When Disaster Strikes by Initiative Foundation

2ND QUARTER 2017

COMMUNITY

On the Waterfront— Brainerd embraces the Mississippi. Pg. 16

PHILANTHROPY

Chisago Lakes Area Success— Five communities unite to boost regional development. Pg. 32

2016 ANNUAL REPORT

WHEN DISASTER STRIKES When a fire tore through Melrose, the community discovered just how strong it really is. Pg. 20

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Initiative Foundation Quarterly 2ND QUARTER 2017

Contents FEATURES

DEPARTMENTS

When Disaster Strikes

When a fire tore through Melrose, the community discovered just how strong it really is.

Granted

Meet three organizations that are harnessing the potential of a grant or scholarship from the Initiative Foundation.

2016 Annual Report A year in review: Learn about the ways in which you helped the Initiative Foundation invest in Central Minnesota.

Initiatives:

Regional Highlights

Get the latest economic and community development highlights from the 14-county area.

Business:

A Place to Call Home

At Washington Place, Minnesota veterans get help with daily living and a dose of friendship.

Economy:

Sowing a Prosperous Future â&#x20AC;&#x153;Economic Gardeningâ&#x20AC;? offers a fresh approach to regional development.

Community:

On the Waterfront

Brainerd embraces its location on the Mississippi.

Philanthropy:

Now They Know Their ABCs

Five communities unite to boost regional development.

CORRECTION A photo caption in the 1st Quarter edition of IQ Magazine misidentified the name of a product in our Home Made story about Shark Industries, Inc. The photo pictured the GRIP-TEX Snow Sock, not the Isse Snow Sock as described in the caption. Our apologies to our friends at Shark Industries for this oversight.

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THE MISSING LINK

A Complete Streets Demonstration Project

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ne thing missing after the 2014 reconstruction of Alexandria’s Broadway Street was a connection between the revitalized historic downtown and Central Lakes Trail. The city launched a Complete Streets demonstration project, designed by WSN and dubbed “The Missing Link.” City crews assembled temporary materials to model a Complete Streets program: bike lanes, trees, bump-outs, and other features. In place for six weeks during the 2016 tourist season, the team collected public input and data for a potential future project.

2ND QUARTER 2017

Dear Friends, Before my daughter Mae turned 5, my dad and I took her to the store and told her she could pick out one (reasonably priced) birthday present. I figured we’d end up with something involving ponies or a favorite cartoon character. But Mae surprised us: She opted for a cash register so she could play “business.” As a small business owner, my dad was proud of her choice. I was too. After all, small businesses account for nearly two-thirds of new jobs in this country, and they are the engine of growth in countless communities across Central Minnesota and beyond. From its earliest days, the Initiative Foundation has actively worked to help Central Minnesota businesses succeed—through loans, equity investments, training and technical assistance. As you look over our annual report, included in this edition of IQ, you’ll see that in 2016 alone, we provided nearly $2.6 million in financing to 28 small businesses in our region. These investments helped to create or retain 211 quality jobs and leveraged an additional $14 million from our business partners and other lending institutions—a great demonstration of how we multiply the funds entrusted to us. You’ll also read about last year’s devastating fire in downtown Melrose that destroyed an entire city block, including multiple businesses. As part of our recovery work with the city, we partnered with AgStar Financial Services and the Blandin Foundation to administer a business recovery grant to help affected main streeters get back to the business of serving their community.

VOLUME 24, 2ND QUARTER 2017

Mae Varilek, young entrepreneur.

You’ll also read about our grant for an Economic Gardening® initiative in our eastern region. And you’ll learn about one of our loans that helped a disabled veteran purchase Washington Place, an assisted living facility in a repurposed St. Cloud school building that dozens of veterans now call home.

Teresa Lund | John Linn | Paul Middlestaedt | Carl Schultzetenberg

Advertising Advertising Director | Brian Lehman Advertising Manager | Lois Head Advertiser Services | Janelle Breen Subscriptions Email info@ifound.org to subscribe or to make subscription inquiries.

I had to laugh when Mae eventually told me how things were going with her business: “Sixteen years at this cash register, and still no customers,” she claimed. Clearly, entrepreneurship is not for the faint of heart. We’re grateful for the brave folks who venture into small business ownership, and we’re proud that a big part of our mission is to help them succeed. Enjoy the magazine.

Matt Varilek PRESIDENT

405 First Street SE Little Falls, MN 56345 (320) 632-9255 | ifound.org

IQ Magazine unlocks the power of Minnesota leaders to understand and take action on regional issues.

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Supporting local projects through our new

Small Project Partnership Funding THE PROJECT: Every student at Long Prairie-Grey Eagle (LPGE) Secondary School has a shiny new reusable water bottle made from safe and durable materials, thanks to the students in Pete Phillips’ LPGE Area Studies class and their Green Initiative. Through this geography- and history-based class, the students learned about water consumption and shortages, toxicities in plastics intended for single use, and the impact of plastic waste. In response, the class established “Ban the Bottle,” an initiative to eliminate bottled water at the school. The Area Studies class applied for and was awarded Small Project Partnership Funding, and in addition to securing financial support from other area businesses, purchased over 400 water bottles for the student body. Phillips’ students presented their findings in a schoolwide forum. At the conclusion, they handed out the bottles and invited their peers to utilize them daily, specifically at school using the newly installed fountains equipped with sensor filling stations.

NJPAcoop.org Shared Services • Professional Development • Cooperative Purchasing • Risk Management • Government Services

Initiatives

WADENA TODD

CROW WING

MORRISON

MILLE LACS

PINE

BENTON STEARNS

ISANTI SHERBURNE

CHISAGO

Regional Investment Highlights

CASS

KANABEC

WRIGHT

WESTERN MORRISON COUNTY | Fund Hits the Right Note for Aspiring Young Musicians The Little Falls band program has purchased three new instruments—one new and two refurbished— thanks to a donation from Playing it Forward: The Kenneth and Evelyn Pinckney Young Musicians’ Fund. An Initiative Foundation Partner Fund, Playing it Forward promotes three youth-focused areas: providing musical instruments for beginners, encouraging instrumental experiences and refurbishing gently used instruments to increase student access.

TODD COUNTY | Volleyball League Ups its Game With Automated Hitting Machine Staples-Motley league volleyball players are elevating their game with the addition of an automated hitting machine furnished by LEAP, Inc., a nonprofit that supports local quality-of-life enhancements. The purchase was supported by an Initiative Foundation grant and matched by local fundraising efforts. The high school team has access to the machine for its practice drills. That’s a win-win.

WADENA COUNTY | On Their Way to a More Aligned Pre-Kindergarten Experience MORRISON: Playing it Forward fund promotes young musicians.

When Wadena-Deer Creek School District preschool teachers were feeling unsure about their pre-kindergarten programming, the community pulled together a plan that would put everyone at ease. With help from an Initiative Foundation grant, preschool teachers now are using the same goals and language to help young learners develop the social-emotional, literacy and math skills they need to enter kindergarten and succeed.

NORTHERN CASS COUNTY | Construction Nears Completion at Paws + Claws Rescue & Resort Finishing touches are being made on a state-of-the-art building for rescued animals and pet lodging in the Hackensack/Leech Lake area. As construction winds down, Paws + Claws Rescue & Resort is hiring staff with a goal of opening for business this spring. The pet rescue and resort is a project championed by Jack and Betty Thomas, owners of global beekeeping supply company Mann Lake, Ltd., and is supported in part by an Initiative Foundation grant.

CROW WING COUNTY | Resilient Nonprofit on the Rebound Following Fire Volunteers at Salem WEST are working hard to resume community outreach efforts following an early March fire that destroyed the Deerwood nonprofit’s building. Donor support in the fire’s aftermath has been strong and was supported by an emergency grant from the Initiative Foundation to help with short- and long-term planning. Visit salemwestdwd.org to learn how you can help.

MILLE LACS COUNTY | Investment in Little Libraries Pays Big Dividends CASS: Pet rescue, resort gets ready for business.

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Strong community support and a successful book drive (1,000-plus and counting) have given a boost to the Panthers Little Libraries program. The libraries located throughout Onamia are part of a solution to elevate area literacy. Supported by an Initiative Foundation grant to the Mille Lacs-Onamia Early Childhood Coalition, another book drive is planned for summer 2017.

“ We’re thrilled with the response and ways we’ve been able to incorporate literacy activities and messages about the importance of reading to children into our early childhood work.” – Susan Bracken, Onamia Area Early Childhood Coalition director

SOUTHERN BENTON COUNTY | Grant Helps With School Tools for Autism Spectrum Students The Sauk Rapids-Rice school district has added tools to help autism spectrum students focus and remain calm during stressful situations. One purchase, noise canceling headphones, has allowed students to tolerate loud and stimulating environments, such as the gym and lunchroom, leading to improved peer interactions. The purchases were supported by a grant from the Sauk Rapids-Rice Education Foundation, a Partner Fund of the Initiative Foundation.

SHERBURNE COUNTY | Training Helps Aviation Organization Soar to New Heights Flight Expo, Inc., a Princeton area nonprofit, is working to improve its capacity by participating in the Initiative Foundation’s Financial Resiliency through Social Enterprise (FRSE) 2.0 program. In addition to offering aviation education, the organization salvages and sells airplane parts and is considering the addition of a screen-printing business to expand services and improve its bottom line.

STEARNS COUNTY | New Center to Provide Relief, Options for Seniors, Caregivers Construction is under way on a multi-functional adult day center that will serve the Holdingford area. The Helping Hands Outreach center will provide hands-on care for older adults while providing relief to family caregivers. Once the facility opens, attendees can enjoy recreational activities, exercise programs and consistent social interaction. The project is supported in part by an Initiative Foundation grant.

STEARNS: Day center planned for Holdingford-area senior care.

WRIGHT COUNTY | Decontamination Station Goal: Interrupt Invasives A first-of-its-kind boat decontamination station is being installed by the Greater Lake Sylvia Association to interrupt the spread of invasive species. Invasive plants can hinder swimmers, clog motors and smother fish habitat. A $650,000 grant from the Initiative Foundation and the Lessard-Sams Outdoor Heritage Council will support the inspection/decontamination station installation near the South Haven-area lake and will help to enact other supporting efforts.

EASTERN

CHISAGO COUNTY | City’s Strategic Plan to Foster Mindful Growth Wyoming is transitioning from a small community to thriving business hub. To ease its growing pains and attract new businesses, the community is creating a strategic plan to chart its economic future. Supported by an Initiative Foundation grant, city officials are meeting with consultants and business owners to explore community needs, identify areas of improvement and outline projects to attract and retain skilled workers.

ISANTI COUNTY | Consortium Creates Buzz Around Regional Economic Development More than 50 economic development enthusiasts gathered at the Braham Event Center in March to discuss community and regional economic development strategy. Organized by the GPS 45:93 economic development consortium and sponsored by an Initiative Foundation grant, the session was a broad overview of the tools and strategies a community and region can use to foster long-term business and job growth.

KANABEC COUNTY | Take a Free Ride, Enjoy a Free Meal! Soup For The Soul, Inc., a Mora-area nonprofit that provides a free meal every Monday night, will continue to offer expanded access by providing free service-area transportation. Partnering with Timber Trails Public Transit and supported by an Initiative Foundation grant, Soup For the Soul offers rides to income-eligible individuals so they can enjoy a warm meal and good conversation.

ISANTI: GPS 45:93 organized a regional economic development strategy session.

PINE COUNTY | Youth Hockey Organization to Welcome New Competition Improvements to the Pine City community ice rink are creating new opportunities. Supported by a grant from the Initiative Foundation-hosted Greater Pine Area Endowment, the Pine City youth hockey program purchased safety dividers to separate their rink into two surfaces. With the upgrade, the rink can now safely hold twice as many skaters and is now eligible to host large tournaments that draw teams from around the state.

2ND QUARTER 2017

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business

BUSINESS VETERAN: As the CEO of home health care provider HealthNorth, Jay Johnson feels that Washington Place is a perfect way to expand his businesses.

