IQ Magazine - October 2010 by Initiative Foundation

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IQ Magazine

OCTOBER 2010

Contents

ABOUT THE COVER: heartdrive. Digital illustration by Andrea L. Baumann

21 OUR MISSION:

Unlock the power of central Minnesota people to build and sustain healthy communities. INITIATIVE FOUNDATION GOALS:

F E AT U R E S 18 21 28

–Strengthen Economic Opportunity –Preserve Key Places and Natural Resources –Support Children, Youth, and Families –Build Organizational Effectiveness –Encourage the Spirit of Giving

D E PA R T M E N T S 4

Kathy’s Note Miracles

IQ Points Your Two-Minute Digest

Nonprofit Mythology Business & Nonprofit Leaders Bear Separate but Equal Responsibilities

Crystal Ball Are More Nonprofit Mergers & Dissolutions in Minnesota’s Future?

Secondhand Success Thrift Stores Help Charities Put the Profit Back in Nonprofit

Faith Forward Minnesota’s Faith-Based Nonprofits Gain Higher Power

Brainiac An IQ & A with Charlotte Johnson

Heartdrive Nonprofits Provide the Backup When Other Systems Crash

Innovation Eight Inventions, Breakthroughs and Workarounds to Central Minnesota’s Toughest Nonprofit Challenges

Storm Chasers Nonprofits Adapt to the Changing Economic Climate

Growing Upside

The New Face of Volunteerism

Foundation Programs Strengthen Nonprofits from the Inside Out

Charities Channel the Passions of Unpaid Leaders

WE HELP MAKE IT HAPPEN. Targeting key industries for development and economic growth in Crow Wing County.

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OCTOBER 2010

Kathyâ&#x20AC;&#x2122;s Note

D IG N IT Y

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Building Houses, Building Hope in Cass, Crow Wing and Hubbard Counties

miracles Dear Friends, Last June, I drove through my first disaster zone. Houses were leveled, businesses assaulted, trees exploded, gravestones toppled, community and school buildings devastated. Unless youâ&#x20AC;&#x2122;ve seen it, you canâ&#x20AC;&#x2122;t grasp it. Every scene took my breath away. A significant portion of the City of Wadena and parts of both Wadena and Otter Tail Counties endured an F4 tornado on June 17, 2010. The terrible episode, which disappeared as suddenly as it arrived, impacted hundreds of families who are still struggling to recover. Later on, I couldnâ&#x20AC;&#x2122;t help but draw parallels to the economic recessionâ&#x20AC;&#x201D;little warning, massive impact, persistent aftermath. But I saw something else on my drive that dayâ&#x20AC;&#x201D;hundreds of local residents and volunteers doing back-breaking work and sharing their time and talents to help others. The tornado, although unquestionably better if it never happened, brought with it a oncein-a-lifetime chance to rethink and rebuild an entire community. Did the recession bring us a similar opportunity? When it comes to central Minnesotaâ&#x20AC;&#x2122;s vibrant nonprofit community, the answer seems to be yes. Charities have been on the front lines of economic hardship and recovery. They have provided inspirational leadership, cushioned the hardest falls, kept a keen eye on causes as well as symptoms, streamlined response systems, innovated solutions, persevered through months of fatigue, and done it all with a fraction of past resources. We thought that story deserved a magazine, one that spotlighted nonprofit impacts and challenges, and one that elevated nonprofit leaders to a level commensurate with their importance to our communities. Just like our foundation has the privilege of helping Wadena, weâ&#x20AC;&#x2122;ve also had the honor of investing in the effectiveness of central Minnesotaâ&#x20AC;&#x2122;s nonprofit organizations for the past ten years. My husband, Neal, and I traveled back to Wadena to participate in an ecumenical prayer service in recognition of a miracleâ&#x20AC;&#x201D;the tornado caused no loss of life or even severe injury. This issue of IQ is also dedicated to miracles, brought to us every day by our nonprofits. Enjoy the magazine.

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Kathy Gaalswyk, President Initiative Foundation

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Sixty-one percent of nonprofits with budgets less than $400,000 a year made cuts in the first half of 2010. Meanwhile, most nonprofits have maintained or stepped up services in the face of increasing demands. (For more about how nonprofits have weathered the recession, see page 28.)

Intelligence H

Nonprofits across the region are responding to the recession with a conviction and compassion that withstand even the toughest odds. While their causes differ, nonprofits share a commitment to humanity—and a belief that the quality of a community is measured by how it serves its weakest parts. (Turn to page 18 to see how nonprofits serve more with less.)

The launch of a federal faith-based initiative in 2001 provided new funding sources for faith-based nonprofits and established offices in several states, including Minnesota. Subsequent research by the Robert Wood Johnson Foundation confirmed these unique nonprofits’ effectiveness in addressing community needs. (For more about faith-based nonprofits, turn to page 16.)

Minnesota’s volunteer rate is third in the nation; one and a half million residents dedicate 171.1 million volunteer hours annually. It’s estimated that the annual economic contribution of all those volunteer hours is $3.4 billion dollars. As funding gets tight, more nonprofit organizations are relying on volunteers. (For more information on the changing needs of volunteers, turn to page 34.)

Nonprofit Mythology Business & Nonprofit Leaders Bear Separate but Equal Responsibilities By Lawrence Schumacher | Illustration by Chris McAllister

n tough economic times, charitable donors want to know that the dollars they give are spent wisely. That’s why myths about how nonprofits operate can be so damaging. The truth is that nonprofits already operate under restrictions and requirements that might feel rigorous to many business leaders. > Myth: Nonprofits don’t have to deal with red tape and regulations. > Reality-Check: Nonprofits are bound by more public checks and balances than many businesses. Unlike privately owned small businesses, nonprofits of all sizes must file yearly Form 990 reports with the Internal Revenue Service detailing where their money comes from and how it is spent, said Kate Barr, the executive director of the Nonprofits Assistance Fund in Minneapolis. Reports are available to the public for at least three years. Minnesota nonprofits also report annually to the offices of the Minnesota Secretary of State and Attorney General. The Charities Review Council in St. Paul conducts voluntary reviews of several charities each year and judges whether they meet the group’s standards for public disclosure, financial stability, efficiency and fundraising. “They either meet every standard or they don’t get our rating,” said Martin Wera, nonprofit services manager for the Charities Review Council. “Almost 90 percent of all the nonprofits we review meet all the standards.” > Myth: Nonprofits don’t have to account for a bottom line. > Reality-Check: True, because nonprofits actually have two bottom lines.

Contrary to public perception, nonprofit organizations are able to earn a profit, as long as it is reinvested in the work of the organization. They often have an internal structure that closely resembles corporations, and they must follow the same employment laws and human resources policies, according to Christine Durand, spokeswoman for the Minnesota Council of Nonprofits. In addition, if a Minnesota nonprofit receives more than $750,000 in annual revenues, it must hire an independent auditor. But unlike for-profit businesses, who must please their clients to keep their doors open, non8 Initiative Quarterly Magazine

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profits serve two masters—the people and agencies that fund them and the clientele who need their services. When a business’s revenue falls, it can cut back on services. A nonprofit, on the other hand, is likely to see revenue decrease at precisely the moment when demand for its services is at its highest. “Nonprofits have to do all the same things a business does to stay financially secure, but they have to do it within an economic model that says that when demand for your services is high, you can’t raise prices,” Barr said. “It’s like what people said about Ginger Rogers. She could do everything Fred Astaire could do, but backwards and wearing high heels.” > Myth: Nonprofits don’t contribute to economic growth. > Reality-Check: It takes more than manufacturing to grow a local economy. Nonprofits with an IRS 501(c)(3) designation are generally exempt from paying federal and state income taxes, property taxes and sales taxes, but that doesn’t mean they don’t contribute to economic growth. Charitable organizations pay payroll taxes on their employees, who in turn pay income taxes and spend their earnings in the community. In fact, one in 10 workers in Minnesota is employed by a nonprofit, and state nonprofits pay $12.6 billion in wages annually. By serving as a conduit for funds from public programs and private foundations, nonprofits also help to improve communities and strengthen businesses. Many exist specifically to help communities increase economic development, employment and vitality. IQ

