iq magazine - october 2010

theimpossibleisnt.com

Where others see problems, we see opportunity.

When some say, “it can’t,” we imagine what could.

While others focus on shock, we produce results.

Welcome to a new way of thinking from a new kind of advertising agency.

Welcome to RedHouseMedia.

Contents

F E AT U R E SHeartdriveNonprofits Provide the Backup When Other Systems Crash

InnovationEight Inventions, Breakthroughs and Workarounds to CentralMinnesota’s Toughest Nonprofit Challenges

Storm ChasersNonprofits Adapt to the Changing Economic Climate

Growing UpsideFoundation Programs Strengthen Nonprofits from the Inside Out

The New Face of VolunteerismCharities Channel the Passions of Unpaid Leaders

D E PA R T M E N T S

OUR MISSION:

Unlock the power of central Minnesota peopleto build and sustain healthy communities.

INITIATIVE FOUNDATION GOALS:

–Strengthen Economic Opportunity–Preserve Key Places and Natural Resources–Support Children, Youth, and Families–Build Organizational Effectiveness–Encourage the Spirit of Giving

ABOUT THE COVER:

heartdrive. Digital illustration by Andrea L. Baumann

IQ Magazine OCTOBER 2010

18

21

28

32

34

4 Kathy’s NoteMiracles

6 IQ PointsYour Two-Minute Digest

8 Nonprofit MythologyBusiness & Nonprofit Leaders BearSeparate but Equal Responsibilities

10 Crystal BallAre More Nonprofit Mergers &Dissolutions in Minnesota’s Future?

12 Secondhand SuccessThrift Stores Help Charities Putthe Profit Back in Nonprofit

16 Faith ForwardMinnesota’s Faith-BasedNonprofits Gain Higher Power

48 BrainiacAn IQ & A with Charlotte Johnson

18

28 32 34

21

3OCTOBER 2010

(218) 828-0096

(888) 322-5232

www.bladc.org

WE HELP MAKE

IT HAPPEN.

Targeting key industriesfor development and economicgrowth in Crow Wing County.

Dear Friends,Last June, I drove through my first disaster zone.Houses were leveled, businesses assaulted, trees exploded, gravestones toppled, commu-

nity and school buildings devastated. Unless you’ve seen it, you can’t grasp it. Every scenetook my breath away.

A significant portion of the City of Wadena and parts of both Wadena and Otter TailCounties endured an F4 tornado on June 17, 2010. The terrible episode, which disappearedas suddenly as it arrived, impacted hundreds of families who are still struggling to recover.

Later on, I couldn’t help but draw parallels to the economic recession—little warning,massive impact, persistent aftermath.

But I saw something else on my drive that day—hundreds of local residents and volun-teers doing back-breaking work and sharing their time and talents to help others.The tornado, although unquestionably better if it never happened, brought with it a once-in-a-lifetime chance to rethink and rebuild an entire community.

Did the recession bring us a similar opportunity?When it comes to central Minnesota’s vibrant nonprofit community, the answer seems

to be yes. Charities have been on the front lines of economic hardship and recovery. Theyhave provided inspirational leadership, cushioned the hardest falls, kept a keen eye on caus-es as well as symptoms, streamlined response systems, innovated solutions, perseveredthrough months of fatigue, and done it all with a fraction of past resources.

We thought that story deserved a magazine, one that spotlighted nonprofit impacts andchallenges, and one that elevated nonprofit leaders to a level commensurate with theirimportance to our communities.

Just like our foundation has the privilege of helping Wadena, we’ve also had thehonor of investing in the effectiveness of central Minnesota’s nonprofit organizations forthe past ten years. My husband, Neal, and I traveled back to Wadena to participate in anecumenical prayer service in recognition of a miracle—the tornado caused no loss of lifeor even severe injury.

This issue of IQ is also dedicated to miracles, brought to us every day by ournonprofits.

Enjoy the magazine.

Kathy Gaalswyk, PresidentInitiative Foundation

Kathy’s Note

miracles

Lakes Area Habitat for Humanity ReStore

Building Houses, Building Hope in

Cass, Crow Wing and Hubbard Counties

BUILDING

A HOME

PROVIDES

MORE THAN

SHELTER.

DIGNIT Y

PRIDE

HOPE

Initiative Quarterly Magazine IQmag.org4

Printed with Soy-Based Ink on Recycled Paperat Range, Inc.

OCTOBER 2010 5

Volume 8, October 2010

Initiative Quarterly Magazinewww.IQmag.org

INITIATIVE FOUNDATIONVice President for External Relations | Matt KilianGrants & Communications Specialist | Anita Hollenhorst

EDITORIALManaging Editor | Elizabeth Foy LarsenWriter | Sarah ColburnWriter | Mackenzie LobbyWriter | Liz PotasekWriter | Lawrence SchumacherWriter | Dawn Zimmerman

ARTArt Director | Andrea BaumannProduction Manager | Bryan PetersenLead Photographer | John Linn

ADVERTISING / SUBSCRIPTIONSAdvertising Director | Brian LehmanAdvertising Manager | Lois HeadAdvertiser Services | Mary SavageSubscriber Services | Katie Riitters

IQ EDITORIAL BOARDInitiative Foundation President | Kathy GaalswykInitiative Foundation | Chris FastnerInitiative Foundation | Cathy HartleInitiative Foundation | Tricia HoligBirthline | Carrie TrippCenter for Nonprofit Excellence & Social Innovation | Terri BarreiroGreat River Area Faith in Action | Denice FreihHBH Consultants | Bob BungerLakes & Pines Community Action Council | Bob BenesMAP for Nonprofits | Judy AlnesMinnesota Association of Volunteer Administrators | Mary QuirkNonprofits Assistance Fund | Kate BarrRegion 5 Economic Development Commission | Lee MillerRiverWorks Community Development | Denise KesanenTri-CAP | Angie Theisen

405 First Street SELittle Falls, MN 56345320.632.9255 | www.ifound.org

Published in partnershipwith Range, IQ Magazineunlocks the power of centralMinnesota leaders to understandand take action on regional issues.rangeprinting.com

Brainerd Office and Drive-Up ATM524 SOUTH 6TH STREET

Baxter Office and Drive-Up ATM14244 DELLWOOD DRIVE

Contact us:brainerdsavings.com

218.829.5183

� Nonprofits across the region are respondingto the recession with a conviction and com-passion that withstand even the toughestodds. While their causes differ, nonprofitsshare a commitment to humanity—and abelief that the quality of a communityis measured by how it serves itsweakest parts. (Turn to page 18 to see hownonprofits serve more with less.)