A Place to Call Home At Washington Place, Minnesota veterans get help with daily living. They also get a much-needed dose of friendship. By John Reinan | Photography by John Linn

When a St. Cloud assisted-living facility that provides a home for more than 40 veterans came on the market in mid-2016, Jay Johnson saw a unique opportunity to help more Minnesota veterans get the support they deserve. As a disabled veteran himself—Johnson was discharged from the Navy in 1990 after he became a paraplegic in a car accident—he was well aware of the challenges that former military men and women face. By some estimates, as many as 6,000 vets in the state qualify for housing assistance but aren’t taking advantage of it. Johnson is CEO of HealthNorth, a St. Cloud-based home health care provider that supplies personal care services as well as equipment such as wheelchairs, scooters, hospital beds, ostomy supplies and other medical needs. The company employs about 150 people and is looking to expand. Washington Place, which is located in a repurposed elementary school, was an opportunity that fit with Johnson’s views about what’s needed in the market. “It’s one of the reasons I set up my company,” he 10 Initiative Foundation Quarterly ifound.org

said. “I use a wheelchair, so I understand people who have disabilities. And so I always thought I could do better than the next company that’s out there providing services.” In fact, Johnson designed and engineered his own wheelchair, a creation that can lift the user from a sitting to a standing position. A graduate of St. Cloud State University, he received the university’s Graduate of the Last Decade (GOLD) Award in 1999. Washington Place presents another opportunity for Johnson to use his personal insights to improve what’s available for today’s veterans. The synergy works well for HealthNorth customers, and Johnson hopes to add more assisted-living facilities to his portfolio. “It’s a nice coupling of businesses,” he said. “Assisted living was always a target for HealthNorth to have under our umbrella of companies.” Most of the vets at Washington Place suffer from mental health issues, drug and alcohol problems or post-traumatic stress disorder. They range in age from 38 to 76. The majority are Vietnam-era vets, but there’s a younger contingent that served in Iraq and Afghanistan. With a place to live, and a supportive environment, many of them are

SEAMLESS TRANSITION: Katie Nouis (left), who ran the assisted-living facility for 25 years with her husband, Todd, is helping to make the ownership transition a smooth experience for residents.

JIM NIERENHAUSEN (with a client): “The biggest thing we provide here is a dose of friendship.”

“ I use a wheelchair, so I understand people who have disabilities. And so I always thought I could do better than the next company.” able to operate successfully in the larger community. Some hold down steady jobs. “If not for this, many of these veterans would be on the streets,” said Jim Nierenhausen, the facility’s chief operating officer.

A Demand For Jobs

Healthcare jobs are the largest sector of Minnesota’s economy and are showing strong growth, both statewide and in the St. Cloud region. In the Initiative Foundation’s Central Minnesota service area, healthcare provides more than one in six jobs. That was a key to the Foundation’s support of Washington Place, which provided $30,000 in gap financing. “Healthcare positions tend to be full-time, with benefits, and they pay more than minimum wage,” said Dan Bullert, the Initiative Foundation’s business finance manager. “We always look to get involved with projects that provide good wages and benefits, because along with that comes quality-oflife improvements for the region.” On average, healthcare jobs in Central Minnesota pay $5,000 to $6,000 more annually than the overall average for all other jobs in the region, according to the state Department of Employment and Economic Development. Healthcare jobs also offer a clear career ladder. Workers who start as certified home care aides or nursing assistants can progress with further education to licensed practical nurses or even registered nurses. In addition, the multiplier effect of healthcare jobs is higher than in almost any other industry. The growth of healthcare spins off other jobs in food service, hospitality, construction and technology. Washington Place employs about 12 people now, but that could grow as expansion plans are realized. The facility has a full kitchen and provides three meals a day to its clients. Counselors also take clients to medical appointments and job interviews, monitor medications and refer them to other services as needed, often through the Veterans Administration.

Emotional Care

But there’s an important aspect to the services provided at Washington Place that goes beyond medical charts. “It’s a business, but there’s also a need for that emotional care,” said Nierenhausen. “These vets are human beings who have seen a lot of stuff. Some of them don’t have family, so you become really instrumental in their lives. It’s important to highlight the human part of it. The human touch, talking to people, understanding them, becomes a major factor in their care. The biggest thing I think we provide here is a dose of friendship.” Washington Place doesn’t have psychologists or social workers on staff, but the caregivers stay in close touch with clients and are ready to offer referrals. “We might say, ‘Mike, maybe you need to go to the VA,’ ” Nierenhausen said. “Or we might suggest they go see a psychologist. It’s all about knowing that person as an individual and helping them get what they need.” Johnson and Nierenhausen have known each other since their childhoods in Cold Spring, where Johnson’s father was the principal at Rocori High School. Nierenhausen spent years in the granite business, selling monuments. The Initiative Foundation had a previous partnership with Johnson, providing similar gap financing to help him expand HealthNorth. For the Foundation, it’s especially gratifying to see a business continue to grow after providing a nudge that helped them get over a hurdle. “At a critical point in the lifecycle of a business, some targeted assistance can make the difference in meeting goals,” said Bullert. “The dollar amount might not be huge, but the impact—the ability to take the business to the next level—can be significant.” That’s Johnson’s vision. “In business, you kind of know your strengths and weaknesses,” he said. “And this plays to our strengths.”

2ND QUARTER 2017

economy

KURT BAUERLY: “We have these niche buyers, and we want to find the ‘watering holes’ where these buyers are going.”

Sowing a Prosperous Future “Economic Gardening” offers a fresh approach to regional economic development. By Gene Rebeck | Photography by John Linn

A couple of years ago, Kurt Bauerly realized his company, e-ride Industries, had reached a plateau. The Princetonbased manufacturer of electric utility and passenger vehicles serves mostly niche markets in the United States, including military bases, national and state parks, city fleets, colleges, universities and airports—all of which operate maintenance- or utility-vehicle fleets. Bauerly and his team at e-ride Industries knew these markets presented myriad opportunities. The trick was in discovering their market entry points. “We wanted to look at some strategic ways of finding growth, and we weren’t sure how to do that,” Bauerly said. His company also wasn’t in a position to spend a lot of money on consultants. “So when this (program) came up, it was a good opportunity.” The program is Economic Gardening®, a trademarked term for a concept developed by the Michigan-based Edward Lowe Foundation. Implemented locally by GPS 45:93, a regional economic development

organization representing five member counties north of the Twin Cities metropolitan area, the Economic Gardening effort provides small but established businesses with consultants who can help with strategy and customized market research. GPS’s program, which launched last year with five regional businesses, received seed funding from the Initiative Foundation. Both the Foundation and GPS 45:93 see the program as a way to stimulate regional economic growth in already fertile soil.

Planting Seeds

The idea behind Economic Gardening “is about planting additional seeds in businesses that are already located within your community or region,” said Jeff Wig, vice president for economic and organizational development at the Initiative Foundation. “It’s about helping communities grow what they already have.” The Initiative Foundation provided a $12,000 grant to GPS 45:93 for an Economic Gardening effort involving manufacturing companies. CONTINUED ON PAGE 14

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“Central Minnesota has a lot of small- to medium-sized manufacturers,” Wig said. “And they typically offer very good jobs for a rural area.” Those manufacturers also can add solid economic development value. Wig contrasted that approach with trying to attract a large employer to a community, a strategy he compared to a “hail-Mary pass.” “The ground game that moves you forward in a more consistent way is to develop the companies that you already have, and that are already there supporting your community,” he said. The upside can be substantial, according to the Edward Lowe Foundation. Whereas spending 10 hours with a startup company might lead to the creation of one new job and a $50,000 loan, the same amount of time with a second-stage company could add another $1 million to their sales and result in five new jobs within a few months. What’s more, “those areas that had Economic Gardening seemed to fare significantly better than areas that didn’t during the recession, for one,” said Richard Baker, 2016 president for GPS 45:93. “And two, because we are a rural area, 80 percent of our growth in employment comes from existing businesses.” So it makes sense to “support second-stage businesses that have an opportunity to grow.” Rebecca Perrotti, this year’s GPS president, said the program’s CEO roundtables provided a confidential environment for Economic Gardening participants to share challenges and ideas. And with more experience, there will be improvements. Most of the first-round companies say they’ll serve as mentors to the next round, “which will add a lot of value,” Perrotti said. Their insights also will help GPS refine the program in the second round.

Fertile Ground

For Bauerly, the program helped him uncover potential customers. “We looked at markets that we were having success in, and tried to find out who in those organizations were buying our vehicles,” Bauerly said. The consultant put together a list of contacts for decision makers in those organizations, as well as leads of potential dealers that might be interested in handling the company’s vehicles. What’s more, the Economic Gardening consultant helped beef up the company’s website so that it appears higher in search-engine results. He also encouraged e-ride to establish a presence on LinkedIn. “We have these niche buyers, and we wanted to find the ‘watering

HOW DOES YOUR GARDEN GROW? Economic Gardening leverages data and geographic information systems, search engine optimization and other web-based marketing tools to help second-stage companies: • Identify market trends, potential competitors and unknown resources. • Map geographic areas for targeted marketing. • Raise visibility in search engine results and increase web traffic. • Track websites, blogs and online communities to better understand competitors as well as current and potential customers. • Refine their core strategy and sustainable competitive advantage. Source: edwardlowe.org

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holes’ where these buyers are going,” Bauerly said. LinkedIn includes interest groups in areas such as electric vehicles and sustainability; e-ride joined some of these organizations and groups, and now provides occasional and strategically positioned educational pieces. That way, potential buyers “will think of us as a source of information for our industry,” Bauerly said. In addition to e-ride, the businesses that participated in the Economic Gardening program were Aurelius Manufacturing in Braham, Mora-based Northpost, Inc., Pine City-based Atscott Manufacturing and Stacy-based Wyoming Machine, Inc. Like e-ride, Wyoming Machine wanted to grow, enter new markets and diversify its business, said Lori Tapani, co-president of the precision metal fabricator and a member of the Foundation’s business finance committee. The consultant provided about 1,000 contacts for businesses that are similar to the types Wyoming Machine works in now, as well as “industries that, based on what we do, we think we can be successful in,” Tapani said. One possibility is electro-medical equipment used in imaging, a growing market with a lot of potential clients for her company, which specializes in highly engineered products. Another consultant advised Wyoming Machine to update its website so that it could be accessed on smartphones and tablets. Wyoming Machine paid $1,000 to participate in the program, a fee Tapani considers a bargain. “I’m sure that if we had been hiring individual consultants, we would have paid $15,000 or $20,000,” she said. It will take time for Wyoming Machine to develop the new leads into customers, but it has been in contact with several of them, and has bid on new projects. As for e-ride, Bauerly said he’s seeing results, including the addition of a new dealer to carry his company’s products. Sales cycles typically take at least a year, since clients are mostly government entities, so it’s a bit early to measure success. But he did report that e-ride has made promising contacts and has gained suppliers. Meanwhile, GPS is putting together a list of participants for the next round of its Economic Gardening program, which the Initiative Foundation will once again support. GPS should have the list assembled by late spring—prime time for gardening season.

“ Economic gardening is about helping communities grow what they already have.”

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community

NATURAL ASSET: Brainerd exists because of the Mississippi. The river was first used by Native Americans for fishing and trading, practices that were taken up by explorers when they arrived in the region.

On the Waterfront

Photograph courtesy of Short Elliott Hendrickson, Inc. (SEH®)

Brainerd embraces its prime location on the Mississippi River. By Elizabeth Foy Larsen

For almost six years, Jennifer Bergman has crossed the Mississippi River on the way to her job as executive director of the Brainerd Housing and Redevelopment Authority (HRA). The problem, as she sees it, is that instead of being an opportunity to take in the beauty of one of the world’s most famous waterways, her morning ritual is a ho-hum event. “The only reason you know that the Mississippi is there is because there’s a sign that tells you,” she said. “There are very few ways for people in Brainerd to interact with the river.” That’s likely to change if a group of involved city leaders, businesses and citizens are able to make tracks with the proposed Three Bridges Trail, an over-the-water catwalk that will hug the river’s shoreline and weave underneath the Laurel Street, Washington Street and BNSF Railroad bridges. Community leaders believe the trail will bring nature and recreation lovers to the riverfront and help the river become an economic and cultural focal point.