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Crystal Ball Are More Nonprofit Mergers & Dissolutions in Minnesota’s Future? By Sarah Colburn | Photograph by John Linn

he board of Dell’s Place was worried. Chairman Mike Foell had been serving the Buffalo-based nonprofit, which operated group homes for disabled adults, for more than 25 years. And he was still considered one of the new guys. While the organization’s financial snapshot was solid, the number RENAE OSWALD-ANDERSON: "The folks using the services don’t care of retiring board and staff members meant Dell’s Place needed to outabout the name on the nametag, they care about access to services." source administrative and accounting duties. That’s when the board asked nearby Functional Industries Inc., a workplace rehabilitation program, to take over the books. Foell and Functional Industries’ chief executive officer Rod Pederson said, gives nonprofit leaders the chance to change the way they run their felt an almost instant connection. But it took four years for them to figprograms, alter their organizational structure and sometimes even ure out how to best work together. “There’s so much you have to do to rethink their revenue sources. Sometimes a merger is the best way to have confidence and trust in both organizations,” said Pederson. Finally, continue to provide services. “If two organizations are servicing two in October 2009, Functional Industries acquired the group homes and groups of clients and have similar missions they might do better if they their staff—and left the Dell’s Place name behind. did it together,” she said. Nonprofit leaders across the state are considering similar partnerWhile these decisions are rarely easy, experts say it’s important for ships as a tough economy and the strain of ever-decreasing state funding nonprofit leaders to remember that their original mission was to serve take their toll. “The state budget in the next biennium may very well be people. “The community and folks using the services don’t care about the worse,” said Kate Barr, the executive director of the Nonprofits Assistance name on the nametag; they care about access to services,” said Renae Fund, which helps nonprofit boards Oswald-Anderson, the director of Project and leaders better understand their Redesign, a merger counseling program financial picture. “This is not going run by the St. Paul-based Minnesota While these decisions are rarely easy, to get better quickly.” Assistance Project for Nonprofits. Since During the last 30 years, the experts say it’s important for nonprofit 2007, MAP has helped 26 Minnesota Nonprofits Assistance Fund has nonprofits merge and 18 dissolve. leaders to remember that their original provided more than $73 million in That’s sobering news. But experts loans to 1,800 nonprofits. The agree that more central Minnesota nonmission was to serve people. organization works with about 300 profits will close their doors in upcomnonprofits each year, half of ing years. Already the region has lost whom, Barr said, need to seriously the St. Therese Center in St. Cloud and look at their existing business model. In the wake of the economic the regional office of the Minnesota Senior Federation. But many of downturn, she anticipates even more boards will seek help and considthe departed organizations will pass along their programs to healthier er acquisitions, mergers and the unloading of fully-formed programs nonprofits. “In a struggling nonprofit with financial challenges, it’s to sister nonprofits. about saving the service,” said Oswald-Anderson, “not about saving This isn’t necessarily bad news. That interior house cleaning, Barr the organization.” IQ

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So, You Want to Start a Nonprofit? Four Points to Ponder Before You File the Paperwork Grassroots organizations throughout Minnesota all begin the same wayâ&#x20AC;&#x201D; someone, somewhere has an idea to band people together for a cause. Leaders at the Initiative Foundation and the Minnesota Council of Nonprofits suggest considering these issues before you decide that starting a new organization is the best way to accomplish your goal.

> Be clear about identifying the community need you want to fill. Gather statistics and information that show how large the need is. Figure out what kind of broad-based support might be available for your concept.

> Consider whether there might be an opportunity for your program to become a branch of an existing nonprofit. Research nonprofits in the area and talk with their leadership about a potential partnership.

> Think about the potential for a fiscal host relationship, in which a new organization partners with an existing 501(c)(3) with a similar mission. The host organization takes responsibility for the newly-formed organization and tracks grant follow-through, donations and finances to make sure funds are spent appropriately. Hosts typically charge a fee of 3-12% for their services.

> Structure your board of directors as though you are a 501(c)(3), even if you arenâ&#x20AC;&#x2122;t. Delivering services in this manner will help you ease the transition if you later decide to seek approval for a 501(c)(3), the IRS designation for charitable tax-exempt and donation deductibility status.

For more step-by-step advice go to http://www.mncn.org/info_start.htm

OCTOBER 2010

Secondhand Success Thrift Stores Help Charities Put the Profit Back in Nonprofit By Mike Mosedale | Photograph by John Linn

BIG BRANDS: Brainerd's Common Goods thrift store stocks merchandise you'd also find at a mall, according to Bridges of Hope executive director Jana Shogren (above). The nonprofit opened the store to provide quality goods at affordable prices and to boost its bottom line.

s she surveys the spacious, well-lit salesroom at Brainerd’s Common Goods, Jana Shogren is keen to point out a few distinctions from the typical thrift store. Instead Common Goods will be able to write a check to Bridges of Hope after its of the usual carpet and sheetrock décor, Common Goods first year of business,” he said. boasts a modern look, with a finished cement floor, corrugated metal As institutional donors have become more circumspect about crackwalls and splashes of bright color. Then there is that thrift store aroma—or, more accurately, the ing the checkbook year after year, such enterprising tactics have become lack of one. increasingly vital to the survival of small nonprofits. In Braham, the Tusen “Thrift stores have a bad rap for a certain odor,” noted Shogren, Tack thrift store funds the local community center. The Community the executive director of Bridges of Hope, the Crow Wing County Closet Thrift Store in Milaca channels its proceeds to the Pearl Crisis family crisis referral service that runs Common Goods. Shogren says Center, which helps victims of domestic abuse and sexual assault. customers at Common Goods often remark These innovations are proving effecon the pleasing olfactory atmosphere, tive in tough economic times. In 2009, which she attributes to both the remodelaccording to Shogren, the caseload at ing and the routine steam cleaning of Bridges increased by 30 percent over the “Such enterprising tactics have donated clothes. previous year. “There’s only so many times The 6,000 square-foot operation, locatyou can to back to the same funder withbecome increasingly vital to the ed on a commercial strip along Highway out a really new, radical idea,” she said. survival of small nonprofits.” 371 just north of Baxter, opened in While making money is central to September of 2009. From the outset, Common Goods’ mission, it is not the Bridges of Hope had a different kind of only goal. thrift shop in mind, one less musty and yet For the store’s seven employees, more discriminating about merchandise than the secondhand stereoCommon Goods serves as a sort of workforce training operation, accordtype. But they also wanted their shop to be modestly priced and offer ing to store manager Suzanne Welch. “We teach them retail—how you more practical items than most boutiques or antique stores. greet people, how you run a register,” she said. “A lot of it is just people Marketplace positioning aside, the principle ambition for training skills.” The store also provides volunteer opportunities for young Common Goods was simple: to make money for Bridges of Hope. adults with cognitive disabilities and other citizens just looking to pitch in. After seven years of planning, Bridges secured roughly $100,000 in Common Goods also allows Bridges to forge alliances with other startup grants from the Brainerd Lakes Area Community Foundation, local nonprofits. the Otto Bremer Foundation, the Initiative Foundation, and Crow In the store’s processing area, bins of donated items not destined for Wing Power. the show floor are set aside for other charities. A tub of dirty rags made So far, the store’s performance has exceeded expectations. At the from unusable clothes will be donated to a program that teaches kids how start of the year, according to Bridges of Hope board member Bill to fix bikes. Even though only about 30 percent of merchandise donated Brekken, the fledgling operation had $60,000 of its seed money left; by to Common Goods makes it to the floor, Welch says, virtually nothing August, the balance had grown to $109,000. “We’re hoping that goes to the landfill. IQ

