Northwest Minnesota Foundation ~ Developing Community Assets ~ Serving 12 CountiesSPRING 2008 • Number 46

You’ve probably heard the quote, “Go West young man, go West,” made famous more than a hundred years ago by Horace Greely. If he were alive today, Mr. Greely might be admonishing young entrepreneurs to seek their fortune in the Northwest…northwest Minnesota, that is – a place where ingenuity thrives. The region, which has come to be known as the “Ingenuity Frontier,” is an area like no other in the Midwest, dotted with manufacturers and technology companies thriving within a local culture of engineering knowledge and creativity. IDEA, an acronym for Ingenuity Drives Entrepreneur Acceleration, is a project of the Ingenuity Frontier, a collaboration of partners, convened by the Northwest Minnesota Foundation and joined by a common purpose – to grow the economy of northwest Minnesota by outfitting the next generation of home-grown innovators for success in the global marketplace. Along with NMF, IDEA partners include Bemidji State University, Center for Research and Innovation/Custom College, Headwaters Regional Development Commission, Minnesota Department of Employment and Economic Development, Northland Community and Technical College, Northwest Regional Small Business Development Center and University of Minnesota Crookston.

A New Phase of Development in the Ingenuity Frontier Over the next three years, NMF will receive $300,000 in grant funds from the Blandin Foundation to accelerate the identification and commercialization of promising business ideas within the region. The centerpiece of the effort will be an annual competition in which as many as five entrepreneurs will be recognized for new buisness concepts that are original, innovative and economically viable. Along with the recognition, the contest winners will receive cash awards of $10,000 each, plus consulting, coaching and technical assistance. This is valued at an additional $10,000. Contestants will also benenfit from networking with other successful entrepreneurs who will act as judges and have the opportunity to present their ideas to equity investors. “The type of innovative thinking that drives business creation often comes down to the vision of a single individual,” says Wade Fauth, grants director for the Blandin Foundation. “This initiative brings an impressive collaboration between industry, education, economic development and philanthropy together to get behind leading innovators, to accelerate their success, knowing that the whole region benefits.” IDEA believes in the ingenuity of the people who call northwest Minnesota home. In fact, the region is home to several world-class manufacturers, including Arctic Cat, Central Boiler, Digi-Key, Marvin Windows and Doors, Polaris and TEAM Industries. Without exception, each of these companies was launched by a

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IDEA partners’ meeting at the NMF office in Bemidji L-R: Dave Hengel, HRDC Director of Community Stewardship Development; Diane Morey, NMF Business Development Specialist; Kari Howe, DEED NW Regional Office Business and Community Division; Nancy Vyskocil, NMF President; Marty Sieve, NMF Vice President for Programs; Anthony Schaffhauser, CRI Executive Director; Michelle Christofferson, UMC Director for the Center for Adult Learning; Michelle Landsverk, IDEA Project Coordinator; Jorge Prince, Director of the NW Regional SBDC.

The NorthwestMinnesotaFoundation

investsresources,

createsopportunitiesand promotes

philanthropy tomake the region

a better placeto live and work.

BOARD OFDIRECTORS

Eric BergesonChairFertile

Anne SandVice Chair

Bemidji

Gary PurathSecretary

Red Lake Falls

Dean JohnsonTreasurer

Mahnomen

Terri AndersonOgema

David BergmanThief River Falls

Mark HewittPark Rapids

Roger MalmHallock

Kim WilsonFosston

Ann BeckBagley

Robert HagerGreenbush

Laurie WilsonCrookston

Nancy VyskocilA Message from the President

2

I searched for the term “invest” on the internet the other day and one of the definitions I found was “to put one’s money into a business or project to make more money.” Another said, “to put one’s money to use in order to receive a return in the future.” The McKnight Foundation has chosen to invest in Greater Minnesota through the Minnesota Initiative Foundations. NMF has just been awarded a grant of $7.2 million. McKnight believes they get a return on their investment and trust us at NMF to reinvest in northwestern Minnesota. The McKnight Foundation is not the only funder that places its trust and invests in us. The statewide Early Childhood Initiative recently received an investment in the form of a $100,000 grant from the Bremer Foundation, adding to generous ECI support from McKnight. At NMF, we then invest in our regional early childhood programs that give a return when our children enter school better prepared to learn, and we get additional payback when those children develop and complete their education, joining the economy as members of a skilled workforce. Every day at the foundation, we invest in our region and we see a return on that investment in so many ways. We invest in planning grants that make our communities better places to live. We invest in leadership training and get a return on our investment when communities, businesses and organizations are made more effective by having stronger leaders. We put our money into projects that enhance and preserve our natural resources and we see a payback every time we enjoy the lakes, rivers and prairies that clearly define our region. The foundation invests dollars through loan programs into area businesses with a return on investment coming through the creation of new jobs, resulting in a better standard of living through those jobs, or in some cases, the return is essential services remaining in our small towns. The Blandin Foundation has seen fit to invest in NMF through their allocation of