A History of Water

Brainerd exists because of the Mississippi. The river was first

used by Native Americans for fishing and trading, practices that were taken up by explorers when they arrived in the region. When the railways expanded across Central Minnesota, Brainerd was chosen as the site for a railroad bridge because a narrow point in the river made the engineering more cost effective. Industry has also played a role in Brainerd’s riverfront, starting with northern Minnesota’s logging companies. A paper mill began operating in 1898, which eventually became home to both Potlatch Corp. and Wausau Paper. “For hundreds of years, rivers were the world’s major transportation corridor and wastewater disposal mechanism,” said Don Hickman, the Initiative Foundation’s vice president for community and workforce development. “Being near a river was a good business practice.” But when the logging industry stopped floating its goods down the Mississippi, Brainerd turned its back on what had once been the city’s center, an action that intensified when trucks, trains and planes overtook river barges as the preferred way to transfer goods. It’s a trend that occurred across the United States. During the past 50 years, however, river towns like Brainerd have again started to embrace their waterfront locations. The most famous example is the San Antonio River Walk in Texas. A network CONTINUED ON PAGE 18

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2ND QUARTER 2017

community, continued from page 16

“ Our portion of the Mississippi is a unique and vibrant and peaceful place.” of walkways on the banks of the San Antonio River, located below street level and car traffic, it’s a dynamic—and much visited— combination of shops, restaurants, museums and historic sights, including the Alamo. Closer to home, Minneapolis has successfully created new residential neighborhoods on the Mississippi, which have given rise to biking and hiking trails and cultural amenities, including the Guthrie Theater, which offers impressive views of St. Anthony Falls. Brainerd has known for decades that the Mississippi is an underused asset. “The river is fresh and young here,” said Rod Osterloh, a commercial real estate marketer and broker who chairs the Brainerd Riverfront Committee, a nine-member group that has been charged with finding a signature project for the river and securing an organization to coordinate it. “It’s not the Headwaters, where you can literally walk across it. And it’s not the ‘Old Man River’ that you find south of St. Louis.” The trick has always been how to give people access to this unique stretch of water, given that the riverbanks are steep and currently cut off from the town. After a community planning process with the University of Minnesota’s Center for Rural Design, the city turned to the Brainerd Lakes Area Community Foundation, which awarded a three-year, $100,000 Difference Maker Grant. The city then appointed the Brainerd HRA to administer the grant and create the nine-member

BRAINERD

Brainerd Riverfront Committee, which was charged with securing a coordinator and determining a signature project.

More Than A Park Bench

The priority was to come up with an initiative that is substantial enough to change the way Brainerd area residents experience the river while also enhancing the city’s recreational, economic and cultural opportunities on a two-mile stretch between Washington Avenue and Little Buffalo Creek. “We were told that the Brainerd Lakes Area Community Foundation didn’t want a park bench,” said Osterloh. That solution is the Three Bridges Trail. A joint project of the HRA, the city of Brainerd and the Brainerd Riverfront Committee, the plan supported by an Initiative Foundation grant calls for an elevated trail along the shoreline, much like a popular catwalk that’s already in place on the river near the University of Minnesota in Minneapolis. It will accommodate both pedestrians and bikers. Long term, community leaders envision the trail as one part of a network of natural and cultural attractions on the waterfront that will be a calling card for a city that often gets overshadowed by the lake communities that surround it. “Our portion of the Mississippi is a unique and vibrant and peaceful place,” said Osterloh. “We hope that the Three Bridges Trail will be a catalyst for other projects.”

A RIVER RUNS THROUGH THEM How other Central Minnesota towns have embraced the Mississippi. GREATER ST. CLOUD AREA The cities of St. Cloud, Sauk Rapids, and Sartell—and Benton, Sherburne, and Stearns counties—have teamed up with Mississippi River advocacy groups to create the St. Cloud Urban Area Mississippi Corridor Plan, which is a six-zone plan that includes trails, landings, beaches, parks, scenic overlooks and campsites. The plan also includes initiatives to improve water quality and the health of the river as well as ideas for businesses and events that would benefit from a riverfront location.

LITTLE FALLS

BRAINERD PROPOSED MISSISSIPPI RENOVATION PLAN: Added features could include a plaza, pavilion, parking, restrooms, a canoe and kayak launch and a scenic overlook.

18 Initiative Foundation Quarterly ifound.org

On a former superfund site that was once home to the Hennepin Paper Mill, the city has created a park that also included historic information about the mill and its importance to the history of Little Falls. Maple Island Park, adjacent to the Initiative Foundation’s headquarters, is a restful spot on the river that’s perfect for walks and picnics. The Charles A. Lindbergh Historic Site is a cultural and historic attraction that also includes an interpretive trail on the river.

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WHEN DISASTER

When a major fire tore through downtown Melrose, it destroyed an entire city block. But the tragedy also showed this Central Minnesota town that theyâ&#x20AC;&#x2122;ve got what it takes to save their community. By Nick Coleman | Fire images courtesy of Carl Schultzetenberg

20 Initiative Foundation Quarterly ifound.org

“

The whole town was there. We were all wondering, ‘What’s going to happen here? This is devastating.’

STRIKES

”

AN ENTIRE CITY BLOCK: Firefighters from three communities helped Melrose battle the blaze.

2ND QUARTER 2017

moke was billowing over downtown Melrose last September as firefighters worked to put out a blaze that had engulfed the 400 Block

of East Main Street. As the first responders worked, a second wave of citizens, civic groups and charity workers mobilized to save something more important than bricks and mortar: They pulled together to preserve the close sense of shared community and common interest of a small town suddenly struck by disaster.

HOT SPOTS: With the fire mostly out as the sun began to set, firefighters used ladder trucks to reach hot spots.

22 Initiative Foundation Quarterly ifound.org

“The whole town was there. We were all wondering, ‘What’s going to happen here? This is devastating,’” said Cara Norling, president of the Melrose Area Women of Today, one of the major community groups serving this small town of 3,600 residents. On the afternoon of Sept. 8, Norling watched from across the street as firefighters worked to rescue more than 40 tenants from several upper-floor apartments. Many of them were night-shift workers at the local turkey-processing plant and were still in bed before reporting to their jobs. The sight of one woman, still in her nightgown, inspired the group’s members to fly into action. “We could see they were left with nothing but the clothes on their back,” said Candy Freeman, a Women of Today member who organized clothing and food drives for the displaced residents. “So we turned around, ran home and started grabbing spare clothes and food. One lady came in with a trailer with 40 boxes she had been planning to sell at a garage sale. Instead, she just donated everything: clothing, supplies, furniture.” The Central Minnesota Credit Union soon became a makeshift supply depot with donated goods piling up in the lobby, and eventually spilling across the street into a large party room where a free “garage sale” was opened to the fire victims so they could replace destroyed items. “There was such an outpouring of support,” said the Rev. Mitchell Bechtold of St. Mary’s Catholic Church, the parish where many of the town’s Hispanic residents worship. The church was no stranger to this type of disaster, having been the victim of arson in 2016. “By the end of the day, the credit union was full.” This generous response to neighbors in need is no surprise to Melrose residents. But sustaining that level of community action through a longterm recovery process can be much more challenging, according to Dan Frank, the Initiative Foundation’s former senior manager of community development. “A lot of people show up at first,” said Frank, who retired from the Initiative Foundation last spring but continues to serve as the Foundation’s disaster and recovery expert. He works out of his Pequot Lakes-area home, ready to help when any future disaster strikes in the 162 cities and 14 counties served by the Foundation. “When a disaster happens, people want to help right away. So you

have to make it possible during the first 72 hours to a week to continue to help in the long term. You have to strike while the iron is hot.” That’s why, in the first days after the fire, the Initiative Foundation offered to assist in Melrose as the community readied for recovery. “Our objective is to align with community leaders, help with grassroots fundraising and support individuals who have experienced loss while getting businesses back on their feet so workers can generate income,” said Don Hickman, vice president for community and workforce development at the Initiative Foundation. Even with the quick response, the event rattled the city. “This was a tragic event for these families and businesses,” said Melrose City Administrator Michael Brethorst. “We lost 33 percent of our downtown housing stock and 23 percent of our downtown businesses. It was a huge human impact in a city our size. People were very generous, but you need structure, too, and the Initiative Foundation was instrumental in helping us formulate a plan for recovery.”

LESSONS LEARNED

Recovering from a loss like Melrose experienced takes more than good will and donated clothing and furniture. It takes planning, financial resources and long-term support, as the Initiative Foundation learned in 2010 when a tornado hit Wadena, Minn. Like the Melrose fire, the Wadena tornado did not result in any loss of life. Even so, it left destruction in its wake, wrecking almost 100 homes and dozens of businesses. “It was a very significant disaster,” said Frank. “We hadn’t had many disasters in our region previous to that, so we never really saw a role for ourselves. But Wadena was so big—we knew we had to help with the recovery.” One of the things the Foundation discovered during the recovery effort in Wadena is that, like the citizens who rushed to help the fire victims in Melrose, a lot of people come to lend a hand in the first hours and days after a disaster. The hard part, after a disaster becomes “last week’s news,” is making sure there is enough help in place for the long haul of recovery. The Wadena experience, as well as lessons from the windstorm that struck the Brainerd Lakes area in 2015, led to some simple principles to guide the Initiative Foundation’s approach to disaster relief.

“

TO THE RESCUE: A firefighter brings a toddler down from a second-floor apartment in downtown Melrose.

CONTINUED ON PAGE 24

There’s no discounting the hardships that the fire brought, and the challenges that came with them. But these days, Melrose is feeling pretty optimistic.

RECOVER, REBUILD: Community unity is a central theme in the Melrose recovery effort. Helping to make it happen are (left to right) Sara Hoffner, Melrose Chamber of Commerce executive director; Mike Creelman, Melrose city planning and development director; the Rev. Mitchell Bechtold, Church of St. Mary; Candy Freeman, Melrose Women of Today; and Mayuli Bales, Office of Multicultural Ministries of the Diocese of Saint Cloud.

Photograph by John Linn

First, says Frank, there has to be a rapid effort to set up the longterm plan. The Foundation begins its response by contacting leaders in the affected city and asking what it can do to help, and asking what the community needs. The Foundation also asks what it can do to help with organizing and communicating. But it plays only a supporting role, letting local leaders drive local decisions. Making it easy to give money—and setting up an account and necessary administrative support—is also key. In Melrose, the Initiative Foundation took the lead in setting up a Fire Relief Fund and organized a group of local leaders to serve as administrators. As of a recent accounting, the Relief Fund had raised more than $113,000 from local individuals, businesses, banks as well as grants from area foundations, including $50,000 from the Blandin Foundation, a $25,000 business recovery grant from AgStar and a $5,000 matching grant from the Initiative Foundation to kick start donations. The Fire Relief Fund, established to provide ongoing support after the “lights and sirens” phase of the emergency had passed, has

“

been put to good use: $42,000 has been granted to the dozen small businesses displaced by the fire to help them rebuild in Melrose. More grants are pending. Plans to replace the two century-old buildings that were lost are still up in the air. Among the displaced businesses were the popular Middy’s Bar & Grille (formerly known as Earl’s, where local lore has it that any man who was disrespectful to women could be ejected), several accounting, insurance and real estate businesses, a coffee shop and a small Hispanic convenience store.

DIVERSE AND CONNECTED

Just as important as the business infrastructure, the potential loss of neighbors—including workers and school children who are part of the town’s economy and community fabric—worried civic leaders. Much of the help given to the displaced families came in the form of non-cash contributions and assistance in finding affordable places to live—no small task in a town with a tight housing supply. CONTINUED ON PAGE 48

One woman came in with a trailer with 40 boxes she had been planning to sell at a garage sale. Instead, she just donated everything: clothing, supplies, furniture.

24 Initiative Foundation Quarterly ifound.org

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Meet Our Inaugural 2017 COMMUNITY BUILDERS CIRCLE Members.

Here’s how you can join and make a difference: INVEST Contribute $1,000 or more per year to the Initiative Foundation’s programs or General Endowment—a forever fund that powers the Foundation’s grants, programs and services.

Your Region. Your Initiative. Your Foundation. • American Heritage National Bank

• Edelweiss Cabinetry, Inc.

• American National Bank of

• Eich Motor Company

Minnesota • Arvig Communication Systems • Atomic Learning, Inc. • BankVista • Rick & Helga Bauerly Family Fund of Central Minnesota Community Foundation • Brainerd Lakes Area Community Foundation • Bremer Bank, Brainerd • Bremer Bank, St. Cloud • Cambridge Medical Center on behalf of Allina Health System • Citizens State Bank of Waverly • CliftonLarsonAllen, LLP • Clow Stamping Company • Consolidated Telecommunications Company • DeZURIK, Inc.

