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HomeMy WebLinkAbout09-28-04 PTRC • ,-A EN HILLS AGENDA PARKS, TRAILS, & RECREATION COMMITTEE MEETING TUESDAY, SEPTEMBER 28, 2004 **7:00 P.M. MEETING** ARDEN HILLS CITY HALL 1245 WEST HIGHWAY 96 1. Call to Order and Roll Call 2. Approve June 22, 2004 and July 27, 2004 Minutes 3. Council Update 4. Parks and Trails Update a. Perry Park Pavilion b. Cummings Park— Open House Date c. County Road E/Bridge & Trail 5. Recreation Update 6. Field Use by Associations a. Change a Fee b. Amount of Such Fee c. Daily, Weekly, Monthly, Seasonal Usage 7. Forming a Non-Profit Organization for the PTRC a. See Attachment 8. 2005 Priorities 9. Next Meeting Agenda 10. Adjourn A quorum of the City Council may be present at this meeting. ,,-A EN HILLS MEMORANDUM DATE: August 19,2004 AGENDA ITEM: 2A TO: Mayor and City Council FROM: Michelle Wolfe, City Administrator SUBJECT: Community Foundation A few months ago,the City Council requested that we take a look at the concept of establishing a community foundation. It was mentioned that the City of New Brighton had recently explored this topic, and I learned that they had received a presentation by Minnesota Community Foundation. I contacted this organization and requested a similar presentation. At the work session on August 23, Mr. Bob Lawson will provide information about the Minnesota Community Foundation and be available to answer questions about the possibility of establishing a foundation here in Arden Hills. Since this topic has previously been discussed by the PTRC, I • asked O&M Director Moore to invite interested PTRC members to attend this presentation. Mr. Lawson provided some background materials which will be included in your packet. This should provide a good basis for the discussion on Monday evening. Enclosure IlEarthUdminlCity AdministratorlMemol2004l8-23-04 Work Session Foundation.doc • `\Gh i n g /iV • �c es THE SAINT PAUL FOUNDATION lk . 0 h 7� `0 Qom"i0\ ti •a �r5+$�a"�<. ... - .K^� s.M1'... ..........n. .. .......,. :�:x»v3;x•.,,"aar ror,a✓Wt s WELCOME • THE SAINT PAUL FOUNDATION Over the years, we've helped thousands of people U��I I! t�el�' ��i�llltle VIIC?I`� and provided our.:support to nearly every major community initiative including:the Science!Museum,: Phalen Corridor, Como Zoo and'riverfront redevelopment. Our �i�SU��C�SS�' �'X��1"�IS�' in charitab4e giving, money manogement and tax and legal infarmotion rela{t__ed to philan#hropy is of benefit fio donors and to the communities that receive.funds. We are ��el[���� �C1I�C?l (� �C>��J�iC:�l"lStofity�aurneeds. Through our unrestricted grantmoking and through our donors, we have granted more than $35t} million to nonprofits, both large and small, ranging from arts-and culture to education, human services, community development and the environment. And when we'find an unfulfilled need, We �ls�en fio the cc�mrnunity and We bring people anc� resources tc� efi�er to address it or create a program of our own, C3ur bo#tom line is simple—we'll do what it takes to creole better CC�r'flrl"lf.1f^ll�le and a solid future far Saint Paul and surrounding areas. 'fCommunity Sharing Fund awards small grants to prevent big crises 4 t s'. 1 I� 4. 3 ONE-OF-A-KIND PROGRAM Majel Carroll and other social workers turn to GRANTS $3 MILLION TO PEOPLE IN NEED the Community Sharing Fund of The Saint Paul Foundation when people with emergency needs have exhausted their financial resources. ou won't often hear of foundations helping individuals directly; instead, grants and resources go to nonprofits and public sector organizations that use the funds to fulfill their missions. But aware of the fact that a small amount of money, perhaps to fix a broken car or care for a sick child, can mean the difference between making it or not, the Foundation started the Community Sharing Fund of The Saint Paul Foundation. Since 1980, the Fund has provided more than $3 million through small, one-time grants to people who have exhausted their financial resources. Once requested, grants can be approved within a day, saving a person from an imminent financial or personal crisis. Majel Carroll, Special Projects Coordinator, Ramsey Action Programs for Washington County * 'Andersen CEO s Chief Executive Officer of Andersen Corporation and a longtime I a us member of our community, Don Garofalo has a multi-faceted relationship applauds with The Saint Paul Foundation. As a community leader, he works with local organizations to solicit Foundation for support from the Foundation. On a business level, The Saint Paul proactive leadership Foundation manages the Katherine B. Andersen Fund, named for the wife of one of Andersen Corporation's co-founders. „ •^5�,�'�:; •�• :�� rip' <f' .`x 1 k n'. y, 4 Andersen CEO Don Garofalo says The Saint Paul Foundation is integral to the fabric of the community,taking a Proactive stance His familiarity with the Foundation made it a natural choice for him to turn and addressing community needs. to when his 28-year-old son died suddenly. "I wanted to create a positive Garofalo recently joined The Saint Paul and lasting memory of my son," he says. Working with the Foundation, Foundation's Board of Directors. the Garofalo family established The Anthony Garofalo Scholarship Fund in celebration of Tony's life. Each year, it awards four scholarships to students interested in studying science and technology. Having experienced the Foundation on many levels, Garofalo says The Saint Paul Foundation is integral to the community fabric. "They are true leaders and they have a strong vision and a passion for making the East Metro area a better place." Garofalo says there are commonalities between Andersen's business and that of the Foundation. "We strive to understand our customers' needs so that we can serve them better. The Saint Paul Foundation does the same, proactively going out to study issues and bringing people together from government or business sectors to find solutions.` He continues: "They don't wait for someone else to identify a need, by being so visible in the community, they see what's needed and then bring the right parties together." Don Garofalo, Andersen Corporation CEO Casa de Esperanza addresses esses needs of growing Latino populations , ',:^.ate=•:q.�,r}, . II Casa de Esperanza Executive Director 5 Lupe Serrano(left)says a grant from The Saint Paul Foundation allowed her PLANNING GRANT HELPED organization to undertake a strategic NONPROFIT DEEPEN ITS SERVICES planning initiative to expand its mission. ive years ago, Casa de Esperanza was operating a domestic violence shelter serving only 30 percent of local Latinas who needed help. It wanted to learn how to prevent domestic violence in the first place, so the group sought to adjust its mission by addressing prevention. lacking the resources to study and better understand the root of domestic violence within the Latino culture, the group applied for and received a grant from The Saint Paul Foundation's Management Improvement Fund to undertake strategic planning" Today, Casa de Esperanza is fulfilling its vision through a series of domestic violence prevention programs. "The grant allowed us to listen to what the members of our • community had to say," says Lupe Serrano, executive director of Casa de Esperanza, "and that gave us the knowledge and the directive to create services that the Latino communities want and need." a Literacy initiative opens up world of possibility d+� e n 4, G LuceroAreilono and Estefany WORDS WORK! GIVES PRESCHOOL CHILDREN Arellono Garcia select books at THE TOOLS THEY NEED TO SUCCEED IN the local library. SCHOOL AND LIFE t was painful for Lucero Arellano to see her 4-year-old daughter Estefany having trouble playing with other children. "She didn't know English so it was difficult for her to integrate," she says. Then Estefany Arellano Garcia began participating in Words Work!, an initiative funded by Fhe Saint Paul Foundation that combines an innovative Head Start classroom program with literacy-focused home visits by multi-lingual instructors to children ages 3 to 5. Children develop the early literacy skills needed to be successful readers and learners when they enter school. Involved in Words Work! for more than a year, Estefany now speaks English, and looks forward to frequent library trips and playing with other children in her neighborhood. ODonor Advised Fund connects family to their community "s 4' The Sorans enjoy recommending which 7 organizations their Donor Advised Fund