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SPRING 2011
Contents
ABOUT THE COVER: Outpourings: Illustration by Chris McAllister.
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OUR MISSION:
Unlock the power of central Minnesota people to build and sustain healthy communities. INITIATIVE FOUNDATION GOALS:
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–Strengthen Economic Opportunity –Preserve Key Places and Natural Resources –Support Children, Youth, and Families –Build Organizational Effectiveness –Encourage the Spirit of Giving
D E PA R T M E N T S
F E AT U R E S 18
New Dawn Despite the recession’s lingering impacts, a period of historic generosity may be on the horizon.
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Passion in Person
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Present Tense
Among the thousands of silent, selfless and inspiring givers in central Minnesota, we chose four.
Like any other investment decision, central Minnesota businesses employ strategies for their charitable gifts.
IQ Points 8 Your Two-Minute Digest Signs of the Times 10 Generosity 2.0 Donors, nonprofits click with online giving. 12
Tip Sheet 14 Raising Kids Who Give How to help young people catch the generosity bug. 16
36 41
Exotic Generosity Donors use creative vehicles to achieve win-win philanthropy.
Donors, Dreamers & Friends Initiative Foundation Program and Endowment Supporters
Frontline Philanthropy More young Americans believe that giving isn’t a spectator sport.
Where There’s a Will . . . Legacies often begin with a simple bequest.
Brainiac 56 An IQ & A with national author and researcher Penelope Burk
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Are You Ready?
a
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Initiative Quarterly Magazine www.IQmag.org Volume 9, Spring 2011
INITIATIVE FOUNDATION Vice President for External Relations | Matt Kilian Grants & Communications Specialist | Anita Hollenhorst
EDITORIAL Managing Editor | Elizabeth Foy Larsen Writer | Laura Billings Writer | Martha Coventry Writer | Mackenzie Lobby Writer | Christine Murakami Noonan Writer | Rachel Reabe Nystrom Writer | Lawrence Schumacher
ART Art Director | Andrea Baumann Production Manager | Bryan Petersen Lead Photographer | John Linn
ADVERTISING / SUBSCRIPTIONS Advertising Director | Brian Lehman Advertising Manager | Lois Head Advertiser Services | Mary Savage Subscriber Services | Katie Riitters
Central Regional Sustainable
Nurturing Agriculture & food systems Community-based energy Natural resources Tourism Central
Fostering
Development Partnership
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Serving Central Minnesota 6 Initiative Quarterly Magazine
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www.regionalpartnerships.umn.edu
Published in partnership with Range, IQ Magazine unlocks the power of central Minnesota leaders to understand and take action on regional issues.
Printed with Soy-Based Ink on Recycled Paper at Range, Inc.
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Intelligence ❍
Minnesotans lead the nation as the most generous digital givers, donating an average of $175 per household, according to a study from the nonprofit Network for Good. In fact, a survey of GiveMN donors found that the number of people who prefer digital giving went up from 46 percent in 2009 to 68 percent in 2010. Learn more about how the Internet is changing charitable giving on page 10.
Excellence In Construction Pyramid Award
❍
Whether it is participating in a dance marathon or volunteering at a nursing home, younger Americans seek a relationship with the people they are helping, whereas many of their older counterparts don’t always crave that face time. Read how Generations X and Y approach giving on page 12.
❍ Between 2011 and 2030, as an
entire generation of Baby Boomers reaches retirement age and beyond, an estimated historic sum of $47.9 billion will be passed on in Minnesota. In the 14 central Minnesota counties, that wealth transfer is approximated to be $5.8 billion. Read more about why we may be entering a new era of historic generosity on page 18.
❍
Minnesota businesses gave $669 million in grants from June 1, 2008 to May 31, 2009, a 14 percent increase over the previous year. As needs grow, they ’re stepping up in all kinds of creative ways to help their communities. Find out how central Minnesota businesses are managing their philanthropic efforts on page 32.
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“Quotations”
“Skilled business owners give from their hearts, but they write the checks with their heads.”
“For the donor, there are less common ways of giving that have opened up a whole world of possibilities. Most donors don’t think they can afford to be as generous as they ’d like to be, but with these alternatives, they end up making the gift they hoped to make.” — Craig Wruck St. Cloud State University “In smaller towns, especially where resources are limited, employers play a pivotal role in improving the health of their communities through their giving.” — Kathy Gaalswyk Initiative Foundation “Two years after the start of the recession, Minnesota’s overall nonprofit economy continues to grow. And now foundation and individual contributions are getting back to their previous levels.” — Jon Pratt Minnesota Council of Nonprofits
— Lee Hanson Gray Plant Mooty & Initiative Foundation Trustee
“The only time you should look down at your fellow man is when you are extending your arm to help him up.” — John Schlagel Cambridge, Minn. “I’ve watched students fill a dome with cans of food, create awareness for child soldiers in Africa, and raise millions for other causes. I believe this generation, with its commitment to worklife balance and desire to be part of the solution, will make it the next greatest generation.” — Greg Tehven Students Today Leaders Forever
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Signs of the Times
Generosity 2.0 Donors, nonprofits click with online giving. By Laura Billings | Photograph by John Linn
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hen it comes to charitable donations, the days of the check might be numbered. DANA NELSON, GIVEMN.ORG: “When people are motivated to give, as
they are in a crisis like we saw in Haiti, they're going to look for the things Just consider the giving habits of Sarah Lightner, a 33-year-old mother they care about online.” of three in St. Paul, who supports every statewide walk-a-thon her friends e-mail her and follows nonprofits she cares about on Facebook and Twitter. from 46 percent in 2009 to 68 percent in 2010. Check writers, by conWhen the earthquake rocked Haiti last January, Lightner went trast, dropped from 83 percent to 30 percent by 2010. straight to her laptop and searched Google for a reputable nonprofit GiveMN provides profile pages for every nonprofit in the state, that provides health care to Haitians. She sent a donation to Bostonwhich can be customized with video, photos and narratives. During based Partners in Health with just a couple of clicks. “It took about two their annual “Give to the Max Day” minutes, and I felt really good knowing every November, nonprofits compete for that my donation could go right to work matching funds by soliciting online gifts for an organization that already had a hisMinnesotans lead the nation from their donors. New initiatives tory in Haiti,” she said. as the most generous digital include coordinating a one-stop shop for Donations like Lightner’s condisaster relief giving, with spring floods tributed to a nearly 35 percent increase in givers, donating an average topping the list of Minnesota priorities. online giving in 2010 over the year of $175 per household. Yet, as donors are embracing the before, according to study from online giving revolution, many nonprofBlackbaud, a nonprofit software compaits are anxiously struggling to keep up. ny. “What we’re seeing is that when peoAt a technology conference sponsored by the Minnesota Council of ple are motivated to give, as they are during a crisis like we saw in Haiti, Nonprofits last February, more than 800 nonprofit professionals took they’re going to look for the things they care about online,” said Dana part in training sessions to learn how to write effective “tweets” on Nelson, executive director of GiveMN, an online charitable giving Twitter and turn Facebook fans into financial supporters. Balancing organization that has helped Minnesota nonprofits raise more than $27 the potential of receiving an online windfall “against the fact that most million since it went live in November 2009. Minnesotans lead the nation as the most generous digital givers, small organizations don’t have another 10 to 20 hours a week to donating an average of $175 per household, according to a study from devote to these resources, and you can see there’s a lot of stress out the nonprofit Network for Good. In fact, a survey of GiveMN donors there,” said Peter Panepento, assistant managing editor for The found that the number of people who prefer digital giving went up Chronicle of Philanthropy.
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Still, many nonprofits find that providing online giving options is well worth the investment. The North American Bear Center in Ely raised nearly $40,000 during last year’s “Give to the Max Day,” thanks to the more than 120,000 Facebook friends who followed the progress of Lily the black bear on a “den cam.” “Pages with video raise an average of 20 percent more than pages with a photo, and that really speaks to how this medium is different,” said Nelson. Another common denominator in successful online giving is urgency. When a technical director fell through the floorboards of a stage at Minneapolis’s Bedlam Theatre last May, grants manager Ben Marcy created a “Fill the Hole” campaign, inviting performers and supporters to be part of a live-streaming event that raised $2,000 for repairs. “People just naturally want to respond to a crisis,” he said. Though “live-streaming” may be outside the comfort zone of small nonprofits still in stamp-licking mode, adapting to the world of digital giving may be less difficult than it first appears. In 2010 the Initiative Foundation raised $47,000 online for Wadena tornado relief—all through GiveMN and in a matter of days. The Foundation also partnered with an anonymous donor to create the Ripple Effects Giving Challenge, which provided $25,000 in matching funds to five Brainerd area nonprofits. Each of the chosen nonprofits was given training in how to make the most of their GiveMN pages and mobilize supporters online. “We had one faith-based organization, Salem Lutheran Church, that was really on square one when it came to using these tools,” said Matt Kilian, Initiative Foundation vice president for external relations and member of the GiveMN strategy cabinet. Even so, the church met their match by excelling at the one aspect of nonprofit fundraising that hasn’t been changed by the digital revolution—relationships. “Because they had a congregation of really committed people, they were able to convert people from putting money into the collection plate, to contributing online,” Kilian said. “I think the lesson is that you don’t need to have the technical skills right away, but you do want to be part of the game.” IQ
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going digital? Five points to consider before rebooting your fundraising strategy. 1
facebook is not a strategy Simply having a Facebook page or Twitter account is not enough for most nonprofits to generate interest or dollars. “Eventually people will chose not to follow organizations or businesses that don’t add value to their life,” says Panepento, of The Chronicle of Philanthropy. Instead of using social media to ask for money, effective nonprofits use it be part of the conversation about solving problems.
