Resource spring 2013

Northwest Minnesota Foundation ~ Developing Community Assets ~ Serving 12 Counties Spring 2013

Philanthropic Way of Life

~ Number 60 ~

This is a quarterly publication of Northwest Minnesota Foundation

Making a difference for our rural communities is something many of us dream about and some accomplish with a big impact. Mildred Beckstrom, who recently passed away, did just that with her estate plan, which included a gift of real estate that benefits the First Care Medical Services Foundation Endowment Fund and the Fosston Education Foundation Endowment Fund. Following Beckstrom’s wishes, each fund received half of the proceeds from the sale of her home in Fosston.

Beckstrom spent her entire life living in Fosston.

She worked at Farmers State Bank until retirement in 1986. She was an active member of Poplar Lake Lutheran Church, rural Fosston. And although she never married or had any children of her own, she was especially close to her goddaughter, Pamela Kelsey. “She was very much a lady -- very prim and proper,” said Kelsey. “Her philanthropic views were deeply engrained in her, but she was never boastful.” In fact, Beckstrom had many philanthropic organizations close to her heart. In addition to her community, she supported several girls’ homes, the Salvation Army and her church.

“Mildred was one of the most faithful church members I’ve known, certainly in the tireless way she served her Lord with her time and talents,” said Poplar Lake’s pastor, John Anderson. “And we had no idea Mildred was giving such a significant financial gift to the church. Mildred’s life was an outstanding example of faithful Christian stewardship.”

The key to estate planning is– planning. Beckstrom chose to meet her charitable goals by completing a transfer-on-death (TODD) deed for her home with the assistance of her attorney. The advantage

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

Northwest Minnesota Foundation BOARD OF DIRECTORS Robert J. Hager, Chair

Mildred Beckstrom

to using a TODD is the property is not included in the estate. Therefore, legal costs are avoided and more money is left to the charity of choice.

Faye Auchenpaugh, Vice Chair Laurie Wilson, Secretary Judy Roy, Treasurer

At Mildred’s passing the property transferred to the Northwest Minnesota Foundation to be sold so funds could be disbursed to the areas she specified in her will.

Jody Horntvedt

The education portion of the donation has been used to establish the Mildred Beckstrom Memorial Scholarship Fund, which will provide funding for post secondary education for Fosston’s youth.

Because the Education Foundation Fund is associated with the Fosston Area Community Fund, a ten-percent matching gift from the Northwest Minnesota Foundation (NMF) will help to fund

Jon Linnell

(Continued on page 3)

Jon Quistgaard Leah Pigatti

Tom Anderson Pete Haddeland Cathy Forgit Kristin Eggerling

Message from the President

Dear Friends, The work of the Northwest Minnesota Foundation never stops. We have a lot to celebrate and many challenges facing our communities. The IDEA competition rounded out its fifth year of developing new business ventures. Our collaborative effort awarded $10,000 to four finalists for their innovative products, while we continue to provide technical assistance to help develop their business models. Please see the article in this RESOURCE edition for a complete overview of the banquet and competition.

To track progress toward meeting our new strategic objectives, we are developing a tracking system beyond our regular reporting structure to capture long-term outcomes. This means we will follow up with our partners to check how sustainable their business or non-profit venture is a few years after the loan or grant is closed. This information will strengthen our current programs by determining what works and what doesn’t.

We hosted a successful open house in April celebrating the renovation of our new building in downtown Bemidji. It was a joy showing our neighbors and community partners the new space. We especially enjoyed the “coffee crew� that consists of retired bankers and business leaders, many of whom used to work in our building over the past 60 years. We have hosted many conferences and trainings in the new conference area. The rental units

Another reason to celebrate is the formal approval of our new five-year strategic plan by our major funder, the McKnight Foundation. Board members and staff met last summer to define a new path forward, keeping many of our current programs while redirecting focus to new areas. This includes grants for improved healthcare access and community-school partnerships.

Our leadership program, LeaderImpact, was suspended. We continue to value leadership training but saw that our program was one of many in the region focused on developing community leaders. Early Childhood programming continues with a focus on literacy.

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Nancy Vyskocil

Northwest Minnesota Foundation

upstairs are being leased out thanks to our staff contacts in the area. We still have our former building for sale and one more unit to rent before we can really celebrate. The positive comments on our effort to rehabilitate a portion of historic downtown Bemidji keep rolling in. Best of all, it is wonderful to finally have all our staff under one roof.

