, Roseau Big Bear Sealcoating & Striping, Wilton H3 Performance, Park Rapids Adventure Entertainment, Baudette

LaValley Industries, LLC, Bemidji Working capital for a new business manufacturing a product used in the pipeline industry St. Hilaire Seed Company, St. Hilaire To purchase equipment Northwest Windpower, LLC, Thief River Falls For the development of wind energy projects Occupational Development Center, Thief River Falls For the purchase of a building in Baudette where the ODC will operate a consignment store Northland Kilns, Inc., Bagley To purchase equipment Three Community Vitality loans were made for financing retail and other operations that are vital for the health of communities: Cornerstone Nursing & Rehab Center, Inc., Bagley For working capital to purchase the health care facility Jared’s Grocery, McIntosh To purchase an existing grocery business Headwaters Housing Development Corporation, Bemidji To fund housing construction One loan was made from the Lake of the Woods Loan Fund totaling $60,000 Co-op Service, Inc. of Baudette To purchase a semi truck and trailer for fuel transit

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Northwest Minnesota Foundation

Loans totaling $276,151 were made to:

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. • 185 businesses and individuals received personal technical assistance counseling • $24,710 supported consulting to assist 21 entrepreneurial businesses • 32 people attended the classroom training 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.


Grants Fiscal Year 2009 Total Grants: $1,363,381 Caring Communities Total: $157,270 Children, Families & Elderly Magelssen Elementary School.............................$2,270 For S.M.A.R.T. Amherst H. Wilder Foundation..........................$15,000 For Minnesota Compass Clear Waters Life Center...................................$19,200 To provide supervised and unsupervised fitness rooms located at the Clear Waters Life Center Community Resource Connections...................$17,800 For Empowering Rural Youth Mental Health Consumer/Survivor Network........$2,000 For Northwest Regional Resource Center-LAC Minnesota Fathers & Families Network...............$1,000 For a regional workshop for fathers Minnesota State University Moorhead.............. $25,000 For White Earth Reservation Comprehensive Education Study Rabideau Conservation Academy & Learning . .$15,000 For Rabideau Youth Project Emergency Assistance Fund Awarded for crisis needs of low-income families and individuals •Bi-County CAP, Inc.......................................$22,000 •Inter-County Community Council.................$11,800 •Mahube Community Council, Inc...................$8,200 •Northwest Community Action, Inc.................$7,200 •Tri-Valley Opportunity Council, Inc..............$10,800

Community Connections Total: $25,000

The Evergreen House.........................................$25,000 For bridge funding for Evergreen/Healthy Community Healthy Kids program merger

Community Planning Total: $230,500 Community Development

Northwest Regional Development Commission................................$25,000 For Northwest Minnesota Regional Trail Plan Red Lake Band of Chippewa Indians ............... $25,000 For transportation and land-use plan development for the Red Lake Reservation

Economic & Community Development

City of Blackduck..............................................$10,500 For Blackduck business development strategy City of Waubun.................................................$12,000 To develop a comprehensive plan providing guidance in growth for the economy and social stability of Waubun Headwaters Regional Development Commission...$14,000 For growing, attracting and retaining talent in Beltrami County Kittson County Economic Development Authority...$25,000 For Jobs 2010

LOW County Office of Economic Development....................................$10,000 For Lake of the Woods business and talent marketing plan

Internal Programs

Project support for regional initiatives Regional Economic Alliance (2) .......................$50,000 Ingenuity Drives Entrepreneur Acceleration......$25,000

Growth Management

City of Thief River Falls.....................................$25,000 To develop a vision, strategy, and implementation process for the city and surrounding nine communities Headwaters Regional Development Commission..................................$9,000 For Progress Park Rapids project, helping the community become more successful

Natural Resources Total: $72,600 Promotion & Preservation

Pembina Trail RC & D.......................................$25,000 For the program Noxious & Invasive Species Project

New Technologies

Headwaters Regional Development Commission................................$21,800 For Headwaters Region Collaborative Community Renewable Energy Plan Pembina Trail RC & D............................................$800 For Vegetable Oil as an On-Farm Fuel University of Minnesota Extension Service..............................................$25,000 For Organic Fruit Production in High Tunnels in Zones 2 and 3

Training Total: $17,828 Individual Excellence Awarded for nonprofit leaders’ professional development B-WELL..................................................................$825 Deb McGregor-Pfleger (2)....................................$1,550 Joanne Kellner.......................................................$300 Nonprofit Excellence – Organizational Effectiveness Awarded to organizations for technical assistance B-WELL..................................................................$665 Care and Share Center, Inc.................................$2,000 Paul Bunyan Playhouse.......................................$1,740 Evergreen House.................................................$1,000 Boys & Girls Club of the Bemidji Area................$1,743 Ours to Serve House of Hospitality (4)................$5,000 Wee Care Early Learning Center..........................$1,555 STAR A total of $1,200 was awarded for student follow-up projects to nine STAR Teams schools throughout the region.