2
think strategically With so many new giving platforms, from Network for Good to DonorsChoose, it can be tempting for nonprofits to set up a page at every site and forget about it. “But all that does is make sure that every single community thinks you’re lame,” says Amy Sample Ward, a social technology consultant, who adds that using a GiveMN.org page for just one day a year is also a mistake. “You have to look at how you can integrate these platforms into your everyday operations.”
3
remember your mission Make sure your online presence tells potential donors exactly what their contributions can accomplish. “The only reason that people give to any organization is to make things possible,” says the Initiative Foundation’s Matt Kilian. “Digital giving makes it possible for people to give when they’re most inspired.”
4
take a risk The low cost of staging an online fundraiser lowers the risk of failure—and allows for a little more fun. During last year’s Give to the Max Day, the Bedlam Theatre put its grant manager Ben Marcy in a cage for 24 hours, while he gave live shout-outs to online donors, and was allowed snacks and bathroom breaks only when donation goals had been reached.
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think before you thank GiveMN.org’s Dana Nelson says online donors can be put off if they see their $10 contribution has been answered by $15 in postage for glossy annual reports, appeal letters and thank you gifts. “As online giving continues to grow, organizations have to be open to doing things a little differently,” she says.
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Signs of the Times
Frontline
Philanthropy More young Americans believe that giving isn’t a spectator sport. By Mackenzie Lobby | Illustration by Chris McAllister
D
uring a late-night Ramen noodle dinner in 2003, Greg Tehven and a small group of University of Minnesota freshmen invented an organization that would give them what they weren’t finding in other nonprofits—a chance to actively participate in giving back. Since then, Students Today Leaders Forever has engaged more than 5,000 high-school and college volunteers in national service ventures, and along the way, redefined what it means to make memories during spring break. “Above all, young people really desire to have an impact,” Tehven said. younger Americans seek a relationship with the people they are helping, It’s an impact that goes far beyond writing a check. In fact, whereas many of their older counterparts don’t always crave that face Americans born after 1964 are approaching philanthropic giving in a time. “Our generation seems to get way that is markedly different from excited about having direct connections baby boomers and older Americans. to the stories of people who have been “They give because they want to be left out,” said Tehven. engaged in some way and participate Those connections extend into the in the change,” said Kathryn Keeley, “We want to count the boxes we packed virtual world. “This generation has a a founder of the Women’s Economic at the food shelf and walk on the trail whole different way of defining comDevelopment Corporation who is munity,” said Keeley. They feel just as now a business and nonprofit conwe created at the wildlife reserve.” close to their virtual community as they sultant. Younger givers, she said, do to their physical one, and give need to see and experience a direct accordingly, she said. More focused on effect that stems from their support. social issues such as poverty and education than older Americans, “We generally like to have an idea of how our work fits into the Generations X and Y also like to keep tabs on their impact through bigger picture,” Tehven added. “We want to count the boxes we packed social media and the Internet, whether it’s an online thermometer gaugat the food shelf and walk on the trail we created at the wildlife reserve.” But it’s not just good works that marks younger Americans coning fundraising totals or progress updates on Twitter. tributions to nonprofits. They also have the financial muscle to make While “The Next Generation” study found that donating money is an impact, even if they aren’t transferring as much wealth as their the primary philanthropic method across all generations, it also showed older counterparts. According to “The Next Generation of that younger Americans aren’t as focused in their giving and tend to American Giving,” a study released last year by Edge Research, 58 donate time and money to a wider range of causes and organizations— percent of Generation X (Americans born between 1965 and 1980) from fundraising concerts to service learning trips to giving money donate to charities each year, giving roughly $28.6 billion. through Facebook and text messages. Generation Y (Americans born between 1981 and 1991) give an “I've watched students fill a dome with cans of food, create awareestimated $9.7 billion annually. ness for child soldiers in Africa, and raise millions for other causes,” said Organizations that allow for relationship building and enhance Tehven of his Generation Y volunteers. “I believe this generation, with community involvement also appeal to younger givers. Whether it is its commitment to work-life balance and desire to be part of the soluparticipating in a dance marathon or volunteering at a nursing home, tion, will make it the next greatest generation.” IQ
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Tip Sheet
Raising Kids Who Give How to help young people catch the generosity bug. By Elizabeth Foy Larsen | Illustration by Chris McAllister
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tudies show that young people who participate in philanthropy—whether its donating money to the local animal shelter or mowing an elderly neighbor’s lawn—not only become more aware of social issues, but also develop better decision-making skills and feel more intimately connected to their communities. Unfortunately, many of us don’t talk to our children about charitable giving. A study by the Minnesota-based Lutheran Brotherhood, a financial services organization, found that while 75% of parents feel they should provide financial guidance to children, only 36% offer any money management advice, which includes philanthropy. That’s a lot of missed opportunities when you consider that research shows involving kids in your family’s giving efforts when they are young is the best way to instill habits of lifelong generosity. Here’s how to get started.
Rethink allowance. If you give your child a weekly or monthly amount of money, set aside a portion of it for a “Give” jar. Then have special family dinners where you decide together where the money will go. Walk the walk. If you volunteer, talk to your children about your experience. If possible, bring them along with you. Make it fun. Give money to and volunteer at organizations that build on your children's interests. Look for the teachable moment. When you’re at the zoo, explain that you’re there because people donate their time and money to keep it running, suggests Susan Crites Price, the Washington, DC-based author of The Giving Family: Raising Our Children to Help Others. If you give to organizations in your community, deliver the check in person and bring your child with you. Include giving in family rituals and traditions. One Minnesota family designates one night of Hanukkah as “giving night.” Each child chooses a charity that her parents contribute to in her name. Another family asks guests to bring gifts for homeless children to their birthday parties. Introduce media that promote selflessness. Read Tomie dePaola’s The Legend of the Bluebonnet, The Giving Tree by Shel Silverstein, Aesop’s The Lion and the Mouse fable, or 100 School Days by Anne Rockwell. Both Mr. Rogers’ Neighborhood and Sesame Street can be counted on to consistently bring messages of good works into your home. IQ Adapted from a story that originally appeared in Child magazine. 14 Initiative Quarterly Magazine
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Tip Sheet
Where There’s a Will . . . Legacies often begin with a simple bequest. By Lawrence Schumacher | Photograph by John Linn
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hose who leave charitable gifts in their wills— less than 5 percent of the total population— often consider their community as another child, one who requires thoughtful care and will carry on family values. It can be a simple process to continue supporting causes that are important to you, according to Bradley Hanson, attorney at St. Cloud-based Quinlivan & Hughes.
Here are his
BRADLEY HANSON, QUINLIVAN & HUGHES: “We talk to people about what charities have been important to them in their lives.”
Top Tips:
As in life, so in death. Hanson asks, why not continue to support your favorite charities after your lifetime? Causes and organizations that inspire your current financial gifts are usually the best places to designate for future donations.
your will-making process, Hanson added. Donors can still make decisions about how to spend the money, and changing those agreements are much simpler and cheaper if you are working through a foundation.
% instead of $. A dollar amount
Get creative. Foundation funds,
set aside for a charity today can be a much different slice of your overall estate in 10 or 20 years. Consider designating a percentage of your estate; the proportion will remain the same but your gift might have a larger impact.
living trusts and other estate options (see “Exotic Generosity” on page 36) avoid the sometimes-lengthy probate process and allow your donations to reach your selected charities faster than a traditional will.
Consider a foundation. By leaving money to a personalized fund at a foundation, you can often simplify
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Make it last. Establishing an endowment fund ensures that only annual investment earnings are given to the charities you select. For
donors who desire a long-term legacy, an endowment fund can generate much more support for charities over time than a direct donation.
Reduce your taxable estate. With the exception of Roth IRAs, all other retirement funds are subject to taxation if left to family or friends. But if the money from those funds is donated to charities, the gift is tax-free.
Talk to your family. It’s generally better for family members to know what your charitable intentions are while you’re still alive than for them to find out after the funeral, Hanson said. Consider involving them in your estate-planning process. IQ
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rowing up on Midwest farms, Gladys Paulson and her husband, Leonard,
learned to give, even if they didn’t have much. “Giving something was
always important, no matter the amount,” she said. “The Great Depression
taught us never to waste what we were fortunate to have. Leonard, especially, had great respect for the value of money and the things it allowed us to have.” A quietly confident man with an unbounded passion for addressing community needs, Leonard was a founding trustee and first board chair of the Initiative Foundation from 1986 to 1998. A judge for three decades in Mille Lacs, Kanabec and Morrison counties, he passed away in 2003. “His spirit lives on in so many ways including charitable gifts to the foundation and the library in Milaca,” said Initiative Foundation president Kathy Gaalswyk. “I’ll never forget his soft-spoken encouragement of others to leave their own legacies.” When it comes to giving in Minnesota, the Paulsons’ generosity is not unusual. While the state’s reputation for philanthropy has been bolstered by celebrated names like Bush, Cargill, Dayton, McKnight and Pohlad, a new study reveals that a significant percentage of future giving may come from unexpected sources in greater Minnesota.
