2012Fiscal Year

aNNUal rePOrT

FALL / Winter 2013 | number 58

i i

PAge 20

Sustaining Community Success

PAge 18

McKnight Foundation Tour

PAge 13

New FundsPAge 6

Fiscal Year 2012 Overview

Table of contents

In this IssueFiscal Year 2012 Annual Report mission, Vision, Accomplishments . . . . . . . . . . . . . . . . . . . . . 2

message from the Chair and President . . . . . . . . . . . . . . . . . . . 3

board and Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

FY 12 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

FY 12 grants and Loans Summary . . . . . . . . . . . . . . . . . . . . 11

FY 12 new Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Quarterly Resourcetransitions in training . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

message from the President . . . . . . . . . . . . . . . . . . . . . . . 16

mcKnight Foundation tour . . . . . . . . . . . . . . . . . . . . . . . . 18

Sustaining Community Success . . . . . . . . . . . . . . . . . . . . . 20

grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

entrepreneur Program at Work . . . . . . . . . . . . . . . . . . . . . . 25

FY12 ANNUAL REPORT 1

PAge 20

Sustaining Community Success

Table of contents

i i

PAge 20

Sustaining Community Success

PAge 18

McKnight Foundation Tour

PAge 13

New FundsPAge 6

Fiscal Year 2012 Overview

Table of contents

In this IssueFiscal Year 2012 Annual Report mission, Vision, Accomplishments . . . . . . . . . . . . . . . . . . . . . 2

message from the Chair and President . . . . . . . . . . . . . . . . . . . 3

board and Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

FY 12 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

FY 12 grants and Loans Summary . . . . . . . . . . . . . . . . . . . . 11

FY 12 new Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Quarterly Resourcetransitions in training . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

message from the President . . . . . . . . . . . . . . . . . . . . . . . 16

mcKnight Foundation tour . . . . . . . . . . . . . . . . . . . . . . . . 18

Sustaining Community Success . . . . . . . . . . . . . . . . . . . . . 20

grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

entrepreneur Program at Work . . . . . . . . . . . . . . . . . . . . . . 25

FY12 ANNUAL REPORT 1

PAge 20

Sustaining Community Success

Table of contents

2

Our Missionthe northwest minnesota Foundation invests resources, creates opportunities, and promotes philanthropy to make the region a better place to live and work .

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

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

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

innovationWe are forward thinking and proactive in seeking out opportunities .

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

PartnershipsWe are most effective when working in cooperation with others .

Message from the chair and President

Our AccomplishmentsSince inception in 1986

Z business loan programs with over $5 million in assets have made 486 loans for a total of more than $22 .1 million

Z Creation or retention of almost 2,625 jobs

Z Lending has leveraged more than $87 million in additional funds

Z made over 4,800 grants totaling $28 .4 million

Z Adult and youth leadership programs have provided training for nearly 5,000 leaders

Z Specifically designed non-profit management and diversity training programs have addressed the special needs of 646 organizations and 95 communities

Z $48 million in total assets

Z more than 313 component funds and sub-funds, with assets totaling $17 .5 million

FY12 ANNUAL REPORT 3

Hello Friends!the northwest minnesota Foundation is on the move! Literally, figuratively—you name it—it has been a year of monumental change at the foundation .

reading through our annual report section will give you a snapshot of the work we are doing to ensure that our region is a great place to live, work and play . the joy in looking back is seeing that we made great strides in meeting our mission .

to stay on track for the next five years, we have completed a new strategic plan . We will soon enter the next phase in the mcKnight Foundation’s funding cycle and we are gearing up to continue our work in the region .

the planning process is important and comprised a great deal of our activity this year . board and staff worked hand in hand to evaluate where we’ve been, with the tracking process guiding our future direction .

We had the fresh perspective of newly named board members and staff, hired in the past year . it also just happened to be a good way for them to learn about our past strategies, values and vision, and provided an opportunity to help shape how the new plan will be put into action .

At the same time, five of our board members either finished or were in the final months of their terms . their experience and institutional history served us well in the process .

it is our intent to serve northwest minnesota far into the future . the new nmF headquarters helps to make us even more permanently anchored in the region . this huge change allows us to have adequate space for current needs and for potential growth . We will be highly visible and accessible . We now have a facility available for hosting meetings, conferences, training, and for some special public purposes . Please stop by when you’re in the area and we’ll be delighted to give you a tour .

the northwest minnesota Foundation would not exist if it weren’t for the vision of the mcKnight Foundation . most importantly, nmF would not be able to do its work without those who generously give of their time and resources to the dozens of initiatives supported by the foundation . thank you!

Continue to keep an eye on us through our adaptation to change—it’s a great time to be in northwest minnesota .

gArY PurAtH

Board Chair

gArY PurAtH

Board Chair

nAnCY VYSKOCiL

President

nAnCY VYSKOCiL

President

Message from the chair and President

2

Our Missionthe northwest minnesota Foundation invests resources, creates opportunities, and promotes philanthropy to make the region a better place to live and work .

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

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

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

innovationWe are forward thinking and proactive in seeking out opportunities .

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

PartnershipsWe are most effective when working in cooperation with others .

Message from the chair and President

Our AccomplishmentsSince inception in 1986

Z business loan programs with over $5 million in assets have made 486 loans for a total of more than $22 .1 million

Z Creation or retention of almost 2,625 jobs

Z Lending has leveraged more than $87 million in additional funds

Z made over 4,800 grants totaling $28 .4 million

Z Adult and youth leadership programs have provided training for nearly 5,000 leaders

Z Specifically designed non-profit management and diversity training programs have addressed the special needs of 646 organizations and 95 communities

Z $48 million in total assets

Z more than 313 component funds and sub-funds, with assets totaling $17 .5 million

FY12 ANNUAL REPORT 3

Hello Friends!the northwest minnesota Foundation is on the move! Literally, figuratively—you name it—it has been a year of monumental change at the foundation .

reading through our annual report section will give you a snapshot of the work we are doing to ensure that our region is a great place to live, work and play . the joy in looking back is seeing that we made great strides in meeting our mission .

to stay on track for the next five years, we have completed a new strategic plan . We will soon enter the next phase in the mcKnight Foundation’s funding cycle and we are gearing up to continue our work in the region .

the planning process is important and comprised a great deal of our activity this year . board and staff worked hand in hand to evaluate where we’ve been, with the tracking process guiding our future direction .

We had the fresh perspective of newly named board members and staff, hired in the past year . it also just happened to be a good way for them to learn about our past strategies, values and vision, and provided an opportunity to help shape how the new plan will be put into action .

At the same time, five of our board members either finished or were in the final months of their terms . their experience and institutional history served us well in the process .

it is our intent to serve northwest minnesota far into the future . the new nmF headquarters helps to make us even more permanently anchored in the region . this huge change allows us to have adequate space for current needs and for potential growth . We will be highly visible and accessible . We now have a facility available for hosting meetings, conferences, training, and for some special public purposes . Please stop by when you’re in the area and we’ll be delighted to give you a tour .

the northwest minnesota Foundation would not exist if it weren’t for the vision of the mcKnight Foundation . most importantly, nmF would not be able to do its work without those who generously give of their time and resources to the dozens of initiatives supported by the foundation . thank you!

Continue to keep an eye on us through our adaptation to change—it’s a great time to be in northwest minnesota .

gArY PurAtH

Board Chair

gArY PurAtH

Board Chair

nAnCY VYSKOCiL

President

nAnCY VYSKOCiL

President

Message from the chair and President

4

Gary PurathCHAirRed Lake Falls

Bob HagerViCe-CHAirRoseau

laurie WilsonSeCretArYCrookston

Judy roytreASurerRed Lake

Fay auchenpaughDireCtOrThief River Falls

eric BergesonDireCtOrFertile

Pete HaddelandDireCtOrMahnomen

Jody HorntvedtDireCtOrBaudette

Jon linnellDireCtOr Warren

leah PigattiDireCtOrPark Rapids

Jon QuistgaardDireCtOrBemidji

Board and staff

Our gratitude to board members whose terms ended in 2011.

