Initiative Foundation

TO EMPOWER PEOPLE TO BUILD THRIVING COMMUNITIES AND A VIBRANT REGION ACROSS CENTRAL MINNESOTA.

ECONOMYLOANS: THE FOUNDATION APPROVED 29 SMALL BUSINESS LOANS TOTALING $2,823,750 IN 2021 (INCLUDING 11 MICROLOANS TOTALING $308,000 TO DIVERSE ENTREPRENEURS), FUNDING $1,861,750 DURING THE YEAR WITH THE BALANCE CARRIED OVER TO 2022 DUE TO SEASONAL CONSTRUCTION OR OWNERSHIP TRANSITION ISSUES. AS A RESULT OF THESE LOANS, $32,628,654 IN PRIVATE FINANCING WAS LEVERAGED THROUGH OTHER LENDING INSTITUTIONS. WE ESTIMATE THAT THIS LENDING VOLUME CONTRIBUTED TO CREATE 88 AND RETAIN 96 JOBS. MANY ORGANIZATIONS PARTNER WITH US IN THIS EFFORT, INCLUDING THE REGION FIVE DEVELOPMENT COMMISSION, EAST CENTRAL REGIONAL DEVELOPMENT COMMISSION, WELLS FARGO DIVERSE COMMUNITY CAPITAL, AND U.S. BANK. TO STRENGTHEN OUR MICRO-LENDING NETWORK, WE MAINTAIN FUNDING AND REFERRAL RELATIONSHIPS WITH SEVERAL ORGANIZATIONS, INCLUDING ECONOMIC DEVELOPMENT ORGANIZATIONS, LOCAL AND REGIONAL BANKS, CREDIT UNIONS, NONPROFITS, SMALL BUSINESS DEVELOPMENT CENTERS, AND MORE. IN RESPONSE TO THE COVID-19 PANDEMIC, THE INITIATIVE FOUNDATION CONTINUED TO OFFER FLEXIBILITY TO ITS FULL PORTFOLIO OF BORROWERS.INITIATORS FELLOWSHIP: THE ENTREPRENEURSHIP TEAM CELEBRATED THE GRADUATION OF SEVEN INDIVIDUALS FROM THE SECOND TWO-YEAR INITIATORS FELLOWSHIP COHORT (2020-2021) AND SELECTED EIGHT NEW SOCIAL ENTERPRISE VISIONARIES FOR THE THIRD COHORT STARTING IN 2022. THE FELLOWSHIP REPRESENTS 53 COUNTIES AND SIX NATIVE NATIONS SERVED BY THE INITIATIVE FOUNDATION, SOUTHWEST INITIATIVE FOUNDATION, WEST CENTRAL INITIATIVE AND NORWEST MINNESOTA FOUNDATION. FELLOWSHIP PARTICIPANTS HAVE BENEFITED FROM MORE THAN $700,000 IN DIRECT PROGRAM INVESTMENTS, RANGING FROM STIPENDS TO PROFESSIONAL DEVELOPMENT, AND HAVE LEVERAGED MORE THAN $1 MILLION IN OUTSIDE INVESTMENTS. THE INITIATORS FELLOWSHIP IS THE PREMIER PROGRAM IN THE STATE SERVING RURAL CHANGEMAKERS WITH A TWO-YEAR SUITE OF SUPPORTS-INCLUDING TRAINING, MENTORING, AND FUNDING-FOR BEGINNING OR EARLY-STAGE SOCIAL ENTREPRENEURSHIP. THESE GREATER MINNESOTA LEADERS ARE HELPING TO BUILD THE ECONOMY AND QUALITY OF LIFE IN THEIR HOMETOWNS BY DEVELOPING PURPOSE-DRIVEN, FOR-PROFIT BUSINESSES AND NONPROFIT ORGANIZATIONS THAT HAVE A POSITIVE SOCIAL OR ENVIRONMENTAL IMPACT.ENTERPRISE ACADEMY: THE ENTERPRISE ACADEMY PROGRAM PROVIDES BUSINESS TRAINING, ONE-ON-ONE TECHNICAL ASSISTANCE AND DIRECT LENDING TO DIVERSE AND UNDERSERVED ENTREPRENEURS. THIS PROGRAM HAS SERVED MORE THAN 250 LOW-INCOME OR MINORITY ENTREPRENEURS SINCE ITS INCEPTION IN 2018, INCLUDING 100 GRADUATES OF ITS 12-WEEK INTENSIVE BUSINESS TRAINING PROGRAM, AND HELPED DOZENS OF PARTICIPANTS LAUNCH BUSINESSES AND BUILD WEALTH. THE PROGRAM GRADUATED ITS 10TH AND 11TH COHORTS AT THE END OF 2021 AS IT PREPARED TO