fter Phil Saran negotiated the sale of his company X10tech in 2000, should support. Pictured from left are Diana,Kevin,Margie and Phil. Christine he and his wife Margie recognized the opportunity to increase their and Alyso are not pictured. community involvement through philanthropy. The Sorans turned to their tax accountant, Stacy Rubsam at Grant Thornton, for advice on how to reinvest their good fortune into community enrichment, and were referred to The Saint Paul Foundation. Confident that the Foundation was the right partner to help them achieve their specific goals, the Sorans established a Donor Advised Fund with The Saint Paul Foundation. Now, the whole family—including the Sorans' four children—works together to make giving recommendations. The Sorans say that the Foundation not only helped them "think smarter" about how to give, it is also the vehicle that continues to connect them with their community. • Phil Soran • $25/000 g rant creates Somali advocacy program l 7 : a 8 Somali students in Dakota County are benefiting from a special he Somali population in Dakota County is growing, resulting in program funded by The Saint Paul Foundation that helps them more Somali students in the classrooms. The challenge was that assimilate into American schools. most of the students didn't speak English or have much experience with American culture, which made learning in American schools difficult. The Saint Paul Foundation assisted with a $25,000 grant for the nonprofit Storefront Group Learning Village to create an advocacy program for Somali students and their families. Advocates work with students to help them integrate and develop their social and leadership skills. Adult advocates serve as role models, illustrating that it's possible to preserve the Somali culture and language, while succeeding in their new environments. They also provide one-on-one coaching to teachers, counselors and administrators on understanding the Somali culture and the challenges faced by students of color • Asha Guled, attending suburban schools. Somali youth and family coordinator for Storefront Group Learning Village Says Asha Guled, Somali youth and family coordinator for Storefront Group Learning Village, "We're building a bridge between the cultures and helping Somali families get what they need to be successful." • -! • f • - f- - • •r f f • r • � r Yr • i Bronwen Cound,an estate planning attorney,counts on The Saint Paul Estate planning attorney Joe O'Neill credits The Saint 9 Foundation to help her clients chart their charitable visions. Paul Foundation for taking an active role in supporting the development of the community. "As a member of the Saint Paul community, I've been involved with The The Saint Paul Foundation offers a variety of flexible options to help donors fulfill their visions. Saint Paul Foundation for more than 30 Donor Advised Funds give you and your selected advisors the years. As a former member of the board, flexibility to recommend the grants you'd like to make. You create I admire their deep commitment to, and your vision. knowledge of our community. As a Unrestricted Funds offer the broadest giving options, allowing leader, I can count on The Saint Paul the Foundation to make grants where there's the greatest need. Field of Interest Funds award grants to areas of interest to you. Foundation to take an active, creative Designated Funds help you support specific organizations that role in supporting the growth and development of our community." are important to you. p ty. •Scholarship Funds are a popular option for people who want to Joe O'Neill, Estate Planning Attorney support education or a specific school. Usually, they are named for O'Neill, Grills &O'Neill, Saint Paul the family, or in someone's honor or memory. f `' Funds usinessman and philanthropist Joseph Hui wanted to help Asian Americans integrate into American society and for American embrace society to better understand Asians. So in partnership with The • Saint Paul Foundation, he helped develop the Asian Pacific Endowment. "I have learned a lot about endowments and diverse building capacity for the Asian Pacific community," says Hui. populations �c 10 Joseph and Marlene Hui are helping Asian Americans integrate into The Endowment is part of SpectrumTrust, a collaboration with American society through the Asian Pacific endowment. The Saint Paul Foundation that focuses on diverse populations including Latinos (El Fondo de Nuestra Comunidad), Pan African communities(Pan African Community Endowment) and American Indians (Two Feathers Endowment). In addition to the individual endowments, the Foundation has a multi-cultural endowment that addresses shared priority issues among all communities of color. SpectrumTrust works within communities of color to build permanent endowments, identify community needs and make charitable grants. This first-of-its-kind collaboration has served as both a model and an inspiration to others. Hui says being involved with the development of SpectrumTrust inspired him to start a Donor Advised Fund—the Hui Family • Fund—which focuses on helping Asian American youth integrate into society. How to Set • i Family Fund 1, Discuss your goals with your family and your professional advisors. Decide what#o give—cash, securities, real estate, etc. �, Select issues and organizations that are close #o your heart. 4. Meet with The Saint Paul .Foundation staff to discuss your vision;' 5. Choose o fund type: Donor Advised Fund,'Meld of Interest Fund, Designated Fund, Scholarship Fund ar'Unrestricted Fund. b. Complete the paperwork. T. Select a name for your fund, either recognizing your family or the issues you support. ` 8. Send your gift to The Saint Paul Foundation for , management and adminis#ration. a , wai .tq. I k REVITALIZING A COMMUNITY CROWN JEWEL The Upper Mississippi River is an environmental, economic and cultural asset for generations of Minnesotans. The Saint Paul Foundation is proud of its support of the riverfront renaissance designed to revitalize life in downtown Saint Paul. We provided a $600,000 grant to the Saint Paul Riverfront Corporation to support its efforts to restore the energy of the riverfront, making it a cultural icon for Saint Paul and ensuring the future of this vital natural resource for generations to come. c�\ i � r �E SAINT PAUL FOUNDATION 0 THE SAINT PAUL FOUNDATION MINNESOTA COMMUNITY FOUNDATION o �d t What ' s your vision ? com MOO Establishing Family Foundations Three Alternatives Is A Family Foundation For You? Because of your personal success,you are in a unique position to benefit those people and organizations you care most about. As you develop your financial and estate plans,you may discover that charitable giving will benefit you both personally and financially. A traditional mechanism for philanthropy and charitable giving has been the private family foundation. While this structure is still available,there are other interesting alternatives you can consider. Family Foundation Alternatives You can structure a foundation for your family in three ways: as a donor advised fund, a support organization,or a private foundation. Minnesota Community Foundation and The Saint Paul Foundation have prepared this comparison to help you decide which structure is right for you. As you study this chart, you will notice that two of the alternatives are based on a relationship with organizations like Minnesota Community Foundation or The Saint Paul Foundation. Donor Advised Funds Through an agreement with either foundation,your contribution will be set up in a specially named fund. The fund will be managed and administered by Minnesota Community Foundation/The Saint Paul Foundation. You will be able to choose fund advisors and advise the Foundation about preferences regarding grant recipients and gift amounts. Distributions will be made in the fund's name and you will receive quarterly financial statements. As the fund is considered part of Minnesota Community Foundation/The Saint Paul Foundation's holdings, it will receive all related tax-exempt benefits. Support Organizations Through a unique collaboration with Minnesota Community Foundation/The Saint Paul Foundation,you can form a support organization. Structured as a separate corporation with its own articles and bylaws,a support organization maintains its own nonprofit board,which makes the investment, financial and grantmaking decisions for the organization. However,by sharing management and administration with Minnesota Community