• Falcon National Bank • First National Bank North • First State Bank of Wyoming • Frandsen Bank & Trust • Pat & Carmel Gorham • Granite Equity Partners, LLC • Harvest Bank • Don Hickman & Sandra Kaplan • LINDAR/Avantech • Little Falls Area Chamber

of Commerce

• Park Industries, Inc. • Peoples Bank of Commerce • Pequot Tool & Manufacturing, Inc. • Pine Country Bank • SEH, Inc. • Sherburne State Bank/Sentry Bank • Rita & Everett Sobania • State Bank of Cold Spring • Stern Rubber

ACKNOWLEDGE

• Timothy & Carrie Tripp • Andrea Turner

Gain special recognition in IQ Magazine, specialty publications, on our website and at Initiative Foundation events.

• Maggie & Matt Varilek • Wadena State Bank

• Marco, Inc. • MidMinnesota Federal

• West Central Telephone Association

Credit Union • Mille Lacs Energy Cooperative • Neighborhood National Bank • NOR-SON, Inc. • Martin & Susan Paradeis

• Jeff & Laurie Wig

Na t

• Widseth Smith Nolting and

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CONNECT Join us for an annual Community Builders Circle reception where Foundation President Matt Varilek will provide a progress report and listen to your insights.

As of May 15, 2017

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(877) 632-9255 | ifound.org 405 First Street SE, Little Falls, MN 56345 o

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Give today at ifound.org/give To make a pledge, contact a member of our external relations team or call (877) 632-9255. As a 501(c)(3) nonprofit organization, your Initiative Foundation contribution is tax-deductible to the extent allowed by law. The Foundation owns and manages financial contributions for the benefit of Central Minnesota communities.

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2016 28 Initiative Foundation Quarterly ifound.org

In 2016, the Initiative Foundation awarded nearly $2.1 million in grants and scholarships. Here’s how a few organizations are using those opportunities to take already great work to the next level.

The efforts can start as small as varnishing a Mille Lacs County toddler’s teeth with fluoride to improve dental health and school readiness. Or they can be as far-reaching as funding an economic development specialist to coordinate Sherburne County’s growth as it braces for Xcel Energy to retire two of its three coal-fired generators at Sherburne County Generating Station (Sherco) starting in the 2020s. The truth is that on any given day, the Initiative Foundation’s grants ripple across Central Minnesota into the 14 counties it serves. “Sometimes we’re the only grantor an organization has to help it stay strong and vital,” said Matt Varilek, Initiative Foundation president. “Sometimes we’re a player in a larger mix of funders. But every gift we give is intentional, purposeful and crucial to helping our communities thrive— and, in some cases, survive.” In 2016, the Initiative Foundation awarded nearly $2.1 million in grants and scholarships through its Innovation Fund, hosted Partner Funds and its statewide Aquatic Invasive Species initiative. Here’s a look at three of the 266 grants and scholarships recipient organizations received in 2016 and the good they’ve brought to the communities they serve.

BOYS & GIRLS CLUBS

Benton, Sherburne & Stearns Counties

When teens at St. Cloud Boys & Girls Clubs of Central Minnesota earn their blue junior staff shirts for three K-12 Club programs, it’s with pride and accomplishment, said Aimee Minnerath, marketing manager. This honor isn’t a case of everyone-gets-a-trophy. Rather, becoming a junior staff member is the result of extensive training through the Boys & Girls Clubs of America’s Career Launch program, which received a $5,000 grant from the Initiative Foundation. The online program guides junior volunteers, including kids in seventh grade or higher, through surveys to define their interests. Career Launch helps match young people with career options, build a resume, write cover letters and apply for jobs. The local club then walks participants through mock interviews and even offers advice on what to wear and etiquette tips for answering the phone—a skill that is in surprisingly short supply in the age of texting and Snapchat. Kids who land the coveted staff positions at K-6 afterschool programs or community jobs earn an income (some use their earnings to help their struggling families) while also gaining experience that could lead to a long-term career. “Career Launch participants are not only getting skills for an entry-level job,” said Tom Wicks, director of operations for Boys & Girls Clubs of Central Minnesota. “They’re getting the assets for moving up and turning jobs into a career.” Marque Morris, a high school junior, found work at Bonanza Steakhouse through the program. He also landed a summer scholarship to attend McNally Smith College of Music in St. Paul, which he visited on a Career Launch field trip. Voted 2017 Youth of the Year for the Boys & Girls Clubs of Central Minnesota, Morris builds on his music skills with East Side Club’s dance program and South Side Club’s digital music program. Morris also wowed the audience at the Greater St. Cloud Community Pillars February meeting when he performed Michael Jackson’s “Man in the Mirror” in front of some 350 people. “Performing at the Pillars event gave me the opportunity to get out of my comfort zone and helped me change into the confident man I am today,” Morris said. “I was nervous, but afterward, I thought I could do anything if I could do that successfully.”

MARQUE MORRIS: “Performing gave me the opportunity to change into the confident man I am today.”

2ND QUARTER 2017

CHILDHOOD DENTAL CARE Mille Lacs County

Children’s smiles will be a little brighter and their health and learning will also improve with an effort to improve access to pediatric dental care in the region. The Initiative Foundation in 2016 granted $10,000 to Mille Lacs County Public Health for a Cavity Free Birth to 5 program and another $8,500 to Cavity-free Little Panthers in Onamia. Another $25,000 has been granted to both programs in 2017. Together, these organizations bridge a gaping need for the county’s 900 kids who qualify for medical assistance but cannot find dental care. Because Minnesota’s public reimbursements for exams and fillings are lower than actual costs—and among the lowest reimbursements in the nation—most private dentists have to limit the number of Medical Assistance patients they can take. That’s a serious public health issue when you consider that kids without dental care can have decay, pain and other tooth problems that may impair their sleep, concentration at school and their speech. “It affects a lot more than having a nice smile,” said Kris Klopp, Mille Lacs County Women, Infants and Children (WIC) coordinator and child and teen checkup coordinator. Low-income families who don’t get the nutrition they need or who drink bottled or well water without the fluoride that’s added to municipal water can be at a higher risk for tooth decay. The dental program has sent county staff to Early Childhood and Family Education classes, preschool screenings and school open house events to offer educational materials and do fluoride varnishing, which gives teeth a protective coating. Staff at WIC clinics and home health nurses can also offer the service. Mille Lacs Health System has made fluoride varnishing part of their regular child checkups at Onamia, Garrison and Isle since January this year. This is also the first year families can get an appointment at a mobile dental clinic that makes 10 county visits this year, rotating between locations in Princeton, Milaca and Onamia. The Foundation’s pediatric dental grants target Mille Lacs County, which has some of the lowest incomes in the region and the biggest gaps in dental care. The problem persists statewide, and lawmakers and the governor’s office this year are proposing to raise Medical Assistance payment rates, hoping to attract more dentists into the system. But their approaches differ, and in a year with many other demands on the state budget, it’s not clear where lawmakers will land. Meanwhile,” Varilek said, “our work at the Foundation is helping to meet an urgent need.” CONTINUED ON PAGE 50

30 Initiative Foundation Quarterly ifound.org

EASY-PEASY: Kris Klopp, Mille Lacs County Community Health, applies dental varnish to Carter’s teeth.

ALL SMILES: Keegan gets a sticker and a tooth-brushing kit as a reward for having his teeth varnished.

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Kurt Schneider, director of environmental services and zoning for Chisago County, visits with Initiative Foundation staff and other guests during the awards night community gathering.

Community volunteer Dionne Kabat shares her enthusiasm for the Chisago Lakes Area’s ABC effort during an interview with Cory Hepola of KARE-11 TV.

Now They Know Their ABCs Five Chisago County communities unite to boost regional development. By Gene Rebeck | Photography by John Linn

How do you get five neighboring towns to work together as one? The prospect of winning $1 million-plus to power economic development certainly helps. But that’s just part of the story. Starting in late 2014, five Chisago Lakes-area communities— Center City, Chisago City, Lindstrom, Shafer and Taylors Falls— joined together to compete in the America’s Best Communities (ABC) contest. The competition for small towns and rural communities, whose winners earn prize money for economic and community revitalization projects, is directed by Connecticut-based telecom Frontier Communications, which serves mostly rural areas in a 27-state area. Chisago County is one of the areas. What’s unique is that these neighboring Chisago County towns didn’t compete against each other. Rather, they worked together. Realizing that each was too small to enter the 350-community field of ABC contest participants—competitors must have populations of more

than 10,000—they created a combined community of about 22,000. It turned out to be a winning strategy. On the strength of detailed presentations, the Chisago Lakes Area group won $150,000 participating in the contest, starting when they passed through the quarter-finals (50 communities made the cut), glided into the semifinal round with 16 other communities, and ultimately became one of eight finalists in April 2016. While the Chisago Lakes Area didn’t crack the winner’s circle when the top three prizes ($3 million, $2 million and $1 million) were announced on April 19, they learned that, with a detailed road map for their mutual success, they’re on their way to bigger, better things. “This is a team of forward-thinking community members,” said Carrie Tripp, vice president for external relations at the Initiative Foundation. “They are united in their efforts and have positioned themselves well for ongoing success.” To help pave the way, the communities have created an Initiative Foundation Partner Fund, which will be used to support economic and CONTINUED ON PAGE 34

32 Initiative Foundation Quarterly ifound.org

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community, continued from page 32 community improvement projects that these neighbors have developed. “Their fund will serve as a tool to secure local donations and support community-based solutions now and for generations to come,” said Kristi Ackley, the Foundation’s community philanthropy specialist.

Spirit of Cooperation

Until the ABC competition came onto the region’s radar, the Chisago communities had attempted to work together, but the spirit of cooperation had never quite gelled. “Town governments aren’t set up to cooperate with finances,” explained Tangi Schaapveld, project coordinator for the five-community ABC initiative. “We didn’t have a platform for the towns to work together on common goals.” In fact, the competition “really did initiate the act of working together.” Nancy Hoffman, executive director of the Chisago County Housing and Redevelopment Authority—Economic Development Authority (HRA-EDA), noted that it’s the job of elected people and staff to look out for their particular city, town or region. But by focusing on goals that will benefit everyone, “we’re really trying to be one community together,” Hoffman said. The attitude now is that “if we’re going to do a project, it doesn’t really matter which community it goes into, just as long as it goes into the Chisago Lakes Area,” she said. “Whereas at other times, each community might want something in their own city.” Winning that $150,000 helped stimulate even more esprit de corps. With those funds, the group was able to develop plans for economic and community improvement. “Once we started focusing on our goals instead of the borders, that made all the difference in the world,” Schaapveld says. “At the beginning of these meetings, we didn’t talk about, ‘Hey, we’re going to work together.’ We talked about, ‘What are our common goals?’ And all of a sudden, those boundaries washed away.” Residents also started to realize, for example, that while they may live in Lindstrom, an initiative that helps Taylors Falls benefits them, too. As a result, “we’re looking at development more regionally now,” said Schaapveld.

Community Building

Schaapveld, the former executive director of the Chisago Lakes Chamber of Commerce, helped spearhead the ABC effort by hosting a community meeting that brought together the citizens who were talking about these issues. Working with Hoffman, the group came

up with four ideas to foster a stronger sense of community, which in turn led to the creation of four teams of passionate, committed regional residents. • Arts, culture and tourism: This team is tasked with the development of a long-term regional branding and marketing strategy. It also has driven the creation of a community website that focuses largely on tourism but also provides a community calendar of events in the five towns. • Broadband: This team is educating businesses on using social media and Google Maps to market themselves, as well as installing Wi-Fi hot spots in each of the five towns. • Economic development: The focus here is on energy conservation and clean energy. The five towns have partnered with Minneapolis-based Eutectics, which provides capital and consulting for energy projects to lower business and residential energy usage. They’re also exploring the use of solar energy in their communities. • Quality of life: This group is working with Chisago County Public Health to develop a workplace wellness program for six area businesses with 2,000 total employees. It also hopes to develop longer-term projects, such as developing walkable communities.

Funding the Future

With the Initiative Foundation-hosted Chisago ABC Initiative Fund in place, created with some of their winnings, the Chisago Lakes Area can now focus on its short- and long-range plans. Some projects, including an improved trail system and the introduction of advanced manufacturing classes, have already begun. Others will be ongoing. “We’ll continue to have our monthly meetings, and generate new ideas for projects as well as maintaining current projects,” said Schaapveld. And while each of the five communities wants to retain its unique identity, the experience of joining together will, they believe, pay a nice return. “I think our biggest accomplishment is creating common goals for our five towns and reaching the understanding that we are one community,” Hoffman said, who noted that the region also has made tangible progress in the area of energy conservation, including home and business audits. It’s a testament to how working as a team can be a winning economic development strategy.