The challenging work still remains.

We continue to see grant applications for critical services to the elderly, difficult work to improve high school graduation rates, and even to protect our natural places from environmental and manmade threats. The business loan program works tirelessly to help start-up and existing companies grow. Sustainable business growth means real jobs in the region. Our philanthropic team continues to impress with the sheer number of new funds being created every month and donors who are helping to make the region a great place to live and work.

Northwest Minnesota Foundation Open House

Scholarships have been steadily flowing out to schools and students across the region and state. And our training agenda is full of incredible opportunities for business development, non-profit management, board development, and

leadership workshops. Of course, we cannot do this alone. We are only part of the solution. Driven community members who seek real change drive the solutions and the region.

Lastly, I would like to thank Dave West, Senior Program Officer for Business Finance for his years of service to the Northwest Minnesota Foundation.

Dave will be retiring June 30th and will be missed.

Philanthropic Way of Life (Continued from page 1)

projects, activities and special programs that benefit the community through the Community Fund.

The First Care donation will support projects or services that assist the mission and long-term stability of First Care Medical Services and other charitable healthcare services in the Fosston area. The First Care Foundation Board of Directors met recently and is considering the most effective use for dollars granted from Beckstrom’s generous endowment gift.

“We on the First Care Foundation board encourage everyone to follow Mildred’s

lead by passing on a portion of your estate to those organizations that you feel can best serve in making our community a better place to live and work,” said Board Chair Mark Finstad. “This gift will live on, helping to maintain quality and accessible healthcare for generations of area residents in the years to come.”

NMF has the responsibility of administering all the funds, managing investments, and overseeing the distribution of scholarships and grants as recommended by the advisory committees and approved by the NMF Board of Directors. NMF’s staff assists the ad-

visory committees with public relations, fund development, clerical support for scholarship and grant applications and general nonprofit management support.

For information about how to make a contribution or planned gift to a fund of NMF, contact Lisa Peterson or Caryl Turnow, development officers at Northwest Minnesota Foundation (800-6597859, email info@nwmf.org) or visit www.nwmf.org. The website features a section titled “Gift Planning Ideas” with a comprehensive library of planned giving information.

Developing Community Assets - Serving 12 Counties

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Grants

For Oral Health Prevention Service Expansion to NW MN Communities

Red Lake Band of Chippewa Indians Community Fund (2 grants) ................................$22,030 Red Lake Falls Education Endowment and Project Fund.................................$3,089 Stephen Area Endowment Fund Robert C. and Mona Rae Johnson Family Charitable Fund......................................................$6,500 Sinclair Scholastic Achievement Award Fund..................$300

Peacemaker Resources.......................................$23,000

Scholarship Fund Total:...........$33,425

Grants totaling $295,404 were awarded from February 2013 – April 2013 Caring Communities...............$44,000 Children, Family & Elderly Northern Dental Access Center....................... $21,000

For Phase One: Scientific Evaluation of the STAR Program

Community Planning Total:......$21,200

Community Development McIntosh Heritage & Arts Center.......................$6,000 For McIntosh Historic School Reutilization Initiative

Economic Development Northland Community and Technical College

Foundation Business Planning..........................$15,000 For UAS Development in Minnesota University of Minnesota Extension........................$200 For U of MN Extension BR&E Scholarship

Natural Resources Total:..........$2,500 Promotion & Preservation

White Earth Land Recovery Project For Anishinaabe Seed Project and Community Farming Initiative Component Funds are established with the Northwest Minnesota Foundation for a specific purpose. A local fund advisory committee recommends distributions based on specific 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.

Component Fund Total:...........$50,453 Backstrom Family Charitable Fund...........................$500 Fertile-Beltrami Area Community Fund....................$500 Fosston Area Community Fund (2 grants).............$2000 Kelliher Area Health Care Fund.................................$484 Laporte Education Endowment and Project Fund.....$250 Marshall County Early Childhood Initiative Fund.........................................................$7,000 Norman County East Early Childhood Initiative Fund ...........................................................$800 Northwest Minnesota’s Women’s Fund (2 grants)...$2,000 Park Rapids Area Community Fund Park Raids Education and Activities Fund...................$5,000

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Northwest Minnesota Foundation