Foundation/ The Saint Paul Foundation,a support organization is particularly cost effective. Most important, it is—for tax purposes—a public charity entitling its donors to the most generous charitable tax deductions available. Private Foundations Private foundations allow extensive donor control over distributions and board selection. However,they are highly controlled by the government with many special restrictions, including administrative and reporting burdens, public access to information,excise taxes and a required minimum payout. Minnesota Community Foundation/The Saint Paul Foundation Minnesota Community Foundation and The Saint Paul Foundation are community foundations. Each foundation is a public charity that administers and manages,charitable funds—including family foundations—on behalf of private donors,families and nonprofit organizations.Together they manage assets of more than$570 million. We would welcome the opportunity to work with you as you consider establishing a family foundation. For more information about establishing a family foundation, contact: Minnesota Community Foundation/The Saint Paul Foundation,55 Fifth Street East-Suite 600,Saint Paul,Minnesota 55101-1797 Telephone:651.224.5463 or 800.875.6167 • Fax:651.224.9502 • www.mncommunityfoundafion.org • www.saintpaulfoundation.org As described in this chart, Donor Advised Funds and Support Organizations are managed and administered by Minnesota Community Foundation/The Saint Paul Foundation. Comparisons Donor Advised Fund Support Organization Private Foundation (leafing the Foundation Established at Minnesota(ommunity Foundation/ Nonprofit corporation created with Nonprofit corporation or trust organized The Writ Paul Foundation assistance from Minnesota Community Foundation/ as a private foundation The Saint Paul Foundation lk", IS Start-up Cosh No cost to donor Minimal costs through collaboration with Minnesota Similar to corporate start-up requiring (ommunity Foundation/The Saint Paul Foundation substantial legal,accounting and operational start-up cash 'p Tt- M Charitable Deductions Tax deduction available up to 50%of adjusted Tax deduction available up to 50%of adjusted Tax deduction is limited to 30%of Ousted •W Gifts gross income in any one year gross income in any one year gross income in any one year il"I''24 00 tl I kZ1 U 0 "�Ji4 YXJar vt Wt W. Donor Control Donor recommends grants;IRS requires find decisions rest Donor holds significant organizational influence and Donor retains complete control over with Minnesota(omrmmity Foundation/ may appoint minority of the board of directors investments and granimaking,st&pct to 16 Saint Paul Foundation IRS req*emeats 411 Tx Poyout Re dmdents Do not apply Do not apply Annually must distribute for charitable purposes at least 5%of its asset value regardless of its income A 'j""""4 111181(w 11" Elm w ebeiiis to.. 'A 10"t i N*S* .000101 Annual Costs Minimal Shared by Minnesota Community Foundation/ Administration can be costly The Saint Paul foundation and therefore kept at a minimum IX F., it Annual Tax Filings Not required(reported as part of Minnesota Prepared and filed by Minnesota(ommunity Must be filed by the private foundation and Rehm (ommunity foundation the Saint Pad foundation's Foundation/lbe Saint Paul foundation with required supporting schedules annual reporting) "gh, has 10*10r011011 am t W, I— h services an W -Ad by S Old o" t • Fiduciary Resportsibility Minnesota(ornimmity foundatio0w Saint Poul Administrative guidance provided by Minnesota The private foundation board has full foundation fulfills the associated fiduciary responsibilities (ommunity FoundationAhe Saint Paul Foundation fiduciary responsibility �ltwo I Qak**favo iioi 6"W 10 uto =7 p "s cc�1n9 /4a� ® a THE SAINT PAUL FOUNDATION • ° •• I " -lid Volume 3• Number 3•Summer 2004 Refugee Resettlement Offers Ramsey County Bar Association Honors Opportunities to Foster Community Foundation and President Emeritus Paul Verret At its annual meeting on May 12th Y the Ramsey County Bar Association awarded The Saint Paul Foundation with the 2004 Diversity Award for its commitment to promoting diversity in Ramsey County. The Foundation's recent release of a one-year study on } racism in the East Metro, its upcoming = campaign to address racism,and its 4 work with SpectrumTrust won the l `{ organization a unanimous vote from xx;ir the Ramsey County Bar Association's - Diversity Committee. Children's Defense fund Minnesota helps_refugees enroll in public healthcare programs. Paul Verret,president emeritus of the Foundation, received the Liberty Bell Nearly 70,000 refugees from more than 60 countries have made a new Award,the Association's highest home in Minnesota in the last quarter century. With 5,000 Hmong refugees honor for a non-lawyer. Since 1964, arriving this year,it's clear that Minnesota continues its role as one of the the award has recognized individuals leading states in welcoming refugees. The Saint Paul Foundation has a who promote a better understanding history of supporting refugee communities,of recognizing the changing face of government and law and exemplify of Minnesota and providing funding to strengthen and stabilize families. a deeper sense of individual responsibility under the law. The needs of refugees evolve as their familiarity with their new community grows. New arrivals require employment skills,healthcare,and housing— the Foundation makes a variety of grants to support these needs. Refugees issue:In this begin to achieve self-sufficiency through high school equivalency programs, citizenship courses,and by launching nonprofits to meet unique needs in 2: President's Letter their communities. To help them become citizens,the Foundation makes Donors , Works grants to groups like the Immigrant Law Center of Minnesota. Ultimately, 4: Scholarship Fund Opens Doors refugees become full contributors to a cohesive community. To foster this, the Foundation supports groups like the Leadership Empowerment and Bob Engebretsen " Development Group to build leadership and increase civic engagement. 6: El Fondo Holds Latina Voter • The recent influx of Hmong refugees signals a new era—and a new opportunity—for Hmong-Minnesotans. When these initial refugees fled Participation' Profile: Diane Laos at the end of the Vietnam War,the community in Minnesota had little understanding of Hmong language,culture,or the impact of war on the 8: News Briefs Refugee Resettlement continued on page 2 A Word from the President by Carleen Rhodes Refugee Resettlement continued from page 1 bummer is a particularly inspiring time for our community, as lifelong residents and new Hmong. Since their arrival,these families arrivals alike celebrate the benefits of living in a 1 have accomplished a great deal: 63 percent country founded on the promise of freedom. own their own homes and 45 percent of The Grand Excursion gave us a wonderful look adults are high school graduates or are at improvements to the riverfront, and Greater pursuing higher education. Hmong- Saint Paul's communities,at various stages in Minnesotans have seized the opportunity to their lifecycles, are working to maximize the ease the transition for relatives arriving opportunities made available in this country. from Thailand, and community-based In June, the first Hmong families from the Wat Tham Hmong organizations stand ready to Krabok refugee support new refugees. camp in Thailand arrived in Saint Paul(see cover story). In the coming months, these new arrivals will grieve for a homeland left behind and But the opportunity lies not just with the pursue their hopes for a bright future. The experiences of families coming Hmong community anxiously awaiting from a distant shore remind many of us of our ancestors'stories—or our long-lost family and friends. We are all own memories—of arriving in the United States from a different shore. being given a chance to create a new reality The Foundation supports the Hmong and other immigrant-refugee for immigrant-refugees now and in the communities in this difficult transition by funding programs such as future. There are certainly challenges in emergency aid,English classes,job-skills training, and health screening. accommodating the simultaneous arrival of so many new citizens in Minnesota. Yet As the country gears up for national elections in November, Minnesota's immigration has been and will continue to Hispanic community is gearing up for increased civic engagement. As one be crucial in keeping Minnesota's economy 