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Why Do We Give? There are as many motivations for a person’s charitable giving as there are people. While each giving story is unique, they likely share one or more of the these motivations. • To help fulfill lifetime goals and passions. • To feel a sense of value and satisfaction. • To leave a lasting imprint on society while making a significant difference. • To perpetuate a certain viewpoint or philosophy. • To unite family members around a purposeful mission. GLADYS PAULSON: “Giving something was always important, no matter the amount.”
• To honor or memorialize a friend or loved one. • To give something back to a community. • To fulfill a responsibility or desire to be a leader in a community.
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tories of unassuming farmers who have left thousands— and in some cases, millions—to their hometown schools, churches and favorite charities will become increasingly common, according to the recently published “Minnesota Generational Transfer of Wealth” (TOW) study commissioned by the Minnesota Initiative Foundations. “Farmers and business owners, who retire and sell their assets because their children don’t want to carry on, often find themselves with sizeable estates,” said Bill King, president of the Minnesota Council on Foundations (MCF). Such windfalls can trigger introspective moments when people consider whether or not charitable giving is something they value and want to pursue. “Every person, no matter how much or how little they have, reaches a moment in their lifetime where they consider doing something greater than themselves,” said Matt Kilian, Initiative Foundation vice president for external relations. “In the next 20 or so years, many will have the financial resources to bring their dreams to life, thanks to the hard work of their parents and grandparents.” Between 2011 and 2030, as an entire generation of Baby Boomers reaches retirement age and beyond, the TOW research estimates that the historic sum of $47.9 billion will be passed on. In the 14 central Minnesota counties, that wealth transfer is approximated to be $5.8 billion. “Now, think if a tiny portion of those dollars—say, five percent—were to be invested in permanently endowed funds,” Kilian added. “What a gift from one generation to future generations.”
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• To connect with others who share your interests and passions. • To benefit from tax advantages. • To express gratitude or say “thank you.” Source: Minnesota Council on Foundations “Toolkit for Giving.” Access the entire toolkit at www.mcf.org/donors.
ECONOMIC IMPACTS Those optimistic numbers, however, don’t tell all there is to know about giving trends across central Minnesota. The truth is that when it comes to charitable giving, the toll of the recession still lingers. Individual giving in the state sank 7.7 percent from $4.19 billion in 2007 to $4.02 billion in 2008, the start of the downturn and the most recent year for which complete giving data are available. That’s a significant statistic, when you consider that individual contributions account for nearly 75 percent of all giving in Minnesota, with the remainder coming from foundations and corporations. Philanthropy, however, tends to trail behind measurable improvements in the economy and consumer confidence. According to the “Current Conditions Report” published by the Minnesota Council of Nonprofits (MCN), 31 percent of nonprofits saw an uptick in individual contributions in 2010, compared to just 21 percent in 2009. The survey also found that 40 percent of organizations predict a rise in individual giving in 2011, which could be among the positive signs for economic recovery in the state.
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THE GREAT
Succession
From 2011 to 2030, $47.9 billion in Minnesota wealth may be passed from one generation to the next. This map shows the estimated wealth transfer by county, as much as $5.8 billion in central Minnesota alone. Only time will tell if such windfalls inspire charitable legacies in the form of increased nonprofit donations or endowed funds.
$296.8 MILLION
$219.7 MILLION
$461.8 MILLION
COUNTY
2010 POPULATION
PROJECTED WEALTH TRANSFER (in millions)
Source: Minnesota Generational Transfer of Wealth Study, 2010 U.S. Census Data. Visit www.mcf.org/resources/transfer to learn more and see estimates for other counties.
Benton Cass Chisago Crow Wing Isanti Kanabec Mille Lacs Morrison Pine Sherburne Stearns Todd Wadena Wright
38,451 28,567 53,887 62,500 37,816 16,239 26,097 33,198 29,750 88,499 150,642 24,895 13,843 124,700
$219.7 $429.1 $471.6 $722.5 $283.0 $153.7 $257.7 $296.8 $301.0 $461.8 $1,025.2 $207.0 $154.7 $782.5
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MATT KILIAN: “Every person, no matter how much or how little they have, reaches a moment in their lifetime where they consider doing something greater than themselves,”
“Two years after the start of the recession, Minnesota’s overall nonprofit economy continues to grow,” said Jon Pratt, MCN executive director, “and now foundation and individual contributions are getting back to their previous levels.”
“Many of us are taught how to make money. But we also need to be just as thoughtful and earnest about choosing how to give back to our communities.” — BILL KING, PRESIDENT OF THE MINNESOTA COUNCIL ON FOUNDATIONS
CHANGING RELATIONSHIPS The slow recovery may have changed the relationship between donors and the nonprofits they support. “There are so many good and worthy causes that need help,” said Paulson. But supporting all of them is not realistic. Many people have been forced to be more thoughtful—and in some instances make tough decisions—about their philanthropy. While some people continue to give even in the toughest times, the recession and its aftermath have made donors more thoughtful and intentional in their giving choices, according to Heidi Droegemueller, president of the Minnesota Chapter of the Association of Fundraising Professionals. “Donors are asking nonprofits more questions and have higher expectations for a return on their investment,” she said. “Individuals will continue to respond to nonprofits that can make their case effectively.” Drogemueller added that donors are also drawn to organizations that engage them in meaningful ways, demonstrate results and accountability, and share inspiring stories of how their donations have made an impact. She also believes that donors want organizations to be honest about what is going well and what help is needed. For Gladys Paulson, what’s most important is leaving a legacy of generosity within her own family. “Our children grew up understanding frugality,” she said. “But never to the point that we wouldn’t share.” IQ
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Support Savvy How do you sort through the many worthy organizations that touch your heart? The Minnesota Council on Foundations offers these tips. 1. Think about your values. And then develop a giving plan that aligns with what is meaningful to them. 2. Be strategic. “Many of us are taught how to make money,” said Bill King. “But we also need to be just as thoughtful and earnest about choosing how to give back to our communities.” 3. Consider a partner. Some nonprofits and foundations can help prospective donors develop plans that align with each donor’s wishes, resources, and unique situation. “Community foundations are trusted, independent nonprofit organizations throughout the state,” said King. “Using their knowledge, services and connections, citizens have a tremendous opportunity to build their charitable assets and create a positive impact.”
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Among the thousands of silent, selfless and inspiring givers in central Minnesota, we chose four.
By Rachel Reabe Nystrom Photography by John Linn
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“We come from very meager backgrounds. God has been very good to us, and we try to do what He wants us to do.” —Arnie Johnson
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Arnie & JoAnn Johnson Brainerd Lakes Area Arnie Johnson knows what it’s like to be trapped in a job trying to make ends meet. Growing up on the Iron Range, he made $5,000 a year working swing shifts in the mines. Johnson said those memories are helpful when it comes to charitable giving. “I see people in desperate need,” he said. “It’s great to be able to help.” Johnson’s successful business ventures, including Brainerd-based Universal Pensions, have enabled him and his wife JoAnn to give back to the community. So when his wife heard about Teen Challenge, the faith-based drug treatment program in Brainerd, they got involved. “Young people have an opportunity at Teen Challenge to get their lives straightened out,” said Johnson. “When you hear their faith stories at graduation, it moves your heart.” Although he didn’t have the chance to go to college, Johnson also provides scholarships for Central Lakes Community College and St. Scholastica. “I didn’t even graduate in the top half of my high school class,” he said. “So these scholarships are strictly for B and C students.” The Johnsons have supported numerous local organizations including the Initiative Foundation (where Arnie also serves on the board of trustees), YMCA, Timberwood Church, the Brainerd Lakes Health cardiovascular center, and Nisswa Lake Park. “The Initiative Foundation believes in helping people to help themselves,” he said. “What it has and is accomplishing is doing wonders for all of us.” IQ: What brings you the most joy? AJ: Seeing the results of giving is very satisfying. Watching the Nisswa Park being developed or seeing the changes in people’s lives because of Teen Challenge is great. We come from very meager backgrounds. God has been very good to us, and we try to do what He wants us to do.” IQ: Which moment will you always remember? AJ: I was checking out at Target and the cashier, a young man, told me I had changed his life. He said, “You don’t remember me, but you spoke in one of my classes about tenacity. You said, ‘Get out there and don’t give up.’ Now that was a payday for me.” IQ: Anything surprise you? AJ: When you do good and still get criticized. With some of our gifts people have said, “What is Johnson trying to do?” Unfortunately, that comes with it sometimes, but it doesn’t change my view that being able to help others is a responsibility and a privilege.” IQ: Who is your greatest influence? AJ: My wife of 52 years has the biggest heart of anybody in the world. She says we should do something here or there. Then she tells me not to be cheap, to give more. Whatever I want to give, she doubles it.