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Faith Forward Minnesota’s Faith-Based Nonprofits Gain Higher Power By Dawn Zimmerman | Photograph by John Linn

HELPING HANDS: Thanks to its active volunteers, Rockford-based RiverWorks (led by Denise Kesanen, above) was able to open a food shelf that has served up to 153 families a month.

enise Kesanen believes in God moments. It’s been hard not to since she took the helm last year of RiverWorks, a Rockford community development faith of serving their fellow human beings.” organization that was started by the Riverwood The federal government has not developed an official definition of a Covenant Church. There was the time last year when the city offered to donate a faith-based organization. But they tend to be characterized by a religious building to RiverWorks on the condition that the nonprofit pay for the legion of active volunteers, shoestring budgets and a commitment to serve renovations needed to transform it into the community’s first food shelf. the most vulnerable. The RiverWorks board budgeted $25,000 for the project but ended up The launch of a faith-based initiative by former President George not spending a dime because people of all faiths stepped forward to W. Bush in 2001 provided new funding sources for faith-based nonprofdonate their time, skills and products. By this past July the food shelf its and established offices in several states, including Minnesota. was serving 153 families a month. Subsequent research by the Robert Wood Then there was the time Johnson Foundation confirmed these Kesanen sent an e-mail to the orgaunique nonprofits’ effectiveness in nization’s board of directors about “We believe there is great power clearing addressing community needs. needing shelving for the food shelf. The Initiative Foundation has also the way and making it happen. The accidental addition of a local provided more than $700,000 through 180 business owner to the e-mail list There are so many stories about moments grants to RiverWorks and other faithresulted in an almost immediate based organizations in the 14-county cenwe just can’t explain any other way.” phone call. His company, it turned tral Minnesota area. out, distributed the exact shelving Volunteers are much of the reason she mentioned. RiverWorks could why faith-based organizations can make a have as much as it needed—free. “We believe there is great power clearbroader impact on a minimal budget. About 500 of the volunteers at Great ing the way and making it happen,” said Kesanen. “There are so many River Area Faith in Action in Becker donate time every week to provide stories about moments we just can’t explain any other way.” caregiver and support services for seniors. Many of them give far more Whether they’re grounded in Christianity, Islam, Judaism or any than the average one to two hours a week. “We have a lot of volunteers other religion, faith-based nonprofits are effective because they can doing 15 to 20 hours a week,” said executive director Denice Freih. “There draw upon their deep and lasting connections to their communities to is a common belief that there is a higher power. God is at work, working help meet people’s basic needs. Their motives aren’t about proselytizing, through us, binding us together and giving us strength and bringing in the which funds for their charitable work can’t legally support. Instead, labor to do it.” “they are tapping into a different motivation,” said Chris Fastner, proGreat River Area Faith in Action’s success has allowed the nonprofit gram manager for the Initiative Foundation, which has invested both to expand into youth services. “Just the other day, a group of volunteers grants and leadership training efforts to organize and advance the work drove to St. Cloud to deliver a bed to a high school football player who has of central Minnesota’s faith-based charities. “Feeding the hungry, never had one,” Freih said. “He’s a star on the field and most people would clothing the naked, helping the poor—they are basically living out their never know that he doesn’t even have a bed to sleep on.” IQ

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heartdrive NONPROFITS PROVIDE THE BACK-UP

WHEN OTHER SYSTEMS CRASH By Dawn Zimmerman • Photography by John Linn

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Fortunately for them, Ashley and Vinny found out about Stepping Stones, an incentive program that allows expectant parents to earn “dollars” to buy baby items and other basic supplies through parent education and self-improvement assignments. The program is run by Birthline, a St. Cloud-based nonprofit that provides services for unexpected or crisis pregnancies. Until the 2008 recession, the organization had always focused their assistance on young, single women. Suddenly, married couples were walking through their door. And Birthline wasn’t alone—nonprofits around the region saw similar surges in the need for their programs. Demand for housing and food services alone soared 78 percent at the end of 2009, according to a survey by the Minnesota Council of Nonprofits. Anna Marie’s Alliance, a St. Cloud area shelter for battered women and their children, has been operating at 135 percent of capacity for the past six months. Ashley and Vinny Dones were eager to get pregnant after they married in March 2009. But the Florida newlyweds’ happy news the following November came at an extremely stressful and uncertain time: Ashley was out of work and businesses were closing across their region. The couple moved to St. Cloud so Vinny could take a more secure job as an electronics technician. But being uprooted from their support system created a host of new worries. Who would answer Ashley’s questions about pregnancy or help her through labor? How could they afford even the basic necessities for their baby? “We moved up here with a suitcase,” Ashley said. “That’s it.”

A Commitment to Humanity Food, clothing, shelter, safety. It’s easy to take them for granted—when you have them. Rising joblessness, a pervasive financial crisis and a complete housing meltdown have stripped these necessities from a significant number of central Minnesotans and challenged nonprofits to answer what seems to be an impossible call: to serve more with less. “There are so many people hurting,” said Denice Freih, executive director of Great River Area Faith in Action, which provides care, transportation and other basic service for residents, particularly the elderly, in Sherburne and Wright counties. Nonprofits across the region are responding to these needs with a conviction and compassion that withstand even the toughest odds. While their causes differ, nonprofits share a commitment to humanity— and a belief that the quality of a community is measured by how it serves its weakest parts. “Nonprofits really are the ones looking at the specific local needs of the community and bringing people together to do something about it,” said Cathy Hartle, senior program manager for organizational effectiveness at the Initiative Foundation. “Without nonprofits, a community could lose a certain amount of heart and a certain amount of humanity.”

OCTOBER 2010

Economic Engines While they are often viewed as second-class relations to their for-profit cousins, nonprofits are a key component to a community’s economic and social vitality. In 2008, one in every ten Central Minnesotans worked at a nonprofit. In St. Cloud, Catholic Charities employs 600 people and pays out $1 million a month in salaries alone. What’s more, it con-

teer at local nonprofits, but never depend on them. That changed when she said her husband became verbally abusive and violent. Brigham turned to Anna Marie’s Alliance, staying anywhere from two to six hours until she felt it was safe to return home. Now divorced, she shows her gratitude by volunteering and donating to the nonprofit she credits with saving her life.

Creative Problem-Solving

TRAGIC TWIST: “It’s not uncommon to hear someone at our food shelf and say ‘I use to donate and now I need the service,’” said Steven Bresnahan, the executive director of Catholic Charities.

nects with more than 60,000 clients a year. Its $25 million annual operating budget enables the nonprofit to provide 40 programs that serve residents in 16 counties. And nonprofits’ impact goes far beyond employment. “Nonprofits represent 10 percent of the local economy and tend to purchase locally, hire locally and help locally,” said Hartle.