4nly a few remaining groups viewed as undecided, Latinos are moving,as evidenced by the recent ing significant attention from both major parties. The Foundation is renaissance of several areas of Saint Paul. proud to foster civic engagement through initiatives like El Fondo de The estimated 250 Hmong-owned Nuestra Comunidad's Latino Voter Participation Summit(see story on businesses in the Metro area are widely page 6). credited with revitalizing the University A different journey came to an end on the banks of the Mississippi with Avenue,Frogtown,North End,and East the arrival of the Grand Excursion's Grand Flotilla. Nearly 200 of our Side neighborhoods. donors, advisory boards,community partners, and members of From grants in the mid 1980's to support SpectrumTrust waved flags on the Betsey Northrup in the formal flotilla the first Hmong social service providers in arriving from the Quad Cities. The event was a celebration of the river: as Minnesota to recent grants for a fact-fording a source of spiritual strength for its original Dakota inhabitants, as a central mission to Thailand,the Foundation has shipping route, and now again as a treasured natural resource for the urban been a leader in helping Saint Paul and communities on its banks. The view of the Mississippi is vastly different surrounding communities foster the than it was 10 years ago. Our guests took in the sights of myriad potential of the Hmong. The Foundation environmental and economic improvements to the Saint Paul riverfront, is exploring additional ways to support the attributed in part to their hard work and financial support. newly arriving refugees in the areas of The Grand Excursion gave us a chance to see the culmination of 10 years mental health,adult literacy, and emergency of a community pulling together to improve a vital natural resource. Our assistance through the Community focused attention and stewardship will continue—I look forward to Sharing Fund. working with all of you on initiatives that will make a difference in the Our community is on a journey—to a future decades to come. where refugees and lifelong Minnesotans are welcomed,supported, and valued. For additional resources and information about volunteer opportunities,go to www.saintpaulfoundation.org. 2 Enrichment Focus leep Up the Good Work The Larsons Find Work Therapeutic for Themselves and Others "I like work,"says Reuben Larson. He spent 38 years working in human resources for 3M. Rather than retire, he ran his own consulting business for another 10 years. "The sense of accomplishment and self-worth derived from work is the key to life." When his wife Gerry suggested that they restore the Dalbo, Minnesota farm built by Reuben's grandfather in 1868, Reuben wasn't wild about the idea, but his Swedish appreciation for work prevailed. The Larsons took over the farm and have been working the land—literally—for the past 14 years. Between planting gardens,restoring the farmhouse, maintaining the prairie, and harvesting 50 acres of hay,the Larsons have enough work to go around. Gerry giggles as she admits -to being pretty good with a tractor. Horticulture,long recognized as a healing practice,is In addition to working hard, the Larsons look out for those around them. "The used to teach independence and decision making importance of giving to others is carried on through the generations,"notes Gerry through the Arboretum's Horticulture Therapy Program. as she remembers taking their three daughters to participate in neighborhood outings for individuals with developmental disabilities. Wanting to share the satisfaction of a good day's the Larsons began opening their farm to groups of handicapped and disabled adults and children and at-risk youth. Reuben and Gerry have also aligned their charitable giving with their passion for working the earth; through The Reuben and Gerry Larson Family Fund of The Saint Paul Foundation,they make grants to the Minnesota Landscape Arboretum's Horticulture Therapy department. A program of the University of Minnesota Extension Service, Horticulture Therapy promotes independence,healing, and self- esteem by helping to connect people of varying abilities to plants and the earth. Daughter Jeannie Larson shares her parents'passion; she was hired to start the Horticulture Therapy program in 1992 and has launched dozens of related programs in the last 10 years. The Larsons invite groups of varying abilities to their 120-acre farm to share the satisfaction of cultivating � In addition to aligning their values with their charitable giving, Reuben and Gerry vegetable and flower gardens. find that their Donor Advised Fund at The Saint Paul Foundation streamlines their philanthropy and gives them an opportunity to connect to like-minded individuals. About the experience of working the land at the farm or at the Arboretum, Reuben asserts, "It's not just therapy for the groups that attend—it's therapy for us!" 3 Making a Difference 40 Intergenerational Philanthropy Opens Doors Coss Family Foundation Scholarship Fund Makes Education a Reality This year, the Coss Family Foundation Scholarship Fund of The Saint Paul "We hope our scholarship Foundation will make higher education a reality for more than 50 students who recipients will go on to might not otherwise have had the opportunity. Begun in 1995 by Lawrence Coss, then CEO of what became Conseco Finance Corp,the Fund originally provided fulfill the educational postsecondary education scholarships to Conseco employees and their dependent dreams of others." children. Following the sale of Conseco in 2003,Coss converted the Fund to benefit students graduating from high schools in Dakota and Ramsey counties — Larry Coss in Minnesota, and Buffalo,Hand,Hyde, Meade, and Pennington counties in South Dakota. "I was very pleased with the benefits the Fund provided for Conseco employees, and my hope was to transfer that benefit to economically disadvantaged students in other areas,".says Larry Coss. "I saw the tremendous impact of providing my own children with an education and wanted to give that to others—it's the best way -,h to create a legacy." j This year,the Fund received nearly 100 applications and made approximately $80,000 in new awards. The maximum ' award is$3,500,and students are invited to apply for renewed funding each year that they are enrolled in an accredited two-or four-year college or university. Lori Berg-Kirsch, who coordinates the Fund for The Saint Paul Foundation, says that multi-year scholarship funding is a central aspect of the program. "The Coss family's decision to offer continued assistance through the remainder of a student's education provides a unique Larry Coss,his wife Virginia,and children Tim, Tina, opportunity for economically disadvantaged students to attain postsecondary and Laura(shown left to right)sit on the selection education,"explains Berg-Kirsch. committee,along with other community members. The Coss family is very pleased with the results of the reshaped fund. "We hope When asked about the experience of receiving letters from recipients,son Tim says, "The appreciation letters our scholarship recipients will go on to fulfill the educational dreams of others," heorlf4 -it's amazing to be able to have such a said Larry Coss. `Because of the prudent financial management of the Foundation, positive impact on someone's life without ever this fund has grown into a renewable resource for education." meeting in person." 