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John & Bonnie Schlagel Cambridge John and Bonnie Schlagel met doing volunteer work. They soon discovered they were both committed to serving and helping other people. “When we were on our honeymoon, we made a list of boards we were on to see if we were overlapping,” said Bonnie. “We agreed they didn’t need two Schlagels on the same board!” Both Schlagels feel strongly about giving to others, but they invest their time and resources in different areas. Bonnie takes an annual trip to five Mexican orphanages. “It’s not just giving money. When we go to the orphanages, we do what needs to be done,” she said. Closer to home, she also works with disabled adults, students and the local humane society. John concentrates his efforts on scholarships, building community and faith-based organizations. Ten years ago, the Schlagels set up a donor-advised fund through the Initiative Foundation, where John served on the board of trustees. Their contributions go into an endowed fund, and the annual earnings fund the charities they support. “It’s a nice feeling to know that regardless of what happens to us medically or financially, we still have the ability to keep giving because we’ve set that money aside in a fund,” John said. “For us, it was a more thoughtful approach of how we do our giving. If we’re in the nursing home with no disposable income, we could still select the charities we want to support. Everybody is going to die someday, and you can’t take it with you.” IQ: What inspires you to give? BS: I’m motivated by the need. When you look out and see people hungry and in such despair and you can do something to help, that makes me feel better. IQ: Which moment will you always remember? BS: Every Christmas we get a huge envelope from the Mexican orphanages containing handmade Christmas cards. The kids have very little to work with, paper and crayons and maybe a bit of glitter. You can see by the cards how hard they have tried. It’s very touching. IQ: Anything surprise you? JS: It’s a sad feeling when you realize that even if you have all the money or time in the world, it still would not solve all the problems. I became practical. I can’t solve everything, but I can still help. IQ: Give us your best advice. JS: I run into people who say they don’t volunteer because they haven’t found an organization that interests them. I tell them to just volunteer and you will find your passion. Remember: You are not volunteering for yourself, but for others. My brother, Robert, told me once that the only time you should look down at your fellow man is when you are extending your arm to help him up. 26 Initiative Quarterly Magazine
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“The only time you should look down at your fellow man is when you are extending your arm to help him up.” —John Schlagel
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“I was raised on a farm in Rogers and if anybody needed help, Ma just lined us kids up and we dropped what we were doing and went to help.” —Chuck Christian
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Chuck Christian Elk River Chuck Christian learned long ago that giving is fun. For decades, Christian Brothers, his Elk River-based construction company, has hosted an annual golf tournament where the proceeds go to various charities. “We get everything from the pig roast to the prizes donated, and we have a great time,” he said. For the first few years, the money the event raised was donated to a national cause. But, after seeing the needs at home, Christian and others formed Three Rivers Community Foundation, a partner fund of the Initiative Foundation, to help families in the Elk River, Otsego, Rogers and Zimmerman area. “We got fired up to raise money because it would be used locally where we live and work,” said Christian. Soon the golf tournament was generating five times the money. “We had one big year when we collected pledges for multiple years and raised $120,000,” he said. “That was a big shot in the arm for the community foundation.” Christian’s roots stretch deep into the community where his parents and grandparents were raised. He hopes his 15 grandchildren and 10 great-grandchildren will continue the family tradition of helping others. “It’s fun to do it without getting found out, secret giving,” Christian said. “Now that’s a joy.” IQ: What’s behind your giving tradition? CC: I was raised on a farm in Rogers and if anybody needed help, Ma just lined us kids up and we dropped what we were doing and went to help. It was just our way of life. My parents and grandparents were very generous even though they didn’t have much. IQ: Which moment will you always remember? CC: One of the biggest thrills is to help get people into homes they never thought they would be able to live in. There was a kid who had taken a wrong turn on drugs and alcohol. He shaped up and got working but didn’t have any credit. I took a chance on the kid. He sure worked his butt off. He is forever grateful for that house. IQ: What do you get out of it? CC: I just love this community, and I’ve met wonderful people in the process. In order to get the Three Rivers Community Foundation going, we worked with the Initiative Foundation. They have big hearts and are dedicated, smart people. IQ: Who is your greatest influence? CC: I admire people who can shed their possessions. It’s so easy to get attached to things and they become so important to you.
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Mark Wood
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(1958-2005)
Little Falls Mark Wood’s life came to an end when he was 47-years-old. But his commitment to the kids of Little Falls will last forever. Three weeks before he passed away from cancer, Wood decided to donate everything he had to provide educational opportunities to impoverished and underprivileged children. Wood was a physical therapist, but his passion was helping kids. One day he walked into Lincoln Elementary School in Little Falls and asked how he could help. Soon he was mentoring struggling students for a few hours each week. “Even that short amount of time made a huge difference in the kids’ lives and their school work,” said his sister, Jackie Ann Jackson. “Some of the kids Mark helped probably wouldn’t have even made it to high school.” His family was not surprised that Wood wanted to give everything away to help others. “During the end of his five year battle with cancer, Mark started thinking about what he could do to help people with or without him,” according to his younger brother, Dave Wood. “He made the decision to turn his estate over to the Initiative Foundation to help students in the Little Falls area. Today, the Mark Wood Foundation provides jackets, books, band instruments, activity fees and photo supplies for kids. It also helps send students to camp.” Wood’s siblings agree that their brother would be mortified with all the attention his generosity has received. “In his final days, we talked about the legacy he was leaving, but he didn’t want to hear it,” said Dave Wood. “Mark never set out to leave a legacy. He didn’t need publicity or a pat on the back. His payoff was making a difference for kids. Nothing else mattered.” IQ: What made Mark such a special person? DW: Mark made a deliberate decision not to work 60 hours a week. Accumulating wealth would get in the way of what he believed was his mission in life and that was helping others. He didn’t get on a soapbox. Mark led by example. IQ: Did his final gift surprise you? JAJ: Our brother’s generosity didn’t surprise any of us. He was always looking out for other people and was drawn to the neediest. Mark caught the fever, and he touched a lot of people. He was great for pushing you past where you were comfortable, but he was always there to encourage you. Mark lived big. IQ: What did he get out of it? DW: The payoff for Mark was making a difference in a kid’s life. He told me about a student who had failing grades in elementary school. When the boy got an “A,” it was a joy for Mark. IQ: What lesson can we learn from Mark’s life? JAJ: Mark would say you can’t run the race if you don’t take the first step. The message is, you don’t have to be Bill Gates and have two hundred billion dollars to make a difference. Mark gave what he had, and he’s more alive today than ever. IQ 30 Initiative Quarterly Magazine
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“Our brother’s generosity didn’t surprise any of us. He was always looking out for other people and was drawn to the neediest.” —Jackie Ann Jackson
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By Lawrence Schumacher â&#x20AC;˘ Photography by John Linn
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Like any other investment decision, central Minnesota businesses employ strategies for their charitable gifts. Once each week, staff from Baxter-based Mid-Minnesota Federal Credit Union teach financial education classes at the local high school. They also offer free seminars to the public on financial planning. At St. Cloudbased Marco, which provides technology and other services to businesses, employees offer discounted tech support to nonprofits. They also loan out laptops and projectors and give free or discounted copy and print services. Those are just a few examples of how central Minnesota companies support their communities through business giving, a term that used to refer mostly to cash donations to charities. While businesses still believe in giving money—according to the Minnesota Council on Foundations, Minnesota businesses gave $669 million in grants from June 1, 2008 to May 31, 2009, a 14 percent increase over the previous year—as needs grow, they’re stepping up in all kinds of creative ways to help their communities. “There are a lot of requests out there and a lot of them are worthy,” said Chuck Albrecht, the CEO and president at MidMinnesota. “Nobody has enough money to say yes to all of them. But there are ways for businesses to do more than just donate cash, if you have a good plan in place.”
CHUCK ALBRECHT, CEO, MID-MINNESOTA FEDERAL CREDIT UNION: “There are ways for businesses to do more than just donate cash.”
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JEFF GAU, CEO, MARCO: “You have to think about the personality of your company and who buys your goods and services when you give to causes. It's an extension of a company's marketing efforts.”
Companies who want to create or expand their business giving programs can benefit from taking time to analyze and develop a comprehensive plan that incorporates donations of cash, services and employee time, said Jackie Reis, who heads the Minnesota Chamber of Commerce’s Business Gives program.
Getting Started
While businesses still believe in giving money, they’re stepping up in all kinds of creative ways to help their communities.
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For small business owners in outstate Minnesota communities, saying no to requests for help can be hard because they come from friends, neighbors and people they see every day. The Minnesota Business Gives program helps educate business owners who want to support their communities on strategies for smart giving—what Reis describes as “when to say yes and how to say no.” The program’s origins go back to an effort begun in 2001 that included the Chamber, the Initiative Foundation and several other foundations interested in promoting business giving. The need for these services continues to be profound. “A small percentage of businesses have written guidelines or criteria for who to support and very few have a budget for their giving,” said Reis. The Initiative Foundation also has many resources available to help small businesses figure out a giving program, said Kathy Gaalswyk, the foundation’s president.Those services can include establishing business giving funds, advising businesses in the grantmaking process and raising questions to inform and educate businesses on setting up giving programs.
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When to Say “Yes” and How to Say “No” Six tips for businesses wanting to give back
“In smaller towns, especially where resources are limited, employers play a pivotal role in improving the health of their communities through their giving.” — Kathy Gaalswyk, Initiative Foundation president
• Make the time. Set aside time each year to create an annual plan for your giving. Include cash, donated products and services, volunteer time and employee involvement. • Identify your values. Understand why you are giving and what you want to accomplish with your donations. Determine your company’s priorities for your philanthropy. Decline funding requests that fall outside these priorities. • Involve employees. Consider forming an employee giving committee to advise financial contributions. This can promote a sense of pride, teamwork, and awareness of community needs. • Plan. Establish a process, procedures, and a budget and follow them consistently. • Be transparent. Consider sharing your plan with your employees and your community. • Come back. Review and revise your plan annually.
