Managing investment dollars is one of the many ways that Minnesota’s Initiative Foundations and other community foundations add value to their communities. In this blog post, Tim Penny of the Southern Minnesota Initiative Foundation tells us more about how this works at his foundation.
I have often said that rural Minnesota communities don’t have a dime to spare, which is why partnerships and leveraging of resources is critical to community growth and vitality. A great example of how this plays out is with local community foundations across our region.
For many years SMIF has helped establish and grow community foundations as a way to extend our resources. Currently we have 17 foundations under our umbrella, meaning we provide investment, administrative and technical assistance to the volunteer boards who oversee these foundations. Collectively over the years, these 17 communities have amassed $1.14 million in assets and have awarded more than $3.1 million in grants and programming.
Community foundations are currently the fastest growing sector in philanthropy, as they go beyond simply making grants–community foundations also identify current and emerging issues, channel resources to address their communities’ needs, and help their regions prepare for the future. In the United States, community foundations grant more than $31 billion in charitable funds in more than 700 communities and regions.
Community foundations are vitally important. Many donors want to keep their philanthropic dollars local, to better their own communities. And that’s exactly the goal of community foundations: keeping assets and resources in the community.
An example of one of our successful community foundations is the Preston Area Community Foundation. They have provided over $115,000 in grants since their inception in 1996. Their grants have included projects such as new tennis courts for the city of Preston, the schoolhouse and rail car restoration for the Preston Historical Society, a new baseball scoreboard for Fillmore Central Schools, and two grants to the National Trout Center.
As you can see, local community foundations are successful in identifying practical projects to enhance their community, and then raising the funds to complete them. Another example is the Elysian Area Community Foundation which recently donated a Jaws of Life rescue tool to the Elysian Fire Department.
In a time of tight budgets and reduced government funds, community foundations are also partnering with school districts and donating needed equipment. For instance, the Maple River Arts, Academics, and Athletics recently donated more than $11,000 in computers and other school supplies to the Maple River school district.
We are excited that the Spring Valley Area Foundation, formed just a year ago, has already raised more than $85,000 and is making small grants. With the help of an energetic board and supportive community, they are well on their way to capturing–and keeping–their community’s many assets.
Managing investment dollars for community foundations is one of the many benefits SMIF offers to area communities. Right now, we are also offering two opportunities for community foundations to capture additional SMIF dollars of up to $10,000. The first is a matching endowment challenge, which provides a $1 match for every $2 the community foundation raises up to a $5,000 match. Second, we provide a matching grant opportunity for community foundations of up to $5,000 for projects in the early childhood or entrepreneurship categories.
If you are interested in learning more about starting a foundation in your community, contact our Development Director Jennifer Nelson at 507-455-3215 or jennifern@smifoundation.org.
Many of MCF’s member community foundations have development staff who work on projects like these. Visit our member roster to find one that does work in your area or on your cause!
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