� The launch of a federal faith-based initia-tive in 2001 provided new fundingsources for faith-based nonprofitsand established offices in several states,including Minnesota. Subsequent research bythe Robert Wood Johnson Foundation con-firmed these unique nonprofits’ effectivenessin addressing community needs. (For moreabout faith-based nonprofits, turn to page 16.)

� Minnesota’s volunteer rate is third in thenation; one and a half million residents dedi-cate 171.1 million volunteer hours annually.It’s estimated that the annual econom-ic contribution of all those volun-teer hours is $3.4 billion dollars. Asfunding gets tight, more nonprofit organiza-tions are relying on volunteers. (For moreinformation on the changing needs of volun-teers, turn to page 34.)

Intelligence

� Sixty-one percent of non-profits with budgets lessthan $400,000 a year madecuts in the first half of 2010.Meanwhile, most nonprofits havemaintained or stepped up services inthe face of increasing demands. (Formore about how nonprofits have weatheredthe recession, see page 28.)

8 Initiative Quarterly Magazine IQmag.org

NonprofitMythology

By Lawrence Schumacher | Illustration by Chris McAllister

In tough economic times, charitable donors want to knowthat the dollars they give are spent wisely. That’s why myths abouthow nonprofits operate can be so damaging. The truth is thatnonprofits already operate under restrictions and requirements

that might feel rigorous to many business leaders.

> Myth: Nonprofits don’t have to deal with red tape andregulations.> Reality-Check: Nonprofits are bound by more publicchecks and balances than many businesses.

Unlike privately owned small businesses, nonprofits of all sizes mustfile yearly Form 990 reports with the Internal Revenue Service detailingwhere their money comes from and how it is spent, said Kate Barr, theexecutive director of the Nonprofits Assistance Fund in Minneapolis.Reports are available to the public for at least three years.

Minnesota nonprofits also report annually to the offices of theMinnesota Secretary of State and Attorney General. The Charities ReviewCouncil in St. Paul conducts voluntary reviews of several charities each yearand judges whether they meet the group’s standards for public disclosure,financial stability, efficiency and fundraising.

“They either meet every standard or they don’t get our rating,”said Martin Wera, nonprofit services manager for the Charities ReviewCouncil. “Almost 90 percent of all the nonprofits we review meet allthe standards.”

> Myth: Nonprofits don’t have to account for a bottom line.> Reality-Check: True, because nonprofits actually have twobottom lines.

Contrary to public perception, nonprofit organizations are able toearn a profit, as long as it is reinvested in the work of the organization.They often have an internal structure that closely resembles corporations,and they must follow the same employment laws and human resourcespolicies, according to Christine Durand, spokeswoman for the MinnesotaCouncil of Nonprofits.

In addition, if a Minnesota nonprofit receives more than $750,000 inannual revenues, it must hire an independent auditor. But unlike for-prof-it businesses, who must please their clients to keep their doors open, non-

Business & Nonprofit Leaders BearSeparate but Equal Responsibilities

profits serve two masters—the people and agencies that fund them and theclientele who need their services.

When a business’s revenue falls, it can cut back on services. A non-profit, on the other hand, is likely to see revenue decrease at precisely themoment when demand for its services is at its highest.

“Nonprofits have to do all the same things a business does to stayfinancially secure, but they have to do it within an economic model thatsays that when demand for your services is high, you can’t raise prices,” Barrsaid. “It’s like what people said about Ginger Rogers. She could do every-thing Fred Astaire could do, but backwards and wearing high heels.”

> Myth: Nonprofits don’t contribute to economic growth.> Reality-Check: It takes more than manufacturing to grow alocal economy.

Nonprofits with an IRS 501(c)(3) designation are generally exemptfrom paying federal and state income taxes, property taxes and sales taxes,but that doesn’t mean they don’t contribute to economic growth.

Charitable organizations pay payroll taxes on their employees, who inturn pay income taxes and spend their earnings in the community. In fact,one in 10 workers in Minnesota is employed by a nonprofit, and state non-profits pay $12.6 billion in wages annually.

By serving as a conduit for funds from public programs and privatefoundations, nonprofits also help to improve communities and strengthenbusinesses. Many exist specifically to help communities increase econom-ic development, employment and vitality. IQ

OCTOBER 2010 9

Make 2010 a profitable year, using financial management strategies, banking products, and technologies that have been proven to save time and money.

Frandsen Bank & Trust is a full-service bank serving consumers and business.

We’re rock solid, having the capital needed to make major loans while protecting our customers’ funds.

Our mission is to serve local business through better banking. Call to see how we can serve you.

NISSWA (218) 963–3316CROSSLAKE (218) 692–2455

BAXTER (218) 855–1320

WE MAKE IT OUR BUSINESS TO GROW YOUR BUSINESS

www.frandsenbank.com

FS10109 CA010610

MEMBER FDIC

Crystal Ball

By Sarah Colburn | Photograph by John Linn

The board of Dell’s Place was worried. ChairmanMike Foell had been serving the Buffalo-based nonprofit,which operated group homes for disabled adults, for morethan 25 years. And he was still considered one of the new

guys. While the organization’s financial snapshot was solid, the numberof retiring board and staff members meant Dell’s Place needed to out-source administrative and accounting duties. That’s when the boardasked nearby Functional Industries Inc., a workplace rehabilitation pro-gram, to take over the books.