4 Guest Commentary I-- Ipm Dairy Farm to Board Room: Putting the Work in Ethics When you first meet Bob Engebretsen, it is not surprising to learn that his three decades at U.S. Bank have been incredibly successful. Nor is it unexpected that he is devoted to his wife of 30 years and to their three children. What truly stands out is Bob's exceptional dedication to putting his own time and talent to work in the community. He has created what he calls a"second career"of volunteerism,with five- year commitments to organizations across the Twin Cities. From Suburban Community Services, which serves the elderly,to the Boys and Girls Club of the Twin Cities,Greater Twin Cities United Way, and Junior Achievement, Bob's board service and mentoring skills have truly spanned the spectrum. "These volunteer opportunities have given me great insight into my own family and our role as members of the community," says Bob. "When I'm out in the community, it's a reflection of me, my family, and of my profession and Bob Engebretsen is senior vice president and trust company. Volunteerism truly does benefit the volunteer;everything I've given has regional manager of U.S.Bank Private Gent been returned to me so many times over." Group. In 2003,Minnesota Community Foundation and The Saint Paul Foundation teamed up with U.S.Bank to create the U.S.Bank Donor w that I'm in a position to give back, it's important Advised Gift Fund This new charitable giving tool me to share that success. combines the charitable planning,financial,and investment expertise of the U.S.Bank Private Bob Engebretsen Client Group with the grantmaking expertise of the foundations. Bob is quick to give credit to his family and to U.S. Bank for enabling him to spend time volunteering. He says that one of the benefits of working for the Bank is that there is a culture of giving back,of being a good corporate citizen by embracing employees'efforts in the community. And of course,volunteer work— like any work—requires time away from home. "I have been blessed with a wife and children who are very supportive of my commitments,"says Bob. In addition to community service, Bob believes in charitable giving. Growing up on a dairy farm in rural Minnesota, the son of Norwegian immigrants,he learned the value of a dollar. "Working at the dairy every morning before school, I earned 50 cents a week—the hard way,"remembers Bob. "Now that I'm in a position to give back,it's important for me to share that success." Starting a U.S.Bank Donor Advised Gift Fund with the Foundation was Bob's way of tying it all together. As the first U.S. Bank client to open a Gift Fund, Bob wanted to provide leadership and demonstrate his commitment to giving back. "I hope that by my example, my three children will continue to see the importance of volunteerism and philanthropy," says Bob. "Through the Robert A.Engebretsen Family Fund, we can create a family legacy." 5 r r Connected El Fondo's Voter Participation Summit Mirrors Nationwide Focus on Latino Vote Event Kicks Off 2004 Grantmaking Efforts El Fondo de Nuestra Comunidad,one of the.endowments of SpectrumTrust, sponsored an event on June 3rd to stimulate discussion and action aimed at increasing civic engagement in Minnesota's Latino community. Hosted at Metropolitan State University,the nonpartisan statewide event featured expert speakers,discussion groups,and a toolkit to help organizations increase civic engagement and Latino voter participation in communities from Minneapolis to Moorhead. The event's theme—"Tu voz, to voto,nuestro futuro"(your voice,your vote,our future)—aptly characterized the importance of the issue at hand. With a presidential election looming and an estimated 7 million Latinos eligible to cast a Keynote speaker Joaquin Avila,1.D.,won the ballot this November,the Latino vote is one switch-hitting category attracting "Genius Award"fellowship of the John D.and significant attention from both major parties. Yet in Minnesota and across the o0e 1:MacArthur foundation for his work country,many eligible Latino voters are not going to the polls. Keynote speaker Ling rights issues. He spoke to summit Joaquin Avila,a voting rights attorney,explained to a crowd of more than 100 attendees about obstacles that prevent many summit attendees that a variety of obstacles stand in the way. eligible Latino voters from going to the polls. "Aside from the language barrier that exists for some Latinos,the complex and often convoluted process of registration and voting impedes participation in official elections," said Avila. He went on to say that individuals from countries where government is corrupt and voting is not effective may not value or understand the power of their right to vote. The event kicked off El Fondo's 2004 grantmaking efforts. "This year's dollars are focused entirely on funding programs and organizations that foster Latino civic engagement,"said Sarah Hernandez,chair of El Fondo's governing committee and coordinator for the event. Projects that may be funded in 2004 include civic engagement;voter registration,and programs that extend beyond Election Day such as leadership development in the areas of advocacy and public participation. Attendees left the summit armed with a voter participation toolkit created by Centro Legal,Inc. Event sponsors hope that the toolkit and information presented that day will help participants educate other Latinos,who now comprise three percent of Minnesota's population,about voting rights and civic engagement. With only a handful of Latinos in Minnesota government—and • none representing Minnesota at the national level—there is a significant need to leverage the power of the Latino vote. Donations to the endowments of SpectrumTrust help fund projects like the Latino Voter Participation Summit. For more information about how you can 6 contribute or volunteer,contact Anne Pierre at 651.325.4229. Foundation Profile 9kne Smith Chris Vitek Retires After President, Operations and Administration 24 Years of Service to The Saint Paul Foundation/Minnesota Community Foundation the Foundation Current Responsibilities: Diane manages the operations of The Saint Paul Foundation,Minnesota Community After nearly 24 years,The Saint Foundation, and two client foundations, including Paul Foundation bade farewell to information technology, grants administration, and all Chris Vitek at a retirement open processes and procedures. She is also responsible for house on May 18th. Current administration; in this capacity, she oversees human president Carleen Rhodes, resources, facilities management, and administrative president emeritus Paul Verret,and support. former vice president Jean Hart lauded Chris's many Family: My husband Bill and I recently celebrated our 13th accomplishments throughout her anniversary. We enjoy a wonderful blended family; the career with the Foundation. A intergenerational relationships both up and down the age spectrum have been, for me, crowd of more than dat donors, the most enriching experience of my life. community leaders, and dignitaries Interests, Hobbies: I am a vegetable gardener—both sides of my family were turned out to wish Chris the best in originally farmers, so I have a deep-rooted appreciation for the cycle of planting, her retirement. caring for, and enjoying the fruits of one's labors in the garden. Quilting has also From secretary to director of been a passion of mine;my goal is to make a quilt for each of my seven executive services,Chris Vitek grandchildren. Although it may take years to complete,giving a quilt away is easy was a guiding light for The Saint because I think of the recipient with every stitch. Paul Foundation as it expanded in Oors: I have had several wonderful mentors throughout my career, including an size and complexity. She provided executive who guided me from office worker to account executive at my first job, superlative service to the and a co-worker at Metro Federal Bank who led me to a second career in the home presidents,helping the Foundation mortgage industry. I believe in the power of mentorship and I encourage my grow. Board members and staff employees to further their education and find growth opportunities in mistakes as alike found her invaluable—a well as successes. wealth of knowledge, history, and Key Accomplishment: I am very proud of my professional endeavors,but my most humor. Her special relationships important accomplishments are successful relationships with the people I love. with staff, donors,and friends in the community were the hallmarks Career Experience: I think of my 20-plus years of operations management of her nurturing,caring spirit. We experience as three careers: advertising and public relations, banking, and salute Chris Vitek's outstanding philanthropy. Prior to joining the Foundation in June of 2000, 1 was director of home career. mortgage loan services for Agribank, FCB. Previously, I was vice president and compliance officer for Metropolitan Federal Bank in Minneapolis. Professional Affiliations: I am a member of ARMA International,the association for information management professionals, and the Council on Foundations' Fiscal and Administrative Officers Group. Community/Volunteer Involvement: I have been involved with many community, school, and church activities over the years. Education: I earned my bachelor's degree from Concordia University in Saint Paul ave completed advanced leadership training at the Center for Creative ership and the Leadership Development Institute. I also attended the American Bankers Association National Compliance School. Hometown: Oshkosh, Wisconsin. 