“ At the beginning of these meetings, we didn’t talk about, ‘Hey, we’re going to work together.’ We talked about, ‘what are our common goals?’ And all of a sudden, those boundaries washed away.”

34 Initiative Foundation Quarterly ifound.org

M i n n e s o ta’ s

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2ND QUARTER 2017

36 Initiative Foundation Quarterly ifound.org

A MESSAGE FROM LARRY KORF, BOARD OF TRUSTEES CHAIR Our 14 counties cover 12,000 square miles. In and amongst our many lakes and rivers are 162 hometowns and two tribal nations. It’s a place that more than 700,000 people call home. And it’s here that the Initiative Foundation has been partnering for more than 30 years to create opportunity and enhance the region’s quality of life. Thank you for your generous and unwavering support during this three-decade mission. Since inception, the Initiative Foundation has been carefully guided by founding President Kathy Gaalswyk. In December 2016, following a six-month national search, the Foundation announced that Matt Varilek would succeed Kathy as the organization’s president. Matt brings a wealth of experience—most recently as chief operating officer for the U.S. Small Business Administration. While standing on the shoulders of those that came before us, we believe we are well positioned to do more good in Central Minnesota for many years to come. We remain grounded in the belief that local people have the skills, knowledge and motivation to build thriving communities and a vibrant region across Central Minnesota. We’re driven by a vision—and a deep and wellrooted belief—that our slice of Central Minnesota heaven is an ideal place where people choose to live, work, give and

play. And we’re guided by a core set of tried and tested values that guide our service and our work—individually and together as a team. With thanks and gratitude, the Initiative Foundation in 2016 received gifts from 430 donors—individuals, families, businesses, counties, cities, organizations and other foundations—who envision a stronger, more vibrant future for the region. During that same time, and in conjunction with our 79 hosted Partner Funds, we awarded 266 grants and scholarships totaling $2.1 million to help nonprofits and communities thrive. You are an important partner in making this work a success. Together, we’re strengthening Central Minnesota— not just for today, but for future generations, too. Thank you, as always, for your past and future support.

MATT VARILEK President

KATHY GAALSWYK Past President

2016 MISSION CRITICAL ACHIEVEMENTS ECONOMY

COMMUNITY

PHILANTHROPY

Diversify Region, Increase Opportunities

Build a Region to Live, Work, Give & Play

Inspire People to Invest in the Region

In all its work, the Initiative Foundation strives to provide cradle-to-career support for economic and community development, and for inspiring philanthropy throughout the region. In 2016, we achieved the following key metrics:

238 quality jobs were created or

260 community entities were strengthened

$2.9 million in financial

424 people benefited from

32,533 children, parents and other caregiver were supported through education and awareness efforts

$15.5 million in financial resources were leveraged for Foundation partners

6 natural and cultural amenities were

$2.8 million worth of volunteer time was inspired

retained

increased workforce skills

1,346 workers retained/gained wage support through business financing and other programs

improved

resources were leveraged for the Initiative Foundation

2ND QUARTER 2017

2016 BOARD OF TRUSTEES

2016 FOUNDATION STAFF Kristin Ackley Community Philanthropy Specialist

Don Hickman Vice President for Community & Workforce Development

Kendra Botzek Grants & Accounts Payable Coordinator

Jolene Howard Information Systems Administrator

Daniel Bullert Business Finance Manager John E. Babcock Board Vice-Chair The Bank of Elk River

Charles Black Lance Central Lakes College

John J. Babcock Rotochopper

Reggie Clow Clow Stamping

Rick Bauerly Granite Equity Partners

Linda Eich DesJardins Past Chair Eich Motor Company

Mike Burton External Relations Officer Lynn Bushinger Chief Operating & Financial Officer, Treasurer

Pat Gorham Gorham Companies

Larry Korf, Board Chair DeZURIK

David Monroy Monroy Law Firm, PLLC

Steve Shurts East Central Energy

Traci Tapani Wyoming Machine

Michelle Kiley Community Development Specialist Laura Larson Program Associate for Economic & Organizational Development

Barb Downs Grants Specialist

MaryAnn Lindell Executive & Human Resources Administrator

Chris Fastner Senior Program Manager for Organizational Development

Bob McClintick Marketing & Communications Manager

Tammy Filippi Early Childhood Specialist

Michele Miller Controller

LaRae Foehrenbacher Fund Development Assistant

Braden Moore Accounting Manager

Kathy Gaalswyk President

Kerie Thoma Office & Facilities Coordinator

Dan Frank Senior Program Manager for Community Development

Carrie Tripp Vice President for External Relations

Samuel Gill Marketing & Communications Associate Kim Ellingson Bremer Bank

Brenda Jindra Finance Assistant

Brenda Gugglberger Development Specialist

Amanda Whittemore VISTA Program Specialist Jeff Wig Vice President for Economic & Organizational Development

OUR WORK: Our approach is steeped in the knowledge that economy, community and philanthropy are intertwined. Working with our partners we … • Provide loans to businesses that create quality jobs • Award grants to nonprofits, local governments and schools Ashish Vaidya St. Cloud State University

Wayne Wolden Minnesota State Community & Technical College

38 Initiative Foundation Quarterly ifound.org

Brett Anderson Apprentice Trustee Sentry Bank

• Help generous people give back to their communities •P ublish illuminating information on local trends and solutions

OUR NUMBERS

Sources of Funds: $10,931,592

Grants & Contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,886,349 | 35% Investment Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,666,694 | 34% Business Financing Revenue & Repayments. . . . . . . . $ 3,088,958 | 28% Other Operating Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 294,591 | 3%

Uses of Funds: $9,462,500 Economic Development, Business Financing, Investments.. . . . . . . . . . . . . . . . . . . . . . $ 3,906,987 Grants, Scholarships & Fellowships.. . . . . . . . . . . . . . . . . . . . $ 2,165,915 Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,505,670 Foundation Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 923,119 Communications & IQ Magazine. . . . . . . . . . . . . . . . . . . . . . . . . $ 537,883 Fund Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 422,925

ECONOMIC DEVELOPMENT, BUSINESS FINANCING, INVESTMENTS Inspire Local Ownership, Quality Jobs

GRANTS, SCHOLARSHIPS & FELLOWSHIPS Empower People

| | | | | |

41% 23% 16% 10% 6% 4%

PROGRAMS

Create Thriving Communities Investment Total:

Investment Total:

$1,505,670

$3,906,987

Partner Funds $702,940 | 32%

Thriving Communities/ Early Childhood $681,049 | 45%

Operations/Technical Assistance $1,254,450 | 32%

Healthy Lakes & Rivers $495,687 | 23%

Organizational Development $289,292 | 20%

Innovation Fund $343,743 | 16%

Volunteers in Service to America $240,749 | 16%

Early Childhood/Dental Network $348,870 | 16%

Partner Funds/ Special Projects $198,194 | 13%

Economic Development $100,500 | 5%

Initiators Fellowship $96,386 | 6%

Investment Total:

$2,165,915

Scholarships & Fellowships $84,925 | 4% Thriving Communities Initiative $67,250 | 3% Organizational Development $22,000 | 1%

Endowment Value $44.7 Million Total Assets $63.1 Million

A complete audit report prepared by Schlenner Wenner & Co. is available upon request. For a summary of the Initiative Foundationâ&#x20AC;&#x2122;s impact on the region since inception, visit ifound.org/about-us/annual-reports.

2ND QUARTER 2017

OUR FRIENDS Initiative Foundation Program & Endowment Contributors 2012-2016 Our connection with you helps us stay true to the promise of our mission: To empower people to build thriving communities and a vibrant region across Central Minnesota. Your support of the Initiative Foundation’s unrestricted endowment fund is the financial backbone of our long-term success. The endowment provides resources each year for staff to work with local leaders to encourage economic development, help businesses get started or expand, provide workforce and leadership skills and build early childhood programs to help communities thrive. Crimson $50,000+ Blandin Foundation Bush Foundation Cass County City of Hanover – Loan Fund Connexus Energy Corporation for National & Community Service Crow Wing County Delta Dental of Minnesota East Central Energy Funders Network for Smart Growth Granite Equity Partners Lessard-Sams Outdoor Heritage Council The McKnight Foundation Minnesota Power, an Allete Company Minnesota Department of Employment & Economic Development Morgan Family Foundation Nonprofits Assistance Fund Opportunity Finance Network Otto Bremer Trust USDA Rural Development Partner $30,000+ Benton County Minnesota Department of Education Morrison County Pine County Schlagel, Inc. Sherburne County Stearns County Stearns Electric Association West Central Telephone Association Wright County Xcel Energy Foundation Principal $20,000+ Benton County Blue Cross Blue Shield of Minnesota Bremer Bank, Brainerd Bremer Bank, Saint Cloud City of Baxter City of Brainerd City of Little Falls City of Saint Cloud CLA Foundation Gold’n Plump Company Isanti County Mardag Foundation National Joint Powers Alliance U.S. Bancorp Foundation

Executive $15,000+ CentraCare Health Foundation Clow Stamping Company MidMinnesota Federal Credit Union Todd County

Avantech BankVista Benton Cooperative Telephone Company Citizens State Bank of Waverly City of Big Lake Leader $10,000+ City of Crosslake AgStar Fund for Rural America/AgStar City of Lake Shore Financial Services City of Maple Lake Anonymous Donor City of Nisswa Brainerd Lakes Area Community City of Pierz Foundation City of Rockford Cambridge Medical Center/Allina City of Saint Joseph Health City of Sandstone Chisago County HRA-EDA City of Staples City of Elk River CliftonLarsonAllen LLP, Saint Cloud City of Milaca Falcon National Bank City of Monticello Falls Fabricating City of Mora Farmers & Merchants State Bank City of Princeton Don Hickman & Sandra Kaplan City of Saint Michael Kanabec County City of Sartell Jo & Larry Korf City of Wadena Larson Boats, LLC Consolidated Telecommunications LINDAR Corporation Company Little Falls Area Chamber Crow Wing Power of Commerce DeZURIK, Inc. Marco, Inc. Eich Motor Company Medica Foundation Essentia Health-St. Joseph’s MINPACK, Inc. Foundation Neighborhood National Bank First National Bank of Milaca NOR-SON, Inc. Kathy & Neal Gaalswyk The Hyduke Foundation of the Saint Schlenner Wenner & Co. Paul Foundation on behalf of the Director $7,500+ Peoples Bank of Commerce Arvig Communication Systems, Pequot Tool & Manufacturing, Inc. Perham Pine Country Banks Bank of the West SEH, Inc. Center for Nonprofit Excellence Rita & Everett Sobania and Social Innovation Stearns Bank City of Cambridge Stern Rubber City of Long Prairie Gene & Bernie Waldorf City of Melrose Widseth Smith Nolting City of Sauk Rapids & Associates Gray Plant Mooty Entrepreneur $2,500+ Lee & Jan Hanson American National Bank Manufacturing Fund of Central of Minnesota, Pequot Lakes Minnesota Atomic Learning, Inc. Mille Lacs County John E. Babcock Wadena County Rick & Helga Bauerly Family Fund Associate $5,000+ of Central Minnesota American Heritage National Bank, Community Foundation Saint Cloud, Long Prairie, Dan & Marie Bullert Browerville Lynn & Darren Bushinger

40 Initiative Foundation Quarterly ifound.org

City of Albertville City of Annandale City of Becker City of Braham City of Breezy Point City of Cold Spring City of Clarissa City of East Gull Lake City of Eden Valley City of Emily City of Fifty Lakes City of Foley City of Isanti City of Menahga City of Pine City City of Randall City of Rockville City of Sauk Centre City of Sebeka City of Swanville City of Waite Park CliftonLarsonAllen LLP, Brainerd CommunityGiving Emily Cooperative Telephone Company Bruce & Mary Fogle Pat & Carmel Gorham David Gruenes Linda Holliday & Harry Brodmarkle McDowall Company Daniel & Sue Meyer Microbiologics, Inc. Midwest Security & Fire Minnesota National Bank Park Industries, Inc., Fund of the Central Minnesota Community Foundation Gladys M. Paulson Estate Earl & Christine Potter Randall State Bank RiverWood Banks Rotochopper, Inc. Mike & Dorothy Simpson State Bank of Cold Spring The Bank of Elk River Todd-Wadena Electric Cooperative Tim & Carrie Tripp Ludmila Voelker Wadena State Bank Investor $1,000+ John J. & Debbie Babcock Dick & Mimi Bitzan Family Fund of Central Minnesota Community Foundation