Foell and Functional Industries’ chief executive officer Rod Pedersonfelt an almost instant connection. But it took four years for them to fig-ure out how to best work together. “There’s so much you have to do tohave confidence and trust in both organizations,” said Pederson. Finally,in October 2009, Functional Industries acquired the group homes andtheir staff—and left the Dell’s Place name behind.

Nonprofit leaders across the state are considering similar partner-ships as a tough economy and the strain of ever-decreasing state fundingtake their toll. “The state budget in the next biennium may very well beworse,” said Kate Barr, the executive director of the Nonprofits AssistanceFund, which helps nonprofit boardsand leaders better understand theirfinancial picture. “This is not goingto get better quickly.”

During the last 30 years, theNonprofits Assistance Fund hasprovided more than $73 million inloans to 1,800 nonprofits. Theorganization works with about 300nonprofits each year, half ofwhom, Barr said, need to seriouslylook at their existing business model. In the wake of the economicdownturn, she anticipates even more boards will seek help and consid-er acquisitions, mergers and the unloading of fully-formed programsto sister nonprofits.

This isn’t necessarily bad news. That interior house cleaning, Barr

RENAE OSWALD-ANDERSON: "The folks using the services don’t careabout the name on the nametag, they care about access to services."

Are More Nonprofit Mergers &Dissolutions in Minnesota’s Future?

said, gives nonprofit leaders the chance to change the way they run theirprograms, alter their organizational structure and sometimes evenrethink their revenue sources. Sometimes a merger is the best way tocontinue to provide services. “If two organizations are servicing twogroups of clients and have similar missions they might do better if theydid it together,” she said.

While these decisions are rarely easy, experts say it’s important fornonprofit leaders to remember that their original mission was to servepeople. “The community and folks using the services don’t care about thename on the nametag; they care about access to services,” said Renae

Oswald-Anderson, the director of ProjectRedesign, a merger counseling programrun by the St. Paul-based MinnesotaAssistance Project for Nonprofits. Since2007, MAP has helped 26 Minnesotanonprofits merge and 18 dissolve.

That’s sobering news. But expertsagree that more central Minnesota non-profits will close their doors in upcom-ing years. Already the region has lostthe St. Therese Center in St. Cloud and

the regional office of the Minnesota Senior Federation. But many ofthe departed organizations will pass along their programs to healthiernonprofits. “In a struggling nonprofit with financial challenges, it’sabout saving the service,” said Oswald-Anderson, “not about savingthe organization.” IQ

While these decisions are rarely easy,experts say it’s important for nonprofitleaders to remember that their original

mission was to serve people.


OCTOBER 2010 11

So, You Want toStart a Nonprofit?Four Points to Ponder Before

You File the Paperwork

Grassroots organizations throughoutMinnesota all begin the same way—someone, somewhere has an idea to

band people together for a cause.

Leaders at the Initiative Foundation andthe Minnesota Council of Nonprofits suggest

considering these issues before you decidethat starting a new organization is the

best way to accomplish your goal.

> Be clear about identifying thecommunity need you want to fill.Gather statistics and information that showhow large the need is. Figure out what kindof broad-based support might be available foryour concept.

> Consider whether there mightbe an opportunity for your pro-gram to become a branch of anexisting nonprofit. Research nonprofitsin the area and talk with their leadership abouta potential partnership.

> Think about the potential for afiscal host relationship, in which anew organization partners with an existing501(c)(3) with a similar mission. The hostorganization takes responsibility for thenewly-formed organization and tracks grantfollow-through, donations and finances tomake sure funds are spent appropriately.Hosts typically charge a fee of 3-12% fortheir services.

> Structure your board of direc-tors as though you are a 501(c)(3),even if you aren’t. Delivering servicesin this manner will help you ease the transi-tion if you later decide to seek approval for a501(c)(3), the IRS designation for charitabletax-exempt and donation deductibility status.

For more step-by-step advice go tohttp://www.mncn.org/info_start.htm

BIG BRANDS: Brainerd's Common Goods thrift store stocks merchandise you'dalso find at a mall, according to Bridges of Hope executive director Jana Shogren(above). The nonprofit opened the store to provide quality goods at affordableprices and to boost its bottom line.

SecondhandSuccess

By Mike Mosedale | Photograph by John Linn

As she surveys the spacious, well-lit salesroom atBrainerd’s Common Goods, Jana Shogren is keen to pointout a few distinctions from the typical thrift store. Insteadof the usual carpet and sheetrock décor, Common Goods

boasts a modern look, with a finished cement floor, corrugated metalwalls and splashes of bright color.

Then there is that thrift store aroma—or, more accurately, thelack of one.

“Thrift stores have a bad rap for a certain odor,” noted Shogren,the executive director of Bridges of Hope, the Crow Wing Countyfamily crisis referral service that runs Common Goods. Shogren sayscustomers at Common Goods often remarkon the pleasing olfactory atmosphere,which she attributes to both the remodel-ing and the routine steam cleaning ofdonated clothes.

The 6,000 square-foot operation, locat-ed on a commercial strip along Highway371 just north of Baxter, opened inSeptember of 2009. From the outset,Bridges of Hope had a different kind ofthrift shop in mind, one less musty and yetmore discriminating about merchandise than the secondhand stereo-type. But they also wanted their shop to be modestly priced and offermore practical items than most boutiques or antique stores.

Marketplace positioning aside, the principle ambition forCommon Goods was simple: to make money for Bridges of Hope.After seven years of planning, Bridges secured roughly $100,000 instartup grants from the Brainerd Lakes Area Community Foundation,the Otto Bremer Foundation, the Initiative Foundation, and CrowWing Power.