Mark Hewitt

Kim Wilsonroger Malm

FY12 ANNUAL REPORT 5

laurie WilsonSeCretArYCrookston

eric BergesonDireCtOrFertile

Jon linnellDireCtOr Warren

Board and staff

Northwest Minnesota Foundation Staff Membersconnie aguilloAdministrative Assistant

Peggy crandallGrants Services Associate

Nate DorrProgram Officer – Grants

Dawn GanjeProgram Officer – Training

Vicky GroveProgram Manager– Early Childhood

samantha HedinAccounting Associate

ashley HullCommunications Specialist

Barb lienAdministrative Assistant

linde lindeAdministrative Assistant

la rae MaddoxOffice/Systems Manager

Diane MoreySenior Program Officer – Business Development

lisa PetersonDevelopment Officer

Marty sieveVice President for Programs

amy TobkinBusiness Development Specialist

caryl TurnowDevelopment Officer

Nancy VyskocilPresident

Tim WangFinance Director

Dave WestSenior Program Officer – Business Finance

4

Gary PurathCHAirRed Lake Falls

Bob HagerViCe-CHAirRoseau

laurie WilsonSeCretArYCrookston

Judy roytreASurerRed Lake

Fay auchenpaughDireCtOrThief River Falls

eric BergesonDireCtOrFertile

Pete HaddelandDireCtOrMahnomen

Jody HorntvedtDireCtOrBaudette

Jon linnellDireCtOr Warren

leah PigattiDireCtOrPark Rapids

Jon QuistgaardDireCtOrBemidji

Board and staff

Our gratitude to board members whose terms ended in 2011.

Mark Hewitt

Kim Wilsonroger Malm

FY12 ANNUAL REPORT 5

laurie WilsonSeCretArYCrookston

eric BergesonDireCtOrFertile

Jon linnellDireCtOr Warren

Board and staff

Northwest Minnesota Foundation Staff Membersconnie aguilloAdministrative Assistant

Peggy crandallGrants Services Associate

Nate DorrProgram Officer – Grants

Dawn GanjeProgram Officer – Training

Vicky GroveProgram Manager– Early Childhood

samantha HedinAccounting Associate

ashley HullCommunications Specialist

Barb lienAdministrative Assistant

linde lindeAdministrative Assistant

la rae MaddoxOffice/Systems Manager

Diane MoreySenior Program Officer – Business Development

lisa PetersonDevelopment Officer

Marty sieveVice President for Programs

amy TobkinBusiness Development Specialist

caryl TurnowDevelopment Officer

Nancy VyskocilPresident

Tim WangFinance Director

Dave WestSenior Program Officer – Business Finance

6

Overview of 2012

A Year of Change

the information in this Annual report represents activities for the fourth year of nmF’s current five-year funding cycle, covering the period from July 1, 2011 through June 30, 2012 . A strategic plan for the next five years is now in preparation and we are anticipating the next phase .

the biggest lesson to be gleaned from the past year is the continued validity of nmF’s focus on Quality of Place and the four elements that comprise it . before these concepts became the basis of our mission ten years ago, the foundation had concentrated all of its resources on just two areas—building the capacity of individuals and organizations and strengthening the local economy . research showed, however, that the prosperity of the region ultimately depended on attracting knowledge and talent, and that these resources needed Quality of Place to thrive .

While Quality of Place in rural areas did indeed rely on strong organizations and a strong economy, it also required what we termed natural and structural amenities . Our plan thus marked the start of our investment in four things deemed essential to Quality of Place: natural Assets, Structural Assets, Social Assets (organizations and individuals) and economic Assets . the following performance report demonstrates that nmF’s decision to invest in natural and Structural Assets was well founded .

FY12 ANNUAL REPORT 7

Overview of 2012

Our expansion into the area of natural Assets had initially seemed the most risky and least likely to yield significant returns on investment . time has proven otherwise . the foundation’s natural resource grant Program is now among our most effective efforts . Similarly, grants from component funds for natural

resource preservation have exceeded expectations, as has the Healthy Lakes and rivers Program . the latter, in fact, succeeded in getting conservation plans adopted by most of the eligible lake associations in Hubbard and beltrami Counties . in a good example of synergy between our programs and our philanthropic services, six lake associations have now established component funds with nmF to assist in ongoing implementation of their plans .

the foundation also went out on a limb ten years ago with the addition of Structural Assets to its core priorities, but there too the rewards have surpassed our hopes . Community Planning grants are now among our most active discretionary grant programs . Community Vitality Loans were made this year for the renovation of historic buildings in both the far northern and far southern reaches of our service area . grants from component funds to schools and

scholarship awards have seen dramatic increases over the course of the existing plan, as has the number and size of contributions to education funds .

none of which should diminish all the good work still being done by nmF to improve the region’s Social and economic Assets . Our leadership training for youth has begun to gain a national, even international, reputation . the early Childhood initiative has sunk roots in twelve area communities, achieving a degree of local control and autonomy that has been further enhanced by the establishment of eleven component funds and one independent foundation . the growth in size and number of our community funds might be the single most impressive accomplishment of the past four years, a feat made possible by the introduction of an innovative training and technical assistance program called Sustaining Community Success . the iDeA Competition has set a new standard for promoting rural business innovation and for perpetuating the entrepreneurial culture that’s come to define northwest minnesota . And imPACt 20/20 might well be one of the most significant approaches to regional economic development currently underway in rural minnesota .

Finally, it must not go unnoted that nmF’s relocation to an historic building in downtown bemidji will soon give the foundation a physical presence in northwest minnesota it has sorely lacked for more than 25 years . And it will provide further evidence of our commitment to investing in the region’s Quality of Place . As always, thanks are due in no small part to the support and far-sighted example shown to us by the mcKnight Foundation, whose own headquarters represents an important contribution to the vitality of the twin Cities community .

6

Overview of 2012

A Year of Change

the information in this Annual report represents activities for the fourth year of nmF’s current five-year funding cycle, covering the period from July 1, 2011 through June 30, 2012 . A strategic plan for the next five years is now in preparation and we are anticipating the next phase .

the biggest lesson to be gleaned from the past year is the continued validity of nmF’s focus on Quality of Place and the four elements that comprise it . before these concepts became the basis of our mission ten years ago, the foundation had concentrated all of its resources on just two areas—building the capacity of individuals and organizations and strengthening the local economy . research showed, however, that the prosperity of the region ultimately depended on attracting knowledge and talent, and that these resources needed Quality of Place to thrive .

While Quality of Place in rural areas did indeed rely on strong organizations and a strong economy, it also required what we termed natural and structural amenities . Our plan thus marked the start of our investment in four things deemed essential to Quality of Place: natural Assets, Structural Assets, Social Assets (organizations and individuals) and economic Assets . the following performance report demonstrates that nmF’s decision to invest in natural and Structural Assets was well founded .

FY12 ANNUAL REPORT 7

Overview of 2012

Our expansion into the area of natural Assets had initially seemed the most risky and least likely to yield significant returns on investment . time has proven otherwise . the foundation’s natural resource grant Program is now among our most effective efforts . Similarly, grants from component funds for natural

resource preservation have exceeded expectations, as has the Healthy Lakes and rivers Program . the latter, in fact, succeeded in getting conservation plans adopted by most of the eligible lake associations in Hubbard and beltrami Counties . in a good example of synergy between our programs and our philanthropic services, six lake associations have now established component funds with nmF to assist in ongoing implementation of their plans .

the foundation also went out on a limb ten years ago with the addition of Structural Assets to its core priorities, but there too the rewards have surpassed our hopes . Community Planning grants are now among our most active discretionary grant programs . Community Vitality Loans were made this year for the renovation of historic buildings in both the far northern and far southern reaches of our service area . grants from component funds to schools and

scholarship awards have seen dramatic increases over the course of the existing plan, as has the number and size of contributions to education funds .

none of which should diminish all the good work still being done by nmF to improve the region’s Social and economic Assets . Our leadership training for youth has begun to gain a national, even international, reputation . the early Childhood initiative has sunk roots in twelve area communities, achieving a degree of local control and autonomy that has been further enhanced by the establishment of eleven component funds and one independent foundation . the growth in size and number of our community funds might be the single most impressive accomplishment of the past four years, a feat made possible by the introduction of an innovative training and technical assistance program called Sustaining Community Success . the iDeA Competition has set a new standard for promoting rural business innovation and for perpetuating the entrepreneurial culture that’s come to define northwest minnesota . And imPACt 20/20 might well be one of the most significant approaches to regional economic development currently underway in rural minnesota .