BlackRidgeBank Brenny Transportation Bridges of Hope Central Lakes College Foundation City of Albany City of Avon City of Backus City of Belgrade City of Bertha City of Brooten City of Cass Lake City of Center City City of Clearwater City of Cokato City of Delano City of Eagle Bend City of Freeport City of Genola City of Grey Eagle City of Hanover City of Hinckley City of Holdingford City of Howard Lake City of Isle City of Lindstrom City of Montrose City of Motley City of Onamia City of Otsego City of Pequot Lakes City of Pillager City of Rice City of Royalton City of South Haven City of Taylors Falls City of Upsala City of Verndale City of Walker City of Waverly Crooked Lake Township Diamond Tool & Engineering, Inc. Donlar Construction Don & Deanna Engen Chris Fastner & Kathy Hakes-Fastner First National Bank in Wadena First National Bank North, Walker First State Bank of Wyoming Flagship Bank Minnesota Frandsen Bank & Trust, Baxter, Crosslake, Nisswa, Foley, Braham, Forest Lake & Pine City Dan & Annette Frank Grand View Lodge Happy Dancing Turtle

HBH Consultants IPEX, Inc. Arnold S. Johnson Enterprises, LLC Michelle Kiley Matt & Jeanne Kilian Kris & Ken Kowalzek Leech Lake Tribal College Larry & Karen Lundblad Mahowald Insurance MFP, Inc. Minnesota Dental Foundation Minnesota Economic Development Foundation The Moran Family Fund of the Central Minnesota Community Foundation Martin & Susan Paradeis Pine Technical & Community College Plaza Park Bank Phillip & Susy Prosapio Saint Cloud State University Foundation Saint Cloud Technical & Community College John & Bonnie Schlagel Stephen & Gwyn Shelley Shelley Funeral Chapels, Inc. Sherburne State Banks & Sentry Banks Steve & Leila Shurts SPEDCO Economic Development Foundation of The Saint Paul Foundation State of Minnesota Jan Tenold Jack & Betty Thomas Unity Bank, Brainerd Wells Fargo The Whitney Foundation Sharla Williams

Under $1,000 Kristi & Levi Ackley Adventure Creative Group Alpine Cabinetry, LLC AmazonSmile Anakkala, Berns & Co., PLLP Julie & David Anderholm Anderholm Consulting Duane & Barb Anderson Anderson Center Anonymous Automotive Parts Headquarters Mayuli & James Bales Ballinger | Leafblad Maxine Barnett David & Lori Barron BerganKDV Jason Bernick Charles & Kathryn Black Lance William A. Blum Steve & Katy Botz Kendra & Josh Botzek Elise Bourdeau Braham Area Chamber of Commerce Brainerd Lakes Area Chambers of Commerce Brainerd Lakes Area Economic Development Corporation Estelle Brouwer Isobel Brown Marsha Bunger Michael & Kathleen Burton Central McGowan, Inc. CHI St. Gabriels Health Barbara Christian Kari Christiansen City of Bowlus City of Burtrum City of Chickamaw Beach City of Garrison City of Grasston City of Hackensack City of Harding City of Henriette City of Hewitt

City of Ironton City of Jenkins City of Kimball City of Longville City of Manhattan Beach City of Nimrod City of Ogilvie City of Paynesville City of Pease City of Quamba City of Remer City of Richmond City of Rock Creek City of Riverton City of Rush City City of Saint Martin City of Saint Rosa City of Stacy City of Wahkon City of Wyoming City of Zimmerman Core Value Consulting, LLC Marjorie Dahlager Sara E. Dahlquist Daring Heart Coaching DeGraaf Financial, Inc. William Denny Martha Dobratz Jeffrey Dobrinsky Barb Downs & Dave Wood Virginia Duel East Central Regional Development Commission Ebert Construction Jason Edens Alison Edgerton Family Pathways John Fennig Tammy Feige Filippi & Pete Filippi Thomas & LaRae Foehrenbacher Marienne Kreitlow & Gerald Ford Jeff Fromm David Galbraith Ray & Gwynne Gildow Samuel Gill

Glenn Metalcraft, Inc. Lee & Colette Goderstad Andrea Goedderz Brad & Peggy Goskowicz Chuck & Sharon Gottwalt Harold K. Gramstad Gramstad Homes, Inc. Greater Saint Cloud Development Corporation Brenda & Manfred Gugglberger Douglas Larsen & Cathy Hartle Harvest Bank Chuck & Lois Head Cheryal Hills Tricia & John Holig Anita & Brad Hollenhorst Jolene Howard Hunt Utilities Group, LLC Catherine E. Jackson Len & Lois Kallsen Cheryl A. Key King Gardens Mike Kneeland Michou F Kokodoko Terri & Dennis Konczak Gary W. Y. Kwong Lake Country Synergic Lake Emily Resort Lakes Printing Elizabeth F. Larsen Kevin T. Larson Reed Larson Pete & MaryAnn Lindell Paul & Patricia Ludwig Pamela Mahling Becky Maki Bob & Lisa McClintick Bob & Terri McLean Mille Lacs Energy Cooperative Michele & Zachary Miller Minnesota Association for Volunteer Administration Minnesota Business Finance Corporation

Monroy Law Office, PLLC Braden & Cheri Moore Loren & Kathryn Morey Lee & Vicki Morgan Fund of The Dayton Foundation James D. Muchow Municipal Development Group Walter & Adele Munsterman Robert & Marilyn Obermiller Dennis & Evie Oâ&#x20AC;&#x2122;Donnell Onanegozie RC&D Council, Inc. Abdirahim Osman Katrina L. Pierson Allison Potvin Range, a Deluxe Company Region Five Development Commission Katie & Tom Riitters Eric Rittmann Julie Schueller & Brian Pederson James & Wendy Shear Start Early Funders Coalition for Children and Minnesotaâ&#x20AC;&#x2122;s Future Charlotte Stephens Eric Stommes Traci Tapani James M. Thares Christopher & Beth Thorson Thrivent Financial for Lutherans Tri-County Health Care Dianne C. Tuff Blake & Alyson Twardowski Unity Bank Joseph & Diane VanBeck Vela Strategy Sandy Voigt Tony Wagner The Wagner Group, LLC Western Bank Amanda & Scott Whittemore Jeff & Laurie Wig Wayne & Lori Wolden Mike & Connie Wood Lynda Woulfe Phil Yetzer

GRANT AWARDS Nearly $2.1 million was awarded in 2016 to 266 nonprofits in support of their critical services and social enterprise activities. Partner Fund and scholarship award listings are available at ifound.org/community/grants/grant-awards. 728 Cadets, Inc., Elk River A Place for You, Pine City Abba Corp. dba Abba Pregnancy Resource Center, Elk River Africa Jam, Minneapolis Aim Higher Foundation, Minnetonka All Parks Alliance for Change, St. Paul Allina Associated Foundation, Cambridge American Cancer Society, St. Cloud Amherst Wilder Foundation, St. Paul Anderson Center, St. Cloud Andra Heart Foundation, Tucson, Ariz. Animal Humane Society, Golden Valley

Anoka Ramsey Community College Foundation, Coon Rapids Apple Duathlon Events, Sartell Arc Midstate, St. Cloud Balu Renovations, Inc., Watkins Benton County, Foley Bertha-Hewitt School District, Bertha BestPrep, Brooklyn Park Big Brothers Big Sisters of Central Minnesota, St. Cloud Big Fish Lake Association, Cold Spring Big Lake Community Food Shelf, Inc., Big Lake Big Lake School District, Big Lake

Birthline, Inc., St. Cloud Boys & Girls Club of the Leech Lake Area, Cass Lake Boys & Girls Clubs of Central Minnesota, St. Cloud Brainerd Baxter Youth Center, Brainerd Brainerd Family YMCA, Brainerd Brainerd Housing & Redevelopment Authority, Brainerd Brainerd Lakes Area Chamber of Commerce Education Association, Brainerd Brainerd Lakes Area Economic Development Corp., Brainerd

Brainerd School District, Brainerd Browerville School District, Browerville Cambridge Community College Center Foundation, Cambridge Cambridge Isanti School District, Cambridge Cambridge-Isanti Dollars for Scholars Foundation, Cambridge Carleton College, Northfield Cass County Economic Development Corp., Backus Catholic Charities of the Diocese of St. Cloud, St. Cloud

2ND QUARTER 2017

GRANT AWARDS Catholic Foundation of the Diocese of St. Cloud St. Cloud CentraCare Health Foundation, St. Cloud Central Lakes College Foundation, Brainerd Central Minnesota Boys Choir, Staples Central Minnesota Council of Boy Scouts of America, Sartell Central Minnesota Housing Partnership, St. Cloud Central Minnesota Jobs & Training, Monticello Central Minnesota Taskforce on Battered Women, St Cloud Children’s Dental Services, Inc., Minneapolis Chisago County EDA, North Branch Church of St. Dominic, Northfield City of Big Lake, Big Lake City of Cambridge, Cambridge City of Crosslake, Crosslake City of Delano, Delano City of Fifty Lakes, Fifty Lakes City of Melrose, Melrose City of Milaca, Milaca City of Montrose, Montrose City of Sandstone, Sandstone City of Sartell, Sartell City of St. Cloud, St. Cloud City of Staples, Staples City of Wadena, Wadena City of Wahkon, Wahkon City of Wyoming, City of Wyoming College of Saint Benedict, St. Joseph College Possible, St. Paul College-Link, St. Cloud Commercial Exchange Corp., Melrose Community Aid of Elk River (CAER), Elk River Community Care N Share Cafe, Emily Community Grassroots Solutions, Waite Park CommunityGiving, St. Cloud Cuyuna Lakes Education Foundation, Deerwood Crow Wing County, Brainerd Cuyuna Range Youth Center, Crosby Delano School District, Delano Dreams United/Sueños Unidos, Long Prairie East Central Regional Development Commission, Mora East Twin Lake Association, Pequot Lakes Economic Development Partnership of Wright County, Rockford Eden Valley Area Library, Eden Valley Elk River School District, Elk River Employment Enterprises, Inc., Little Falls Esperance Education Institute, Mitchell, S.D. Essentia Health Foundation, Brainerd Faith Lutheran Church, Staples Family Pathways, North Branch First United Methodist Church of the St. Cloud Region, Sartell Fish Trap Lake Property Owners Association Cushing Flyer Athletic Boosters, Little Falls Foley School District, Foley Franciscan Sisters of Little Falls, Little Falls Freshwater Education District, Staples Friends of Sherburne National Wildlife Refuge, Zimmerman

Continued from previous page

Friends of the Mississippi River, St. Paul Funders Network for Smart Growth & Livable Communities, Coral Gables, Fla. Gateway Institute for Research and Development, Minneapolis Goodwill Industries, Inc., St. Paul Great River Arts Association, Little Falls Great River Educational Arts Theatre, Waite Park Greater St. Cloud Development Corp., St. Cloud Greater Twin Cities United Way, Minneapolis Green Card Voices, Minneapolis Habitat for Humanity of Morrison County, Little Falls Hackensack Senior Citizens Center, Inc., Hackensack Hands Across the World, St. Cloud Helping Hands Outreach, Holdingford Higher Ground Church, Waite Park Hillman Area First Response Team, Hillman Holy Family Church Belle Prairie, Little Falls Holy Trinity Catholic School, Pierz International Mountain Bicycling Association, Deerwood Isanti County, Cambridge Isanti County Humane Society, Cambridge Isle School District, Isle James & Elizabeth Illies, Melrose Junior Achievement of the Upper Midwest, Maplewood Kanabec County Economic Development Authority, Mora Kanabec-Pine Community Health, Mora Kinship Partners, Inc., Staples Koronis Lake Association, Paynesville Lake Region Christian School, Baxter Lakes Area Habitat for Humanity, Brainerd Lakes Area Interfaith Caregivers, Baxter Lakes Area Music Festival, Brainerd Lakes Area Pregnancy Support Center, Brainerd Lakewood Health System, Staples Lakewood Health System Foundation, Staples LEAP, Inc., Staples Leech Lake Band of Ojibwe Cass Lake Leech Lake Financial Services, Cass Lake Lisa’s on Main, Melrose Little Falls School District, Little Falls Longville Area Community Foundation, Longville Lutheran Social Service of Minnesota, St. Cloud Mayo Clinic, Rochester McDonald Realty, Inc., Sauk Centre Mid-Minnesota Women’s Center, Inc., Brainerd Mid-State Education District, Little Falls Milaca Area Historical Society, Milaca Milaca Fine Arts Council, Milaca Milaca Friends of the Library, Milaca Milaca Scholarship Foundation, Milaca Milaca School District, Milaca Milestones, Waite Park Mille Lacs Band of Ojibwe, Onamia Mille Lacs County, Milaca Mille Lacs Health System, Onamia Mindful Generations, Inc., Montrose Minnesota Assistance Council for Veterans, St. Paul