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Grants Component Fund Total: $739,908

Crookston Early Childhood Initiative Fund (9 grants)...................................$19,825

Component funds are established with the Northwest Minnesota Foundation for a specific purpose. A donor or group of donors helps to build a permanent endowment from which interest earnings are used to fund projects, programs or activities 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 regulation, approves the advisory recommendations for grants, but the component funds are the source of the grant dollars.

District #593 Education Foundation Fund (2 grants)...............................$10,735 Early Childhood Initiative - Clearbrook...............$5,000 Fertile Area Armed Forces Veterans Fund..........$39,000 Fertile-Beltrami Early Childhood Initiative Fund (2 grants)........................................$500 Fosston Area Community Fund Fosston Education Foundation Fund (3 grants) . ....... $1,700 Full Stride Fund.....................................................$500

Backstrom Family Charitable Fund (2 grants).....$2,250

Greenbush Area Community Fund (7 grants).......$3,000

Bagley Area Community Fund Bagley Beautification Fund............................................$933 Bagley Early Childhood Initiative Fund (6 grants)..... $6,296 Bemidji Area Arts Endowment & Project Fund (3 grants)........................................$2,430 Bemidji Community Theater Fund................................$500 Ernie Rall Children’s Performing Arts Fund....................$500 Everett Wilimek Fund for String Studies (2 grants)........$600 Frederick Marshall Fund............................................ $1,649 North Star Arts Fund................................................. $2,113 Richard & Pam Nelson Family Fund for the Visual Arts .................................................... $1,000 Bemidji Area Community Fund Support Your Troops....................................................... $50 Bemidji Area Early Childhood Initiative Fund (4 grants).........................................................$3,225

Headwaters Unitarian Universalist Fellowship Fund.....................................................$500

Bemidji Area Parks and Trails Fund Bemidji in Bloom Fund.............................................. $1,599 Bemidji Sculpture Walk Fund.................................... $1,000 Bemidji Waterfront-Paul and Babe Maintenance Fund..................................................... $2,090 First City of Lights Fund (3 grants)............................. $6,082 Bemidji Curling Fund..........................................$1,500 Bemidji Lumberjack Foundation Fund Bemidji All School Reunion Fund.............................. $5,301 Rick Lee Memorial Fund...............................................$200 General Scholarship Fund.............................................$345 Tom Gardner Memorial Fund........................................$250 First National Bank Bonspiel Fund............................. $6,172 Security Bank USA Lumberjack Scramble Fund.....$12,346 Clearbrook-Gonvick Early Childhood Initiative Fund (3 grants).....................................$3,100 Clearwater Health Care Fund (3 grants)..............$4,022 CHS Hospice Family Room Project Fund................$10,000 Clearwater County Emergency Services Fund (3 grants)................................................$938 Clearwater Hospice Fund (2 grants).......................... $5,400 Crookston Area Community Fund Crookston Arena Fund..........................................$283,180

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Northwest Minnesota Foundation

Hopes, Dreams and Smiles Fund.......................$26,100 HRDC Leadership Fund HRDC Successful Communities Challenge Fund (7 grants) ......................................$38,500 John and Eloise Ostrem Charitable Fund (2 grants)..................................$1,000 Lake of the Woods County Historical Society Fund..........................................$175 Lake of the Woods Early Childhood Initiative Fund (6 grants).....................................$8,914 Laporte Education Fund.........................................$500 Tonia Johannsen Memorial Fund...................................$228 LifeCare Health Care Fund (2 grants) .................$1,482 Eagles Auxiliary Diabetes & Dialysis Fund................. $2,500 LifeCare Hospice Fund.............................................. $1,000 LifeCare Roseau Manor Fund.................................... $1,786 Maggie Adams Medical Equipment Fund (2 grants)....$12,189 Think Pink Breast Cancer Fund (2 grants).....................$790 Mahnomen Area Community Fund......................$5,481 Mahnomen Education Endowment and Project Fund Mahnomen School Track Fund (2 grants)................$30,937 Marshall County Early Childhood Initiative Fund (2 grants)...................................$13,750 Mississippi Headwaters Area Dental Health Center Fund.............................................$4,758 Norman County East Early Childhood Initiative Fund........................................................$200 North Valley Endowment Fund..........................$25,000 Ole and Ruth Tweet Family Fund (2 grants).........$3,500 Park Rapids Area Community Fund Heartland Homes Endowment and Project Fund (3 grants) ...........................................$36,636 Hewitt Family Charitable Fund (3 grants) ................. $6,750 Park Rapids Fireworks Fund...................................... $4,030 Park Rapids Early Childhood Initiative Fund (2 grants)... $1,800


Grants Park Rapids Revolving Loan Fund.....................$10,000 Red Lake Band of Chippewa Indians Community Fund Red Lake Youth Initiative Fund................................$23,849 Robert J. & Mary L. Johnson Charitable Fund (4 grants)...................................$3,583 Roseau County Historical Society Endowment Fund................................................$7,461 Ruth Edevold Awards for Excellence (3 grants) . ..$3,000 Ruth Edevold Endowment for Excellence............$2,500 Thief River Falls Early Childhood Initiative Fund (4 grants) ....................................$1,207 Warren Senior Center Endowment Fund..............$2,773 Warroad Area Community Fund Margaret Ann & Paul Samuel Johnson Family Charitable Fund (7 grants) ........................................ $9,000 William A. and Eloise E. Nelson Fund.................$2,500