Finally, it must not go unnoted that nmF’s relocation to an historic building in downtown bemidji will soon give the foundation a physical presence in northwest minnesota it has sorely lacked for more than 25 years . And it will provide further evidence of our commitment to investing in the region’s Quality of Place . As always, thanks are due in no small part to the support and far-sighted example shown to us by the mcKnight Foundation, whose own headquarters represents an important contribution to the vitality of the twin Cities community .

8

Financial Summary

Revenue and Support

Program Contributions . . . . . . . . . . . $2,076,074

investment income . . . . . . . . . . . . . . $1,543,254

endowment Contributions . . . . . . . . . $1,163,411

Other . . . . . . . . . . . . . . . . . . . . . . . . . . $504,053

Total Revenue and Support . . . . . . $5,286,792

Expenses

Programs . . . . . . . . . . . . . . . . . . . . . . $3,431,967

Administration . . . . . . . . . . . . . . . . . . . $755,880

Fund raising . . . . . . . . . . . . . . . . . . . . $148,920

Expenses Total . . . . . . . . . . . . . . . . . $4,336,767

Endowment Contributions

22%

Other

10%

Investment Income

29%

Program Contributions

39%

Fund Raising

3.4%

Administration

17.4%

Programs

79.1%

Fiscal Year 2012 Financial Position

FY12 ANNUAL REPORT 9

Public Disclosure 990the northwest minnesota Foundation

will make available for public inspection

the last three years of its tax documents,

including internal revenue Service

Forms 990, 990-t (if applicable), and the

Community Foundation’s application for tax

exemption, irS Form 1023, and its most

recent audit . if the request for any of these

documents is made in person, the requested

documents will be provided on the day of

the request, if possible . if the request is

in writing (including e-mail), copies will be

provided within 30 days . the requestor will

be charged a reasonable fee for the cost

of copying, plus postage . Additionally, the

irS 990 documents will be available on the

website at www .nwmf .org through a link to

guideStar .

Fiscal Year 2012 Financial Position

0

$10M

$20M

$30M

$40M

$50M

1991 1993 1995 1997 1999 2001 2003 2005 2007 2008 2009 2010 2011 2012

Endowment Total

2012

Total Assets as of June 30, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . $48,212,000

8

Financial Summary

Revenue and Support

Program Contributions . . . . . . . . . . . $2,076,074

investment income . . . . . . . . . . . . . . $1,543,254

endowment Contributions . . . . . . . . . $1,163,411

Other . . . . . . . . . . . . . . . . . . . . . . . . . . $504,053

Total Revenue and Support . . . . . . $5,286,792

Expenses

Programs . . . . . . . . . . . . . . . . . . . . . . $3,431,967

Administration . . . . . . . . . . . . . . . . . . . $755,880

Fund raising . . . . . . . . . . . . . . . . . . . . $148,920

Expenses Total . . . . . . . . . . . . . . . . . $4,336,767

Endowment Contributions

22%

Other

10%

Investment Income

29%

Program Contributions

39%

Fund Raising

3.4%

Administration

17.4%

Programs

79.1%

Fiscal Year 2012 Financial Position

FY12 ANNUAL REPORT 9

Public Disclosure 990the northwest minnesota Foundation

will make available for public inspection

the last three years of its tax documents,

including internal revenue Service

Forms 990, 990-t (if applicable), and the

Community Foundation’s application for tax

exemption, irS Form 1023, and its most

recent audit . if the request for any of these

documents is made in person, the requested

documents will be provided on the day of

the request, if possible . if the request is

in writing (including e-mail), copies will be

provided within 30 days . the requestor will

be charged a reasonable fee for the cost

of copying, plus postage . Additionally, the

irS 990 documents will be available on the

website at www .nwmf .org through a link to

guideStar .

Fiscal Year 2012 Financial Position

0

$10M

$20M

$30M

$40M

$50M

1991 1993 1995 1997 1999 2001 2003 2005 2007 2008 2009 2010 2011 2012

Endowment Total

2012

Total Assets as of June 30, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . $48,212,000

10

Cash and Cash equivalents $764,33 $404,006

grants/Contracts receivable $100,077 $146,938

Pledges receivable $223,421 $395,499

Accrued interest receivable $169,511 $188,960

Other receivables $3,458 $3,473

Prepaid expenses $6,374 $4,482

notes receivable – revolving Loan Fund $3,590,455 $3,960,872

investments $40,946,317 $40,637,934

Other equity investments $1,171,225 $672,023

Fixed Assets - net of Accumulated Depreciation $1,237,048 $641,368

Total Assets $48,212,224 $47,055,555

LiabilitiesDeferred revenue $29,387 $292,057

Program grants/Scholarships Payable $273,723 $352,321

Other Liabilities $282,271 $222,526

mortgage Payable — $15,140

Loans Payable $1,051,923 $963,393

granite equity Partners Subscription Payable $500,000 $50,000

Annuity Payable $474,260 $525,475

Agency endowment Liability $1,754,364 $1,738,372

Total Liabilities $4,365,928 $4,159,284

Net Assetsunrestricted $385,115 $472,980

temporarily restricted $15,079,947 $15,288,253

Permanently restricted $28,381,234 $27,135,038

total net Assets $43,846,296 $42,896,271

Total Liabilities and Net Assets $48,212,224 $47,055,555

Grants and loans summary

Assets 2012 2011

FY12 ANNUAL REPORT 11

Grants and loans summary

Program Activity Summary

Grants Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$941,967

Caring Communities . . . . . . . . . . . . . . . $49,540

Community Connections . . . . . . . . . . . . $24,000

Community Planning . . . . . . . . . . . . . . . $87,000

iDeA Competition . . . . . . . . . . . . . . . . . $52,000

natural resources . . . . . . . . . . . . . . . . . $68,918

nonprofit training . . . . . . . . . . . . . . . . . . $5,800

Component Funds

and Scholarships . . . . . . . . . . . . . . . . $791,210

Business Development Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,916,360

business Financing . . . . . . . . . . . . . . . $762,624

entrepreneur Development . . . . . . . . $311,926

to apply for grants or loans please contact nmF staff .

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 .

10

Cash and Cash equivalents $764,33 $404,006

grants/Contracts receivable $100,077 $146,938

Pledges receivable $223,421 $395,499

Accrued interest receivable $169,511 $188,960

Other receivables $3,458 $3,473

Prepaid expenses $6,374 $4,482

notes receivable – revolving Loan Fund $3,590,455 $3,960,872

investments $40,946,317 $40,637,934

Other equity investments $1,171,225 $672,023

Fixed Assets - net of Accumulated Depreciation $1,237,048 $641,368

Total Assets $48,212,224 $47,055,555

LiabilitiesDeferred revenue $29,387 $292,057

Program grants/Scholarships Payable $273,723 $352,321

Other Liabilities $282,271 $222,526

mortgage Payable — $15,140

Loans Payable $1,051,923 $963,393

granite equity Partners Subscription Payable $500,000 $50,000

Annuity Payable $474,260 $525,475

Agency endowment Liability $1,754,364 $1,738,372

Total Liabilities $4,365,928 $4,159,284

Net Assetsunrestricted $385,115 $472,980

temporarily restricted $15,079,947 $15,288,253

Permanently restricted $28,381,234 $27,135,038

total net Assets $43,846,296 $42,896,271

Total Liabilities and Net Assets $48,212,224 $47,055,555

Grants and loans summary

Assets 2012 2011

FY12 ANNUAL REPORT 11

Grants and loans summary

Program Activity Summary

Grants Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$941,967

Caring Communities . . . . . . . . . . . . . . . $49,540

Community Connections . . . . . . . . . . . . $24,000

Community Planning . . . . . . . . . . . . . . . $87,000

iDeA Competition . . . . . . . . . . . . . . . . . $52,000

natural resources . . . . . . . . . . . . . . . . . $68,918

nonprofit training . . . . . . . . . . . . . . . . . . $5,800

Component Funds

and Scholarships . . . . . . . . . . . . . . . . $791,210

Business Development Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,916,360

business Financing . . . . . . . . . . . . . . . $762,624

entrepreneur Development . . . . . . . . $311,926

to apply for grants or loans please contact nmF staff .