CONTINUE EXPANDING TO SERVE NEW COMMUNITIES AND GEOGRAPHIES. THE PROGRAM IS ONE OF ONLY A FEW IN GREATER MINNESOTA DEDICATED TO ACCELERATING THE SUCCESS OF UNDERSERVED ENTREPRENEURS WITH WRAPAROUND SUPPORT AND TRAINING.COMMUNITY ENGAGEMENT: ATTRACTION, DEVELOPMENT, AND RETENTION OF A SKILLED WORKFORCE REMAIN A PRIMARY INTEREST TO EMPLOYERS THROUGHOUT OUR REGION, AND A NAMED STRATEGIC PRIORITY OF THE FOUNDATION. TO SUPPORT GROWTH EFFORTS AND THE DEVELOPMENT OF TECHNOLOGY TOOLS AND/OR PROGRAMS TO ATTRACT AND RETAIN SKILLED WORKERS, THE FOUNDATION PROVIDED FUNDING AND OTHER SUPPORTS FOR LOCALLY DRIVEN STRATEGIC PLANNING INITIATIVES, LINKING FUNDERS, EDUCATIONAL INSTITUTIONS, AND EMPLOYERS TO JOB-CREATING OPPORTUNITIES. FOCUSED OUTREACH WITH COMMUNITY BANKS, CHAMBERS OF COMMERCE AND VOLUNTEER BUSINESS GROUPS, COMBINED WITH TARGETED ECONOMIC DEVELOPMENT GRANTMAKING, REMAINS A PRIORITY TO INCREASE LOANS AND TECHNICAL ASSISTANCE OPPORTUNITIES IN ALL COMMUNITIES.

COMMUNITYCHILD CARE SOLUTIONS: FOUNDATION STAFF CONTINUE TO SUPPORT IMPROVED ACCESS TO QUALITY, AFFORDABLE, ECONOMICALLY SUSTAINABLE CHILD CARE THROUGH A VARIETY OF STRATEGIES AND PARTNERSHIPS. OUR HIGHEST PROFILE INITIATIVE INVOLVES OUR RELATIONSHIP WITH THREE REGIONAL COMMUNITY COLLEGES. THE INITIATIVE ASSURES THAT A STUDENT SEEKING CREDENTIALS IN THE CHILD CARE FIELD CAN GRADUATE WITHOUT DEBT THROUGH A COMBINATION OF FINANCIAL AID AND FOUNDATION GRANT SUPPORT. WE ALSO CONTINUE TO ADMINISTER THE GOVERNOR'S EMERGENCY EDUCATION RELIEF (GEER) FUND PROGRAM ON BEHALF OF THE MINNESOTA DEPARTMENT OF EDUCATION, WHICH PROVIDES GRANTS RANGING FROM $3,000 TO $10,000 TO PROGRAMS SERVING COVID-AFFECTED VULNERABLE CHILDREN AGE BIRTH TO 8. ENERGY TRANSITION: OUR LONG-STANDING SUPPORT FOR ECONOMIC DIVERSIFICATION IN BECKER AND OTHER COMMUNITIES ASSOCIATED WITH THE DECOMMISSIONING OF THE SHERBURNE COUNTY COAL GENERATION STATION HELPED LEVERAGE $26 MILLION IN STATE BONDING IN 2021. WE ALSO SUCCESSFULLY SECURED NEW FUNDING FROM THE MORGAN FAMILY FOUNDATION AND MCKNIGHT FOUNDATION TO SUPPORT CLEAN ENERGY PILOT PROJECTS THAT PROVIDE ECONOMIC BENEFITS TO THEIR HOSTS. TWO CLEAN-ENERGY PILOT PROJECTS RECEIVED GRANTS IN 2021. THE FIRST WAS AWARDED TO THE NORTHERN LANDS AND WATERS TRUST TO EXPLORE HOW TO USE LAND EASEMENTS TO ENCOURAGE THE RESTORATION OF WOODY BIOMASS IN MARGINAL LANDS TO ACHIEVE CARBON SEQUESTRATION. A SECOND GRANT SUPPORTED A PARTNERSHIP WITH THE GREATER ST. CLOUD DEVELOPMENT CORPORATION TO ELEVATE OUR LARGEST POPULATION CENTER AS A HUB FOR ELECTRIC VEHICLES AND OTHER GREEN BUSINESSES.HEALTHY LAKES AND RIVERS PARTNERSHIP (HLRP): FOUNDATION STAFF HAVE PARTICIPATED IN ASSESSMENTS AND ASSISTED IN DEVELOPING RECOMMENDATIONS TO SUPPORT THE REAUTHORIZATION OF THE STATE'S ENVIRONMENT AND NATURAL RESOURCES TRUST FUND (ENRTF), COMMONLY