So far, the store’s performance has exceeded expectations. At thestart of the year, according to Bridges of Hope board member BillBrekken, the fledgling operation had $60,000 of its seed money left; byAugust, the balance had grown to $109,000. “We’re hoping that

Thrift Stores Help Charities Putthe Profit Back in Nonprofit


Common Goods will be able to write a check to Bridges of Hope after itsfirst year of business,” he said.

As institutional donors have become more circumspect about crack-ing the checkbook year after year, such enterprising tactics have becomeincreasingly vital to the survival of small nonprofits. In Braham, the TusenTack thrift store funds the local community center. The CommunityCloset Thrift Store in Milaca channels its proceeds to the Pearl CrisisCenter, which helps victims of domestic abuse and sexual assault.

These innovations are proving effec-tive in tough economic times. In 2009,according to Shogren, the caseload atBridges increased by 30 percent over theprevious year. “There’s only so many timesyou can to back to the same funder with-out a really new, radical idea,” she said.

While making money is central toCommon Goods’ mission, it is not theonly goal.

For the store’s seven employees,Common Goods serves as a sort of workforce training operation, accord-ing to store manager Suzanne Welch. “We teach them retail—how yougreet people, how you run a register,” she said. “A lot of it is just peopletraining skills.” The store also provides volunteer opportunities for youngadults with cognitive disabilities and other citizens just looking to pitch in.

Common Goods also allows Bridges to forge alliances with otherlocal nonprofits.

In the store’s processing area, bins of donated items not destined forthe show floor are set aside for other charities. A tub of dirty rags madefrom unusable clothes will be donated to a program that teaches kids howto fix bikes. Even though only about 30 percent of merchandise donatedto Common Goods makes it to the floor, Welch says, virtually nothinggoes to the landfill. IQ

“Such enterprising tactics havebecome increasingly vital to the

survival of small nonprofits.”

OCTOBER 2010 13

We are currently seeking boardmembers to fill 2011 openings.

For more information andapplication materials, contact us at

320.252.4150, or [email protected].

1411 West St. Germain StreetSt. Cloud, Minnesota

. . . . . . . . . .

www.birthline.org320.252.4150

ensearchmn.com • [email protected] • 763.521.7571 • Stacey Hueftle Stockdill, PhD, Consultant

In Search of......Answers to your Strategic Organizational Questions

What are our customers thinking?How can we improve our operations?What is the impact of our grant-making efforts?


Brainerd | 200 S. 6th Street | (218) 829-0371 | www.mmfcu.org

By Appointment: Alexandria, Baxter, Crosby, Little Falls, Staples

OCTOBER 2010 15

Through a supportive, collaborative approach we connectlocal farmers and growers with regional locations—

such as grocers, hospitals, schools, restaurants—that prepareand sell food. Our work holds the potential to positively

impact several regional critical issues such as poverty,carbon foot-print energy consumption, conservation efforts,

economic development and healthy living.

For a copy of our Local Foods Catalog visitRegionFive.org

and click on the Local Foods link!

FaithForward

By Dawn Zimmerman | Photograph by John Linn

Denise Kesanen believes in God moments. It’sbeen hard not to since she took the helm last year ofRiverWorks, a Rockford community developmentorganization that was started by the Riverwood

Covenant Church.There was the time last year when the city offered to donate a

building to RiverWorks on the condition that the nonprofit pay for therenovations needed to transform it into the community’s first food shelf.The RiverWorks board budgeted $25,000 for the project but ended upnot spending a dime because people of all faiths stepped forward todonate their time, skills and products. By this past July the food shelfwas serving 153 families a month.

Then there was the timeKesanen sent an e-mail to the orga-nization’s board of directors aboutneeding shelving for the food shelf.The accidental addition of a localbusiness owner to the e-mail listresulted in an almost immediatephone call. His company, it turnedout, distributed the exact shelvingshe mentioned. RiverWorks couldhave as much as it needed—free. “We believe there is great power clear-ing the way and making it happen,” said Kesanen. “There are so manystories about moments we just can’t explain any other way.”

Whether they’re grounded in Christianity, Islam, Judaism or anyother religion, faith-based nonprofits are effective because they candraw upon their deep and lasting connections to their communities tohelp meet people’s basic needs. Their motives aren’t about proselytizing,which funds for their charitable work can’t legally support. Instead,“they are tapping into a different motivation,” said Chris Fastner, pro-gram manager for the Initiative Foundation, which has invested bothgrants and leadership training efforts to organize and advance the workof central Minnesota’s faith-based charities. “Feeding the hungry,clothing the naked, helping the poor—they are basically living out their

Minnesota’s Faith-BasedNonprofits Gain Higher Power

faith of serving their fellow human beings.”The federal government has not developed an official definition of a

faith-based organization. But they tend to be characterized by a religiouslegion of active volunteers, shoestring budgets and a commitment to servethe most vulnerable.

The launch of a faith-based initiative by former President GeorgeW. Bush in 2001 provided new funding sources for faith-based nonprof-its and established offices in several states, including Minnesota.

Subsequent research by the Robert WoodJohnson Foundation confirmed theseunique nonprofits’ effectiveness inaddressing community needs.

The Initiative Foundation has alsoprovided more than $700,000 through 180grants to RiverWorks and other faith-based organizations in the 14-county cen-tral Minnesota area.

Volunteers are much of the reasonwhy faith-based organizations can make a

broader impact on a minimal budget. About 500 of the volunteers at GreatRiver Area Faith in Action in Becker donate time every week to providecaregiver and support services for seniors. Many of them give far morethan the average one to two hours a week. “We have a lot of volunteersdoing 15 to 20 hours a week,” said executive director Denice Freih. “Thereis a common belief that there is a higher power. God is at work, workingthrough us, binding us together and giving us strength and bringing in thelabor to do it.”

Great River Area Faith in Action’s success has allowed the nonprofitto expand into youth services. “Just the other day, a group of volunteersdrove to St. Cloud to deliver a bed to a high school football player who hasnever had one,” Freih said. “He’s a star on the field and most people wouldnever know that he doesn’t even have a bed to sleep on.” IQ

“We believe there is great power clearingthe way and making it happen.