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 .

12

Fiscal Year 2012 Donors: July 1, 2011–June 30, 2012We are grateful and appreciative to every one of you for your contributions, large and small . this past fiscal year alone, nmF received charitable gifts from over 5,100 individuals, organizations, agencies and others totaling more than $1 .6 million .

Please know that your donations to the foundation or any of its component funds are making a difference in the quality of the places in northwest minnesota—making the region a better place to live and work .

For a full list of our donors, please visit www .nwmf .org/about/annual-report .html .

Our Sincere Thanks to Our Donors!

New Funds

FY12 ANNUAL REPORT 13

New Funds

North country Park Fund Supports programs, projects, activities, and

access to outdoor recreational opportunities for

a community park in north bemidji, and for its

promotion and maintenance

Francine Kuznia Memorial scholarship Fund Supports scholarships to qualified female high

school students from the Stephen-Argyle area

who are pursuing postsecondary education

Paul and Pat Bisek scholarship Fund Supports scholarships for students from

mahnomen High School for tuition and books or

direct educational material expenses for college,

university, trade school, tech school or other

qualified institutions or programs

sand Hill settlement Historical society Fund Supports programs, projects, activities or

services that benefit the mission of the Society

Fertile-Beltrami school sign Fund Supports planning, designing, and construction

of a sign for the Fertile-beltrami School

Fertile area assisted living Housing Fund Supports planning, designing, land acquisition,

construction and other costs for an assisted

living housing facility in Fertile

sinclair scholastic achievement award Fund Supports annual awards honoring the two

graduating students with the highest scholastic

achievement from Stephen-Argyle Central

High School

Karlsson Family scholarship Fund Supports scholarships for graduates of iSD #682

who are majoring in math or science or majoring in

fine, visual or graphic arts at a college or university

eugene Dalzotto Fund for the arts Support for programs, projects, or activities

supporting the arts in the bemidji area with

preference given to art history lectures, local

artists’ printmaking, or preparation of work for

public display or exhibition; or for arts related

activities that fit the purpose of the bemidji Area

Arts endowment

Delta Kappa Gamma - Mu chapter Myrtie Hunt scholarship Supports scholarships for qualified women in their

junior or senior year at a college or university with

a preference for careers in education

larsen Family achievement award Fund Supports recognition of Crookston High School

graduates whose academic achievement, high

character, service to others, and promise for

future service and accomplishment exemplify the

meaning and purpose of education

Hubbard cOla ais Prevention Project FundSupports programs, projects and activities that

protect, preserve and enhance the quality of

lakes and streams served by the COLA

argyle area community Foundation Fund Supports charitable, educational and public

purpose activities, projects, or services that

enhance the quality of life enjoyed by residents

and/or visitors of the Argyle area

Friends of lake Bemidji Fund Supports programs, projects and activities that

protect, preserve, restore and enhance the

quality of Lake bemidji and its environs

richard anderson Memorial scholarship Fund Supports annual scholarships for Clearbrook-

gonvick high school graduates pursuing post-

secondary education for careers in agriculture

and the building trades

12

Fiscal Year 2012 Donors: July 1, 2011–June 30, 2012We are grateful and appreciative to every one of you for your contributions, large and small . this past fiscal year alone, nmF received charitable gifts from over 5,100 individuals, organizations, agencies and others totaling more than $1 .6 million .

Please know that your donations to the foundation or any of its component funds are making a difference in the quality of the places in northwest minnesota—making the region a better place to live and work .

For a full list of our donors, please visit www .nwmf .org/about/annual-report .html .

Our Sincere Thanks to Our Donors!

New Funds

FY12 ANNUAL REPORT 13

New Funds

North country Park Fund Supports programs, projects, activities, and

access to outdoor recreational opportunities for

a community park in north bemidji, and for its

promotion and maintenance

Francine Kuznia Memorial scholarship Fund Supports scholarships to qualified female high

school students from the Stephen-Argyle area

who are pursuing postsecondary education

Paul and Pat Bisek scholarship Fund Supports scholarships for students from

mahnomen High School for tuition and books or

direct educational material expenses for college,

university, trade school, tech school or other

qualified institutions or programs

sand Hill settlement Historical society Fund Supports programs, projects, activities or

services that benefit the mission of the Society

Fertile-Beltrami school sign Fund Supports planning, designing, and construction

of a sign for the Fertile-beltrami School

Fertile area assisted living Housing Fund Supports planning, designing, land acquisition,

construction and other costs for an assisted

living housing facility in Fertile

sinclair scholastic achievement award Fund Supports annual awards honoring the two

graduating students with the highest scholastic

achievement from Stephen-Argyle Central

High School

Karlsson Family scholarship Fund Supports scholarships for graduates of iSD #682

who are majoring in math or science or majoring in

fine, visual or graphic arts at a college or university

eugene Dalzotto Fund for the arts Support for programs, projects, or activities

supporting the arts in the bemidji area with

preference given to art history lectures, local

artists’ printmaking, or preparation of work for

public display or exhibition; or for arts related

activities that fit the purpose of the bemidji Area

Arts endowment

Delta Kappa Gamma - Mu chapter Myrtie Hunt scholarship Supports scholarships for qualified women in their

junior or senior year at a college or university with

a preference for careers in education

larsen Family achievement award Fund Supports recognition of Crookston High School

graduates whose academic achievement, high

character, service to others, and promise for

future service and accomplishment exemplify the

meaning and purpose of education

Hubbard cOla ais Prevention Project FundSupports programs, projects and activities that

protect, preserve and enhance the quality of

lakes and streams served by the COLA

argyle area community Foundation Fund Supports charitable, educational and public

purpose activities, projects, or services that

enhance the quality of life enjoyed by residents

and/or visitors of the Argyle area

Friends of lake Bemidji Fund Supports programs, projects and activities that

protect, preserve, restore and enhance the

quality of Lake bemidji and its environs

richard anderson Memorial scholarship Fund Supports annual scholarships for Clearbrook-

gonvick high school graduates pursuing post-

secondary education for careers in agriculture

and the building trades

14

Fall / Winter 2013number 58

Transitions in Training by Dawn Ganje, Program Officer—Training

the northwest minnesota Foundation has seen many changes over the past year, with retirements, reassignments and the hiring of new staff to positions that work with people and organizations throughout our region . nmF is not the only nonprofit organization that has and is undergoing these types of changes . many of the nonprofit organizations that have served our 12-county region for years are seeing transitions in staff and board leadership . it is for this reason

organizations and individuals that work or serve with them .

many of the trainings offered in the end of our fiscal year (January –June) will focus on the basics of being on a governing board, and learning about their roles and responsibilities . We will be offering education for new and renewing executive directors on such topics as the fundamentals of nonprofit financial management and grant writing basics . technical assistance is also a key offering . Already four newly hired nonprofit executive directors are taking advantage of transitions technical Assistance, where they are matched with a coach or mentor that will assist them during this time as they transition into their leadership roles .

As nmF and the organizations we serve transform this year, i am reminded of one of my favorite quotes by margaret mead “never

the world . indeed, it is the only thing that ever has .” As we complete

meet the emerging challenges of our region .

“

”

Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.