Minnesota Association for Volunteer Administration (MAVA), Maplewood Minnesota Council of Nonprofits, St. Paul Minnesota Council on Foundations, Minneapolis Minnesota Pioneer Park, Annandale Minnesota Safe Ride, Cambridge Minnesota State Veterans Cemetery Association, Little Falls Monticello School District, Monticello Morrison County, Little Falls Morrison County United Way, Little Falls National Joint Powers Alliance, Staples New Hampshire Charitable Foundation, Concord New Munich Mutual Insurance Company, Melrose New Pathways, Inc., Cambridge Northern Technology Initiative, dba GPS 45:93, North Branch Northfield Area Family YMCA, Northfield Northfield School District, Northfield Northfield Touchdown Club, Northfield Northland Foundation, Duluth Northwest Minnesota Foundation, Bemidji Notre Dame Academy, Minnetonka Oakland Cemetery Association, Little Falls Oasis Central Minnesota, Inc., Little Falls Open Doors For Youth, Elk River Opportunity Matters, Inc., Sartell Palace City Pedalers Tour De Corn, Inc., Mitchell, S.D. Paramount Arts Resource Trust, Inc., St. Cloud Paws & Claws Animal Shelter, Hackensack Pease Christian Reformed Church, Pease Pierz School District, Pierz Pillager School District, Pillager Pine City Area History Association, Pine City Pine City Civic Center Association, Pine City Pine City School District, Pine City Pine Community Food Shelf, Pine City Pine Cone Central Park Association, Sartell Pine County, Pine City Pine County Agriculture Society, Pine City Pine Dragons Parent Teacher Organization, Pine City Pine EMS, Inc., Pine City Pine River-Backus School District, Pine River Pine Technical College Foundation, Pine City Prairie Woods Environmental Learning Center, Spicer Prevent Child Abuse Minnesota, St. Paul Primary Ciliary Dyskinesia Foundation,Minneapolis PrInceton School District, PrInceton Quality Innovations & Resources Corp., Sartell Quiet Oaks Hospice House, St. Cloud Regents of the University of Minnesota, Minneapolis RESOURCE, Minneapolis Ridgewater College, Melrose Rockville Area Sportsmans Club, Rockville ROCORI Area Dollars for Scholars, Cold Spring Rocori School District, Cold Spring Rotary International Brainerd, Brainerd Rotary International, Little Falls, Little Falls Rural Minnesota CEP, Inc., Detroit Lakes Rural Renewable Energy Alliance, Backus Salem Lutheran Church, Deerwood

The Initiative Foundation is certified as a Community Development Financial Institution by the U.S. Department of the Treasury and proudly bears certification from the U.S. Small Business Administration as a Community Advantage Lender. The Foundation meets rigorous national standards established by the Council on Foundations, has attained the highest four-star rating on financial health, accountability and transparency from Charity Navigator and is recognized for meeting standards for accountability and openness through the Charities Review Council.

42 Initiative Foundation Quarterly ifound.org

Sauk Rapids-Rice School District, Sauk Rapids Second Harvest Heartland, St. Paul Second Harvest North Central Food Bank, Inc., Grand Rapids Service Corps of Retired Executives (Central Minnesota Chapter), St Cloud Sharing Bread Soup Kitchen, Brainerd Sherburne County, Elk River Sherburne County Area United Way, Elk River Sioux Falls Area Community Foundation, Sioux Falls, S.D. Someplace Safe, Wadena Southern Minnesota Initiative Foundation ,Owatonna Southwest Initiative Foundation, Hutchinson Spectrum High School, Elk River St. Cloud Area Chamber of Commerce Foundation, St. Cloud St. Cloud Area Family YMCA, St. Cloud St. Cloud Area School District, St. Cloud St. Cloud Downtown Council, St. Cloud St. Cloud Neighborhood Coalition, St Cloud St. Cloud State University, St. Cloud St. Cloud State University Foundation, St. Cloud St. Cloud Technical & Community College Foundation, St. Cloud St. Cloud Technical and Community College, St. Cloud St. John’s Area School, Foley Saint John’s University, Collegeville Staples Area Men’s Chorus, Staples Staples Economic Development Authority, Staples Staples Motley Beyond Poverty, Staples Staples Motley School District, Staples Stearns-Benton Employment & Training Council, St. Cloud Sullivan Lake First Responder, Pierz The Church on The Wise Road, Brainerd The Salvation Army, St. Cloud The Yes Network, St. Cloud Thumbs Up High 5K, Elk River Tienda Mexicana La Mas Barata La Morenita, Melrose Tres Islas Orphanage Fund, Coeur D’Alene, Idaho Tri-County Action Program, Inc., Waite Park Trinity Lutheran Church of Milaca, Milaca True Friends, Annandale Unique Boutique, Melrose United Way of Central Minnesota, St. Cloud Unity Family Healthcare, Little Falls University of Minnesota Foundation, Minneapolis University of St. Thomas, St. Paul Volunteers of America of Minnesota, Edina Wadena County, Wadena Wadena-Deer Creek School District, Wadena Wealthcare, Inc., Melrose Wellness in the Woods, Inc., Verndale West Central Initiative, Fergus Falls Winter Wonderland Figure Skating Club, Inc., Little Falls Wright County Community Action, Inc. Maple Lake Youth for Christ, Inc., Central Minnesota St. Cloud Youth Frontiers, Inc., Minneapolis Youth Investment Foundation, Medina

OUR PARTNERS Loans & Equity Investments The Initiative Foundation invested $2.55 million in 28 locally owned businesses in 2016. Through those loans, 211 quality jobs were secured and $14 million in private investment was leveraged. Lake Superior Laundry, Inc., Pine City New Earth Technologies, LLC, Baxter JenTra, LLC, Backus Franconia Restaurant Enterprises, Inc., Taylor Falls RAOJI, LLC, Sauk Centre Clay Leasing, LLC, Saint Michael LADA Properties, LLC, Elk River IFP, Inc., Nisswa Syvantis Technologies, Inc., Baxter Hunts Point, LLC, Pequot Lakes Eagles Cove Resort, LLC, Mora Bandit Properties, LLC, Crosslake Cuyuna Cycle Company, Inc., Baxter HPH Holdings, LLC, Baxter Ace & R, LLC, Big Lake RPF, LLC, Isanti RJ Limited, LLC, Princeton Stone Source of Minnesota, Inc., Little Falls Thunder Road Properties, LLC, Waite Park Sand Dunes Properties, LLC, Big Lake DAYTA Marketing, LLC, Waite Park Corral Auto Repair LLC, Brainerd Pelican View Properties, LLC, Baxter VanPro, Inc., Cambridge Hill Capital Corporation, St Paul Serenity Estates, Royalton Microbiologics, Inc., St Cloud United Cerebral Palsy of Central Minnesota, St Cloud

Partner Funds The Foundation in 2016 served as fiscal host for 84 Partner Funds valued at more than $11 million. These funds allow donors to focus on charitable needs while leaving the administrative tasks to the Initiative Foundation. Community Funds Delano Community Foundation Greater Pine Area Endowment, Pine City Isle Area Community Foundation Longville Area Community Foundation Endowment Morrison County Area Foundation Rum River Community Foundation, Milaca Area Staples-Motley Area Community Foundation Three Rivers Community Foundation, Elk River Education Funds Cuyuna Lakes Education Foundation, Crosby-Ironton Pillager Education Foundation Sauk Rapids-Rice Education Foundation The 482 Education Foundation of Little Falls Community Schools Donor-Advised Funds Anderson Brothers Family Fund, Brainerd Bob & Marsha Bunger Endowment Fund, Milaca Bruce & Diane Gohman Fund, Clearwater Chuck Christian Community Spirit Fund, Elk River Edeburn Family Fund, St. Cloud Gaalswyk Family Fund, Brainerd Granite Equity Partners Fund, St. Cloud Hanowski Family Fund, Little Falls Jane & Patrick Mitchell Foundation, Cold Spring Jim & HK Stuart Memorial Fund John & Bonnie Schlagel Endowment, Cambridge Josh Richardson Family Fund, Elk River Julius & Tracy Kurpius Fund, Staples Loren & Kathy Morey Family Fund, Staples Mark Wood Foundation, Little Falls Mel & Jeanette Beaudry Fund, Elk River Paula and Chad Becker Fund* Quiet Oaks Hospice House Family Fund Scholarship Funds Alternative Sources of Energy Fund, Milaca Archie & Isabelle Powell Scholarship Fund, Elk River Betty Ford Menzel Scholarship Fund , Crosby-Ironton Beverly M. Pantzke Scholarship Fund, Little Falls Bob & Pauline Johnson Scholarship Fund, Isle Bob Wright Memorial IFPA Scholarship Fund, Regional Dorn Family Fund Holdingford Scholarship Fund Little Falls Scholarship Fund Madden’s Pine Beach Scholarship Fund, Pillager Minnesota Christian Writers Scholarship Fund* Pillager Scholarship Fund Shawn Grittner Memorial Scholarship Fund, Little Falls Staples KoC-Lloyd & Marion Giddings Scholarship Fund William & Ethel Nelson-Zimmerman Scholarship Fund, Royalton ZES Scholarship Fund, Zimmerman

Designated Funds Lake Region Conservation Club Scott & Jane Stuart Memorial Park Fund Agency Funds Big Birch Lake Endowment Fund Bridges Manufacturing Workforce Development Fund* Conservancy Fund of Big Fish Lake Association Fund Conservancy Fund of Roosevelt and Lawrence Area Lakes Association Central MN CEO Fund, Staples Fish Trap Lake Endowment Fund Friends of Sherburne Nat’l Wildlife Refuge Fund Gull Chain Preservation Endowment Fund Horizon Health Partnership in Life Fund, Pierz Land and Waters Preservation Trust, Cass & Crow Wing Leech Lake Area Watershed Foundation Minnesota Pioneer Park Endowment Fund, Annandale Paws & Claws Animal Shelter, Hackensack Sacred Heart-Knights of Columbus Fund, Staples Wright County Historical Society Fund Field of Interest Funds Crow Wing Environment Protection Advised Fund Delano Emergency Family Fund Family Farm Fund, Regional Manufacturing Fund of Central MN, Regional Playing it Forward: The Kenneth & Evelyn Pinckney Young Musicians’ Fund* The Initiators’ Fund Thrive Fund, Sauk Rapids-Rice The Lakes Area Medical Development Association Fund Special Projects Brainerd Splash Pad Project* Melrose Area Relief Fund* NJPA Innovative Schools Project* Oakland Cemetery Fund, Little Falls Sartell Wheel Park Fund Sartell DOGPAC Fund Veteran’s Art Project Fund, Camp Ripley Wadena Regional Wellness Center Fund Business Loan Funds Menahga Loan Fund Princeton Economic Development Loan Fund St. Cloud State University Microlending Fund Todd-Wadena Economic Development Loan Fund Wadena Tornado Relief Loan Fund

* Indicates new Partner Funds created in 2016

2ND QUARTER 2017

2017-2019 Strategic Priorities With generous support from local donors and state and national funders, the Initiative Foundation is committed to the following three-year objectives: Support & Grow Existing For-Profit And Nonprofit Businesses

Enhance Kindergarten Readiness For Children Living In Poverty

• 300 quality jobs created

• 9 ,000 children living in impoverished areas are enriched through literacy activities

• 600 quality jobs retained • $6 million in new loans issued, resulting in $36 million in funds leveraged • 900 people have increased workforce skills

• 900 early childhood caregivers, providers and educators have increased workforce skills

• 75 people advance to skilled work positions • 450 nonprofit organizations have increased capacity to meet their missions Business finance partner Lake Superior Laundry in Pine City is helping to make the most profound kind of impact by employing Pine County Jail inmates. In the words of Max Blaufuss, the laundry’s owner: “We’re fixing broken souls.”