There are so many stories about momentswe just can’t explain any other way.”


HELPING HANDS: Thanks to its active volunteers, Rockford-based RiverWorks(led by Denise Kesanen, above) was able to open a food shelf that has servedup to 153 families a month.

OCTOBER 2010 17

Women & Horses

Similar Spirits is a chance for women to feed their passion for horses and connect with these beautiful and majestic animals. It includes riding instruction, guest speakers, equine education and a lot of fun. No riding experience necessary; all riding levels are welcome. Call today to register.

Similar Spirits for women offered this winter

Holiday gift certifi catesare available.

Session 1: Jan. 19 & 26, Feb. 2 & 9Session 2: March 16, 23, 30,April 6

Times: 10 am – NoonCost: $135/session

Toni Wasilensky is our on-site professional trainer and instructor, specializing in dressage.

www.SpiritHorseCenterInc.com(218) 825-4944

[email protected]

We have been providing cost effective metal spinningsolutions for over 60 years. Our exclusive capabilityto spin metal up to 1.375" thick is supported by asuperior commitment to product quality, highlyempowered employees, and commitment to being thenumber one U.S. source for close toleranced heavygauge CNC spinnings.

FOR ASSISTANCE with production orders:call direct [800] 388-5355 or e-mail [email protected]

PROBL

EMPA

RTS?

TO LEARN MORE: www.glennmetalcraft.com

Dayton D. Hultgren, PrincipalBob Bunger, Principal

Dianne Tindall Hennes, PrincipalKatrina Pierson, Senior Associate

Sarah C. Libbon, Adjunct Marketing Specialist

HBH OrganizationalFund Development Consultants

For more information,please visit our website atwww.hbhconsultants.com

&


By Dawn Zimmerman • Photography by John Linn

NONPROFITS PROVIDE THE BACK-UPWHEN OTHER SYSTEMS CRASH

heartdrive

OCTOBER 2010 19

Fortunately for them, Ashley and Vinny foundout about Stepping Stones, an incentive programthat allows expectant parents to earn “dollars” to buybaby items and other basic supplies through parenteducation and self-improvement assignments. Theprogram is run by Birthline, a St. Cloud-based non-profit that provides services for unexpected or crisispregnancies.

Until the 2008 recession, the organization hadalways focused their assistance on young, single women.Suddenly, married couples were walking through theirdoor. And Birthline wasn’t alone—nonprofits aroundthe region saw similar surges in the need for their pro-grams. Demand for housing and food services alonesoared 78 percent at the end of 2009, according to a sur-vey by the Minnesota Council of Nonprofits. AnnaMarie’s Alliance, a St. Cloud area shelter for batteredwomen and their children, has been operating at 135percent of capacity for the past six months.

A Commitment to HumanityFood, clothing, shelter, safety. It’s easy to take themfor granted—when you have them. Rising joblessness,a pervasive financial crisis and a complete housingmeltdown have stripped these necessities from a sig-nificant number of central Minnesotans and chal-lenged nonprofits to answer what seems to be animpossible call: to serve more with less. “There are somany people hurting,” said Denice Freih, executivedirector of Great River Area Faith in Action, whichprovides care, transportation and other basic servicefor residents, particularly the elderly, in Sherburne andWright counties.

Nonprofits across the region are responding tothese needs with a conviction and compassion thatwithstand even the toughest odds. While their causesdiffer, nonprofits share a commitment to humanity—and a belief that the quality of a community is meas-ured by how it serves its weakest parts. “Nonprofitsreally are the ones looking at the specific local needsof the community and bringing people together to dosomething about it,” said Cathy Hartle, senior pro-gram manager for organizational effectiveness at theInitiative Foundation. “Without nonprofits, a com-munity could lose a certain amount of heart and a cer-tain amount of humanity.”

Ashley and Vinny Dones were eager to get pregnant after theymarried in March 2009. But the Florida newlyweds’ happy news thefollowing November came at an extremely stressful and uncertaintime: Ashley was out of work and businesses were closing acrosstheir region.

The couple moved to St. Cloud so Vinny could take a moresecure job as an electronics technician. But being uprooted fromtheir support system created a host of new worries. Who wouldanswer Ashley’s questions about pregnancy or help her throughlabor? How could they afford even the basic necessities for theirbaby? “We moved up here with a suitcase,” Ashley said. “That’s it.”


Economic EnginesWhile they are often viewed as second-classrelations to their for-profit cousins, nonprof-its are a key component to a community’seconomic and social vitality. In 2008, one inevery ten Central Minnesotans worked at anonprofit. In St. Cloud, Catholic Charitiesemploys 600 people and pays out $1 million amonth in salaries alone. What’s more, it con-

nects with more than 60,000 clients a year. Its$25 million annual operating budget enablesthe nonprofit to provide 40 programs thatserve residents in 16 counties. And nonprof-its’ impact goes far beyond employment.“Nonprofits represent 10 percent of the localeconomy and tend to purchase locally, hirelocally and help locally,” said Hartle.

Donors Become ClientsWhen nonprofit leaders heard news of a loom-ing economic recession, many braced them-selves for what they knew would follow: agreater need for services. What they didn’texpect was to see a number of their donors walkthrough their doors—to ask for help. “It’s notuncommon to hear someone go through ourfood shelf and say, ‘I use to donate and now Ineed the service,’” said Steven Bresnahan, theexecutive director of Catholic Charities.

An accomplished Sartell businesswoman,Denise Brigham expected to donate and volun-

teer at local nonprofits, but never depend onthem. That changed when she said her hus-band became verbally abusive and violent.Brigham turned to Anna Marie’s Alliance,staying anywhere from two to six hours untilshe felt it was safe to return home. Nowdivorced, she shows her gratitude by volunteer-ing and donating to the nonprofit she creditswith saving her life.