Donors Become Clients When nonprofit leaders heard news of a looming economic recession, many braced themselves for what they knew would follow: a greater need for services. What they didn’t expect was to see a number of their donors walk through their doors—to ask for help. “It’s not uncommon to hear someone go through our food shelf and say, ‘I use to donate and now I need the service,’” said Steven Bresnahan, the executive director of Catholic Charities. An accomplished Sartell businesswoman, Denise Brigham expected to donate and volun20 Initiative Quarterly Magazine

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The recession forced many nonprofits to creatively rethink how they do business. Birthline, for example, now includes more items in the Stepping Stones store to appeal to the growing number of men who are enrolled in the program. They are also seeking out new funding sources to serve them. Nonprofits are also using volunteers to do more with less revenue. Last year marked the largest increase in the number of volunteers nationwide, according to a report released by the Corporation for National and Community Service. Nearly 65 million people volunteered more than 8.1 billion hours—that’s more than one-quarter of the population and an estimated $169 billion. Last year, more than 1,300 volunteers

“Without nonprofits, a community could lose a certain amount of heart and a certain amount of humanity.” —Cathy Hartle, senior program manager fororganizational effectiveness at the Initiative Foundation

donated 23,000 hours at Great River Area Faith in Action. Likewise when the Riverwood Covenant Church in Rockford decided to open a food shelf, a diverse group of residents, churches, skilled tradesmen and businesses volunteered their time and energy to make it happen. For a town without a grocery store or meeting place besides high school sporting events, the food shelf allowed residents to connect with their own community and reconnect with their neighbors. Nonprofits also continue to be leading examples of how both nonprofit and for-profit CONTINUED ON PAGE 38

What Do Minnesota Nonprofits Do? Type

Percentage of Total Nonprofits in State

Arts, Culture, Humanities Community, Volunteer, Philanthropy Education Employment Environment, Animal Food, Housing Health Human Services, Youth Legal, Civic Rights, Advocacy, Crime Mental Health, Crisis Intervention Source: Minnesota Council of Nonprofits, 2009

9.6 9.8 13.8 1.7 3.6 7.7 9.1 14.5 2.4 2.2

Eight Inventions, Breakthroughs and Workarounds to Central Minnesota’s Toughest Nonprofit Challenges By Mackenzie Lobby | Photography by John Linn

Innovative solutions aren’t solely the province of business or industry. Nor are they cooked up by Einstein-level geniuses. In fact, all across central Minnesota, nonprofits are creatively solving a host of social challenges. “What worked in an organization twenty years ago may not work anymore because both the people and needs have changed,” said Jeannette Bineham, the executive director of the Center for Nonprofit Excellence and Social Innovation, a St. Cloud-based organization that works to infuse creativity into the nonprofit sector. These eight central Minnesota pioneers inspire not only the people they serve, but also their communities and fellow nonprofits. >>

OCTOBER 2010

Unthinking the Senior Center Whitney WithOut Walls > S T. C L O U D When St. Cloud’s Whitney Senior Center started to outgrow its rental space, it was time to get resourceful. And a dose of out-of-the-box thinking by the advisory board gave way to the perfect solution: bring programming to clients at offsite locations. Not only would the nonprofit solve its real estate woes, but it would also reach a whole new population of seniors. Whitney WithOut Walls (WWOW) started in 2006 at Benet Place South and Salem Lutheran Church in St. Cloud. Since then it has offered a host of programs, including driver improvement training, acupuncture, card clubs, bingo and exercise classes. “We need to keep seniors exercising, socializing, and having good nutritious meals to keep them healthy and out of nursing homes,” said Steve Hennes, the program’s director. That’s not an understatement when you consider that the cost of funding five people in a nursing home is equivalent to running Whitney Senior Center programs for an entire year. Today, the award-winning organization has provided programming to over 20,000 seniors and is garnering accolades from across the country for its truly unique approach to senior care.

^ Steve Hennes | Whitney Senior Center

A Virtual Reality The Cyber Café < WA D E N A

^ Randy Jahnke | Cyber Café Director

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Open since 2002, this hip hangout’s mission is to provide a positive, chemical-free environment for youth to socialize and learn about technology. But in the wake of last summer’s tornados, which left many families without computers or access to the Internet, The Cyber Café has also provided local teenagers a digital lifeline to the very technologies that help young people succeed. “We want to help our youth stay up to date with the technology world, as well as give them a place to do homework,” said director Randy Jahnke. Staffed primarily by teenagers, the center sells the usual lattes and pastries. But it also provides access to computers, pool, foosball and pingpong. The Cyber Café organizes teen dances, theme parties and even a comedy night, which build a stronger sense of community and raise funds for the venture. Once a flipchart idea hatched during the Initiative Foundation’s Healthy Communities Partnership program, today it’s a dynamic and appealing place for local teens to learn and grow. “We help them prepare to be better adults in the future by keeping them up to date with bigger cities,” said Jahnke, referencing how the center helps teens stay on top of the latest and greatest trends in the tech world. “The Café really helps to bridge that gap.”

Power to the People Rural Renewable Energy Alliance > PINE RIVER One of only two organizations in the United States to offer solar heat to lowincome families, Rural Renewable Energy Alliance’s (RREAL) Solar Assistance program is in a league of its own. “Our intention is to provide a long-term, clean, domestic source of energy assistance that also empowers the families who are receiving it,” said director Jason Edens. An Initiative Foundation grantee and nonprofit award winner, the program not only helps the environment, it also makes it possible for families to not have to choose heating over eating. Solar Assistance also saves the state’s energy assistance program money—an enormous plus considering the state spends nearly 80 million dollars every year to serve less than a quarter of the 800,000 Minnesotans who are eligible. Breaking through what Edens calls, “the renewable divide,” RREAL seeks to provide solar power to a segment of the population that has historically been shut out of the movement. “Those in the upper echelons of society have been the only ones who could afford this technology,” said Edens. “But the folks who can benefit the most from renewable energy are low income communities.” While solar energy isn’t the solution for every low-income family—homes need to be able to receive direct sunlight to be fitted with solar panels— RREAL’s work is a true ray of sunshine.

Jason Edens | RREAL Director >

OCTOBER 2010

< Matt Mathiasen | CIF Executive Director

The Wheel Deal

Communities Investing in Families > S T. C L O U D

For those of us who complain about the hassles of our daily commute, it can be hard to remember that we’re the lucky ones. “If you have a vehicle, you can keep your job,” said Matt Mathiasen, the executive director of Communities Investing in Families (CIF), an office-less nonprofit that provides emergency transportation assistance and financial literacy classes to families in crisis. With few commuter options, transportation is still the number one barrier to getting and keeping employment in rural areas. 24 Initiative Quarterly Magazine

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An Initiative Foundation grantee, CIF offers a guaranteed loan program to buy vehicles and also helps with insurance payments. The organization also assists with emergency repairs, and has a car donation program where cars are overhauled for free by inmates at Sandstone Federal Prison who are learning car repair techniques. Families in the program are at or below 200 percent of the federal poverty guidelines. That’s why CIF also instructs its clients on the ins and outs of financial basics, such as

building a credit score and creating a family budget. “The whole financial world has changed so much in the last five years, people are having a hard time keeping up,” said Mathiasen. Just as important, CIF helps the local economy by bringing work to its vast network of local partners, including 50 car repair shops, 20 insurance companies and 15 banks and credit unions. “We’re giving people a hand up, not a hand out,” said Mathiasen.

America 101

Hands Across the World

> S T. C L O U D

Brianda Cediel | HAW cofounder

Hands Across the World (HAW) is the first program in central Minnesota to help immigrants and refugees learn English, navigate the contradictions of Western culture, and understand the American school system. The organization also provides parenting classes, career counseling and technology training. Most important, HAW helps clients capitalize on the expertise they already obtained in their countries of origin. With the belief that knowledge is power, HAW prepares refugees and immigrants for continued education, whether it’s a GED or a Ph.D. “The refugees coming here just need good guidance, good leaders and good role models,” said cofounder Brianda Cediel. “If they have those things, they are going to be able to make it.”

OCTOBER 2010

Artistic Renovations Franklin Arts Center < BRAINERD Brainerd’s Franklin Junior High School was a local landmark for more than seven decades. When it was closed in 2005 to make way for a more modern facility across town, locals worried that the neighborhood would fall into disrepair. To ensure that wouldn’t happen the school district hired Artspace—a Minneapolis-based nonprofit real estate developer—to renovate the building into an arts center that combines studios and arts-related enterprises with 25 live/work units for artists. “Making sure the space is affordable is an important step in cultivating the arts within the community,” said Andrew Commers, the Artspace project manager. The Franklin project meets three main objectives, according to Commers. It provides a space for local artists to create their work, supports historic renovation and preservation, and assists in economic revitalization in the area.