—margaret mead

DAWn gAnJe

Program Officer—Training

FALL/WINTER QUARTERLY 2013 15

Fall / Winter 2013number 58

the individual and organizational excellence training nmF is offering will focus on transition and meeting the needs of nonprofit

doubt that a small group of thoughtful, committed, citizens can change

this year, join us for training and/or technical assistance, as we jointly

:

14

Fall / Winter 2013number 58

Transitions in Training by Dawn Ganje, Program Officer—Training

the northwest minnesota Foundation has seen many changes over the past year, with retirements, reassignments and the hiring of new staff to positions that work with people and organizations throughout our region . nmF is not the only nonprofit organization that has and is undergoing these types of changes . many of the nonprofit organizations that have served our 12-county region for years are seeing transitions in staff and board leadership . it is for this reason

organizations and individuals that work or serve with them .

many of the trainings offered in the end of our fiscal year (January –June) will focus on the basics of being on a governing board, and learning about their roles and responsibilities . We will be offering education for new and renewing executive directors on such topics as the fundamentals of nonprofit financial management and grant writing basics . technical assistance is also a key offering . Already four newly hired nonprofit executive directors are taking advantage of transitions technical Assistance, where they are matched with a coach or mentor that will assist them during this time as they transition into their leadership roles .

As nmF and the organizations we serve transform this year, i am reminded of one of my favorite quotes by margaret mead “never

the world . indeed, it is the only thing that ever has .” As we complete

meet the emerging challenges of our region .

“

”

Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.

—margaret mead

DAWn gAnJe

Program Officer—Training

FALL/WINTER QUARTERLY 2013 15

Fall / Winter 2013number 58

the individual and organizational excellence training nmF is offering will focus on transition and meeting the needs of nonprofit

doubt that a small group of thoughtful, committed, citizens can change

this year, join us for training and/or technical assistance, as we jointly

:

16

Greetings!to continue with our theme of change at the northwest minnesota Foundation, i’d like to introduce some changes within our board of Directors .

Cathy Forgit of Fertile is a new addition to the nmF board of directors . Cathy is a retired Fertile beltrami Community education Director . Currently, she is co-coordinator of the Fertile-beltrami early Childhood initiative . She served on the Polk County Fair board and has been active in support of the arts on local and county levels . Cathy is doing independent study at the university

of north Dakota in textile arts and has been a visiting artist . She has studied and taken textile classes in norway . She is actively involved in the red river Valley Fiber guild, women’s groups and her church . With Cathy’s passion for her community and the region she will be a great addition to the nmF board .

bob Hager will now serve as Chair of the board and Faye Auchenpaugh will serve as Vice Chair . Judy roy will continue to serve as treasurer and Laurie Wilson as Secretary .

Quarterly Message from the President

FALL/WINTER QUARTERLY 2013 17

We’re saying goodbye to two long time board members whose terms have expired . eric bergeson and gary Purath have gone above and beyond the call of duty . gary Purath is the longest serving board member to date . gary finished a term for a member who left before his four years had ended, then served two full terms—a grand total of ten and a half years! He isn’t leaving us completely, but will continue service on the business finance loan committee . gary brought a quiet form of steady leadership and guidance on economic issues, including an understanding of the needs of educators and agriculture .

Anyone familiar with eric bergeson of Fertile knows that he is a rare combination of wit, charm, intelligence and loyalty, topped by a love of history and dedication to small town life . We relied on eric for his skill as a writer and public speaker, and his leadership on all things rural, particularly regarding the western half of our service area .

both of these men will be greatly missed by their colleagues and by the staff who worked with them . We are very grateful for their years of dedication and service .

We are in the process of adding one more board member who will represent the northern tier of our region .

each board member has a diverse background and contributes to the foundation in various ways . each board member serves on specific committees which dive deeper on certain issues and then advise back to the full board .

the specific committees includes the investments Committee, which monitors compliance and advises staff when questions arise . the governance Committee seeks new candidates for the nmF board, while also recommending committee assignments . the Philanthropic initiatives Committee reviews policy to develop strategies in fundraising . An Audit Committee selects auditors . And finally, the executive Committee is comprised of the board officers; they work on the process of evaluation for the foundation’s president .

in order to represent all counties, we approach potential board members from each sector within our northwest territory and seek balance in gender, race, background, occupation, age and interests . Our priority is finding people who are passionate about our mission and who are aware of the region’s challenges and opportunities .

nAnCY VYSKOCiL

President

Quarterly Message from the President

16

Greetings!to continue with our theme of change at the northwest minnesota Foundation, i’d like to introduce some changes within our board of Directors .

Cathy Forgit of Fertile is a new addition to the nmF board of directors . Cathy is a retired Fertile beltrami Community education Director . Currently, she is co-coordinator of the Fertile-beltrami early Childhood initiative . She served on the Polk County Fair board and has been active in support of the arts on local and county levels . Cathy is doing independent study at the university

of north Dakota in textile arts and has been a visiting artist . She has studied and taken textile classes in norway . She is actively involved in the red river Valley Fiber guild, women’s groups and her church . With Cathy’s passion for her community and the region she will be a great addition to the nmF board .

bob Hager will now serve as Chair of the board and Faye Auchenpaugh will serve as Vice Chair . Judy roy will continue to serve as treasurer and Laurie Wilson as Secretary .

Quarterly Message from the President

FALL/WINTER QUARTERLY 2013 17

We’re saying goodbye to two long time board members whose terms have expired . eric bergeson and gary Purath have gone above and beyond the call of duty . gary Purath is the longest serving board member to date . gary finished a term for a member who left before his four years had ended, then served two full terms—a grand total of ten and a half years! He isn’t leaving us completely, but will continue service on the business finance loan committee . gary brought a quiet form of steady leadership and guidance on economic issues, including an understanding of the needs of educators and agriculture .

Anyone familiar with eric bergeson of Fertile knows that he is a rare combination of wit, charm, intelligence and loyalty, topped by a love of history and dedication to small town life . We relied on eric for his skill as a writer and public speaker, and his leadership on all things rural, particularly regarding the western half of our service area .

both of these men will be greatly missed by their colleagues and by the staff who worked with them . We are very grateful for their years of dedication and service .

We are in the process of adding one more board member who will represent the northern tier of our region .

each board member has a diverse background and contributes to the foundation in various ways . each board member serves on specific committees which dive deeper on certain issues and then advise back to the full board .

the specific committees includes the investments Committee, which monitors compliance and advises staff when questions arise . the governance Committee seeks new candidates for the nmF board, while also recommending committee assignments . the Philanthropic initiatives Committee reviews policy to develop strategies in fundraising . An Audit Committee selects auditors . And finally, the executive Committee is comprised of the board officers; they work on the process of evaluation for the foundation’s president .

in order to represent all counties, we approach potential board members from each sector within our northwest territory and seek balance in gender, race, background, occupation, age and interests . Our priority is finding people who are passionate about our mission and who are aware of the region’s challenges and opportunities .

nAnCY VYSKOCiL

President

Quarterly Message from the President

18

McKnight Foundation Visit Highlights NMF Partners and Programsthe mcKnight Foundation sent representatives from their board of directors, along with staff members, to hear from people in northwest minnesota how nmF is making a difference . they were joined by several nmF board and staff in October for a tour of a few places in the northwest region . Our visitors were able to see first-hand some examples of the phenomenal work being done throughout the region .

the toughest part of planning for a site visit by our major funder is deciding how to best represent our work within such a large geographic territory, in the space of two short days . getting right on a tour bus after deplaning in bemidji at 9:00 am, we headed west for Clearwater County .

Our first stop took us to itasca State Park to visit the Headwaters of the mississippi . Jim Steenerson (retired nmF grants Officer) showcased the Healthy Lakes and rivers Program, accompanied by the former president of Hubbard County Coalition of Lake Associations, Ken grob, and its current president, Dan Kittilson . the coalition recently received nmF’s Quality of Place Award for their work in the Healthy Lakes and rivers program, involving lake associations throughout Hubbard County . together, they accessed almost $36,000 in funding for lake management plans, and another $8,300 was awarded through nmF’s natural resources grant program .