Scholarship Funds 164 awards totaling:.................. $120,275 Bagley Education Endowment and Project Fund Bagley General Scholarship Fund (6)........................ $4,000 Bemidji Lumberjack Foundation Fund Buck Robbins Scholarship Fund....................................$150 Bun & Alvera Fortier Scholarship Fund.........................$500 Des Sagedahl Scholarship Fund....................................$500 General Scholarship Fund(11).................................$11,000 Heidi Bitzer McClure Memorial Scholarship.............. $1,000 K.E. “Red” Wilson Athletic Fund (2).......................... $1,250 Music - Pat Campbell String Fund.................................$300 John F. Breen Scholarship Fund (6).......................... $6,000 Ray F. Breen Scholarship(13)..................................$13,000 Blackduck Area Community Fund Academic and Character Scholarship Fund...................$500 Clearbrook-Gonvick Education Endowment and Project Fund Mary Jo Klinger Scholarship Fund................................$500 Olga Peterson Scholarship Fund................................ $1,500 East Polk County Fair Scholarship Fund East Polk County Fair Scholarship Fund (2).............. $2,000 Fosston Area Community Fund Dean and Joyce McNelly Family Vocational Scholarship Fund...................................... $1,000 Fosston Education Foundation Fund.......................... $1,500 Jim Miller Memorial Math Scholarship Fund.................$500 LuVerne Trogstad Scholarship Fund (2)...................$10,000 Terry Stout Memorial Scholarship Fund.................... $1,000 Vikan Scholarship Fund.................................................$500 Julie Holmquist Memorial Scholarship Fund(2).....$500 Keith and Ellen Kapphahn Family Scholarship Fund (4)...........................................$1,000 Laporte Education Fund (4)..................................... $2,250

Laporte-Benedict VFW Scholarship Fund (2)................$500 Tonia Johannsen Memorial Fund (2)......................... $1,000 Laural Capistran Murphy Scholarship Fund..................$500 Leonard J. Kucera Memorial Scholarship Fund (4)... $4,000 Luther Younggren Memorial Scholarship Fund (3).... $4,000 Mahnomen Education Endowment and Project Fund General Ike Isaacson and Major Bruce Isaacson Scholarship Fund (2)..................$750 Leslie Hanson Scholarship Fund (2)..............................$750 Mahnomen Education Endowment and Project Fund (12)....................................................... $4,500 Milton Hockel Natural Resources Scholarship Fund (2).....................................................$750 Night Riders Sno-Club Scholarship Fund (2).................$500 Major Robert Olson Fund....................................$1,000 Mike Staples Memorial Scholarship Fund...........$1,000 Northwest Minnesota Women’s Fund Northwest Minnesota Women’s Scholarship Fund (2)................................................. $1,000 University of Minnesota Crookston Women’s Scholarship Fund............................................$500 Red Lake Falls Education Endowment and Project Fund Kris Fontaine Memorial Scholarship Fund (7)........... $3,500 Kyle A. Myhre Memorial Fund (2)............................. $1,000 Lester Norris Dale, MD Scholarship Fund (1)................$500 Roseau Area Community Fund A.J. Kramer Scholarship Fund.......................................$500 Charles “Nick” Peterson Memorial Fund.......................$125 Joseph Schneider Scholarship Fund..............................$125 Malung PTO Scholarship Fund (4)............................ $1,000 Marian Foley Memorial Fund (4)............................... $4,000 Marvin LaRue Memorial Fund.......................................$500 Roseau Lions Club Scholarship Fund (4)................... $1,000 Wannaska PTO Scholarship Fund (3)............................$750 Warren-Alvarado-Oslo Education Foundation Endowment and Project Fund Lyle H Engelstad Scholarship Fund (5)...................... $5,000 Myron and Margaret Carlson Education Scholarship Fund...........................................................$400 Warroad Area Community Fund Bruce and Ellen Atwater Education Fund (2)............. $1,000 Dorrance H. Johnston Scholarship for Engineering Fund...................................................... $4,500 Edward and Agnes Brandli Scholarship Fund (2)..........$500 Gaylord A. Gunderson Education and Scholarship Fund (11).............................................$11,000 Jennifer Grove Memorial Scholarship Fund (2).............$600 Justin Knebel Memorial Fund........................................$400 Katie Jo Olafson Memorial Scholarship Fund (2)..........$500 Lee Hafdahl Memorial Scholarship Fund........................ $75 Nick Moyer Memorial Fund...........................................$100 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

2009 Annual Report

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

4225 Technology Drive NW Bemidji, MN 56601 RETURN SERVICE REQUESTED

Although our headquarters is in Bemidji, staff travels many roads to visit people and places throughout the region. You are always welcome to travel our way and stop at the office, or visit the NMF website any time to learn about our current activities and programs at

www.nwmf.org.


Northwest Minnesota Foundation FY 2009 Annual Report