^ Andrew Commers | Artspace Project Manager

Terri Barreiro | Donald McNeely Center Director

Changemaker U Donald McNeely Center for Entrepreneurship > COLLEGEVILLE Located on the campuses of St. John’s University and the College of St. Benedict, The Donald McNeely Center mentors future nonprofit leaders to become social entrepreneurs—people who address a social problem or community need with an entrepreneurial approach. Opened in 2004, the center works with students, faculty, alumni and community members to help start these much-needed nonprofit ventures. In addition to offering a select number of startup loans for student entrepreneurial ventures, the center also helps alumni, faculty and com26 Initiative Quarterly Magazine

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munity members create strategic plans for nonprofits. Startups have ranged from microloan coaching for Hispanic women in Cold Spring to a campus fair-trade store that sells products from the countries represented in the colleges’ study abroad programs. “Many people see the word ‘entrepreneurship’ and equate it with business rather than being able to make a significant difference in the world,” said center director Terri Barreiro. “But social causes are also entrepreneurial ideas.”

A Little Horse Sense

^ Aggie Stroot | Mounted Eagles Executive Director

Mounted Eagles > BRAINERD

Horseback riding is for more than equestrian shows and herding cattle. In fact, equine therapy—or therapy on horseback—uses the rhythmic movements of a horse to strengthen core muscles, especially those responsible for breathing and talking. It also helps the rider develop enhanced hand-eye coordination and builds confidence, patience and self-esteem in people with emotional and mental disabilities. The method is recognized by both the American Physical Therapy Association and the American Occupational Therapy Association. The benefits can be significant. A Washington University study showed that

equine therapy helps children with cerebral palsy gain more control of their body movements. “We have had children who say their first words on the back of a horse and take their first steps after they’ve ridden,” said Aggie Stroot, the organization’s executive director who is also a certified instructor. Equine therapy can also be beneficial to children with autism. Mounted Eagles treats anyone who qualifies for the program, even those who cannot ride. “Just working with the horse on the ground and grooming them is an emotional thing,” said Stroot. “It’s really amazing.” IQ OCTOBER 2010

The Leaf River Ag Service (pictured) was among the countless casualities of the 2010 Wadena tornado. 28

BY L AWRENCE SCHUMACHER PHOTOGRAPHY BY JOHN LINN

A 2010 F4 tornado or a tumultuous economic firestorm. Examining the caseload at the Otter Tail-Wadena Community Action Council, it’s hard to tell which event made the greatest impact. For years, the anti-poverty agency offered its standard list of programs—weatherization, family services, energy assistance, Head Start—and its members did everything they could to offer a hand to poor residents of the two counties it serves. Then the recession arrived, and it became clear that despite the nonprofit’s best efforts, conditions were sliding the wrong way. “Seeing the explosion of demand from people who didn’t need our services before forced us to rethink our role,” said Davis Leino-Mills, executive director of the New York Mills-based nonprofit. “We saw that we needed a new model.” That new model included directing $25,000 in federal stimulus funds to the community kitchen. Run by Stimulating Economic Progress, another central Minnesota nonprofit, the success of the kitchen led to the opening of a cafe that serves locally raised food, a marketing association for locally grown produce, and OCTOBER 2010

new businesses selling that same produce at farmers’ markets. In the wake of the last two-plus years of economic hardship, Community Action Council isn’t alone. Nonprofits throughout Minnesota are rethinking not only what they can accomplish, but also how they are structured. More than half of Minnesota nonprofits surveyed by the Minnesota Council of Nonprofits (MCN) this past July indicated increases in demands for services, even as a similar majority report continued declines in revenue. And while MCN’s recent survey suggests the state’s nonprofit economy is beginning to stabilize, significant uncertainty remains, according to Jon Pratt, the Council’s executive director. “It would still be helpful to know when the real recovery will kick in,” he said. “For Minnesota, the other big shoe to drop is the $6 billion state budget deficit. Even if the economy picks back up, we’re going to see more cutbacks in funding for nonprofits.”

Climbing Out

Minnesota’s nonprofit economy continued to show steady growth through 2008, especially in central Minnesota, where annual nonprofit employment growth averaged 5 percent a year over the previous decade, according to a 2009 report from the Council on Nonprofits. But especially for small nonprofits, the recession is still a reality.

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Sixty-one percent of nonprofits with budgets less than $400,000 a year made cuts in the first half of this year. Employment, human services and legal-related nonprofits were most likely to have reported cutting staff, while food, housing and education-related nonprofits were least likely to lay people off. Most nonprofits maintained or even stepped up services in the face of increased demand, despite hiring freezes, furloughs and even layoffs, said Kate Barr, executive director of the Nonprofit Assistance Fund. Now, many have been stretched thin for too long and are reviewing their programs to decide what they can and cannot continue to do.

Stepping it Up

Salem WEST Ministry in Deerwood has seen nearly a 200 percent increase in requests for help since 2008, said Greg Meyer, associate in ministry at Salem Lutheran Church. “In the beginning, we were fixing, cleaning, repairing and returning household items to circulation to help keep families going,” he said. “Now, we’re getting more into direct financial assistance to the growing number of families who are almost making it, but are falling behind.” The “constant crisis situation” is wearing out staff and volunteers. But nowhere can the increased demand be seen more clearly than in food shelves around the state. Community Aid Elk River has handed

Carmen Pouliot, Associate Director of CAER Food Shelf in Elk River

“Every crisis—be it an economic or natural disaster—affords nonprofits the opportunity to rethink and rebuild, to become smarter and stronger.”

overhead costs and streamline services. “We decided we could put more of the money coming in to use for victims services instead of overhead costs,” said Executive Director Stephanie Och. “We had to lay off people, but we’ve come out of it a pretty strong organiza—Kathy Gaalswyk, Initiative Foundation President tion.” Otter Tail-Wadena Community out almost 100,000 pounds more food so far this year than it did in Action Council has lost state funding for working with low-income fam2007, with the holidays yet to come, said Jenny Gray, the group’s execilies and had to cut back its services as well. And while federal stimulus utive director. dollars have boosted the nonprofit’s weatherization, Head Start and The nonprofit has added staff, put together summer food packages family services offerings, that money is running out this fall and will for children to replace the meals they would normally receive in school, mean severe cuts and likely layoffs. “When those dollars are gone, they’re and bumped up volunteer numbers to keep pace with demand. gone,” Leino-Mills said. “We can’t continue at that level, and it’s going to be a really frustrating time.”

Cutting Back

Some nonprofits have had to make painful choices. Hands of Hope Resource Center, an Initiative Foundation grantee that serves victims of violence in Morrison and Todd Counties, cut domestic violence intervention programs and a visitation center when funding sources dried up. The nonprofit also merged with a Todd County crime victim nonprofit in 2008 to reduce

Chasing Dollars

While charitable giving from individuals always decrease during lean economic times, cuts in government and foundation funding have greatly hurt nonprofit finances, said Kathy Grochow, a nonprofit resources specialist at CONTINUED ON PAGE 40

OCTOBER 2010

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When a foundation aims to strengthen an entire region, there are at least two strategies to consider. You can pass around a few shiny apples, or you can fertilize the ground so the trees distribute more fruit. Sure, it’s easier to share apples, but it’s always more effective to grow deeply rooted trees.