generous grant dollars, which we use for a variety of projects, including Ingenuity Frontier. This helps NMF and our partner organizations spotlight applied engineering, manufacturing and entrepreneurial activities in northwest Minnesota. All of these investments lead to many great things, which we call Quality of Place. Clean water, beautiful prairies coming to life with spring flowers, well educated children, well planned communities, growing businesses, good jobs, all make northwest Minnesota a great place to call home. The foundation offers you a chance to be a part of this investment and join with all foundations and individuals who have used NMF as vehicle to invest in our region. With every dollar you invest in the foundation through general endowment donations or gifts that support component funds specific to your interest, you invest a dollar in the future of northwest Minnesota. Get involved and see what kind of returns you and your community can see on this investment.

Nonprofit organizations are invited to call the NMF office at 218-759-2057 or 800-659-7859 to be included on a list to receive free computer equipment. NMF periodically upgrades computer workstations and then makes some avail-able for free to nonprofits in the region.

Free Computers Available to Nonprofits

“We’re very pleased with the services

NMF provides and its

knowledge of the needs throughout northwest

Minnesota.”

– Paul Johnson

Philanthropic Services

3

Passions with a Purpose

NMF serves to educate donors about community needs and about the charities that are working effectively to meet those needs. The sponsoring organization also takes care of the administrative details—tax, legal, and accounting matters. One very special NMF donor advised fund, The Full Stride Fund, was established by the children of the late Curtis and Marlene Johnson, a couple who lived their lives in the Thief River Falls area. The Full Stride Fund honors their parents’ belief that participation in organized activities help children to develop their skills and talents. Through the Full Stride Fund, children’s participation in early childhood, extra-curricular and after school activities, Boys and Girls Clubs, 4-H and other programs will be supported. The Johnson children will annually review programs of interest and award funding. About their relationship with NMF, fund advisor Paul Johnson said, “Working with the foundation helps us remember our parents in a very active way, without having to take on the administrative burdens of starting our own 501(c)3.” Johnson added, “We had initially considered making the Full Stride Fund a stand-alone nonprofit. After we learned about the legal and IRS implications, we knew partnering with NMF would help us achieve the same goals without having to become charitable experts. We’re very pleased with the services NMF provides and its knowledge of the needs throughout northwest Minnesota.”

At the Northwest Minnesota Foundation, we believe real philanthropy happens when you encourage people to truly connect to their community and ultimately, connect their passions with a purpose. The time we spend with each donor, our support of community needs, the knowledge we share with others – all of this helps us to better understand the individual parts of our community and helps others unleash their philanthropic power. Philanthropy is not one person’s job, it is not one organization’s responsibility and it is not something that we can do alone. Real philanthropy – powerful philanthropy – happens when we connect with one another, share our resources of time, finances and knowledge, and inspire one another. Over the past year NMF has been fortunate to work with four different families and donors to establish donor-advised funds benefiting a variety of charitable interests in our region. Each fund reflects a strong desire to make a difference in the donors’ areas of interest, a businesslike approach for fund administration, and the desire to share interests and work through NMF to make our region a better place to live and work.

Donor Advised Funds

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

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“The type of innovative

thinking that drives business creation often comes down to

the vision of a single

individual.”