7 t , News Briefs Ing? Susan Kimberly Returns to Foundation's Board of Directors e contact the Longtime board member Susan Kimberly resigned from The Saint Paul Foundation with your new Foundation's board of directors earlier this year due to a conflict of interest with address and phone her employment at Senator Norm Coleman's office. When she was appointed number so we can keep director of Saint Paul's Department of Planning and Economic Development in our mailing list current. June,she was re-elected to the board of directors. The Foundation welcomes Susan back to the board. Chair of El Fondo Appointed Program Officer by McKnight Foundation Inside the Foundation The McKnight Foundation appointed Sarah Hernandez program officer in charge of The Saint Paul Foundation its Region&Communities and Children&Families programs. Hernandez is chair Welcomes: of the governing committee of El Fondo de Nuestra Comunidad,one of the Michael J. Conaboy endowments of SpectrumTrust. SpectrumTrust is a collaboration between Program Associate- Minnesota's communities of color and The Saint Paul Foundation. Community Sharing Fund Paul Verret Receives Honorary Doctorate Office Assistant Isabel H ston At its commencement ceremony on May 15th,Concordia University of St.Paul ant conferred an honorary Doctor of Humane Letters on Paul Verret,president emeritus Janine H. Hockin of The Saint Paul Foundation. Verret was honored for his leadership as president Executive Assistant to the President of the Foundation for nearly 30 years and for his dedication to improving the quality of life in Saint Paul. SpectrumTrust Hosts Emmett Carson • SpectrumTrust held a community event in June and welcomed Emmett Carson, president of The Minneapolis Foundation and newly elected chair of the national Council on Foundations. As he shared his insights with the group,Carson discussed the Council's national conference,his role as chair,and the pivotal responsibility of communities of color in providing bold leadership for the future of foundations. Council on Foundation's Fall Conference for Community Foundations The Twin Cities will host the national Council on Foundations'20th Fall Conference October lath- 13th. Carleen Rhodes of The Saint Paul Foundation and Emmett Carson of The Minneapolis Foundation are honorary co-hosts of the r 1 conference,which is focused on issues of accountability and impact for community 1 foundations. Board members and community foundation professionals at all levels are encouraged to attend. For a brochure,call Janine Hockin at 651.325.4225. 1 Cnrleen K.Rhodes,President ckr@saintpaulfoundation.org John G.(ouchman,Vice President of Grants and Program jgc@sain paulfoundafion.org 1 Jack H.Pohl,Vice President of finance jhp@saintpaulfoundafion.org Diane K.Smith,Vice President of Operations and Administration dks@saintpauVoundafion.org 1 Jean Vukas Roberts,Director of Gift Planning jvr@saintpaulfoundatiion.org Sally J.Seibedich,Director of Donor Relations sjs@saintpauVoundafion.org Donna M.Dalton,Donor Relations Officer dmd@saintpauVoundafion.org Paul A.Verret,President Emeritus pav@saintpaulfoundafion.org 8 N Guide to Giving E E 0 The Saint Paul Foundation and its statewide affiliate, Minnesota Community Foundation, represents the vision and charitable interests of thousands of donors who have been able to fulfill their individual charitable ° goals and, at the same time, build charitable capital to meet the current and emerging needs of their N > communities. 0) TYPES OF FUNDS "' Most donors create their own funds within the Foundation. The following types of funds can be created to serve the diverse interests of donors to a foundation. DONOR ADVISED FUNDS — Donor advised funds allow the donor or others designated by the donor to make recommendations to the Foundation regarding charitable grants from the fund. A donor's wishes are always considered, but final determination on all grants is the responsibility of the directors of the Foundation. • UNRESTRICTED FUNDS — Unrestricted funds are the most flexible and most responsive to changing community needs. The donor leaves decisions on the charitable uses of the fund to the directors of the Foundation. Unrestricted funds allow the Foundation to respond most readily to emergency situations and Z O unanticipated needs. Q o FIELD OF INTEREST FUNDS —Field of interest funds support broad areas of charitable interest selected Z by the donor at the time the fund is established. For example, areas of interest can include adult literacy, � children's needs or scholarships. The selection of specific grant recipients is left to the directors of the ,L Foundation. J a DESIGNATED FUNDS —Designated funds are established to benefit specific charitable organizations that E— are named by the donor at the time the fund is established. _Z Q V) w 2 i \ • BENEFITS TO DONORS The most significant benefit to donors is the satisfaction of fulfilling their charitable goals. By making gifts to the Foundation, donors can be certain their gifts will be put to good use in the community for the purposes intended. ADDITIONAL BENEFITS INCLUDE: PUBLIC ACCOUNTABILITY —A primary objective of the Foundation is to ensure that contributed funds are used in accordance with the donor's direction and in the public interest. An independent professional audit is made annually. All grants are publicly disclosed. Donors will not be named if they request anonymity. PROFESSIONAL MANAGEMENT — The Foundation provides a high quality, efficient level of administration and management that individual trusts or smaller foundations may not economically obtain. INVESTMENT — Funds are invested as part of a pool of hundreds of millions of dollars and are provided professional investment management as well as substantial economies of scale compared to a smaller investment pool. SIMPLICITY — A gift to the Foundation simplifies charitable giving. One contribution can be used to address a number of different community needs and benefit many charitable organizations. All record keeping and tax reports are handled by the Foundation. FLEXIBILITY — If a charitable organization ceases to exist or if the intended purpose of a donor's gift becomes unnecessary, the Foundation will ensure that the gift continues to be used for purposes which are consistent with the donor's intentions. Also, the size of a fund can be increased at any time through additional gifts. PERPETUITY—A primary objective of the Foundation is to generate permanent charitable funds that will continue to provide benefits for the donor's community today and for years to come. TAX TREATMENT — Contributions to the Foundation qualify as contributions to a public charity for maximum deductibility for income,gift and estate tax purposes. DONOR RECOGNITION—Donors can name their funds after themselves,their families,or another person or place of their choosing. Some choose to identify a loved one, a friend, an organization or a family member. If desired,funds can remain anonymous rather than be named. WAYS OF GIVING • OUTRIGHT GIFTS: An outright gift is the simplest way for a donor to make a charitable gift. BEQUESTS: Another simple way a donor can make a charitable gift is through their will. Through a bequest, a donor can name a charity as the residual beneficiary of their estate or as the recipient of a specified gift (either dollar amount or percentage). There are also "contingency" clauses that would permit everyone to put charity in their will. Bequests are deductible for federal estate tax purposes. LIFE INCOME GIFTS: A donor makes an irrevocable transfer of assets to the Foundation and in return receives a lifetime payment for a specified beneficiary — the donor, spouse, children or friends. Upon the death of the beneficiary, the assets are used by the Foundation for charitable purposes defined by the donor. The donor receives a current income tax charitable deduction for the remainder value of the charitable gift. These gifts, known as life income gifts, include the following: CHARITABLE REMAINDER TRUST — Cash or property is transferred to a trust, which pays the beneficiary either a variable income equal to a fixed percentage of the trust's fair market value as determined each year or a fixed annual amount. Upon the death of the beneficiary, the Foundation receives the remaining assets assuring that they will be used for the purposes specified by the donor. POOLED INCOME FUNDS - The pooled income funds combine gifts from many donors