“Sometimes it’s cash, sometimes it’s allowing employee volunteers time to work on projects, sometimes it’s offering the use of your building for a meeting or your products or services,” Gaalswyk said. “In smaller towns, especially where resources are limited, employers play a pivotal role in improving the health of their communities through their giving.” Having a good giving plan can also help businesses avoid controversy. Reis advises business owners to separate their own personal interests from what types of charitable giving fit their companies. It’s a sentiment echoed by Jeff Gau, CEO at Marco. “You have to think about the personality of your company, who buys your goods and services, when you give to causes,” he said. “It’s an extension of a company’s marketing efforts. We like to do what our customers like us to do.” For that reason, Marco stays away from donations to political and religious groups, aside from humanitarian and service organizations such as Catholic Charities.
Better Business At Marco, “doing well and doing good,” has been part of the company’s culture since it was founded in St. Cloud in 1973, said Gau. The company was one of a handful in outstate Minnesota that qualified for the Minnesota Keystone Program, which recognized companies that gave five percent or more of their pretax profits back to the community. The employee-owned company won the 2009 Business Award
Sources: Minnesota Chamber of Commerce and Initiative Foundation.
in Philanthropy from the Central Minnesota Community Foundation, and in 2008 was recognized by the United Way of Central Minnesota with a Community Builder award. A committee of seven employees that is chaired by a non-managerial employee meets monthly to decide on charitable requests of $500 or less, drawing on a budget based on setting aside a percentage of the company’s pretax profits. For larger contributions, Marco’s management team reviews long-term commitments, employee-suggested projects and new community undertakings to see if they fit within the company’s charitable emphasis on support for youth. Mid-Minnesota Federal Credit Union decentralizes its giving, allowing branches in Cass, Crow Wing, Douglas, Morrison, Todd and Wadena counties to decide how to respond to local requests for donations of $500 or less. “It seems appropriate to tie the levels and decision-making to our membership,” Albrecht said. “As our membership grows in a community, we’re able to give more back to it and they have more control over how it’s spent.” The credit union’s philanthropy guidelines emphasize support for education and families, especially other organizations that provide services to individuals and communities in which they have branches, Albrecht said. C O N T I N U E D O N PA G E 4 8
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Betty and Jack Thomas live on what may be the most beautiful parcel of land in Cass County, with 1,000 feet of shoreline on Mann Lake, towering white pines and a 100-year-old log cabin. Their business, Mann Lake Ltd., sells beekeeping supplies all over the world. Having no heirs, they wanted to find a way to leave their assets in good hands when they died, and use them wisely now. With some imaginative thinking, the Thomases forged an elegant plan. To secure Mann Lake Ltd., the Thomases sold the company to their employees through an ESOP (employee stock ownership plan). They then gave a portion of their land to the Initiative Foundation, realizing a sizeable tax deduction. (They will donate the remainder as property values rise.) By paying rent to the Foundation, now the landowner, the Thomases can continue to live on the land they love. At the end of their lifetimes, the Foundation will sell the land and give the proceeds to help support a nonprofit animal shelter that the Thomases and others in the community are now creating. Called Paws and Claws (pawsandclawsanimalshelter.org), it will be the first refuge for homeless animals in Cass County, one of the few counties in the state without such a resource.
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BETTY THOMAS: “We knew we wanted to do something with our land and it was really important that our estate benefit the animals of Cass County.”
Planned as a state-of-the-art facility, Paws and Claws will also board pets and train helper dogs for disabled veterans. The Thomases are currently part of a volunteer effort to raise funds to build, staff and maintain Paws and Claws. “We knew we wanted to do something with our land and it was really important that our estate benefit the animals of Cass County,” said Betty. “The foundation made it very easy to accomplish both.”
More Bang than the Buck
This kind of creative generosity is capturing the imagination of donors of many different means and causes. Whether it’s pooling funds to endow a community theater or forming a trust to support rural renewal, people are finding novel ways to make meaningful, lasting gifts while reducing their taxes and often providing for themselves. “For the donor, these less common ways of giving have opened up a whole world of possibilities,” said Craig Wruck, vice president for university advancement at St. Cloud State University and a national expert on gift planning. “Most donors don’t think they can afford to be as generous as they’d like to be, but with these alternatives, they end up making the gift they hoped to make.”
Rewards for Doing Good
If the term “annuity” is in the same category for you as “quantum” and “anaerobic,” you’re not alone. A charitable gift annuity is actually a simple tool that allows a donor to increase a nonprofit organization’s future windfall while being guaranteed a lifetime income. CONTINUED ON PAGE 52
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Setting up a charitable gift annuity with the Initiative Foundation has allowed Pease resident Gloria Cessna to earn a lifetime income while supporting the causes she holds dear.
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CASH
A simple way of giving— you can see the results of your generosity and realize an immediate tax deduction. But giving in other ways may result in greater tax advantages.
STOCK
Donating publicly traded stock you’ve owned for more than one year exempts you from paying capital gains taxes and
BEQUESTS
A charitable bequest in your will or living trust is entitled to an estate tax deduction for the gift’s full value.
BENEFICIARY DESIGNATIONS
Name a charity as a beneficiary of your retirement plan, life insurance, or insurance annuity assets.
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earns you a federal income tax deduction based on its current value.
RETIREMENT PLAN ASSETS Leaving retirement plan assets in your final estate makes them subject to income taxes totaling up to 35 percent. A charity can receive the full or partial assets tax-free.
LIFE INCOME GIFTS
(annuities, charitable remainder trusts, etc.) These gifts allow you to give a sum of money to a charity in return for a guaranteed annual income. You receive an income tax deduction, and the charity receives the remaining balance after your lifetime.
SAVINGS BONDS
Savings bonds are normally taxed when they’re cashed in, reissued to another person, or they reach final maturity. If you leave bonds to a charity, you can reduce or eliminate these tax burdens.
REAL ESTATE
Donating real estate property eliminates the capital gains tax owed if you were to sell it. You
MEMORIAL AND HONORARY GIFTS
Give to a nonprofit directly or through your will to honor a loved one.
ENDOWED FUNDS
(or Donor-Advised Funds) Usually established within a foundation, an endowed fund is like a charitable savings account. The principal is never spent, and only annual investment earnings are used to support specific charities.
receive an income tax deduction equal to the property’s fair market value, and the gift reduces your future taxable estate.
LIFE INSURANCE
Name a charity as the primary beneficiary of your policy or assign it ownership, and receive an income tax deduction and a reduced estate tax liability.
Donors may make recommendations regarding how much, how often, and to which organizations the funds are granted.
CHARITABLE LEAD TRUST
Donor-created trusts that make payments to a charity for a defined period of time. Assets are eventually distributed back to the donor or others. They provide the donor with gift or estate tax deductions.
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Every donor has a dream. We have the privilege of bringing it to life. Your legacy begins here. Help people to help themselves through the Initiative Foundation endowment, or create a fund to nourish the local causes that nourish you. We make it easy. You make it possible.