Wade FauthBlandin

Foundation

Philanthropic Services (Continued from page 3)

For more information on the Full Stride Fund, please visit www.fullstride.org. Two donor-advised funds were established by working in partnership with the donors’ legal advisors. Thief River Falls Attorney Paul Ihle called to inquire about the process of establishing a donor-advised fund. Through discussion about the main interests of his clients, this conversation led to the establishment of the Robert J. and Mary L. Johnson Charitable Fund. With their fund, Robert and Mary will be able to recommend funding for a variety of nonprofit programs in and around Pennington County. They will be recognized as Circle of Vision recipients at the NMF Annual Celebration Dinner in May. Bemidji Attorney Adam Christopher advised his clients Sue and Stu Rosselet to contact NMF to discuss options in meeting their charitable goals. While actively engaged in retirement and estate planning, the Rosselets identified several charitable goals they initially thought would be met upon their passing. Working through the foundation, the Rosselets were able to

establish a donor-advised fund that will allow them to actively support charitable interests during their lives. The fourth donor-advised fund established this year represents a very generous heart, a thoughtful process of identifying initial areas of interest, and the opportunity to quietly make a difference. The Fourth and Robbins Fund will have a dramatic impact on area nonprofits. This fund, established by a donor who wishes to remain anonymous, will work through NMF and use its expertise to gather information from nonprofit organizations working in specific areas of interest and then make supporting grant awards. As a community foundation, we have always known that our donors make it possible for us to make a difference in our community. Our donors’ passions combined with our knowledge of the community and dedication to service will keep our region growing stronger every year. That’s what makes philanthropy happen.

home grown innovator who had a dream and was able to access adequate resources to make that dream a reality. We might call IDEA a competition, but it is so much more. IDEA is here to assist the most promising local entrepreneurs in the commercialization of innovative products, processes and deliveries by connecting them to the best resources available along with access to the capital it takes to launch a successful venture. There are a lot of good ideas out there, but only a handful who are able to take a breakthrough idea from concept to profitable venture. Our goal is to truly impact the economy of our region by bringing business people, educators and investors together. “The whole purpose of IDEA is to keep northwest Minnesota supplied with innovative entrepreneurs,” said Marty Sieve, NMF vice president for programs. “The kind of entrepreneurs that earned our reputation as one the the country’s premier manufacturing centers.”

A New Phase of Development One of Ingenuity Frontier’s goals is to “create new wealth in Greater Minnesota.” While much has been done to accomplish this goal, it remains a major area in which project partners see an opportunity for further growth, particularly in assisting local innovators in the commercialization of products, processes and deliveries. The partnership is well-poised to seize this opportunity: the region’s four higher educational institutions have developed good working relationships, a state-of-the-art research facility has become a major part of the equation, and Ingenuity Frontier has begun to establish strong brand equity in the region and throughout the state. Whether you have never started a company or you’re already in business and generating revenue, the future of northwest Minnesota depends on your passion to create ideas that can become profitable ventures and that produce value in the marketplace for your customers and your investors.

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Our donors’ passions

combined with our knowledge

of the community

and dedication to service will

keep our region growing stronger

every year.

GrantsGrants Grants totaling $370,165 were made from January-March 2008

Caring Communities Total:$127,762 Children & Families A Chance To Grow Minnesota Learning Resource Center .............................. $25,000Provides continued training to help the school develop a Stimulating Maturity through Accelerated Readiness Training (S.M.A.R.T.) Team approach

Boys & Girls Clubs of White Earth Reservation ..................................... $25,000For Boys & Girls Clubs of the White Earth Reservation, Rice Lake Unit Expansion B-WELL ............................................... $25,000for Tackling the Challenge of Childhood Obesity in Bemidji and Surrounding Communities Tri-Valley Opportunity Council, Inc. . $25,000For support of a Family Mentoring Program as part of the Our Children Succeed Initiative

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

Thrive Initiative (Early Childhood Mental Health)Bi-County CAP, Inc. ......................... $43,600For early childhood mental health practitioner

Community Planning Total: $55,000Economic & Community DevelopmentCity of Bemidji ....................................$25,000For a market survey and plan for improving and enhancing green space and resources in the community: Paul Bunyan and Library (Waterfront) Parks City of Mahnomen ...........................$15,000To complete a comprehensive plan including addressing the core issues of growth management and land use, the downtown, housing and capital improvements

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

Natural Resources Total: $500Natural Resources - New TechnologiesUniversity of Minnesota Crookston ....... $500For the Home Grown Economy Conference Training Total: $5,767Individual EffectivenessBemidji Area Habitat for Humanity .......$1,280For personal/professional coaching - Geri Hickerson

Center for Research and Innovation Bemidji State University ............................ $330For professional development -Joanne Kellner STAR$900 was awarded to Bagley, Bemidji, Nevis, Red Lake County Central, St. Philips Schools for follow-up activities for the STAR Program Organizational EffectivenessBoys and Girls Club of the Bemidji Area .. $3,257For staff development and in-service training