Bagley Education Endowment and Project Fund Bagley General Scholarship Fund (5)..........................$3,100 Bemidji Area Community Fund Earle and Mariann Dickinson Family Education Fund.....$500 Bemidji Lumberjack Foundation Fund General Scholarship Fund (6)....................................$5,500 K.E. “Red” and Ruth Shannon Wilson..........................$500 Ray F. Breen Scholarship (2)......................................$3,000 Buck Robbins Scholarship Fund...................................$150 Des Sagedahl Scholarship Fund....................................$500 Pat Campbell String Fund...........................................$300 Bronko Nagurski Education Fund..........................$1,250 Fosston Area Community Fund Dean and Joyce McNelly Family Vocational Scholarship Fund...................................................... $750 Jim Miller Memorial Math Scholarship Fund..................$400 Vikan Scholarship Fund..............................................$500

Greenbush Area Community Fund Keith and Ellen Kapphahn Family Scholarship Fund........ $300

Laporte Education Endowment and Project Fund (2)...............................................$1,250 Laporte-Benedict VFW Scholarship Fund (2)............$500 Laural Capistran Murphy Scholarship Fund.............$500 Leonard J. Kucera Memorial Scholarship Fund.........$500 Mahnonem Education Endowment and Project Fund General Ike Isaacson and Major Bruce Isaacson Scholarship Fund.........................$200 Leslie Hanson Scholarship Fund...................................$250

Night Riders Sno-Club Scholarship Fund (2)..................$300 Major Robert Olson Fund.......................................$1,000 Mike Staples Memorial Scholarship Fund..............$1,000 Northwest Minnesota Women’s Fund (2)................$1,000 Red Lake Falls Education Endowment and Project Fund Kris Fontaine Memorial Scholarship Fund......................$500 (Continued on next page)

Dave West to Retire from NMF June 30 business development program. As the senior officer for the Business Finance Program, Dave had an integral part in building a loan portfolio that began with three loans and today is at $20 million.

Dave West began working for NMF, then the Northwest Minnesota Initiative Fund, in 1990. His experience in banking helped ease the way toward developing a strong

Loans are given for new start-up businesses and expansions. The goal of the Business Development Program is to create jobs and business opportunities leading to long-term community impact and diversification of the economy.

“I have thoroughly enjoyed working with the businesses of northwest Minnesota throughout my career,”

said West. “My work has been very rewarding – knowing that I was a little piece of the puzzle that helped many entrepreneurs achieve their dream of owning a business.”

Upon retirement Dave plans to pursue his hobbies, which include hunting, fishing and more hunting. He and his wife, Candace also plan to travel.

Diane Morey, senior program officer – business development will move into Dave’s position. Current Business Development Specialist Amy Tobkin will take over Diane’s responsibilities.

A search is underway for Amy’s replacement.

Grants (Continued from page 4)

Warren-Alvarado-Oslo Education Foundation Endowment and Project Fund....................................$800 Lyle H. Engelstad Scholarship Fund...........................$1,000 Warroad Area Community Fund Edward and Agnes Brandli Scholarship Fund...................$150 Gaylord A. Gunderson Education and Scholarship Fund (3)..........................................$2,000 Jennifer Grove Memorial Scholarship Fund....................$300 Nick Moyer Memorial Scholarship Fund........................$125 Warroad Farmer’s Union Oil Company Scholarship Fund.......................................................$500

Roseau Area Community Fund Charles “Nick” Peterson Memorial Fund........................$100 Karlsson Family Scholarship Fund (2).........................$1,000 Malung PTO Scholarship Fund(3)................................$750 Marian Foley Memorial Fund....................................$1,000 Marvin LaRue Memorial Fund.....................................$400 Roseau Lions Club Scholarship Fund............................$300 Wannaska PTO Scholarship Fund (2)............................$500 Tonia Johannsen Memorial Fund...............................$500

Business Development Activity Microloans

Business counseling and loans are available to help entrepreneurs develop small business and self-employment opportunities. Three loans were recently made totaling $67,905

Technical Assistance

Two businesses from Thief River Falls and Bemidji received a total of $4,975.

William P. Stephani, Puposky Start up for a slot rail fence business.

Joel Maxwell, Park Rapids Purchase of new equipment.

Westrum, Inc., Leonard Start up for a car wash in Clearbrook.

Developing Community Assets - Serving 12 Counties

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IDEA Competition Celebrates 2013 Winners at Awards Banquet

Pictured left to right: Tim Slukynsky, Jenny Slukynsky, Coreen Berdahl, Brian Berdahl, Charlette Shafer, Jerry Titera, Jack Lundbohm.