CreativeProblem-SolvingThe recession forced manynonprofits to creativelyrethink how they do busi-ness. Birthline, for example,now includes more items inthe Stepping Stones store toappeal to the growing num-ber of men who are enrolledin the program. They are alsoseeking out new fundingsources to serve them.

Nonprofits are alsousing volunteers to do more

with less revenue. Last year marked thelargest increase in the number of volunteersnationwide, according to a report releasedby the Corporation for National andCommunity Service. Nearly 65 million peo-ple volunteered more than 8.1 billionhours—that’s more than one-quarter of thepopulation and an estimated $169 billion.

Last year, more than 1,300 volunteers

donated 23,000 hours at Great River AreaFaith in Action. Likewise when the RiverwoodCovenant Church in Rockford decided to opena food shelf, a diverse group of residents,churches, skilled tradesmen and businesses vol-unteered their time and energy to make it hap-pen. For a town without a grocery store ormeeting place besides high school sportingevents, the food shelf allowed residents to con-nect with their own community and reconnectwith their neighbors.

Nonprofits also continue to be leadingexamples of how both nonprofit and for-profit

What Do Minnesota Nonprofits Do?Percentage of Total

Type Nonprofits in State

Arts, Culture, Humanities 9.6Community, Volunteer, Philanthropy 9.8Education 13.8Employment 1.7Environment, Animal 3.6Food, Housing 7.7Health 9.1Human Services, Youth 14.5Legal, Civic Rights, Advocacy, Crime 2.4Mental Health, Crisis Intervention 2.2

Source: Minnesota Council of Nonprofits, 2009

CONTINUED ON PAGE 38

“Withoutnonprofits, a

community couldlose a certain

amount of heart anda certain amount

of humanity.”—Cathy Hartle, senior program manager

fororganizational effectivenessat the Initiative Foundation

TRAGIC TWIST: “It’s not uncommon to hearsomeone at our food shelf and say ‘I use todonate and now I need the service,’” saidSteven Bresnahan, the executive director ofCatholic Charities.

OCTOBER 2010 21

Innovative solutions aren’t solely the province of business or industry. Nor are they cooked up by Einstein-level geniuses. In fact,all across central Minnesota, nonprofits are creatively solving a hostof social challenges.

“What worked in an organization twenty years ago may not workanymore because both the people and needs have changed,” saidJeannette Bineham, the executive director of the Center forNonprofit Excellence and Social Innovation, a St. Cloud-basedorganization that works to infuse creativity into the nonprofit sector.

These eight central Minnesota pioneers inspire not only the peoplethey serve, but also their communities and fellow nonprofits. >>

Eight Inventions, Breakthroughs and Workarounds to Central Minnesota’s Toughest Nonprofit Challenges

By Mackenzie Lobby | Photography by John Linn


When St. Cloud’s Whitney Senior Center started to outgrow its rental space, it wastime to get resourceful. And a dose of out-of-the-box thinking by the advisory board gave wayto the perfect solution: bring programming to clients at offsite locations. Not only would thenonprofit solve its real estate woes, but it would also reach a whole new population of seniors.

Whitney WithOut Walls (WWOW) started in 2006 at Benet Place South and SalemLutheran Church in St. Cloud. Since then it has offered a host of programs, including driverimprovement training, acupuncture, card clubs, bingo and exercise classes. “We need to keepseniors exercising, socializing, and having good nutritious meals to keep them healthy and outof nursing homes,” said Steve Hennes, the program’s director.

That’s not an understatement when you consider that the cost of funding five people in anursing home is equivalent to running Whitney Senior Center programs for an entire year.Today, the award-winning organization has provided programming to over 20,000 seniors andis garnering accolades from across the country for its truly unique approach to senior care.

Open since 2002, this hip hangout’s mission is to provide a positive,chemical-free environment for youth to socialize and learn about technology.But in the wake of last summer’s tornados, which left many families withoutcomputers or access to the Internet, The Cyber Café has also provided localteenagers a digital lifeline to the very technologies that help young people suc-ceed. “We want to help our youth stay up to date with the technology world, aswell as give them a place to do homework,” said director Randy Jahnke.

Staffed primarily by teenagers, the center sells the usual lattes and pastries.But it also provides access to computers, pool, foosball and pingpong. TheCyber Café organizes teen dances, theme parties and even a comedy night,which build a stronger sense of community and raise funds for the venture.

Once a flipchart idea hatched during the Initiative Foundation’s HealthyCommunities Partnership program, today it’s a dynamic and appealing placefor local teens to learn and grow. “We help them prepare to be better adults inthe future by keeping them up to date with bigger cities,” said Jahnke, referenc-ing how the center helps teens stay on top of the latest and greatest trends inthe tech world. “The Café really helps to bridge that gap.”

Unthinking theSenior CenterWhitney WithOut Walls

> ST. CLOUD

A Virtual RealityThe Cyber Café

< WADENA

^ Steve Hennes | Whitney Senior Center

^ Randy Jahnke | Cyber Café Director

OCTOBER 2010 23

One of only two organizations in theUnited States to offer solar heat to low-income families, Rural Renewable EnergyAlliance’s (RREAL) Solar Assistance pro-gram is in a league of its own. “Our intentionis to provide a long-term, clean, domesticsource of energy assistance that also empowersthe families who are receiving it,” said directorJason Edens.

An Initiative Foundation grantee andnonprofit award winner, the program not onlyhelps the environment, it also makes it possi-ble for families to not have to choose heatingover eating. Solar Assistance also saves thestate’s energy assistance program money—anenormous plus considering the state spendsnearly 80 million dollars every year to serveless than a quarter of the 800,000Minnesotans who are eligible.

Breaking through what Edens calls, “therenewable divide,” RREAL seeks to providesolar power to a segment of the populationthat has historically been shut out of the move-ment. “Those in the upper echelons of societyhave been the only ones who could afford thistechnology,” said Edens. “But the folks whocan benefit the most from renewable energyare low income communities.” While solarenergy isn’t the solution for every low-incomefamily—homes need to be able to receivedirect sunlight to be fitted with solar panels—RREAL’s work is a true ray of sunshine.