Component funds are established with the Northwest Minnesota Foundation for a specific purpose. A donor or group of donors helps to build a permanent endowment from which interest earnings are used to fund projects, programs or activities that support the mission of the fund. A local fund advisory committee recommends distributions based on specific purposes and criteria. The NMF board, for purpose of IRS regulations, approves the advisory recommendations for grants, but the component funds are the source of the grant dollars. Component Fund Total: $207,648 Backstrom Family Charitable Fund $1,500

To support the Marshall County ECI Fund-Imagination Library

Bagley Early Childhood Initiative Fund .........................................................$1,010 To Bagley School District for welcome new baby packets

Bemidji Area Early Childhood Initiative Fund (3) ....................................................... $7,048 To Bemidji Area Schools for FRED (Fathers Reading Every Day); to Headwaters School of Music & Arts for Tiny Tots Expo; to Headwaters Science Center for science exploration - caregiver focus

Bemidji Area Parks and Trails Fund First City Lights Fund (2) ........................................ $3,430

For Kuhn fireworks; for Bemidji Pioneer Freedom Defenders Veterans’ Memorial Fund .......................................$15,130 For Freedom Defenders Veterans Memorial

Bemidji Area Public Library Foundation Endowment and Project Fund ...................$1,233 To Kitchigami Regional Library for technology sustainability Bemidji Curling Fund ............................... $1,500 To the Bemidji Curling Club-Jr. Committee for general junior curling program support

“With every dollar you

invest in the foundation

... you invest a dollar in the future

of northwest Minnesota.”

Nancy Vyskocil

Bemidji Lumberjack Foundation Fund Amy Anderson English Fund .......................$176 To Ken K. Thompson Jewelry for engraving Clearwater Health Care Fund CHS Hospice Fund ............................. $1,000 To Clearwater County Hospice, Inc. for Hospice Aid

Crookston Early Childhood Initiative Fund ................................................ $600To Tri-Valley Opportunity Council, Inc. for ECI Community Resource Directory

District #593 Crookston Education Foundation Fund$4,043For School Round Grant

Frances Drivold Special Education Endowment and Project Fund ............. $3,500 To Crookston High School for Special Education Needs

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

Greenbush Community Education Fund ...........................................................$250 To Greenbush-Middle River School for Mixed Blood Theatre-Dr. King’s Dream

Headwaters Unitarian Universalist Fellowship Fund ............................................................... $448To Headwaters Unitarian Universalist Fellowship for religious education program

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

Lake of the Woods Early Childhood Initiative Fund (3) ...................................................... $1,800To Baudette Chamber of Commerce for Santa Day project; to Lake of the Woods School for early child-hood event/fund development; and for expenses

Marshall County Early Childhood Initiative Fund ..........................................$1,500To Warren-Alvarado-Oslo School for FRED program funding

Park Rapids Area Community Fund Heartland Homes Endowment and Project Fund (2) ................................. $9,114 To Heartland Homes, Inc. for van replacement; for technology related expenses

Roseau County Historical Society Endowment Fund ....................................................... $4,200To Roseau County Historical Society for Pinecreek Lutheran Church restoration

Warroad Area Community Fund NAPA Ride to Reading Fund$1,292 To Warroad Schools for library books

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

This quarter alone, 132 scholarships totaling $90,425 were awarded to area students. # Awarded Fund Name Amount Bagley Education Endowment and Project Fund 6 Bagley General Scholarship Fund $4,000 Bemidji Lumberjack Foundation Fund 1 Buck Robbins Scholarship Fund $150 1 Bun & Alvera Fortier Scholarship Fund $500 1 Des Sagedahl Scholarship Fund $500 8 General Scholarship Fund $6,500 1 Heidi Bitzer McClure Memorial Scholars $1,000 2 K.E. “Red” Wilson Athletic Fund $1,500 1 Pat Campbell String Fund $300 5 John F. Breen Scholarship Fund $5,000 9 Ray F. Breen Scholarship $9,000 Blackduck Area Community Fund1 Academic and Character Scholarship Fund $500