The spirit of innovation was celebrated at the fifth annual IDEA Competition Awards Banquet, held April 24 in Thief River Falls. From the opening comments by emcee Michelle Christopherson, to the encouraging keynote by Jorge Prince, on through the Hall of Fame Inductees, Ron Stordahl and Mark Larson of Digi-Key and the remarks of Competition winners, words like “courage,” “passion” and “persistence” were used to describe components essential to entrepreneurial success.

The banquet was the culmination of several months of activity by a group of bold entrepreneurs whose good ideas developed into action plans for successful business ventures. Of the eight finalists, four winners were

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selected. The 2013 winners are: Brian & Coreen Berdahl, Red Lake Falls, Spot-Knot; a fast, easy, and economical on-the-spot slip knot tie device that is the only one of its kind in the fishing industry. Dr. Jack V. Lundbohm, Roseau, Stand Alone Game Calls; an elk hunting call that allows an elk hunter to hunt alone while remotely operating a call that is set up in a second location.

Tim and Jenny Slukynsky, Warroad, Lamplighter Hockey; a hockey stick weight that overcomes the weaknesses of other hockey stick training tools on the market today. Jerry Titera, Bagley, Hubmaster Inc.; an innovative tool that helps remove the tapered wheel hub from bobcat skidsteers for routine maintenance and repair.

Northwest Minnesota Foundation

In his keynote address, Jorge Prince, CFO for LaValley Industries, emphasized the importance of dedication and sacrifice to run a successful business. Prince showed the original concept drawing for the DECKHAND which Jason LaValley sketched out on scratch paper while on a pipeline job in Corsicana, Texas, following an accident where a crew member had been injured. Jason thought to himself, “there just has to be a better way.”

Within eighteen months of the Corsicana sketch, Jason and his father, Roger LaValley had built a rough prototype in their garage. From there, further engineering and development ensued, until the DECKHAND concept was perfected. The company

has gone on to feature a full-attachment platform and a full line-up of products for handling pipe.

While the company has been very successful, Prince emphasized that they have learned some lessons along the way, including the importance of being honest with yourself, having a clear vision, choosing your partners carefully, being willing to go “all in,” and never giving up. Prince closed the keynote address by explaining that “building a business is much like raising a crop. You have to pray, have faith, and give thanks in all things.”

The 2013 IDEA Hall of Fame award was presented to Digi-Key Corporation’s top executives: Mark Larson, president and chief operating officer and Ron Stordahl, founder and chief executive officer. Stordahl took the podium first and described the company’s humble beginnings. He explained that it was his interest in ham radio that provided the springboard for the company. It began back in his college days when he assembled and began selling a digital electronic keyer kit – a device called the “Digi-Key” – that could send radiotelegraph code for ham radio operators. After finishing college and earning his PhD in electrical engineering, Stordahl returned to Thief River Falls, officially founding Digi-Key in 1972 with just $2,000 in capital.

Mark Larson took the podium next, and talked about the company’s growth and current status. Larson joined Stordahl in 1976 when the business had 14 employees and annual sales of just $800,000. Since that time, the company’s annual sales have grown to more than $1.5 billion and the company has more than 2,600 employees.

Jorge Prince, LaValley Industries

Larson’s strategies have uniquely positioned Digi-Key in the electronic distribution industry. The company has leveraged technology and in a very real sense redefined distribution for electronic components. Digi-Key is a bricks and mortar company that derives more than 80 percent of its sales from the Internet. The power of this redefinition is clearly substantiated by the performance of Digi-Key relative to its peers. This performance has resulted in major gains in market share, with Digi-Key becoming the fifth largest electronic component distributor in the world.

This is particularly remarkable in the respect that Digi-Key’s growth is totally organic – without any acquisitions.

Following the Hall of Fame awards, the 2013 IDEA Competition awards were presented.

Each winner had the

opportunity to make a few remarks, and without exception, it was obvious that each one was passionate about their business idea. The road to becoming an IDEA winner isn’t an easy one, but as one winner, Jack Lundbohm noted, “just going through the process of the competition was valuable and well worth the effort, even if I hadn’t become a winner.” Another winner, Jerry Titera noted, “I’ve got a better business because of it (the IDEA Competition).”

HOF Inductees, Mark Larson and Ron Stordahl, Digi-Key Corporation

Developing Community Assets - Serving 12 Counties

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