Power tothe PeopleRural RenewableEnergy Alliance> PINE RIVER

Jason Edens | RREAL Director >


For those of us who complain about thehassles of our daily commute, it can be hard toremember that we’re the lucky ones. “If you havea vehicle, you can keep your job,” said MattMathiasen, the executive director ofCommunities Investing in Families (CIF), anoffice-less nonprofit that provides emergencytransportation assistance and financial literacyclasses to families in crisis. With few commuteroptions, transportation is still the number onebarrier to getting and keeping employment inrural areas.

An Initiative Foundation grantee, CIFoffers a guaranteed loan program to buy vehi-cles and also helps with insurance payments.The organization also assists with emergencyrepairs, and has a car donation program wherecars are overhauled for free by inmates atSandstone Federal Prison who are learningcar repair techniques.

Families in the program are at or below200 percent of the federal poverty guidelines.That’s why CIF also instructs its clients onthe ins and outs of financial basics, such as

building a credit score and creating a familybudget. “The whole financial world haschanged so much in the last five years, peo-ple are having a hard time keeping up,” saidMathiasen.

Just as important, CIF helps the localeconomy by bringing work to its vast net-work of local partners, including 50 carrepair shops, 20 insurance companies and 15banks and credit unions. “We’re giving peo-ple a hand up, not a hand out,” saidMathiasen.

The Wheel DealCommunities Investing in Families

> ST. CLOUD

< Matt Mathiasen | CIF Executive Director

OCTOBER 2010 2525

Hands Across the World (HAW) is the first program in central Minnesota to help immi-grants and refugees learn English, navigate the contradictions of Western culture, and understandthe American school system. The organization also provides parenting classes, career counselingand technology training.

Most important, HAW helps clients capitalize on the expertise they already obtained in theircountries of origin. With the belief that knowledge is power, HAW prepares refugees and immi-grants for continued education, whether it’s a GED or a Ph.D. “The refugees coming here justneed good guidance, good leaders and good role models,” said cofounder Brianda Cediel. “If theyhave those things, they are going to be able to make it.”

America 101Hands Across the World> ST. CLOUD

Brianda Cediel | HAW cofounder<


Located on the campuses of St. John’s University and theCollege of St. Benedict, The Donald McNeely Center mentors futurenonprofit leaders to become social entrepreneurs—people who address asocial problem or community need with an entrepreneurial approach.

Opened in 2004, the center works with students, faculty, alumni andcommunity members to help start these much-needed nonprofit ven-tures. In addition to offering a select number of startup loans for studententrepreneurial ventures, the center also helps alumni, faculty and com-

munity members create strategic plans for nonprofits.Startups have ranged from microloan coaching for Hispanic women

in Cold Spring to a campus fair-trade store that sells products from thecountries represented in the colleges’ study abroad programs. “Manypeople see the word ‘entrepreneurship’ and equate it with business ratherthan being able to make a significant difference in the world,” said cen-ter director Terri Barreiro. “But social causes are also entrepreneurialideas.”

Brainerd’s Franklin Junior High School was a local landmark for more thanseven decades. When it was closed in 2005 to make way for a more modern facil-ity across town, locals worried that the neighborhood would fall into disrepair.

To ensure that wouldn’t happen the school district hired Artspace—aMinneapolis-based nonprofit real estate developer—to renovate the building intoan arts center that combines studios and arts-related enterprises with 25live/work units for artists. “Making sure the space is affordable is an importantstep in cultivating the arts within the community,” said Andrew Commers, theArtspace project manager.

The Franklin project meets three main objectives, according to Commers. Itprovides a space for local artists to create their work, supports historic renovationand preservation, and assists in economic revitalization in the area.

Artistic RenovationsFranklin Arts Center

< BRAINERD

Changemaker UDonald McNeely Center for Entrepreneurship

> COLLEGEVILLE

^ Andrew Commers | Artspace Project ManagerTerri Barreiro | Donald McNeely Center Director<

OCTOBER 2010 27

Horseback riding is for more than equestrian shows and herd-ing cattle. In fact, equine therapy—or therapy on horseback—uses therhythmic movements of a horse to strengthen core muscles, especiallythose responsible for breathing and talking. It also helps the rider devel-op enhanced hand-eye coordination and builds confidence, patience andself-esteem in people with emotional and mental disabilities.

The method is recognized by both the American Physical TherapyAssociation and the American Occupational Therapy Association. Thebenefits can be significant. A Washington University study showed that

equine therapy helps children with cerebral palsy gain more control oftheir body movements. “We have had children who say their first wordson the back of a horse and take their first steps after they’ve ridden,” saidAggie Stroot, the organization’s executive director who is also a certifiedinstructor. Equine therapy can also be beneficial to children with autism.

Mounted Eagles treats anyone who qualifies for the program,even those who cannot ride. “Just working with the horse on theground and grooming them is an emotional thing,” said Stroot. “It’sreally amazing.” IQ

A Little Horse SenseMounted Eagles> BRAINERD

^ Aggie Stroot | Mounted Eagles Executive Director

28

The Leaf River Ag Service (pictured) was among the countless casualities of the 2010 Wadena tornado.

OCTOBER 2010 29

For years, the anti-poverty agency offered its standard listof programs—weatherization, family services, energy assistance,Head Start—and its members did everything they could to offera hand to poor residents of the two counties it serves.

Then the recession arrived, and it became clear that despitethe nonprofit’s best efforts, conditions were sliding the wrongway. “Seeing the explosion of demand from people who didn’tneed our services before forced us to rethink our role,” said DavisLeino-Mills, executive director of the New York Mills-basednonprofit. “We saw that we needed a new model.”