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Healthy Organizations Partnership (HOP) Child Care Choices is one such tree. The St. Cloud-based nonprofit provides essential resources, education and advocacy services that improve the quality and availability of childcare for thousands of families. But it had fallen into a rut. Board meetings were long, rambling affairs, according to executive director Renee Hendricks Olson. She wasn’t totally sure where her responsibilities ended and the board’s began. The board seemed to rubberstamp anything that came its way. So when Hendricks Olson heard about the Initiative Foundation’s HOP program, she saw it as an opportunity to grow from the inside out. She approached her board, and they were ready for change, too. In 2008, the organization set out on a twoyear training and development process to reinvent itself. Hendricks Olson and her board of directors picked apart every aspect of the organization. They rewrote their bylaws, wrote job descriptions for staff and board members, and developed a three-year strategic plan. Hendricks Olson says the process was difficult, but worth it. Board meetings are now planned a year into the future and run with military precision and always make quorum. Now that the board knows its strengths and

weaknesses, Child Care Choices is savvier about recruiting new board members and paying close attention to potential members’ skills. Hendricks Olson also feels the organization is on firmer financial ground because they’ve learned about effective ways to pursue funding and present a stronger image. The Initiative Foundation started the HOP program in 2001, and has helped 118 nonprofits tune up their operations. The program now serves the needs of nonprofits in three life stages. Start Strong helps new organizations. Grow Strong supports those experiencing growth and change. Stay Strong is designed for established nonprofits that would like to refine their efforts. “We focus on training board and staff teams, because we believe strong boards are essential to a thriving nonprofit.” said Cathy Hartle, the Initiative Foundation’s senior program manager for organizational effectiveness. “Our outcomes are not always jazzy or easy to explain, but the end result is that these nonprofits become more effective and the community is better served.”

(Volunteers In Service To America). Joining VISTA meant living on reduced means, but it also provided Grahek with the opportunity to obtain real-world experience. Through VISTA, Grahek landed a year-long position working with the after-care program at Anna Marie’s Alliance in St. Cloud. Founded in 1965, VISTA pairs volunteers with organizations involved in anti-poverty work. Central Minnesota VISTAs have done everything from launching programs to provide cars and repairs for people in need to creating a curriculum for financial literacy. After her year with VISTA, Anna Marie’s Alliance hired Grahek as after-care services coordinator and women’s advocate. “Everything about this job is what I was looking for,” Grahek said of the position she began in August 2010. When Chris Fastner, Initiative Foundation VISTA program manager, meets new VISTAs like Grahek, he’s struck by the fact that he’s looking at the next generation of nonprofit leaders. “We realize that these people are emerging nonprofit leaders, and we have the privilege of offering them some fantastic training in both leadership and technical skills,” Fastner said. “It’s a VISTA benefit to the entire nonprofit sector.” Fastner leads the central Minnesota effort to Ashley Grahek, a St. Cloud State University help nonprofit organizations recruit, train, and graduate with a degree in social work, had some supervise 25 VISTA members in the region. It’s experience working with nonprofit organizations. another way the foundation is investing in But she couldn’t find a full-time job in her field. strengthening nonprofits from the inside out, and So she made the difficult decision to quit her the VISTA program is often paired with HOP to waitressing job and join AmeriCorps VISTA maximize impact. In return, VISTAs receive a monthly living allowance of $891, basic medical coverage, train2000-2010 ing opportunities, and an education or cash Central Minnesota VISTAs: . . . . . . . . . . . . . . . . . . . 138 award at the end of their service. “I was Nonprofits Served: . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 looking for more opportunities, because Volunteers Mobilized: . . . . . . . . . . . . . . . . . . . . . 8,000+ working in a restaurant wasn’t where I Volunteer Hours: . . . . . . . . . . . . . . . . . . . . . . . . 253,753 wanted to be,” Grahek said. “AmeriCorps Funds Raised: . . . . . . . . $2.8 million cash and in-kind provided a way for me to do something closer to my heart.” IQ

VISTA Impact

Source: Initiative Foundation

Renee Hendricks Olson

Ashley Grahek

Chris Fastner

Cathy Hartle

Child Care Choices Executive Director

Anna Marie’s Alliance

Initiative Foundation VISTA Program Manager

Initiative Foundation Senior Program Manager for Organizational Effectiveness

Photography by John Linn By Liz Potasek 34 Initiative Quarterly Magazine

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When Laurie Hoenig decided to volunteer at the Women’s Center of Mid-Minnesota—a shelter and parental visitation dropoff center in Brainerd—she wasn’t interested in stuffing envelopes.A massage therapist from Crosslake, Hoenig wanted to make a difference by using her talents.Would it be possible, she wondered, to come in once or twice a month and give massages? Hoenig’s request made sense to Julie Guth, the center’s volunteer coordinator, who also has harnessed the talents of a sketch artist and a scrapbook designer for her unpaid workforce. “These aren’t things that I would necessarily be advertising for, but are based on the skills that a particular person has,” she said. “And they really help the women and the kids staying in the shelter.” Like most nonprofits, the Women’s Center of Mid-Minnesota is always on the lookout for more volunteers. The organization needs legal advocates, mentors for children and office assistants. But Guth also advertises for what she calls “you-nique” positions, which has brought web programmers and event fundraisers to the center.

Today, more and more nonprofits are attracting volunteers by offering opportunities that allow volunteers to utilize both their workplace skills and learn new ones to improve their future prospects. Volunteers also want flexible schedules and to develop their own projects. “Just like people right now want a wide choice in consumer goods, they also want a wide choice of volunteer opportunities,” said Mary Quirk, the volunteer resources leadership project manager at the Minnesota Association for Volunteer Administration (MAVA), a Maplewood-based nonprofit that helps organizations train and nurture volunteers and volunteer leaders. “They’ll go into an organization and if they’re only offered two or three choices, they’ll look around and say, ‘Well, there’s some other place my skills can be used.’”

Women’s Center of Mid-Minnesota volunteer coordinator Julie Guth (right) helps volunteers such as Crosslake massage therapist Laurie Hoenig (left) design their own opportunities.

OCTOBER 2010

“Just like people want a wide choice in consumer goods, they also want a wide choice of volunteer opportunities.” ::

Mary Quirk : :

10 Nonprofit Tips TO MAXIMIZE Today’s Volunteers 1

Honor the volunteer’s desire to make an impact and engage in lifelong learning.

Learn individual passions and design volunteer roles to fit them.

Keep a project wish list to take advantage of the opportunities a volunteer may bring to you.

Offer a wide choice of volunteer opportunities in all areas of the organization’s operations.

Include short-term and seasonal volunteer positions.

Tap professional strengths by offering skilled volunteer opportunities.

Be open to moving volunteers into project leadership roles and positions of higher responsibility.

MAVA Volunteer Resources Leadership Project Manager

Inside the Numbers : : This changing face of volunteerism reflects the genera-

tional shift in the volunteer workforce. The national volunteer rate in 2009 increased to 26.8 percent, up from 26.4 percent in 2008, according to data from the Corporation for National & Community Service. That’s 63.4 million people who were willing to donate their time and talents. Many experts anticipate an even larger jump in volunteer hours as Baby Boomers retire. In 2009, 22.8 million boomers dedicated 3.1 billion hours of service to communities across the country. Sixty-two percent of boomers who currently volunteer expect to volunteer more when they retire, according to a study by AARP, a national advocacy organization for people ages 50 and older. And 36 percent of people who hadn’t volunteered in the last year expect to do more when they retire. “There’s a pretty big gap in what the boomer generation and younger generations want to do as volunteers versus the generations that came before,” said Quirk. Accommodating these requests can mean more work for nonprofit staffs. But the numbers show it’s worth the effort. Minnesota’s volunteer rate is third in the nation, according to MAVA; one and a half million residents dedicate 171.1 million volunteer hours annually. The average value of an hour of volunteer service is $20.85, and it’s estimated that the annual economic contribution of all those volunteer hours is $3.4 billion dollars. As funding gets tight, more and more nonprofit organizations are relying on volunteers; 60 percent of Minnesota organizations have increased their reliance on volunteers, according to MAVA. But while more than 50 percent of those organizations report an increase in volunteer hours, only 12 percent have increased funding for their volunteer programs.