Donor-advised funds Corporate giving funds Community funds Agency/association funds Scholarship funds Memorial funds
877-632-9255 | www.ifound.org
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Initiative Foundation
July 1, 2007 to March 31, 2011
Endowment & Program Supporters Platinum Keymaster ($100,000 or more) Bush Foundation Corporation for National and Community Service Department of Health & Human Services Arnold & JoAnn Johnson The McKnight Foundation Minnesota Public Radio Otto Bremer Foundation Southwest Initiative Foundation Jack & Betty Thomas USDA Rural Development
Gold Keymaster ($50,000 or 99,999) Gloria M. Cessna Center for Rural Policy & Development Connexus Energy East Central Energy Emma B. Howe Memorial Foundation, a fund of The Minneapolis Foundation Beverly M. Johnston Minnesota Power The Minneapolis Foundation State of Minnesota, Department of Commerce
Keymaster ($25,000 to 49,999) Anderson Brothers Construction Company Blandin Foundation City of Little Falls Communications Alternatives, a subsidiary of Benton Cooperative Telephone Co. County of Benton County of Cass County of Crow Wing County of Isanti County of Morrison
“
T
he Initiative Foundation is the embodiment of the phrase “Think Globally, Act Locally.” The Initiative Foundation gives us the opportunity to do our part in creating a better world by creating better communities. —Dan Meyer, CEO, Atomic Learning
County of Sherburne County of Stearns Eich Motor Company The Jay & Rose Phillips Foundation Little Falls Scholarship Fund Medica Foundation Morgan Family Foundation Schlagel, Inc. Stearns Electric Association Fran & Mil Voelker West Central Telephone Association
Portal ($10,000 to $24,999) The Anderson Family Legacy Foundation Agency Benton Telecommunications Foundation Blue Cross Blue Shield of Minnesota Foundation Bremer Banks City of St. Cloud City of St. Michael Consolidated Telecommunications Company County of Chisago County of Pine County of Wright diversiCOM/Melrose Telephone Company First National Bank of Milaca
Funders’ Network for Smart Growth and Livable Communities Kathy & Neal Gaalswyk Granite Equity Partners, LLC Kuepers, Inc. Architects & Builders Lake Region Conservation Club The Laura Jane Musser Fund Manufacturing Fund of Central Minnesota Mid-Minnesota Federal Credit Union Loren & Kathryn Morey Northwest Area Foundation Fund of The Minneapolis Foundation Robins, Kaplan, Miller & Ciresi LLP Foundation for Education, Public Health & Social Justice, a supporting organization of The Minneapolis Foundation SPEDCO Economic Development Foundation of The St. Paul Foundation Stearns-Benton Employment & Training Council U.S. Bancorp Foundation Eugene & Bernadine Waldorf Estate of Mark Wood Xcel Energy Foundation
Gateway ($5,000 to $9,999) AgStar Fund for Rural America / AgStar Financial Services American Heritage National Bank
Bank of the West Cambridge Medical Center CentraCare Health Foundation Central MN Jobs & Training Services Charles & Barbara Christian City of Big Lake City of Cambridge City of Long Prairie City of Melrose City of Milaca City of Mora City of Pierz City of Sartell City of Sauk Rapids City of Staples City of Wadena Clow Stamping Company County of Kanabec County of Mille Lacs County of Todd County of Wadena Cuyuna Regional Medical Center Donald & Deanna Engen Essentia Health—St. Joseph’s Medical Center Gray Plant Mooty Lee & Jan Hanson Lakeland Mold Company, Inc. Lakewood Bank, Brainerd/Baxter
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F
ollowing a devastating tornado in June of 2010, we were a community in crisis. The foundation made resources available immediately to address our critical and basic needs. We are deeply grateful for their continuing efforts to support the long-term effort of rebuilding Wadena.” —Wayne Wolden, City of Wadena Mayor
Larson Boats, LLC LarsonAllen, LLP, St. Cloud Little Falls Area Chamber of Commerce Marco, Inc. Mardag Foundation Minnesota National Bank & Agency NOR-SON, Inc. The Hyduke Foundation of The St. Paul Foundation on behalf of Peoples Bank of Commerce Pequot Tool & Manufacturing, Inc. Pine Country Bank Schlenner Wenner & Co. Stephen & Gwyn Shelley Everett & Rita Sobania St. Cloud Morning Optimist Club The Sheltering Arms Foundation Viking Label & Packaging, Inc. Widseth Smith Nolting and Assoc., Inc. Sharla & the late Warren Williams Woodland Bank Xcel Energy, St. Cloud
Corridor ($3,000 to $4,999) Citizens State Bank City of Annandale City of Baxter City of Clarissa City of Cokato City of Crosslake City of Lake Shore City of Lindstrom City of Maple Lake City of Nisswa City of Paynesville City of Pine City City of Princeton City of Sandstone City of St. Joseph DeZURIK, Inc. Gold’n Plump Poultry Curt & Mary Beth Hanson
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Happy Dancing Turtle Don Hickman & Sandra Kaplan Matt & Jeanne Kilian Lindar Corporation William & Diane Scarince Shelley Funeral Chapels, Inc. Thelen Heating & Roofing, Inc. Todd-Wadena Electric Cooperative Venture Allies LLC
City of Isanti City of Monticello City of Montrose City of Motley City of Onamia City of Pequot Lakes City of Randall City of Rice City of Rock Creek City of Rockford City of Rockville Passage ($1,000 to $2,999) City of Royalton Anakkala, Berns, & Co, PLLP City of Rush City Barb & Duane Anderson City of Sebeka Keith H. Anderson City of Swanville Atomic Learning, Inc. City of Verndale Mayuli & James Bales City of Waite Park BankVista City of Walker Steven & Ann Benda City of Waverly Brainerd Lakes Area Chambers of City of Wyoming Commerce Christopher & Amber Close Family Lynn & Darren Bushinger Fund of the Central Minnesota Central Minnesota Community Foundation Community Foundation Central MN Habitat for Humanity Gloria L. Contreras-Edin City of Albany Crow Wing Power City of Albertville D. J. Bitzan Jewelers, Inc. City of Avon DeGraaf Financial, Inc. City of Backus Richard & Kerwin Donat City of Becker Donlar Construction City of Belgrade Linda Eich DesJardins & Joseph DesJardins City of Bertha Farmers & Merchants State Bank City of Braham Chris Fastner & Kathy Hakes-Fastner City of Breezy Point First National Bank of Walker City of Cass Lake Dan & Annette Frank City of Chickamaw Beach Pat Gorham City of Cold Spring Great River Energy City of Eagle Bend David Gruenes City of East Gull Lake Cathy Hartle & Doug Larsen City of Eden Valley HBH Associates, LLC. City of Emily Anita & Brad Hollenhorst City of Fifty Lakes Hunt Utilities Group, LLC City of Foley IPEX, Inc. City of Garrison John Kaliszewski City of Hinckley
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Paul & Shirley Kleinwachter Lawrence & Joyce Korf Kristine & Kenneth Kowalzek Lakeland Incorporated Lakes Printing LarsonAllen LLP, Brainerd Mark A. Lease Little Falls Machine McDowall Company Eugene Menzel MINPACK, Inc. Glen F. Palm, Ph.D. Northern Technology Initiative Gladys & the late Leonard Paulson Plaza Park Bank Dr. Earl H. Potter, III Mary L. Sam John & Bonnie Schlagel Dorothy & Mike Simpson The Moran Family Fund of the Central Minnesota Community Foundation Rockwoods Grill & Backwater Bar David Toeben St. Gabriel's Hospital Sandy Voigt Dr. George & Raquel Wallin The Whitney Foundation
Access (Up to $999) AccountAbility Solutions, LLC Advance Design & Systems, LLC Adventure Creative Group AgStar Financial Altobell Imagery, LLC Amcon Block and Precast, Inc. Annandale Community Team Arnold S. Johnson Enterprises, LLC Atscott Manufacturing Co., Inc. Mary & Joe Bauer Better Way Foundation, Inc. Dr. & Mrs. Jerry Bobeldyk Katy & Steve Botz Lyle & Patricia Bourdon Brain Magnet Industries Brainerd Daily Dispatch Brainerd Lakes Area Economic Development Corp. Brainerd Public Schools Bromelkamp Company, LLC Robert J. Bunger Cambridge Launderers & Cleaners, Inc. Cambridge Orthodontics, P.A. Bethany Carlton Central Minnesota Manufacturers Assoc. Central MN Housing Partnership City of Bock City of Bowlus City of Boy River City of Buckman City of Burtrum
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City of Center City City of Chisago City City of Clearwater City of Crosby City of Deerwood City of Grasston City of Grey Eagle City of Hackensack City of Harding City of Henriette City of Hewitt City of Holdingford City of Isle City of Jenkins City of Kimball City of Longville City of Menahga City of Nimrod City of Ogilvie City of Pease City of Pillager City of Quamba City of Remer City of Richmond City of Riverton City of Ronneby City of South Haven City of St. Martin City of St. Rosa City of Taylors Falls City of Upsala City of Wahkon Close-Converse, Inc. Coborn's, Inc. Cold Spring Area Chamber of Commerce Coldwell Banker Results Helen L. Comnick Connections, Etc. Continental Press, Inc. Cook's World of Water Cross Lake Association of Pine County Donald & Carol Crust Sara E. Dahlquist DAKA Corporation DES OF ST. CLOUD, INC. Edin Consulting Susan Fairchild & Steven Winn Faith In Action-Cass County First National Bank of Cold Spring Margaret Flolid Bruce & Mary Fogle Curt & Judy Forst Frandsen Bank & Trust Stefan & Michele Freeman Robert & Barbara Gale Ray & Gwynne Gildow GiveMN Virginia Glenn Sharon & Chuck Gottwalt Grand View Lodge
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Hallett Community Center Foundation Ronald & Barbara Hedlund Jack Heule & the late Kathy Bussard Tricia & John Holig Keith & Laura Beckman Horizon Bank Jolene Howard Paul & Lynn Hunt Peter & Lynne Jacobson Al & Lynda Johnson Diane C. Johnson Sue Johnson Jerome E. Johnson Kim & Sally Johnson Lois & Len Kallsen
“
Walter & Adele Munsterman Dana Nelson Timothy C. Nelson North American State Bank Northern Star Therapy Northway Group, Inc. Louise Nysather Robert & Marilyn Obermiller Dennis & Evie O'Donnell Kristin & Daniel Olson The Order of Saint Benedict/ Saint John’s Abbey The Partnership Pine City Area Chamber of Commerce Pine City Early Childhood Coalition
Stearns, Inc. Charles & Penny Swanum Swanville Women's Civic Club Jim & Liz Thares Christopher & Beth Thorson Tri-County Abstract & Title Guaranty, Inc. Timothy & Carrie Tripp Valaurie G. Trumm Dianne C. Tuff Upfront Consulting Joseph & Diane VanBeck Ashley Vargo-Guggemos George & Elizabeth Vilfordi Griff J. Wigley Paul & Alice Wirth
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appreciate what the Initiative Foundation is not. It is not a bureaucracy that eats up a large share of funds trying to accomplish a task. It is not distant from the donor or the recipient. The Initiative Foundation is local and collaborative. I was witness to the passion of the people in the organization, and they sincerely believe in what they are doing.” —Bill Scarince, President, W.F. Scarince, Inc.