to create common investment portfolios. Net income is paid in proportionate shares to donors and their • beneficiaries. At the end of the life income interests created by the donor, the shares of the pooled income funds contributed by the donor are used by the Foundation as the donor directed. CHARITABLE GIFT ANNUITY — Cash or other property is contributed to the Foundation in exchange for a commitment to pay the donor, or other beneficiaries, a specified annual amount for the remainder of the beneficiary's life. A gift annuity can be directed to support purposes or organizations of the donor's choosing. OTHER GIFTS: CHARITABLE LEAD TRUST—The charitable lead trust provides income to the Foundation for a specific period of time and then distributes the assets to the donor or others designated by the donor. There can be a significant estate tax savings with this type of gift. PRIVATE FOUNDATION—Private foundations can make a direct gift or transfer all or part of their assets to the Foundation. The identity and purpose of the original donor are preserved, and the donor or others designated by the donor can participate as fund advisors. Because the Foundation is a public charity,there are no taxes to pay and the Foundation is responsible for all accounting and reporting requirements. Also,donors have the assurance that a permanent nonprofit organization is in place to administer the fund in the future. RETAINED LIFE ESTATE - A donor can contribute a private residence, vacation home or farm while retaining the right to live in and use the property. The donor can receive a generous income tax deduction for such a gift,as well as other advantages. ASSETS DONORS CAN GIVE Gifts to the Foundation can take many forms. In all cases, the donor can direct the assets to an area of interest or to a charitable organization. CASH — As cash gift is the simplest and most convenient way of making a charitable gift. Cash gifts are fully deductible as a charitable contribution for federal income tax purposes but the maximum deduction in one year is limited to 50 percent of the donor's adjusted gross income. Unused deduction amounts exceeding this limit can be carried forward for up to five additional years. APPRECIATED SECURITIES — Gifts of appreciated securities — stocks and bonds, including stock in closely held companies — provide important tax advantages to the donor. The full fair-market value of the appreciated securities is fully deductible as a charitable contribution for federal income tax purposes but the maximum deduction in one year is limited to 30 percent of the donor's adjusted gross income. Unused deduction amounts exceeding this limit can be carried forward for up to five more years. In addition, the donor does not pay federal capital gains tax on the appreciated portion of the gift. RETIREMENT PLAN ASSETS — Using IRAs and other retirement plan assets is a far-sighted and thoughtful way to make a charitable contribution. It provides a donor a number of significant financial and tax advantages. Unlike many assets, retirement plan assets are potentially subject to both income and estate taxes. laming the Foundation as the beneficiary of a retirement plan —including IRAs, 401(k)s and profit- sharing plans—can eliminate estate and income taxes, if the gift is structured properly. REAL ESTATE — A gift of real estate can provide the same tax advantages as a gift of appreciated securities. Each proposed gift of real estate is carefully examined, because the Foundation's ability to accept • gifts of real estate depends upon a number of factors. LIFE INSURANCE — A gift of life insurance is another way to make a substantial contribution to the Foundation. By assigning ownership to the Foundation,the donor can receive a tax deduction for the value of the policy and the premiums paid each year. ADDITIONAL INFORMATION If you wish to learn more about how a charitable partnership with The Saint Paul Foundation or Minnesota Community Foundation can help you meet your philanthropic goals,please call the Development Department at 651-224-5463 or toll-free at 800-875-6167. We will assist you in exploring the many options available to accomplish your charitable objectives. In addition,we urge donors to consult their own professional advisors before making any charitable gifts. N The Power of Endowment Endowment EUnlike a contribution that is given and spent on an immediate need, a gift to an endowment(or ° permanent) fund will give many times its original value through time, making it"a gift that keeps -a giving." Over years the value of an endowment fund will be significant both in dollars granted a and in fund value. N How does an endowment fund work? In an endowment fund assets are invested to provide a consistent,annual distribution for charitable purposes while protecting the value of the principal against inflation. Assets are invested for total return, i.e. income(dividends and interest)plus growth(change in market w value). For example,a net"total return"of 8%provides: VO 5% for annual charitable distribution and fees, and 3%reinvested to meet inflation. Leaving a Legacy • An endowment fund is also referred to as a permanent fund because it will continue to grow and grant charitable dollars towards its defined purpose, forever. You'll see in the example below that a single gift of$10,000,when invested as an endowment, will produce more than 10 times its original value over its first 50 years. During that time it will have granted out more than Z $56,000 and will have a fund balance of almost$44,000. That's why an endowment fund is a 0 wonderful vehicle for donors wishing to leave a legacy to a community, organization or field of interest they love! Q 0 Z A$10,000 investment into a permanent endowment fund provides the following return to the D 0 community: U- ZD Year Endowment Fund Annual Distribution For Cumulative Charitable Q Value Charitable Purposes Distribution ~ 1 $10,000 $ 500 $ 500 _Z Q 10 $13,440 $ 650 $ 5,730 U) w 25 $20,940 $1,020 $18,230 ~ 50 $43,840 $2,130 $56,400 A$100,000 investment into a permanent endowment fund provides the following return to the community: Year Endowment Fund Annual Distribution ForCumulative Charitable Value Charitable Purposes Distribution 1 $100,000 $ 5,000 $ 5,000 5 $115,900 $ 5,600 $ 26,500 10 $134,400 $ 6,500 $ 57,300 i 25 $209,400 $10,200 $182,300 50 $438,400 $21,300 $564,000 A$1,000,000 investment into a permanent endowment fund provides the following return to the community: Year Endowment Fund Annual Distribution For Cumulative Charitable Value Charitable Purposes Distribution 1 $1,000,000 $ 50,000 $ 0,000 5 $1,159,000 $ 56,000 $ 265,000 10 $1,344,060 $ 65,000 $ 573,000 25 $2,094,000 $102,000 $1,823,000 50 $4,384,000 $213,000 $5,640,000 ©The Saint Paul Foundation/Minnesota Community Foundation 2002(rev 11/02) 651-224-5463 or toll-free at 800-875-6167 5 Reasons for an Endowment Fund I. An endowment fund serves to attract and preserve capital assets for the changing and future needs of the nonprofit organization. • Unprecedented wealth is going to change hands in the next 15 years. This is an important opportunity to preserve some of it for local chanty. • Funds invested now in an endowment will provide a perpetual, inflation- protected income stream for the future. • Permanent endowment funds provide a long-term capital base that has the flexibility to maintain quality and respond to new opportunities as circumstances change. 2. An endowment fund provides a vehicle and a service for donors with varied interests. • Some donors do not want to give for operating funds but prefer funds that are permanent and long lasting, • Other donors can only give annually or from their estate through their will or when assets become available. Because timing is so important, a structure to receive the funds should be put in place. • Some donors want to simplify their giving by making one unrestricted gift to the organization's endowment and they rely on the organization's board to apply the gift where it is needed most. 3. An endowment fund may make charitable grants from income each year and still experience growth of principal, so it is maintained as a durable resource for the community. • An endowment fund with The Saint Paul Foundation/Minnesota Community Foundation is managed for nonprofits by top investment counselors with a goal of a total average net return of 8% over the years. • A new and reliable income stream becomes available in perpetuity. 