Unique Opportunities : : Volunteers’ motivations have also changed with the times. “It used to be volunteers would come into an organization and say ‘What volunteer jobs do you have?’” said Quirk. “Now a lot of volunteers expect the organization to spend time understanding what they have to offer and mutually design a volunteer position.” Some volunteers customize their own positions. Friends Vicki Morgan and Debbie Erickson were huge fans of the Imagination Library, a free program that gives children under the age of six age-appropriate books each month to help them build their own libraries. Erickson had previously volunteered for the United Way of Central Minnesota, which runs Imagination Library with singer Dolly Parton’s Dollywood Foundation. When she learned that central Minnesota had about 9,200 children enrolled in the program and the annual cost to provide books to the children was $35 per child, she teamed up with Morgan to host a progressive dinner party to support the cause. They raised more than $12,000 and are planning another event for April 2011. CONTINUED ON PAGE 44

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Recruit through social media, electronic communication, nonprofit networks, and partnerships with schools and employment agencies. Understand that some volunteers wish to advance their job prospects. Design positions that offer professional skills development. Write letters of recommendation. Engage immigrant/refugee volunteers by creating trusting relationships with new communities. Take time to understand cultures and build opportunities around family-centered systems. Rethink procedures— including extensive paperwork and reference requirements— that can present barriers. Source: Minnesota Association of Volunteer Administration (MAVA)

ls, Offices in Brainerd, Little Fal s. ple Sta Long Prairie and

218.829.3235 | 800.566.3235 www.npmh.org g, Serving Aitkin, Cass, Crow Win ties. coun ena Wad Morrison, Todd and

OCTOBER 2010

heartdrive

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results. Before the economy turned downward, a group of almost two dozen St. Cloud-area nonprofits began meeting regularly to identify additional ways they could share resources and avoid duplication. The dialogue enhanced the community’s referral network—essential in today’s economic climate. It also led to simple

Nonprofits are a key component to a community’s economic and social vitality. practices that are improving their bottom lines, including a shared buying arrangement for everything from cleaning supplies to paper.

Recovery While nonprofits are starting to see some signs of an improved economy, demand for services statewide has not decreased. In fact, 58 percent of Minnesota nonprofits expect to see an increase in services through this December. At the same time, expenses are rising. Many nonprofits will have to turn to their cash reserves and tap additional funding sources. Despite the tough times, nonprofits continue to be our society’s safety nets. For Ashley and Vinny, Stepping Stones was the lifeline they needed. After enrolling in the program, they each set individual goals and earned essential items for their baby. “I knew I was going to need diapers, but the Stepping Stones program helped me figure out what else I needed and helped me think about what goals I wanted to have for myself,” said Ashley. Their son Zachary Christopher was born last July. The sleepless nights and unknowns of being a first-time parent aren’t easy, but Zachary makes it worth it. “He’s smiling already,” Ashley said of her six-week-old son. “I know they say they are not supposed to be smiling already, but he is.” IQ

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Bremer Bank in St. Cloud. As state and local governments cut their budgets to eliminate deficits, and foundations see endowments yielding few returns in stagnant financial markets, they have little choice but to reduce their funding for nonprofits. MCN reported that 34 percent of the state’s nonprofits rely on government funding as their primary source of financial support. Another 23 percent of Minnesota nonprofits said that foundation support was their primary source of revenue. Fifty-three percent of nonprofits reported a drop in funding from foundation support in the first six months of this year, while 27 percent of nonprofits reported delays in receiving their scheduled payments for services from government sources. In this climate, it’s no surprise MCN’s survey found that earned income from fees and sales was the most stable source of revenue for nonprofits during the past six months. Nonprofits are raising more revenue through earned income since the recession began. “They’re charging for more services, broadening their base of fee-paying clients, opening thrift stores and relying on federal

Most nonprofits maintained or even stepped up services in the face of increased demand, despite hiring freezes, furloughs and even layoffs. —Kate Barr, Executive Director of the Nonprofit Assistance Fund

grants, which are the one government funding source that hasn’t dried up yet,” said Barr.

Building Jobs, Communities

The need for economic development help has never been greater, yet the past three years have been equally difficult for the many Minnesota nonprofits dedicated to creating jobs in their community. “With the current economic conditions, there is reduced revenue available to support job enhancement, but an expanded need for job growth,” said Sheila Haverkamp, executive director of the Brainerd Lakes Area Development Corporation (BLADC). A nonprofit that focuses on economic development in Crow Wing County and counts businesses, local governments and other nonprofits among its members, BLADC cut its financial membership request to local governments by 5 percent last year. To compensate, the Brainerd-based nonprofit has cut costs, found one-time grants and trimmed operating costs to make up for the reduced revenue. But it’s not all doom and gloom. BLADC is moving forward with the creation CONTINUED ON PAGE 42

OCTOBER 2010

Storm Chasers CONTINUED FROM PAGE 41

Sheila Haverkamp, Executive Director of the Brainerd Lakes Area Development Corporation (BLADC)

Touching Lives, Changing Communities...

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of a foundation that will assist economic development efforts in the Brainerd area when the economy recovers. “We’re looking for ways to help startup companies and encourage entrepreneurs, as well as retaining and growing jobs with existing businesses,” said Haverkamp. And despite the recession, Haverkamp points to Wausau Paper’s recent $27 million investment in its Brainerd paper mill as an example of positive outcomes to which BLADC has contributed.

Planning for the Future

The role that nonprofits play in strengthening communities, despite their financial strains, was illustrated this past summer when an F4 tornado struck the city of Wadena and surrounding areas. The Initiative Foundation and Otter TailWadena Community Action Council served as fiscal hosts for tornado relief donations. Both are working with community leaders and the Federal Emergency Management Agency (FEMA) to coordinate plans and funding to rebuild the community. “Every crisis—be it an economic or natural disaster—affords nonprofits the opportunity to rethink and rebuild, to become smarter and

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stronger,” said Kathy Gaalswyk, Initiative Foundation president. “If there’s one common trait among successful charities, it’s the ability to innovate and ignite change, even with limited resources. In the future, nonprofits may be different, but they’ll also be more effective.” Encouraged by the community’s tornado response and participation in the Initiative Foundation’s Healthy Organizations Partnership program, Community Action is rethinking its entire approach. Plans include creating a one-stop shop for intake of new clients so that families who come looking for energy assistance don’t miss out on education opportunities or job training help they might also qualify to receive. “In this economy, we need to expand the opportunities for our clients to access the services we provide to their greatest potential,” said Leino-Mills. Despite the current difficulties governments and other traditional nonprofit supporters are having providing financing help, communities need the services nonprofits provide. “The long-term trend still is growth,” said MCN’s Jon Pratt. “The world needs more of what nonprofits do and they are a growing part of the economy. Unfortunately, the larger economy continues to suffer and we’re a part of it.” IQ OCTOBER 2010

Volunteerism CONTINUED FROM PAGE 36

Friends Vicki Morgan (left) and Debbie Erickson raised over $12,000 for Imagination Library, a free program that provides books to children.

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Since the economic downturn, an increasing number of workers volunteer to keep their skills fresh while they look for new jobs. “We’ve seen a lot more displaced workers between the ages of 55 and 62 who have been working all their life and then suddenly find themselves laid off,” said Lisa J. Braun, director of the Retired Senior Volunteer Program (RSVP) in St. Cloud. “They’re at that transition point in their lives where they’re not sure if they want to retire or if they want to look for other work.” People just starting their careers volunteer as a way to gain experience or explore a new field. Guth has recently been approached by several people who hope that volunteering at the Brainerd women’s shelter will give them needed social work experience. Likewise, the St. Cloud Hospital has seen an increase in volunteer requests from students pursuing careers in health care. To meet those needs, the hospital has created new partnerships with the local Workforce Center and area technical colleges. “Talented volunteers help to support new specialties or new programs,” said Janene Riedeman, director of volunteer services at the hospital.