McKnight Foundation Tour

FALL/WINTER QUARTERLY 2013 19

From itasca State Park, the tour continued in

Fertile . eric bergeson, a lifelong Fertile resident,

business owner, and nmF board member

conducted the tour, with an emphasis on how the

foundation interacts with a typical prairie town in

the west half of its region .

the tour took a frank look at the victories and

struggles of a small farm community as it works

to reverse ninety years of decline . the Fertile

area provides a broad sampling of nmF’s

programs, including a planning grant, three

component funds, one of which is taking part in

our Sustaining Community Success program, an

early Childhood initiative, a high-tunnel project

and the glacial ridge prairie restoration project .

many community members along with business

owners took the time from their busy schedule

to familiarize mcKnight board and staff about the

happenings in Fertile .

the two-day tour resumed with an early breakfast

at bemidji’s minnesota nice Café with the smell

of fresh coffee and sound of eggs sizzling on the

.

Program helped her to begin and grow her

restaurant, a venture that marked a new start

in her life .

After a visit to the must-see tourist attraction of

Paul and babe, the bus moved on to LaValley

industries, newly relocated for expansion in

bemidji’s industrial Park . LaValley was an iDeA

competition winner for two consecutive years

(2010 and 2011) . they were awarded $10,000

and technical assistance both years to further

the commercialization of the Deckhand

and their new product, the Pipemate .

Following lunch at Sanford events Center,

a tour of the Sanford Center boasted plans

for an agreement with the City of bemidji

and Headwaters regional Development

Commission (HrDC) to lead the city through a

redevelopment process for the Southeast Lake

bemidji area .

next came a presentation of StAr (Students

teaching Attitudes of respect), which was

created 15 years ago by nmF and Peacemaker

resources as a youth leadership program that

“promotes self-awareness and self-responsibility

and inspires positive choices .” using skills they

have learned, students return to their schools and

share their experiences with others . Over 1,900

sixth and seventh grade youth from 24 schools in

the region have participated in the program .

the final stop was a visit to Hope House—a

comprehensive, community-based support

program designed to help people with serious

and persistent mental illness, to go from surviving

to thriving in the community . robin Wold,

executive director, explained the services offered

at Hope House which is primarily a provider for

the Adult rehabilitation mental Health Services

(ArmHS) Community Support Program . Hope

House has utilized nmF’s nonprofit assistance by

participating in an Organizational effectiveness

Assessment . the majority of their senior staff

has participated in Leaderimpact, and they have

utilized nmF staff in teaching their clients the

COre 4 Curriculum for business start-up . Various

grants have been awarded to Hope House to

further their mission within the community .

the tour and site visit is the most effective way

to showcase what our communities are doing to

make our region a better place to live, work and

play . the mcKnight board and staff were impressed

with the partnerships that developed through the

work of the foundation and those we serve . We

thank the mcKnight Foundation for their generous,

continued support of nmF and its programs .

McKnight Foundation Tour

griddle Owner Jeannette Proulx talked about

how the foundation ����s entrepreneur Development ’

®®

18

McKnight Foundation Visit Highlights NMF Partners and Programsthe mcKnight Foundation sent representatives from their board of directors, along with staff members, to hear from people in northwest minnesota how nmF is making a difference . they were joined by several nmF board and staff in October for a tour of a few places in the northwest region . Our visitors were able to see first-hand some examples of the phenomenal work being done throughout the region .

the toughest part of planning for a site visit by our major funder is deciding how to best represent our work within such a large geographic territory, in the space of two short days . getting right on a tour bus after deplaning in bemidji at 9:00 am, we headed west for Clearwater County .

Our first stop took us to itasca State Park to visit the Headwaters of the mississippi . Jim Steenerson (retired nmF grants Officer) showcased the Healthy Lakes and rivers Program, accompanied by the former president of Hubbard County Coalition of Lake Associations, Ken grob, and its current president, Dan Kittilson . the coalition recently received nmF’s Quality of Place Award for their work in the Healthy Lakes and rivers program, involving lake associations throughout Hubbard County . together, they accessed almost $36,000 in funding for lake management plans, and another $8,300 was awarded through nmF’s natural resources grant program .

McKnight Foundation Tour

FALL/WINTER QUARTERLY 2013 19

From itasca State Park, the tour continued in

Fertile . eric bergeson, a lifelong Fertile resident,

business owner, and nmF board member

conducted the tour, with an emphasis on how the

foundation interacts with a typical prairie town in

the west half of its region .

the tour took a frank look at the victories and

struggles of a small farm community as it works

to reverse ninety years of decline . the Fertile

area provides a broad sampling of nmF’s

programs, including a planning grant, three

component funds, one of which is taking part in

our Sustaining Community Success program, an

early Childhood initiative, a high-tunnel project

and the glacial ridge prairie restoration project .

many community members along with business

owners took the time from their busy schedule

to familiarize mcKnight board and staff about the

happenings in Fertile .

the two-day tour resumed with an early breakfast

at bemidji’s minnesota nice Café with the smell

of fresh coffee and sound of eggs sizzling on the

.

Program helped her to begin and grow her

restaurant, a venture that marked a new start

in her life .

After a visit to the must-see tourist attraction of

Paul and babe, the bus moved on to LaValley

industries, newly relocated for expansion in

bemidji’s industrial Park . LaValley was an iDeA

competition winner for two consecutive years

(2010 and 2011) . they were awarded $10,000

and technical assistance both years to further

the commercialization of the Deckhand

and their new product, the Pipemate .

Following lunch at Sanford events Center,

a tour of the Sanford Center boasted plans

for an agreement with the City of bemidji

and Headwaters regional Development

Commission (HrDC) to lead the city through a

redevelopment process for the Southeast Lake

bemidji area .

next came a presentation of StAr (Students

teaching Attitudes of respect), which was

created 15 years ago by nmF and Peacemaker

resources as a youth leadership program that

“promotes self-awareness and self-responsibility

and inspires positive choices .” using skills they

have learned, students return to their schools and

share their experiences with others . Over 1,900

sixth and seventh grade youth from 24 schools in

the region have participated in the program .

the final stop was a visit to Hope House—a

comprehensive, community-based support

program designed to help people with serious

and persistent mental illness, to go from surviving

to thriving in the community . robin Wold,

executive director, explained the services offered

at Hope House which is primarily a provider for

the Adult rehabilitation mental Health Services

(ArmHS) Community Support Program . Hope

House has utilized nmF’s nonprofit assistance by

participating in an Organizational effectiveness

Assessment . the majority of their senior staff

has participated in Leaderimpact, and they have

utilized nmF staff in teaching their clients the

COre 4 Curriculum for business start-up . Various

grants have been awarded to Hope House to

further their mission within the community .

the tour and site visit is the most effective way

to showcase what our communities are doing to

make our region a better place to live, work and

play . the mcKnight board and staff were impressed

with the partnerships that developed through the

work of the foundation and those we serve . We

thank the mcKnight Foundation for their generous,

continued support of nmF and its programs .

McKnight Foundation Tour

griddle Owner Jeannette Proulx talked about

how the foundation ����s entrepreneur Development ’

®®

20

Sustaining Community Success Celebrated at Bergeson’s Nurseryin the fall of 2010, the Otto bremer Foundation awarded a grant to nmF for its Sustaining Community Success program . this partnership augments the culture of philanthropy in five communities served by bremer banks in northwest minnesota: Crookston, Fertile-beltrami, Fisher, Stephen and Warren .

community Funds

FALL/WINTER QUARTERLY 2013 21

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

A second portion has been used in the short term to fund community projects that were recommended to our board of directors by the advisory committees of each of the five funds . these sub-grants funded some immediate community projects, which also serve to demonstrate the unique value of the community fund to other residents who were not involved in the process . the five communities have so far awarded grants in two rounds, with another round to be selected in the spring .

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

this summer, the nmF board and staff held a celebration of community in Fertile . the bergeson family & bergeson’s nursery generously served as hosts for nmF guests invited from the various community funds, brought together to celebrate the work done for Sustaining Community Success .