Kanabec Hospital Linda Kaufmann Ronald & Judith Kidder Norman & Julie Krause Charles E. Krysel Irene Kurpius-Lindvall Gary W. Y. Kwong Lake Country Journal / Evergreen Press Lakewood Health System Janet Leach Colleen H. LeBlanc MaryAnn & Pete Lindell Line's Building Center, Inc. Little Falls Orthopedics Paul & Joan Lombardi Long Prairie Packing Company Carol Lovdahl Mahowald Insurance Agency, LLP Martin & Betsy Mahowald Robert McLean Diane M. Mendel Ronald & Barbara Middelstadt Mille Lacs Band of Ojibwe Minnesota Business Finance Corporation Municipal Development Group
Pine River Chamber of Commerce Pine River-Backus School District Pine Technical College Geri Pohlkamp Portage Crooked Lakes Improvement Assn. Leah & Dennis Posterick Donald F. Quaintance Randall State Bank Range Printing Katie & Tom Riitters Rural Renewable Energy Alliance Ann M. Sand Sauk Rapids-Rice School District MaryAnn Schefers Rob & Michelle Schmieg Julie Schueller The Selective Group Foundation Shing Wako Resort and Campground Jana & Michael Shogren Short-Elliott Hendrickson, Inc. Shelley A. Shreffler St. Cloud Area Chamber of Commerce St. Cloud State University Foundation State Bank of Cold Spring State Bank of Kimball
Dave & Luann Wood Wright County Human Services Tina Yorek Al & Carol Zahn
COMMONWEALTH Majuli & James Bales Mary & Joe Bauer Lynn & Darren Bushinger Linda Eich DesJardins & Joseph DesJardins Richard & Kerwin Donat Donald & Deanna Engen Kathy & Neal Gaalswyk David Gruenes Curt & Mary Beth Hanson Lee & Jan Hanson Cathy Hartle & Doug Larsen Don Hickman & Sandra Kaplan Arnold & JoAnn Johnson Matt & Jeanne Kilian Lawrence & Joyce Korf Gladys & the late Leonard Paulson Bill & Diane Scarince John & Bonnie Schlagel Stephen & Gwyn Shelley CONTINUED ON NEXT PAGE SPRING 11
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Everett & Rita Sobania Eugene & Bernadine Waldorf Sharla & the late Warren Williams
TRIBUTES In Memory of Ian Joshua Miller Robert J. Bunger In Memory of Harry Nysather Louise Nysather In Memory of Robert Westvig Joanne B. Burdick Ronald & Barbara Middelstadt Curtis & Margaret Powell In Memory of Olivia Gilbertson Janet Leach
BRAINERD | BAXTER LEGACY GIFTS
MINNESOTA’S 4TH OF JULY CAPITAL Arts in the Park July 2, 2011
Reserve your parking spot NOW!
Celebrating 37 Years of Handmade Art in the Brainerd Lakes Area!
Come and go as much as you want for the 4th of July activities.
140 ARTISTS
PRICES: $15.00 in advance, or $20.00 on the day of July 4. Choose from East River Road or 5th Street.
ENTERTAINMENT: Pat Surface – Folk Singer Paul Imholt – Dulcimer Mike the Banjo Man Dave Herzog – Steele Drums
Parking
Call and make your reservation TODAY! We except cash, check, or credit card.
Please call Brainerd Community Action at 218-829-5278 Visit our website for more information www.BrainerdCommunityAction.org 1
We keep active adults in step... Dancing is just one of the over thirty activities that we have to offer seniors in our community. Our activities are supported in part by donations from members, businesses and others who support our mission. For a tour or additional information, please stop in or call.
Lakes Area Senior Activity Center 803 Kingwood Street, Brainerd, MN 56401
218-829-9345
44 Initiative Quarterly Magazine
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Gloria M. Cessna Gladys M. Paulson Fran & Mil Voelker
TURN KEY FUNDS Alternative Sources of Energy Fund Anderson Brothers Family Fund Betty Ford Menzel Scholarship Fund Beverly M. Pantzke Scholarship Fund Bob & Pauline Johnson Memorial Scholarship Fund Bob Wright Memorial IFPA Scholarship Fund Bob & Marsha Bunger Endowment Fund Crosby Ironton Public Schools Foundation Fund Crow Wing Environment Protection-Advised Fund Family Farm Fund Friends of Sherburne National Wildlife Refuge Fund Granite Equity Fund Greater Pine Area Endowment Isle Area Community Foundation John & Bonnie Schlagel Endowment Lake Region Conservation Club Fund Leech Lake Area Watershed Foundation Little Falls Scholarship Fund Menahga Loan Fund Minnesota Pioneer Park Endowment Fund Morrison County Area Foundation Hanowski Family Fund Mark Wood Foundation Paws & Claws Animal Shelter Princeton Loan Fund Rum River Community Foundation St. Cloud State University Microlending Program Fund Shawn Grittner Scholarship Memorial Fund Staples Community Foundation Julius & Tracy Kurpius Fund
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“Through the Initiative Foundation we are teaching our children about the significance of “giving back,” and we believe that is the most important legacy we can provide for them.”
—Mel and Jeanette Beaudry, Mel and Jeanette Beaudry Fund
www.mnpowerfoundation.org
(established in 2003)
Elk River, Minn.
Loren & Kathy Morey Family Fund Staples-Motley Dollars for Scholars Fund Staples-Motley Early Childhood Project Staples Knights of Columbus-Lloyd & Marion Giddings Scholarship Fund Sacred Heart-Knights of Columbus Fund Three Rivers Community Foundation Archie & Isabelle Powell Family Memorial Scholarship Fund Friends of the Elk River Library Fund Mel & Jeanette Beaudry Fund Josh Richardson Youth Arts Fund Zimmerman PTO-Lions Scholarship Fund The Thrive Fund Todd-Wadena Loan Fund Trees for Wadena Fund Veterans Art Project Fund Wadena Tornado Relief & Business Loan Funds William & Ethel Nelson Zimmerman Memorial Scholarship Fund Wright County Historical Society IQ
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The Friends of Nisswa Lake Park are raising funds to build the infrastructure for our lakeside park on Nisswa Lake in the City of Nisswa. • 2.3 Acre Park Area • Located across 371 from Downtown Nisswa Square • Swimming Area • Fishing Pier • Boat Slips for Boat Docking • Walking & Biking Trail connecting to the Paul Bunyan Trail
• Pavilion area for weddings and special events • Mature White Pines • Picnic area • Beautiful Sunsets • Overlooking Nisswa Lake
For more information contact the Friends of Nisswa Lake Park at lehmanconsulting@nisswa.net; or contact Brian Lehman, Nisswa Mayor, 218-838-4158; Erin Herman, Nisswa Elementary School Principal, 218-821-3760; Eric Wiltrout, Lakewood Bank, 218-892-0532; or Jan Pierce, Nisswa P&Z Commission, 218-963-7394. Checks should be made payable to “BLA Community Foundation” with a notation of “Friends of Nisswa Lake Park.” Send your tax-deductible donation to The Friends of Nisswa Lake Park, PO Box 262, Nisswa MN 56468.
46 Initiative Quarterly Magazine
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g a Legacy for Future Generations. Leavin
.
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Present Tense, continued from page 35
Weâ&#x20AC;&#x2122;re ready. Letâ&#x20AC;&#x2122;s grow!
Expanding Business, Building Community, and Growing Jobs in Crow Wing County.
218.828.0096 | www.growbrainerdlakes.org
Hunt Utilities Group (HUG) in Pine River set up a separate foundation called â&#x20AC;&#x153;Happy Dancing Turtleâ&#x20AC;? that supports sustainable communities
Focused Philanthropy Hunt Utilities Group in Pine River focuses its philanthropic efforts on community and economic development, including clean and renewable energy development, said Lynn Hunt, company cofounder and chairwoman. The company even set up a separate foundation, Happy Dancing Turtle, that supports food and water, energy and environmental efforts. The company was a co-sponsor of an Initiative Foundation forum in February that looked at long-term issues affecting the region. It also sponsors clean energy conferences, community gardens, farmers markets and other efforts that promote sustainability. Every giving avenue is planned out in advance.â&#x20AC;&#x153;We analyzed what we spent in the past, looked at which ones we wanted to continue to sponsor,â&#x20AC;? she said. â&#x20AC;&#x153;We looked at specific amounts to set aside for employee matches, and looked for a percentage for new giving.â&#x20AC;? Most companies donâ&#x20AC;&#x2122;t need to be motivated to give to charitable causes, according to Reis. Instead, they need to see how they can manage the requests they get and decide how much they can give. Every company has different needs and goals for their giving programs, but foundations can make it easier for businesses to give back to
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and environmental preservation. Pictured are company cofounders Lynn and Paul Hunt.
the community, said Lee Hanson, Initiative Foundation board chair. Establishing an endowed fund can help a company maintain a steady charitable presence through good years and bad. “The greatest advantage for establishing an endowed fund is flexibility,” Hanson added. “Management can choose to grow their fund at year-end when net profits are known, and they also have time to be strategic with their charitable distributions. That way, you’re not playing ‘beat the clock’ in late December, and you have the option of involving an employee team.” Creating a fund before retiring or selling a business is a popular way for philanthropic business owners to direct more of their company’s worth to charity without having to pay taxes on the fund. Companies don’t generally claim state tax deductions for their philanthropy, preferring to write them off as a business expense, Reis said. The additional paperwork involved in deductions often makes it impractical for small businesses, which are the majority of the participants in the Minnesota Business Gives program. Reis recommends companies develop a giving plan, review it every year to look back at what they’ve done, and adjust it to look ahead to the next year. “Skilled business owners give from their hearts, but they write the checks with their heads,” Hanson said. IQ
STEVE ENNIS
Director of Secondary Lending mortgage@lakewoodbank.com 218.833.8510 | lakewoodbank.com
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A community-driven, university-assisted partnership to create a plan that integrates housing, transportation, land use, and economic development. The process develops strategies to p r o v i d e opportunities for the region and improve the quality of life for all residents in Cass, Crow Wing, Morrison, Todd, and Wadena counties.