Kids who come to kindergarten equipped with early childhood education “have such a jump on it—and developmentally they’re ready to learn,” said Judith Hecht, school readiness coordinator in Pierz.

Help New Entrepeneurs And The Startup Of Businesses And Social Enterprise Ventures

Cultivate The Next Generation Of Leaders Working And Living In Our Region

• 300 emerging entrepreneurs have increased skills and knowledge

• 185 up-and-coming leaders engage in community service throughout the region

• 50 new business and social enterprise ventures are created • $3 million in new loans are issued, resulting in $18 million in funds leveraged

“It is my goal to become the next great manufacturing company in Cass County and to employ as many local workers as possible,” said Travis Kelley, co-founder of JenTra Door Levels in Backus. The Initiative Foundation provided startup funding and is a JenTra equity investor.

44 Initiative Foundation Quarterly ifound.org

• 46 leaders serve in public office or on nonprofit boards for the first time • 345 next-generation leaders increase their leadership and workforce skills

As the first and only Latino on the Long Prairie City Council, James Ruiz, an alumnus of the Initiative Foundation’s Emerging Leaders program, is setting an example by getting involved in his community and encouraging fellow young citizens to stay.

CENTRAL MINNESOTA IS IN A MUCH BETTER POSITION NOW, 30 YEARS LATER, BECAUSE OF THE INITIATIVE FOUNDATION. IT PROVIDED WHAT WAS LACKING DURING THE FARMING CRISIS IN THE 1980S: A POSITIVE CATALYST FOR CHANGE.

JOHN KUESTER, ELK RIVER

incorporating Initiative Foundation board member and Emeritus Trustee

Improve The Economic Status Of Financially Disadvantaged People • 600 new Americans benefit from improved economic conditions • 300 economically disadvantaged rural residents benefit from improved economic conditions • Nine low-income communities are more resilient and sustainable

A one-time beneficiary, Amanda Meier is now part of the Salem WEST team in Deerwood that provides the physical comforts of furnishings as well as a boost of emotional strength to those in need. Salem WEST has participated in numerous nonprofit development programs offered by the Initiative Foundation.

Working Together We Can Ensure That Central Minnesota ... • Has an abundance of talented people and job-creating enterprises that contribute to economic growth and vitality. • I s a thriving region where people choose to live, work, give and play. • F osters a culture of philanthropy where people give generously of their time, talent and resources.

2ND QUARTER 2017

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SMART BUSINESS: QUINLIVAN & HUGHES, P.A.

I FEEL FORTUNATE TO LEAD SUCH A DIVERSE TEAM OF ATTORNEYS WHO ARE NOT ONLY RECOGNIZED AS LEADERS IN THEIR RESPECTIVE PRACTICES, BUT ALSO IN THEIR COMMUNITIES BECAUSE OF HOW THEY GIVE BACK. – DYAN EBERT, CEO

Quinlivan & Hughes Empowers Women

LEADING FEMALE ATTORNEYS

he number of women entering the legal profession, and becoming law firm partners and judges, continues to lag behind men. But not at Quinlivan & Hughes in St. Cloud. The fullservice law firm sets a new standard in the industry with its growing group of leading ladies. Quinlivan & Hughes is led by a female CEO – for the second time – and female attorneys represent 42 percent of all of the firm’s attorneys. The law firm defies the glassceiling statistics where women represent about 36 percent of attorneys nationally, only 22 percent of law firm partners

Dyan Ebert Employment Law & Insurance Defense

and rarely hold the top spot as CEO, according to a 2016 report by the American Bar Association. “I am fortunate to have the opportunity to interact with such smart, dedicated, and compassionate people every day,” said Melinda Sanders, who first joined the firm in 1994. Also a shareholder, Sanders focuses on employment law and estate planning. “Quinlivan & Hughes has helped me reach professional goals, while at the same time allowing me the space to raise a family and support my community.”

Dyan Ebert currently serves as the firm’s CEO. Ebert joined Quinlivan & Hughes in 1994 and became a partner in the firm in 1998. Quinlivan & Hughes welcomed her into the board room in 2003 when she was elected to the Board of Directors. “I have always felt like my voice was heard and appreciated at Quinlivan & Hughes,” Ebert said, “and I know that’s not true in all places. I feel fortunate to lead such a diverse team of attorneys who are not only recognized as leaders in their respective practices, but also in their communities because of how they give back.”

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Established more than 90 years ago, Quinlivan & Hughes, P.A., ranks among the oldest and largest law practices in Central Minnesota. The firm’s legal teams are known as leaders in both their industries and the community. Key ways Quinlivan & Hughes serves organizations and individuals: • Employment Law

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WHEN DISASTER STRIKES CONTINUED FROM PAGE 24

DISASTER PREPAREDNESS Here’s what you need to know. Because disasters are unpredictable, it’s important for communities to have a plan in place long before the unexpected happens. The Initiative Foundation has an extensive Disaster Response Guide that will take your community or business through all the steps you need —from preparing for a disaster to responding effectively to rebuilding—to make sure your city is on a path to recovery. For more information visit ifound.org/community/ disaster-response/

More than $20,000 has been paid out to 10 families—all of them Spanish-speaking—who were left homeless by the blaze. Nine of the 10 families have remained in Melrose, with some moving into mobile homes. One affected family purchased a house to put down permanent roots. First attracted to the region’s food-processing jobs nearly a generation ago, a quarter of Melrose’s population is Latino. Cultural barriers have slowly been lowering as first-generation newcomers see second- and third-generation successors. Still, some obstacles remain, including language differences and, in the heightened scrutiny of immigrants in the current national atmosphere, worries over the legal status of some area residents. The result has been a reluctance, at times, to seek help in the aftermath of the fire. “It’s almost an invisible population,” says Mayuli Bales, the director of MultiCultural Ministries for the Catholic Diocese of St. Cloud, who helped coordinate relief activities with the largely Catholic Hispanic population of the area. Bales, a former Initiative Foundation Trustee, says there are an estimated 5,000 Hispanic persons within the Diocese, and that seven Catholic parishes hold weekly Masses in Spanish, including St. Mary’s in Melrose. While relationships with the larger community have been generally good, Bales said, many of the displaced workers were surprised by the outpouring of support after the fire. “We were surprised by the size of the response and all the things that people were bringing to the victims,” she said. “It was a little overwhelming at first. But after a few days, we started building

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trust and relationships. Collectively, we were able to work through this tragedy and make a learning experience of how we can work together.” Reflecting Melrose’s sense of a stronger identity, forged in a fire that helped bring people closer, a new billboard greets visitors on Interstate 94. Featuring a photo of smiling and recognizable Melrose citizens, including the town police chief, Craig Maus, a mixed-race gymnast and a Hispanic nurse, the sign says Melrose is, ‘STRONG, DIVERSE, CONNECTED.” There’s no discounting the hardships that the fire brought, and the challenges that came with them. But these days, Melrose is feeling pretty optimistic. “It wasn’t just the Hispanic community that was affected by the fire,” said Bechtold, “It affected everyone in the town. There is still a cultural divide between Spanish speakers and the rest of Melrose, but they are becoming less and less, over time. Hispanics have been in Melrose so long that Melrose has begun to see them as our own. It’s sort of like when Melrose was starting out and all the Germans spoke German while the Irish spoke English.” Somehow, it all worked out. “We have a lot to give thanks for, and I keep hearing a saying in Spanish that I hear a lot around Melrose,” said Bechtold, reflecting back over the past year. “It’s ‘Gracias a Dios.’ “Thanks to God!”

STRONGER THAN BEFORE A program that helps towns thrive, not just survive after a disaster. The Foundation’s Thriving Communities Initiative (TCI), redesigned in 2017, can give your hometown an edge through leadership development, asset-based community development and local philanthropy. The program provides new and emerging leadership training during the first phase and follows with a second phase where communities are eligible for a $20,000 challenge match to create a Partner Fund that can be used to advance community priorities—or to help when disaster strikes. To learn more, and to see if your community qualifies, visit ifound.org/community/thriving/.

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PREPARING FOR CHANGE Sherburne County

The rumbles and beeps of construction crews are a familiar soundtrack throughout Sherburne County, Minnesota’s fastest-growing county. With its southern boundary nudging the outer Twin Cities metro and the northern edge touching St. Cloud, residents and businesses come for its smaller communities and more affordable housing while using nearby Interstate 94 and North Star commuter train to tap larger cities for jobs and employees. “We don’t see growth as a problem but as an opportunity,” said Dan Weber, Sherburne County assistant county administrator and economic development specialist. That growth, however, does come with challenges. City and county planners have to keep up with essential infrastructures, including wastewater treatment plants, roads and railroad routes and filling gaps in broadband coverage, according to Weber. They’re also preparing for a seismic shift in the tax base once Xcel Energy retires two Sherco coal-fired generators during the next decade. That has the potential to eliminate about 300 jobs—75 percent of Becker’s tax base and 15 percent of the county’s tax base. A shutdown could also impact Liberty Paper, which uses steam from the plant to recycle corrugated containers usable PaulGazelka.IQ.W12.ad_Layout 1 12/21/11into 11:37 AM materials. P

SHERCO SOLUTIONS: (Left to right) Dan Weber, assistant Sherburne County administrator, Greg Pruszinske, Becker city administrator, and Mark Osendorf, community relations and economic development manager at Xcel Energy, are part of a regional team working to diversify the Becker-area economy.

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“The Sherco plant is really an economic driver for the region,” Varilek said, “so it’s a major issue.” Xcel, which is working closely with local governments, may be able to keep some jobs if part of the plant can be converted to natural gas, but a bigger, wider effort is underway to attract new industries. Funding from Benton, Sherburne, Stearns and Wright counties, along with an Initiative Foundation grant, is helping to pay for a staff position at Central Minnesota Jobs & Training Services in Monticello to coordinate regional planning and development efforts. The team approach helps the counties swap solutions for common problems while mapping growth to strengthen the broader region. “We’re building relationships that wouldn’t have existed,” said Weber. “It will hopefully lead to a successful future.” And that’s what Initiative Foundation programming is all about: to bring hope, help, healing, opportunity and prosperity to the region. Visit ifound.org/community/grants to see the complete lineup of 2016 Innovation Fund grants.

OUR COMMUNITY, OUR COMMITMENT TO GIVING

5 Tips 1

FOR SUCCESSFUL GRANT PROPOSALS

Do your homework. Sending the right proposal to the right funder is key. Your interests must align. Most funders list activities or expenses they will fund. Many also will list the size and range of typical grants. Do your research and spend your time wisely. resent a logical solution to a problem. Think of your proposal as a story with a beginning P (the problem or opportunity is the need statement), middle (the solution is your program) and end (the results are your outcomes). Tell the funder what you are going to do, who is going to benefit and why they should care. Convince the funder you know what you’re doing. Demonstrate that you have a clear understanding of your community’s need and a strong programmatic response. After reading your proposal, the funder should feel confident that your organization would be a responsible steward of their funds. Tell the same story in the budget and the proposal narrative. Too many proposal writers pour their blood, sweat and tears into a beautifully crafted narrative. Budgets, unfortunately, often are an afterthought. Your project budget is another opportunity to tell your story and demonstrate your credibility, so align it to your narrative. Remember that funders are people. Pick up the phone and call (when appropriate) instead of relying solely on email. Foundation fundraising (like all fundraising) is about relationships. Initiative Foundation staff are drawn to this work because they love to help our region. Even if we can’t directly support your efforts, we do our best to connect you to other funders and sources of technical assistance or expertise.

For thirteen years, the Anderson Brothers Family Foundation has supported organizations in our community that focus on families and children in need, environmental protection, and economic development. In partnership with the Initiative Foundation, our foundation provides summer camping experiences for children with autism, skin diseases, heart disease, down syndrome, and families affected by AIDS at Camp Knutson in Crosslake. We care, because we live here, too.

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where’s IQ?

THINK YOU KNOW? Send your best guess to IQ@ifound.org by July 15, 2017. Three winners will be chosen, at random, to receive a $25 GiveMN.org gift code to support the charity of their choice. HINT: While driving through the town “where city and country flow together,” motorists will see a pop of red as they zoom by this landmark dinosaur along Highway 10. Congratulations to everyone who correctly recognized the mosaic facade on the Linda Ulland Memorial Gardens learning center in Crosslake, Minn. Cindy Lamp, Margaret Marketon and Melanie Wacha were the lucky 1st Quarter 2017 GiveMN.org gift code winners.

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