Advisory committee members from Stephen, Crookston, Fertile-beltrami, and Warren and also from a new foundation fund in Argyle were invited to share their triumphs and tribulations; each community had representatives on hand to network with each other, sharing ideas to help their own endowment continually grow for years to come!

nmF President nancy Vyskocil congratulated the committees on their success . they have held events, attended fairs, held donor recognition, and followed up on their community visions . She encouraged communities to take advantage of the assistance available from staff assigned to their funds and to not the let opportunity of matching gift dollars be missed .

Former nmF board member and current Stephen Area endowment Fund Chair bruce Hamnes spoke about the success nmF has had in each part of our 12-county region and explained the extraordinary power of philanthropy to make a difference in the region’s quality of life .

nmF Development Officer Caryl turnow used the apple tree as an example of how endowment works . by planting the apple tree and helping it to grow, fruit can be harvested and used and enjoyed in a variety of ways for years to come . if you cut down the tree and use the wood to build something, the tree no longer bears fruit .

it was a wonderful event—touring the gardens, celebrating success and planning for the future .

community Funds

By planting the apple tree and helping it to grow, fruit can be harvested and used and enjoyed in a variety of ways for years to come. If you cut down the tree and use the wood to build something, the tree no longer bears fruit.

“

”

20

Sustaining Community Success Celebrated at Bergeson’s Nurseryin the fall of 2010, the Otto bremer Foundation awarded a grant to nmF for its Sustaining Community Success program . this partnership augments the culture of philanthropy in five communities served by bremer banks in northwest minnesota: Crookston, Fertile-beltrami, Fisher, Stephen and Warren .

community Funds

FALL/WINTER QUARTERLY 2013 21

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

A second portion has been used in the short term to fund community projects that were recommended to our board of directors by the advisory committees of each of the five funds . these sub-grants funded some immediate community projects, which also serve to demonstrate the unique value of the community fund to other residents who were not involved in the process . the five communities have so far awarded grants in two rounds, with another round to be selected in the spring .

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

this summer, the nmF board and staff held a celebration of community in Fertile . the bergeson family & bergeson’s nursery generously served as hosts for nmF guests invited from the various community funds, brought together to celebrate the work done for Sustaining Community Success .

Advisory committee members from Stephen, Crookston, Fertile-beltrami, and Warren and also from a new foundation fund in Argyle were invited to share their triumphs and tribulations; each community had representatives on hand to network with each other, sharing ideas to help their own endowment continually grow for years to come!

nmF President nancy Vyskocil congratulated the committees on their success . they have held events, attended fairs, held donor recognition, and followed up on their community visions . She encouraged communities to take advantage of the assistance available from staff assigned to their funds and to not the let opportunity of matching gift dollars be missed .

Former nmF board member and current Stephen Area endowment Fund Chair bruce Hamnes spoke about the success nmF has had in each part of our 12-county region and explained the extraordinary power of philanthropy to make a difference in the region’s quality of life .

nmF Development Officer Caryl turnow used the apple tree as an example of how endowment works . by planting the apple tree and helping it to grow, fruit can be harvested and used and enjoyed in a variety of ways for years to come . if you cut down the tree and use the wood to build something, the tree no longer bears fruit .

it was a wonderful event—touring the gardens, celebrating success and planning for the future .

community Funds

By planting the apple tree and helping it to grow, fruit can be harvested and used and enjoyed in a variety of ways for years to come. If you cut down the tree and use the wood to build something, the tree no longer bears fruit.

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22

Grants

Caring Communities Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$61,000

children, Family & elderly

Adult Day Services, inc . . . . . . . . . . . . . $25,00For Health and Quality Assurance Implementation

minnesota Fathers & Families network . . $1,000For Fall Seminar Series/Reentry Aftercare

Polk County DAC . . . . . . . . . . . . . . . . . $10,000For Multi Sensory Environment

university of minnesota - Crookston . . . $25,000For College and Career Preparation 101

Community Planning Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$68,639

community Development

bridges medical Center . . . . . . . . . . . . . $10,000For Twin Valley Community Wellness Center Planning Project

City of blackduck . . . . . . . . . . . . . . . . . $10,000For Blackduck Beautiful

economic & community Development

bemidji State university . . . . . . . . . . . . $24,639For Direct Digital Manufacturing Planning Project

City of Oslo . . . . . . . . . . . . . . . . . . . . . . . $7,500For Comprehensive Plan and Zoning Ordinance

greater bemidji . . . . . . . . . . . . . . . . . . . $16,500For Greater Bemidji Area Branding Strategy

Natural Resources Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$44,000

New Technologies

Auri . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,000For Biomass Gasification to Synthetic Diesel Fuel

the nature Conservancy,

minnesota Chapter . . . . . . . . . . . . . . . . $25,000For Northwest Minnesota Renewable Energy Project

Promotion & Preservation

northwest regional

Sustainable Development . . . . . . . . . . . $25,000For a Social Science Assessment of Conservation Practices in the Red River Valley

Grants totaling $406,535

were awarded from August–October 2012

FALL/WINTER QUARTERLY 2013 23

Grants

Component Fund Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$217,341

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 regulation, approves the advisory recommendations for grants, but the component funds are the source of the grant dollars.

Argyle beautification and improvement

Project Fund . . . . . . . . . . . . . . . . . . . . . . $5,875

badger Area Community Fund (5 grants) $1,000

baer Fund (5 grants) . . . . . . . . . . . . . . . $27,000

bagley early Childhood initiative Fund . . $1,000

beltrami Humane Society (2 grants) . . . . $5,540

bemidji Area Arts endowment & Project Fund

Bemidji Symphony Orchestra . . . . . . . . $200

bemidji Lumberjack Foundation Fund

Rick Lee Memorial Fund . . . . . . . . . . . . $489Tom Gardner Memorial Fund . . . . . . . . $489

Clearwater Health Care Fund

(2 grants) . . . . . . . . . . . . . . . . . . . . . . . . $67,201

Crookston Area Community Fund

(3 grants) . . . . . . . . . . . . . . . . . . . . . . . . . $5,000

Fertile Area Armed Forces

Veterans Fund (4 grants) . . . . . . . . . . . . $10,003

Fertile-beltrami Area Community Fund . . $2,195

Fertile-beltrami early Childhood

initiative Fund . . . . . . . . . . . . . . . . . . . . . . . $850

HrDC Leadership Fund (2 grants) . . . . . $8,000

Kittson memorial Healthcare

Center Foundation endowment

and Project Fund . . . . . . . . . . . . . . . . . . . $1,400

Lake of the Woods County Historical Society

endowment and Project Fund . . . . . . . . . . . $690

LifeCare Health Care Fund . . . . . . . . . . . . . $185

matthew Spangler Hockey Fund . . . . . . . . . $750

norman County east early

Childhood initiative Fund . . . . . . . . . . . . . . $500

Park rapids Area Community Fund

(2 grants) . . . . . . . . . . . . . . . . . . . . . . . . $12,973

roseau Area Community Fund

(2 grants) . . . . . . . . . . . . . . . . . . . . . . . . . $1,100

Warren Area Community Fund

(10 grants) . . . . . . . . . . . . . . . . . . . . . . . $17,400

Warroad Swim Program Fund . . . . . . . $45,000

Scholarship Fund Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1, 850

bagley education endowment and

Project Fund (2 grants) . . . . . . . . . . . . . . . . $350

roseau Area Community Fund . . . . . . . . . . $500

Warren-Alvarado-Oslo education Foundation

endowment and Project Fund . . . . . . . . . $1,000

22

Grants

Caring Communities Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$61,000

children, Family & elderly

Adult Day Services, inc . . . . . . . . . . . . . $25,00For Health and Quality Assurance Implementation

minnesota Fathers & Families network . . $1,000For Fall Seminar Series/Reentry Aftercare

Polk County DAC . . . . . . . . . . . . . . . . . $10,000For Multi Sensory Environment

university of minnesota - Crookston . . . $25,000For College and Career Preparation 101