CALLED "THE LOTTERY FUND," WHICH IS DUE TO EXPIRE IN TWO YEARS. SINCE INDIGENOUS PEOPLE ARE OFTEN UNREPRESENTED IN TRADITIONAL CONSERVATION GROUPS, WE HAVE PROVIDED A GRANT SO THAT INDIGENOUS PEOPLE HAVE A VOICE IN THE REAUTHORIZATION DISCUSSIONS.GRANTMAKING: OUR DISCRETIONARY GRANTMAKING IS DISTRIBUTED FROM TWO SOURCES: THE INNOVATION FUND AND THE ECONOMIC DEVELOPMENT FUND. COLLECTIVELY, THESE EFFORTS SUPPORTED ABOUT $400,000 IN 2021 GRANTS.NONPROFIT DEVELOPMENT: FOUNDATION STAFF PROVIDED NONPROFIT ACADEMY, AND FUNDRAISING SCHOOL PROGRAMMING TO INCREASE THE CAPACITY OF PARTICIPATING ORGANIZATIONS THROUGH FUNDRAISING, LEADERSHIP, FINANCIAL MANAGEMENT AND MARKETING TRAINING. ADDITIONAL SINGLE-SESSION TRAININGS ADDRESSED TOPICS OF PARTICULAR INTEREST THAT ARE CURRENTLY AFFECTING THE NONPROFIT SECTOR. WITH GUIDANCE AND SUPPORT FROM FOUNDATION STAFF, MORE THAN 40 PARTNERS DELIVERED TRAINING TO PARTICIPATING ORGANIZATIONS. FOUNDATION STAFF AND CONSULTANTS PILOTED THE EXECUTIVE ROUNDTABLE FOR NONPROFITS, INVOLVING NINE LEADERS FROM NINE NONPROFIT ORGANIZATIONS. THESE COACHING CIRCLES PROVIDE A CONFIDENTIAL SETTING WHERE LEADERS BUILD SKILLS AND IDENTIFY CONSTRUCTIVE STEPS FOR RESOLVING CHALLENGES. THESE PEER-COACHING CIRCLES GROW STABLE, LASTING RELATIONSHIPS AND DECREASE ISOLATION AND EMOTIONAL FATIGUE AMONG NONPROFIT LEADERS. MOST EXECUTIVE ROUNDTABLE MEMBERS REPORT GAINING NEW LEADERSHIP, PROBLEM-SOLVING, AND PUBLIC-SPEAKING SKILLS THAT HAVE ADVANCED THEIR ABILITY TO ENGAGE IN PROACTIVE LEADERSHIP.THE FOUNDATION COORDINATED QUARTERLY NONPROFIT LUNCHTIME LEARNING SESSIONS IN CONJUNCTION WITH LOCAL PARTNERS. ABOUT 54 NONPROFIT PROFESSIONALS PARTICIPATED IN ONE OR MORE IN-PERSON OR VIRTUAL NONPROFIT TRAINING SESSIONS, REPRESENTING NEARLY 20 ORGANIZATIONS.

GENEROSITYPARTNER FUND PERFORMANCE: THE COMMUNITY PHILANTHROPY TEAM ASSISTED THE FOUNDATION'S 128 PARTNER FUNDS IN FACILITATING 432 GRANTS FOR A TOTAL OF $1.7 MILLION IN GRANT AWARDS ACROSS THE REGION. COVID-19 CONTINUED TO AFFECT PARTNER FUND GRANTMAKING BY HINDERING COMMUNITY OUTREACH AND REDUCING THE NUMBER OF GRANT ROUNDS OFFERED, YET 454 APPLICATIONS WERE RECEIVED BY FUNDS THAT HOST OPEN GRANT ROUNDS. THE AVERAGE PARTNER FUND GRANT IN 2021 INCREASED TO $4,024. TOTAL PARTNER FUND GRANTMAKING INCREASED BY 9.3% OVER THE PRIOR YEAR, RESULTING IN AN INCREASE OF $102,910 IN GRANTS AWARDED IN 2021. DONATIONS TO ENDOWED AND QUASI-ENDOWED FUNDS ALSO INCREASED BY $96,485 FOR A TOTAL OF $932,085 IN DONATIONS TO PARTNER FUNDS. FIVE VIRTUAL EVENTS FOR NONPROFITS AND PARTNER FUND ADVISORS PROVIDED TRAINING IN FUNDRAISING, ASSET DEVELOPMENT, BOARD RECRUITING, AND EFFECTIVE MEETING MANAGEMENT. A PILOT PLANNED-GIVING PRESENTATION WAS HELD IN BRAHAM IN SEPTEMBER 2021, LAYING THE FOUNDATION FOR TWO ADDITIONAL PRESENTATIONS IN 2022.