4. An endowment fund with The Saint Paul Foundation/Minnesota Community Foundation provides access to sophisticated estate planning vehicles, such as a Charitable Gift Annuities. • Donors and charities benefit from careful planning and access to top professional insight into minimizing taxes and taking advantage of tax laws. • In the United States less than half the people have written their wills. Working with Foundation staff can be the catalyst to encourage these people to complete their estate plan. • Some charitable giving strategies can even improve the donor's financial position; e.g. a charitable remainder trust funded with highly appreciated, long-term gain property that at best pays small dividends will now pay the donors increased income. 5. Every nonprofit organization could benefit from a new income stream that is available for addressing emerging needs. An endowment can be especially responsive to extraordinary needs. • Unlike government funds or current operating funds, endowment funds can be moved quickly and creatively, offering you increased independence and flexibility. • Resourceful agencies have a broad-range of financial tools or vehicles to meet the challenges of tomorrow. The Saint Paul Foundation/Minnesota Community Foundation 2002 (rev 11/02) 651-224-5463 or toll free 800-875-6167 MINNESOTA COMMUNITY FOUNDATION What ' s your vision ? First Steps In Building Your Foundation The following are possible first steps in creating a community or school foundation in affiliation with an existing community foundation like Minnesota Community Foundation. 1. Initial interested parties meet with a Foundation representative to discuss your community and options for creating a charitable fund or foundation. Additional meetings are held to inform additional residents and community groups,ascertain interest in creating a local foundation,and identify potential founding board members. 2. Establish an Advisory Board of Directors,and committees to address Governance, Visibility,and Fund Development. At the time you begin Grantmaking,you will add that committee if not already in place. 3. Complete fund agreements with the foundation. 4. Write Governing Guidelines. 5. Create key messages,general brochure,and start-up materials. 6. Outline 1-3 Year Asset Development Plan,e.g. a. Initial operating and capacity-building funding b. Individual donor prospects C. Business and foundation prospects d. Professional advisors (attorneys,CPAs, financial planners, bankers,insurance advisors) e. Constituent,community,social,and professional groups f. Endowment and/or special project campaign g. Bequest society h. Visibility-building grantmaking i. System for tracking prospect/donor lists and contacts. 7. Outline 1-3 Year Visibility Plan,e.g., a. Key messages and case statement b. Brochure(s),leave-behinds,bookmarks,flyers C. Articles and/or ads in newspapers and newsletters (ways to give,donor and feel-good stories,quotations) (vendors may place ads at no charge as public service announcements) d. Web site e. Radio,television/cable interviews,shows,ads f. Local annual report and/or recognition ads in newspaper g. Presentations to groups (sample speech,presentation materials) h. Presentations to individuals(sample script,presentation materials). i. Cultivation of advisors (brochure for them to give to clients, memorial envelope for funeral homes). 8. Launch to targeted audiences and the general public. 9. Execute the plans. 55 Fifth Street East•Suite 600•Saint Paul,MN 55101-1797•Phone(651)224 0571 •(800)875 6160•Fax(651)224 9502•www.mncommunity oundation.org Community Funds Program N °' Community Foundations represent the latest growing sector in philanthropy today—and Iz for good reason! The United States is enjoying its greatest period of prosperity ever, and E individuals strongly committed to their communities hold a significant portion of this 0 0 wealth. v The Saint Paul Foundation/Minnesota Community Foundation recognized this N opportunity more than a decade ago and created the Community Funds Program: Through affiliation as a component fund of The Saint Paul Foundation/Minnesota Community Foundation, a local community foundation fund comes under the public charity 501(c)(3) tax-exempt designation of the Foundation,making contributions to the fund tax deductible. This makes "' affiliation attractive to smaller communities and those not wishing to create an independent foundation structure. • Resources are raised within a community, professionally invested by The Saint Paul Foundation/Minnesota Community Foundation as a permanent endowment, and a portion made available for grantmaking back into the community. In addition, the Foundation offers a full range of charitable gift planning vehicles and expertise to help individual donors best meet their charitable giving and estate planning objectives. • The Saint Paul Foundation/Minnesota Community Foundation actively helps its affiliated funds build their fund assets and become effective leaders in their Z communities by providing training opportunities, resources, and individual O counsel to community fund boards and volunteers. We help funds understand Q and focus on best strategies, as well as avoid pitfalls, in helping donors achieve p their charitable goals, including giving to the community fund. Z D There are currently 28 community funds affiliated with The Saint Paul O Foundation/Minnesota Community Foundation. A number of these communities, with J populations under 20,000,have permanent fund assets nearing $1 million,producing grant dollars of nearly$50,000 annually back to the community. In addition, individual donors have created family funds that will benefit their communities into perpetuity. _Z For more information on starting a community foundation fund,please contact: Q Jean Vukas Roberts, Director of Gift Planning "' jvr@saintpaulfoundation.org Joan Foot, Gift Planner jef_saintpaulfoundation.org ' , a The Saint Paul Foundation 2004 Administrative Fee Schedule* N Unrestricted 1.27%of fund's average market value a� Field of Interest 1.27%of fund's average market value E oDesignated Administrative fee is calculated on average market value as follows: .7%of first$1 million .35%thereafter ° minimum fee of$250.00 N Donor Advised Administrative fee is calculated on average market value as follows: 1%of first$1 million s .7%of next$1.5 million .35%thereafter LU minimum fee of$250.00 � � Community Funds .7%of fund's average market value o Scholarship 1%of fund's average market value for endowed funds 18%of grants paid for non-endowment funds minimum fee of$250.00 Fundraising Funds Base fee of$500.00 Pius 4%of contributions Other Funds To be negotiated in advance Z Charitable Trusts Administrative fee is calculated on average market value as follows: O .5%of first$1 million .25%thereafter Q minimum fee of$800 0 Z Charitable Gift Administrative fee is calculated on average market value as follows: Annuities .7%of first$1 million .35%of next$2 million 1%thereafter Cl- Investment Costs Z Investment costs on permanent funds have averaged.70%of the fund's market value Q annually. N Direct Fund Expenses w All direct costs,such as brokerage costs,specialized brochures,credit card fees,appraisal 2 �— fees,sales commissions,legal fees,probate costs,program consultants,etc., attributable fund are passed directly to the fund_ *effective January I,2003 0 MINNESOTA COMMUNITY FOUNDATION/ THE SAINT PAUL FOUNDATION INVESTMENT SUMMARY 600 Fifth Street Center 55 Fifth Street East Saint Paul, Minnesota 55101 Minnesota Community Foundation Telephone: 651-224-0571 or 800-875-6160 Fax: 651-224-9502 The Saint Paul Foundation Telephone: 651-224-5463 or 800-875-6167 Fax: 651-224-9502 Rev 06/31/04 • MINNESOTA COMMUNITY FOUNDATION/ THE SAINT PAUL FOUNDATION • Founded in 1940 and 1949 • Total Assets: $680 million • The eighth largest Community Foundation in the nation • Together with our Foundation clients we work with total assets of$863 million • A primary task of the Foundation is the investment and • administration of endowments pdf.handout.In vests umPg2 MINNESOTA COMMUNITY FOUNDATION AND THE SAINT PAUL FOUNDATION COMMUNITY INVESTMENT GROUP Balanced Fund Investment Results Period Ending June 30, 2004 Annualized Annualized Annualized Y-T-D I Year 3 Year 5 Year 10 Year Balanced Fund 3.4% 17.1% 5.1% 6.3% 11.1% Market Index* 3.0% 16.0% 4.0% 2.9% 9.7% Inflation+5.5%** 4.2% 7.8% 7.3% 7.6% 7.4% * 40%S&P 500, 10%Russell 2000, 15%MSCI EAFE,30%Lehman Aggregate, 5%NCREIF. ** Inflation is measured using the GDP Price Deflator.