Community Planning Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$68,639

community Development

bridges medical Center . . . . . . . . . . . . . $10,000For Twin Valley Community Wellness Center Planning Project

City of blackduck . . . . . . . . . . . . . . . . . $10,000For Blackduck Beautiful

economic & community Development

bemidji State university . . . . . . . . . . . . $24,639For Direct Digital Manufacturing Planning Project

City of Oslo . . . . . . . . . . . . . . . . . . . . . . . $7,500For Comprehensive Plan and Zoning Ordinance

greater bemidji . . . . . . . . . . . . . . . . . . . $16,500For Greater Bemidji Area Branding Strategy

Natural Resources Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$44,000

New Technologies

Auri . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,000For Biomass Gasification to Synthetic Diesel Fuel

the nature Conservancy,

minnesota Chapter . . . . . . . . . . . . . . . . $25,000For Northwest Minnesota Renewable Energy Project

Promotion & Preservation

northwest regional

Sustainable Development . . . . . . . . . . . $25,000For a Social Science Assessment of Conservation Practices in the Red River Valley

Grants totaling $406,535

were awarded from August–October 2012

FALL/WINTER QUARTERLY 2013 23

Grants

Component Fund Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$217,341

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 regulation, approves the advisory recommendations for grants, but the component funds are the source of the grant dollars.

Argyle beautification and improvement

Project Fund . . . . . . . . . . . . . . . . . . . . . . $5,875

badger Area Community Fund (5 grants) $1,000

baer Fund (5 grants) . . . . . . . . . . . . . . . $27,000

bagley early Childhood initiative Fund . . $1,000

beltrami Humane Society (2 grants) . . . . $5,540

bemidji Area Arts endowment & Project Fund

Bemidji Symphony Orchestra . . . . . . . . $200

bemidji Lumberjack Foundation Fund

Rick Lee Memorial Fund . . . . . . . . . . . . $489Tom Gardner Memorial Fund . . . . . . . . $489

Clearwater Health Care Fund

(2 grants) . . . . . . . . . . . . . . . . . . . . . . . . $67,201

Crookston Area Community Fund

(3 grants) . . . . . . . . . . . . . . . . . . . . . . . . . $5,000

Fertile Area Armed Forces

Veterans Fund (4 grants) . . . . . . . . . . . . $10,003

Fertile-beltrami Area Community Fund . . $2,195

Fertile-beltrami early Childhood

initiative Fund . . . . . . . . . . . . . . . . . . . . . . . $850

HrDC Leadership Fund (2 grants) . . . . . $8,000

Kittson memorial Healthcare

Center Foundation endowment

and Project Fund . . . . . . . . . . . . . . . . . . . $1,400

Lake of the Woods County Historical Society

endowment and Project Fund . . . . . . . . . . . $690

LifeCare Health Care Fund . . . . . . . . . . . . . $185

matthew Spangler Hockey Fund . . . . . . . . . $750

norman County east early

Childhood initiative Fund . . . . . . . . . . . . . . $500

Park rapids Area Community Fund

(2 grants) . . . . . . . . . . . . . . . . . . . . . . . . $12,973

roseau Area Community Fund

(2 grants) . . . . . . . . . . . . . . . . . . . . . . . . . $1,100

Warren Area Community Fund

(10 grants) . . . . . . . . . . . . . . . . . . . . . . . $17,400

Warroad Swim Program Fund . . . . . . . $45,000

Scholarship Fund Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1, 850

bagley education endowment and

Project Fund (2 grants) . . . . . . . . . . . . . . . . $350

roseau Area Community Fund . . . . . . . . . . $500

Warren-Alvarado-Oslo education Foundation

endowment and Project Fund . . . . . . . . . $1,000

Business Development Activity

Business LoansOne loan was made from the business Finance Program .

Z mattracks inc ., KarlstadFinance expansion for production of worldwide track technology.

Microloansbusiness counseling and loans are available to help entrepreneurs develop small business and self-employment opportunities . Four loans were recently made totaling $59,435 .

Z Dean’s Hardware, baudette

Z Ardell Larson, Lake bronson

Z ice Hogger, inc ., bagley

Z D & D thomforde garden Center, Crookston

Technical Assistancetwo businesses from bemidji and thief river Falls received a total of $2,900 in outside consulting for management and technical assistance .

entrepreneur Program at Work

FALL/WINTER QUARTERLY 2013 25

Adding A Little Art and Soul Downtown Bemidjibeltrami Avenue gained a new store front this summer when Shannon Lucas Westrum decided to bring a little more fun to downtown bemidji . Shannon’s Art & Soul is a hybrid business combining a traditional gift shop, an art gallery and an art studio space .

“it has been my plan since i was kid that i was going to open some fun boutique-type store . i’ve always had an interest in gift shops and i’ve been studying them for years,” said Westrum .

After doing several art shows, Westrum has gained the knowledge to blend the things she loves into a full time job . She is not just selling local art and things that are “up cycled .” She plans to teach classes and workshops . if

she cannot teach the class, she’ll find someone who can .

“i want people to have a place to wander for hours and gather new ideas, and then apply those new ideas into art,” she said . “All classes held at the studio will be stress free .” the idea is to make people feel good about themselves and encourage their creativity .

the public is welcome to visit Westrum’s website at www .shannonsbemidji .com for a calendar of workshops and classes being offered . the topics will vary on a weekly basis to encourage beginners and advanced artists .

the business will operate outside of downtown hours by being open late and services will be offered on the weekends .

entrepreneur Program at Work

Business Development Activity

Business LoansOne loan was made from the business Finance Program .

Z mattracks inc ., KarlstadFinance expansion for production of worldwide track technology.

Microloansbusiness counseling and loans are available to help entrepreneurs develop small business and self-employment opportunities . Four loans were recently made totaling $59,435 .

Z Dean’s Hardware, baudette

Z Ardell Larson, Lake bronson

Z ice Hogger, inc ., bagley

Z D & D thomforde garden Center, Crookston

Technical Assistancetwo businesses from bemidji and thief river Falls received a total of $2,900 in outside consulting for management and technical assistance .

entrepreneur Program at Work

FALL/WINTER QUARTERLY 2013 25

Adding A Little Art and Soul Downtown Bemidjibeltrami Avenue gained a new store front this summer when Shannon Lucas Westrum decided to bring a little more fun to downtown bemidji . Shannon’s Art & Soul is a hybrid business combining a traditional gift shop, an art gallery and an art studio space .

“it has been my plan since i was kid that i was going to open some fun boutique-type store . i’ve always had an interest in gift shops and i’ve been studying them for years,” said Westrum .

After doing several art shows, Westrum has gained the knowledge to blend the things she loves into a full time job . She is not just selling local art and things that are “up cycled .” She plans to teach classes and workshops . if

she cannot teach the class, she’ll find someone who can .

“i want people to have a place to wander for hours and gather new ideas, and then apply those new ideas into art,” she said . “All classes held at the studio will be stress free .” the idea is to make people feel good about themselves and encourage their creativity .

the public is welcome to visit Westrum’s website at www .shannonsbemidji .com for a calendar of workshops and classes being offered . the topics will vary on a weekly basis to encourage beginners and advanced artists .

the business will operate outside of downtown hours by being open late and services will be offered on the weekends .

entrepreneur Program at Work

New Location

Our new headquarters is located downtown bemidji . We have repurposed an historic, vacant structure two blocks from Lake bemidji and the famous statues of Paul bunyan and babe the blue Ox . Our new conference and meeting space will add value for nonprofits and other partners in the area who are in need of a versatile, convenient location . And most importantly, the new downtown office will make nmF more visible and accessible to the entire region .

Please plan to visit our new facility or go online www .nwmf .org to learn more about us .

Northwest Minnesota Foundation 201 3rd St . nW bemidji, mn 56601-3111

(218) 759-2057 (800) 659-7859 (toll-free in minnesota)

info@nwmf .org

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PAIDbemidji, mn

56601Permit no . 36

201 3rD St . nW bemiDJi, mn 56601-3111