Clearbrook-Gonvick Education Endowment and Project Fund 1 Mary Jo Klinger Scholarship Fund $500 1 Olga Peterson Scholarship Fund $1,500 East Polk County Fair Scholarship Fund 2 East Polk County Fair Scholarship Fund $1,500 Fosston Area Community Fund 1 Dean and Joyce McNelly Family Vocational Scholarship Fund $650 1 Dean Clementson Scholarship Fund $300 1 Fosston Education Foundation Endowment and Project Fund $1,500 1 Fosston Livestock Shipping Association Animal Science Scholarship Fund $150 1 Jim Miller Memorial Math Scholarship Fund $450 1 Terry Stout Memorial Scholarship Fund $1,000 1 Vikan Scholarship Fund $450 Greenbush Area Community Fund 2 Keith and Ellen Kapphahn Family Scholarship Fund $500 Julie Holmquist Memorial Scholarship Fund 1 Julie Holmquist Memorial Scholarship Fund $500 Laporte Education Endowment and Project Fund 5 Laporte Education Endowment and Project Fund $2,500 2 Laporte-Benedict VFW Scholarship Fund $500 2 Tonia Johannsen Memorial Fund $1,000 Laural Capistran Murphy Scholarship Fund 1 Laural Capistran Murphy Scholarship Fund $500

6

“For over 20 years, NMF

has built pros-perity

and vitality throughout the state’s northwest.”

Kate WolfordMcKnight

Foundation

Leonard J. Kucera Memorial Scholarship Fund4 Leonard J. Kucera Scholarship Fund $4,000 Luther Younggren Memorial Scholarship Fund 1 Luther Younggren Scholarship Fund $2,000 Mahnomen Education Endowment and Project Fund 2 General Ike Isaacson and Major Bruce Isaacson Scholarship Fund $750 1 Leslie Hanson Scholarship Fund $500 8 Mahnomen Education Fund $4,500 1 Milton Hockel Scholarship Fund $750 2 Night Riders Sno-Club Scholarship Fund $500 Major Robert Olson Fund 1 Major Robert Olson Fund $1,000 Mike Staples Memorial Scholarship Fund 1 Mike Staples Memorial Scholarship Fund $1,000

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

Warren-Alvarado-Oslo Education Foundation Endowment and Project Fund 8 Lyle H. Engelstad Scholarship Fund $8,000 1 Myron and Margaret Carlson Education Scholarship Fund $400

Warroad Area Community Fund 1 Bruce and Ellen Atwater Education Fund $500 2 Edward and Agnes Brandli Scholarship Fund$40010 Gaylord A. Gunderson Education and Scholarship Fund $10,000 1 Jennifer Grove Scholarship Fund $500 5 Katie Jo Olafson Scholarship Fund $1,250 1 Lee Hafdahl Memorial Scholarship Fund $75 1 Nick Moyer Memorial Scholarship Fund $200 1 Patrick O’Donnell Scholarship Fund $500 2 Warroad Education Endowment and Project Fund $1,000 1 Warroad Farmer’s Union Oil Company Scholarship Fund $500

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

Tulaby Lake Inn, MahnomenRiver Cinema, Inc., East Grand ForksKristen Hultgren, Kennedy

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

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

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

Business Development Activity

Business Development Activity

7

McKnight Foundation Announces $7.2 Million for NMF NMF will receive $7.2 million from the McKnight Foundation over five years to sup-port NMF’s programs, build the organization’s endowment and support its development as a community foundation. “We at McKnight are pleased to continue

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

Scholarships continued:

4225 Technology Drive NWBemidji, MN 56601

NONPROFIT ORG.U.S. Postage

PAIDBemidji, MN

56601Permit No. 36

Upcoming EventsUpcoming Events

CHANGE SERVICE REQUESTED

CoNtACt US: 218-759-2057 • 800-659-7859 • nwmf@nwmf.org

Visit our Website: www.nwmf.org

Individual Excellence Legal Issues for ManagementMay 1, 2008 8:30a-3:45p Location: Community Room, Beltrami Electric Co-op, Bemidji

Organizational Excellence Organizational Effectiveness WorkshopMay 16, 2008 8:30a-4:00p *Nonprofit Executive Director and a board member should both attend. Location: Northland Inn, Crookston

Adult Leadership NMF LeaderImpact© - participants must attend both sessions

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

Session II: December 4 & 5, 2008 Location: Swenson House, Thief River Falls

For more information or to download forms, visit Events & Workshops at www.nwmf.org – online registration available for most courses.