F O R M O R E I N F O R M AT I O N
SCHEDULE FOR THE 2 YEAR PROJECT Kick-off meeting .......... February 23, 2011 Round 1.................... December 13, 2011 Round 2 .............................. May 8, 2012 Round 3 .......................... June 12, 2012 Final meeting ................ August 14, 2012
www.incommons.org or www.regionfive.org The work that provided the basis for this publication was supported by funding under an award with the U.S. Department of Housing & Urban Development. The substance and findings of the work are dedicated to the public. The author and publisher are solely responsible for the accuracy of the statements and interpretations contained in this publication. Such interpretations do not necessarily reflect the views of the Government.
Improving the Way You Look at Life
Dr. David Pelowski
Dr. Michael Marvin
Comprehensive Eye Examinations, Complete Contact Lens Care, Childrenâ&#x20AC;&#x2122;s Vision Care, Diagnosis & Treatment of Eye Diseases, The Best in Eyewear
Brainerd, 218-829-1789, 1-888-420-2015 Nisswa, 218-963-2020, 1-877-963-2010 Pine River, 218-587-2020, 1-888-970-3937
50 Initiative Quarterly Magazine
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Kids & Horses
Let your kids experience the joys of learning about horses during our Little Spirits Summer Day Camp. Riding, horse care and education, and fun activities for ages 5-12. Visit our Web site for more information.
www.SpiritHorseCenterInc.com (218) 825-4944 Info@spirithorsecenterinc.com
Register today! Camps fill fast!
(or balance your checkbook, pay your bills, transfer money... you get the idea.)
Toni Wasilensky is our on-site professional trainer and instructor, specializing in dressage.
Safe and secure access to your accounts wherever you roam. Kayaking or just running errands, we’re always available. Our user-friendly website makes online banking easy
brainerdsavings.com
Lakeshore Conservation Club is the Brainerd Lakes Area choice for Trap & Skeet Shooting. BRAINERD OFFICE 524 South 6th Street
Trap & Skeet Shooting • Rifle, Pistol & Archery Range • Classes & Private Lessons Birthday Parties, Bachelor Parties, Private Parties • Open to the Public Family ($40 annually) and Corporate Membership Available
BAXTER OFFICE 14244 Dellwood Drive
218.829.5183 | brainerdsavings.com
Serving the Brainerd Lakes Area for more than 50 years. • 2011 Memberships Available • 218-963-4003 | www.lakeshoregunclub.com | 9911 County Road 77, Nisswa
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Generosity, continued from page 39
The
B usiness DOCTOR
FIRST NATIONAL BANK OF MILACA
• Marketing & Advertising
Beyond Cash
• Business Reviews & Assessments • Business Planning & Development • Management Services & Strategizing • Public Relations & Communications
L& EA SHS OMC I ATA NE S C O N S U LT I N G , I N C .
Keeping Your Business Healthy
BRIAN LEHMAN cell. 218.838.4158 • nisswa.com lehmanconsulting@nisswa.net
52 Initiative Quarterly Magazine
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Gloria Cessna lives in Pease, Minn., about 33 miles east of St. Cloud. At 81, she admits that she has “carved out a very good life” for herself. Eleven years ago she received an inheritance from her mother, and being a big believer in “sharing blessings,” she decided to put some of that money into charitable gift annuities with the Initiative Foundation. “They are really painless to establish,” Cessna said. With an annuity, donors give money to a nonprofit, a portion of which is taxdeductible. The organization typically invests the gift and pays the donor a guaranteed lifetime income based on their age—the older the person, the higher the annual percentage. Annuity payments can often exceed returns from CDs, savings accounts, or other fixed income investments, said Mary Bauer, Initiative Foundation development officer. “These vehicles prove that you don’t have to be wealthy to be a philanthropist,” Bauer added. “Sometimes, you just have to be open to giving in ways other than writing a check.” At the end of the donor’s lifetime, the remainder of the gift reverts to the nonprofit. “I have the joy of knowing that it will be used by a responsible group of people for the good of many,” said Cessna. “And I like the fact that I regularly receive a check. It’s one of those win-win situations.”
“Community Banking Since 1897”
MILACA - ISLE - GILMAN 190 2nd Ave SW, P.O. Box 38 Milaca, MN 56353 (320) 983 - 3101
“Our goal is financing to help our communities grow”
www.fnbmilaca.com
When it comes to charitable donations, cash may be the most expensive way for a person to give. “For me the great untold story in charitable giving is that if you own something that is worth more than you paid for it, it’s a more advantageous gift than cash,” said Wruck. A charitable gift of appreciated stock, for example, allows the donor to avoid capital gains tax that would have to be paid if he or she were to sell the stock or pass it on in a will. That capital gains savings is greater than the tax credit the donor would have received by donating cash. “Donors tend to look at charitable giving by looking at their current budget,” said Wruck. “But we encourage them to think in terms of asset wealth in addition to cash wealth.”
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“These vehicles prove that you don’t have to be wealthy to be a philanthropist.” Mary Bauer — Initiative Foundation —
A More Common Vehicle
An asset can be stocks, a retirement policy, or a vintage boat. But even an asset as modest as a used car can change a life. The nonprofit Free to Be, Inc. (freetobeinc.org) gives donated, mostly used cars to people in Anoka County who are living in poverty and need reliable transportation to get a job and stay employed. A few months ago, a young woman walked into the offices and handed executive Director Cliff Korkowski a set of keys. They were for the car Free to Be had given her five years earlier when she was unemployed and living in a rented trailer. “She told me that car had allowed her to get a job at the University,” said Korkowski. “Eventually, she was able to buy a house and her own car. Now she wanted to help someone else.” Korkowski says Free to Be has had longterm success because donors and volunteers see tangible results. “People know that others in their community are benefitting from their generosity and it makes them feel good about giving,” he said. Explaining these less conventional ways of giving used to fall to “a sort of rarefied priesthood” among gift officers, said Wruck. But now charities are making them even more accessible and easy to achieve. “This kind of giving may take slightly longer to explain and have a few more steps involved,” said Wruck. “But if the donor and the charity keep in mind that they’re both committed to the same cause, they can get there.” IQ
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Wouldn’t it be nice to have someone to share your technology problems with? Someone who listens long enough to really understand your business issues? With Marco, the conversation isn’t about us. It’s about you and how you do business. We help you connect the right technology to the right business objective. We believe that listening is one of the most important services we can provide. If you’re having technology issues, we’re all ears.
Find out how Marco has helped other organizations apply technology to improve how they do business. Read their stories at www.marconet.com/ListenLouder marconet.com
We know that technology can be . . . challenging. We’re here to help. This box of boxes and squiggles and squares is called a QR code, and it truly is a powerful form of new technology. Want to learn how to use them and what they’re all about? Logon to: rangeprinting.com/pages/QRCode
54 Initiative Quarterly Magazine
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Make the Most of Your
GIVING
Z Z Z Z
Make strategic investments in causes you care about. Simplify giving with a donor advised fund. Maximize the tax advantages of your giving. Leave your local charitable legacy.
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IQ&A with Elizabeth Foy Larsen, Managing Editor
National author and researcher Penelope Burk reveals what every donor needs to receive from the charities they love to support.
IQ: What do donors wish nonprofits knew? PB: Three basic things—when they make a gift, donors want to be acknowledged promptly and in a way that shows they appreciate that the donor is a human being—not just a person with money. They want to know that their donations are assigned to a certain cause or program, not a general fund. Donors also want a report that shows what progress has been made as a result of their gift. Unfortunately, nonprofits don’t always provide them.
IQ: Why do some people stop giving? PB: Over-solicitation is the number one reason. Not only do they feel that too many charities ask them for money, but also that some charities ask them too often. Organizations that over-solicit are demonstrating to donors that they spend a lot of money raising money. The second reason is that they aren’t informed of measurable results from their last gift.
IQ: Are there parallels between giving to charity and buying a product? PB: If you buy something, you can get your money back if there is something wrong with the product. That’s not the case with charity. Unhappy donors simply choose to not give again or shift their giving to another cause. IQ: How are giving preferences changing? PB: Donors are much more independent today. (With technology) they have the convenience of learning and researching and getting them-
selves excited. Those donors tend to make a gift because they have invested their own time. And they tend to give significantly more when they give independently.
IQ: What are the lessons from these trends? PB: Nonprofits must move from a gatekeeper mentality to more of a customer service role. It’s a shift from asking, “How fast can we get the money?” to asking, “How can we serve you and make the giving experience as positive and convenient as possible?”
IQ: How do some nonprofits miss the boat?
PB: If someone gives $10,000 and another gives $25, nonprofits will usually interact with those donors relative to their gift value. The vast majority of donors—72 percent—say that their first gift is not a measurement of what they can give. One of the reasons they don’t give more is that they are treated like the $25 donor they are, instead of the million-dollar donor they have the potential to be.
With more than 30 years in nonprofit management and consulting, Penelope Burk is the author of Donor-Centered Fundraising, transforming the way the sector serves its critical benefactors. Her groundbreaking research continues to gain international recognition for challenging and improving fundraising practices.
56 Initiative Quarterly Magazine
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