Flexible Options : : Between work, family and other obligations, many volunteers— 44 Initiative Quarterly Magazine

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including retirees—are finding it difficult to commit to a regular schedule. “When I first started at RSVP 23 years ago, most volunteers wanted to serve in on-going opportunities, where they volunteered at the same place during the same time every week,” said Braun. Today, the majority of Braun’s volunteers are looking for short-term or one-time projects they can fit into their schedule. In response to this trend, United Way of Central Minnesota created “GIVE it GET it Volunteer Days,” which offer a variety of shortterm projects designed to engage a wide range of volunteers. “Sometimes if people aren’t offered a variety of different things, they may feel that volunteering isn’t for them,” Braun said. “But there really is an opportunity for everybody. Depending on their skills and interests and time availability, there’s always something that will be fulfilling.”

Lakeshore Conservation Club is the Brainerd Lakes Area choice for Trap & Skeet Shooting. Trap & Skeet Shooting • Rifle, Pistol & Archery Range • Classes & Private Lessons Birthday Parties, Bachelor Parties, Private Parties • Open to the Public Family ($40 annually) and Corporate Memberships Available

Serving the Brainerd Lakes Area for more than 50 years. Contact Dale Walz, Range Manager, at 218-831-5412 or contact@lakeshoregunclub.com. 218-963-4003 | www.lakeshoregunclub.com | 9911 County Road 77, Nisswa

Diverse Backgrounds : :

While nonprofits adapt to meet the changing needs of volunteers, they’re also working on how to bring new immigrants into their volunteer forces. The annual immigration rate in Minnesota is triple what it was in 1985, according to MAVA. Latino and Asian populations in the state grew by over 160 percent between 1990 and 2000, while the African population in the Twin Cities boomed by 629 percent during the same time period. That demographic shift has forced nonprofits to broaden policies to include the customs and beliefs of other cultures. When Somali men and women started volunteering at the St. Cloud Hospital, the hospital reexamined its dress code to make sure it was inclusive. “We’ve really worked hard to be as open and supportive as we can be,” says Janene Riedeman, director of Volunteer Services at the hospital. Nonprofits also value the informal volunteering that takes place outside their doors. “When I look at the Somali community members that I know in the St. Cloud area, they are helping each other all the time with rides, with translation, with connecting people to resources,” said Betty Schnettler, director of partnerships and services at the United Way of Central Minnesota. “They don’t necessarily call it volunteering, but it is, because it’s helping their community members have success and a good life.” IQ OCTOBER 2010

While shopping or visiting downtown Nisswa, did you ever wish there was a lakeside park close by where you could hang out, rest, go walking, fish or even take a dip in the lake? The Friends of Nisswa Lake Park are raising funds to protect and acquire a 2.3 acre parcel of land for the purpose of a lakeside park on Nisswa Lake in the City of Nisswa. The funds you contribute will support the work of protecting and acquiring the land needed for the Nisswa Lake Park. All contributions are tax deductible through our partnership with the Brainerd Lakes Area (BLA) Community Foundation which is a 501c-3 non profit organization. There are several ways to give to the Nisswa Lake Park to leave your own legacy: Individual Donation - Become a “Friend of Nisswa Lake Park”; Gifts from the Heart - Give a gift in someone's name in memory or in honor of someone you love; and Planned Giving - Leave a legacy gift so future generations can enjoy a wonderful lakeside park.

• 2.3 Acre Park Area • Located across 371 from Downtown Nisswa Square • Swimming Area • Fishing Pier • Boat Slips for Boat Docking • Walking & Biking Trail connecting to the Paul Bunyan Trail • Pavilion area for weddings and special events • Mature White Pines • Picnic area • Beautiful Sunsets • Overlooking Nisswa Lake

“ It is our belief that the addition of a public park and beach area on Nisswa Lake has regional significance and will greatly enhance the Brainerd Lakes Area’s appeal to visitors and the greater community...this proposed facility's close proximity to the businesses in Nisswa and the Paul Bunyan

”

Trail will also make it unique in our region. –Brainerd Lakes Area Development Corporation.

a Legacy for Future Generations.. g n i v a Le

For more information regarding the park design, maps, pledge forms, brochures, etc., e-mail the Friends of Nisswa Lake Park at lehmanconsulting@nisswa.net; or contact Brian Lehman, Nisswa Mayor, 218-838-4158; Erin Herman, Nisswa Elementary School Principal, 218-821-3760; Eric Wiltrout, Lakewood Bank, 218-892-0532; or Jan Pierce, Nisswa P&Z Commission, 218-963-7394. Checks should be made payable to “BLA Community Foundation” with a notation of “Friends of Nisswa Lake Park”. Send your tax deductible donation to The Friends of Nisswa Lake Park, PO Box 262, Nisswa MN 56468.

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Brainerd > (888) 605.5982 > (218) 829-5982 Proud to design and print IQ magazine.

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OCTOBER 10

IQ&A with Elizabeth Foy Larsen, Managing Editor

IQ Talks Business & Benevolence with Charlotte Johnson, Otto Bremer Foundation

IQ: Otto Bremer has a foot in both the business and nonprofit worlds. In your opinion, what’s the difference between leadership in the two sectors?

CJ: While business success is often measured by a strong bottom line, nonprofit success is often less concrete. Nonprofits are charged with serving the public good, so people who work for them need to employ good management and effective programming to ensure that their resources are used for the public’s benefit. In both arenas a leader has to be committed to the organization’s values and core objectives, but a board member of a nonprofit is often expected to support the organization financially and encourage others to do so.

IQ: Could business people learn anything from their nonprofit counterparts?

CJ: Maybe they could learn how to always see the glass as half-full. In nonprofits, a tireless optimism is required to achieve an organization’s mission. Some could also learn how to make due with scarce resources, to cross-train highly skilled employees, and to team up with other organizations to meet customer needs.

role each of us has in supporting our fellow human beings. But when voices come together from the different sectors, they can have a positive impact. For example, if businesses emphasize the importance of a strong public educational system to ensure a productive future workforce, the impact of that message is stronger than if it is voiced only by public education advocates.

IQ: True or False: Nonprofits represent the next great American innovators.

CJ: Very true. The expression “necessity is the mother of invention” has been increasingly evident over the past year or so. By recognizing that government dollars are diminishing, and public support is increasingly competitive, nonprofits are looking to find ways to diversify their revenue streams through fees for services and other creative strategies. Since the largest segment of support for nonprofits comes from individual donors, it’s imperative that nonprofits continue to push for new ways to maintain and grow personal relationships.

IQ: What's the best gift a person can give to a nonprofit?

CJ: The most obvious answer is money; finanIQ: What is one underappreciated strength of charitable organizations?

CJ: They bring people together to collectively address a common challenge.

IQ: What challenge is the elephant in the room? CJ: There is a great need for a public conversation about the definition of our social contract with one another and the role that the public, private and nonprofit sectors each play in upholding that contract. The most volatile conversations seem to take place around issues of personal accountability and what

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cial support is the fuel that keeps the engine running. But money alone won’t do it. We can also give expertise, outside perspectives and constructive criticism about new strategies for the organization. When we support an organization, we can spread the word about the good work that is being done and call upon our friends and associates to join the cause.

Charlotte Johnson is a trustee of the Otto Bremer Foundation, a St.Paulbased nonprofit that serves people and communities in Minnesota, Wisconsin and North Dakota. She also serves on the board of directors of Bremer Financial Corporation, the major asset of the foundation. She has been an active member of several other nonprofit boards including the Minnesota Council on Foundations.

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