That new model included directing $25,000 in federal stim-ulus funds to the community kitchen. Run by StimulatingEconomic Progress, another central Minnesota nonprofit, the suc-cess of the kitchen led to the opening of a cafe that serves locallyraised food, a marketing association for locally grown produce, and

BY LAWRENCE SCHUMACHERPHOTOGRAPHY BY JOHN LINN

A 2010 F4 tornado or a

tumultuous economic firestorm.

Examining the caseload at the Otter Tail-Wadena

Community Action Council, it’s hard to tell

which event made the greatest impact.


new businesses selling that same produce at farmers’ markets.In the wake of the last two-plus years of economic hardship,

Community Action Council isn’t alone. Nonprofits throughoutMinnesota are rethinking not only what they can accomplish, but alsohow they are structured. More than half of Minnesota nonprofits sur-veyed by the Minnesota Council of Nonprofits (MCN) this past Julyindicated increases in demands for services, even as a similar majorityreport continued declines in revenue.

And while MCN’s recent survey suggests the state’s nonprofiteconomy is beginning to stabilize, significant uncertainty remains,according to Jon Pratt, the Council’s executive director. “It would still behelpful to know when the real recovery will kick in,” he said. “ForMinnesota, the other big shoe to drop is the $6 billion state budgetdeficit. Even if the economy picks back up, we’re going to see more cut-backs in funding for nonprofits.”

Climbing OutMinnesota’s nonprofit economy continued to show steady growththrough 2008, especially in central Minnesota, where annual nonprofitemployment growth averaged 5 percent a year over the previous decade,according to a 2009 report from the Council on Nonprofits.

But especially for small nonprofits, the recession is still a reality.

Sixty-one percent of nonprofits with budgets less than $400,000 a yearmade cuts in the first half of this year. Employment, human services andlegal-related nonprofits were most likely to have reported cutting staff,while food, housing and education-related nonprofits were least likelyto lay people off.

Most nonprofits maintained or even stepped up services in the faceof increased demand, despite hiring freezes, furloughs and even layoffs,said Kate Barr, executive director of the Nonprofit Assistance Fund.Now, many have been stretched thin for too long and are reviewing theirprograms to decide what they can and cannot continue to do.

Stepping it UpSalem WEST Ministry in Deerwood has seen nearly a 200 percentincrease in requests for help since 2008, said Greg Meyer, associate inministry at Salem Lutheran Church. “In the beginning, we were fixing,cleaning, repairing and returning household items to circulation to helpkeep families going,” he said. “Now, we’re getting more into directfinancial assistance to the growing number of families who are almostmaking it, but are falling behind.”

The “constant crisis situation” is wearing out staff and volunteers.But nowhere can the increased demand be seen more clearly than infood shelves around the state. Community Aid Elk River has handed

OCTOBER 2010 31

out almost 100,000 pounds more food so far this year than it did in2007, with the holidays yet to come, said Jenny Gray, the group’s exec-utive director.

The nonprofit has added staff, put together summer food packagesfor children to replace the meals they would normally receive in school,and bumped up volunteer numbers to keep pace with demand.

Cutting BackSome nonprofits have had to make painful choices.

Hands of Hope Resource Center, an Initiative Foundationgrantee that serves victims of violence in Morrison and ToddCounties, cut domestic violence intervention programs and a visita-tion center when funding sources dried up. The nonprofit alsomerged with a Todd County crime victim nonprofit in 2008 to reduce

overhead costs and streamline services.“We decided we could put more of themoney coming in to use for victimsservices instead of overhead costs,” saidExecutive Director Stephanie Och.“We had to lay off people, but we’vecome out of it a pretty strong organiza-tion.”

Otter Tail-Wadena CommunityAction Council has lost state funding for working with low-income fam-ilies and had to cut back its services as well. And while federal stimulusdollars have boosted the nonprofit’s weatherization, Head Start andfamily services offerings, that money is running out this fall and willmean severe cuts and likely layoffs. “When those dollars are gone, they’regone,” Leino-Mills said. “We can’t continue at that level, and it’s goingto be a really frustrating time.”

Chasing DollarsWhile charitable giving from individuals always decrease during lean eco-nomic times, cuts in government and foundation funding have greatly hurtnonprofit finances, said Kathy Grochow, a nonprofit resources specialist at

“Every crisis—be it an economic or natural disaster—affords nonprofits the opportunity to rethink and rebuild, to become smarter and stronger.”

—Kathy Gaalswyk, Initiative Foundation President


Carmen Pouliot, Associate Director of CAER Food Shelf in Elk River


there are at least two strategies to consider. You can passaround a few shiny apples, or you can fertilize the ground sothe trees distribute more fruit. Sure, it’s easier to share apples,but it’s always more effective to grow deeply rooted trees.

When a foundation aims tostrengthen an entire region,

By LizPotas

ek •Illus

trationbyChrisMcAllister •Photography by John Linn

Healthy OrganizationsPartnership (HOP)

Child Care Choices is one such tree. The St.Cloud-based nonprofit provides essentialresources, education and advocacy services thatimprove the quality and availability of child-care for thousands of families. But it had fall-en into a rut. Board meetings were long, ram-bling affairs, according to executive directorRenee Hendricks Olson. She wasn’t totallysure where her responsibilities ended and theboard’s began. The board seemed to rubber-stamp anything that came its way.

So when Hendricks Olson heard about theInitiative Foundation’s HOP program, she sawit as an opportunity to grow from the inside out.She approached her board, and they were readyfor change, too.

In 2008, the organization set out on a two-year training and development process to rein-vent itself. Hendricks Olson and her board ofdirectors picked apart every aspect of the organ-ization. They rewrote their bylaws, wrote jobdescriptions for staff and board members, anddeveloped a three-year strategic plan.

Hendricks Olson says the process was diffi-cult, but worth it. Board meetings are nowplanned a year into the future and run with mili-tary precision and always make quorum.

Now that the board knows its strengths and

weaknesses, Child Care Choicesis savvier about recruiting new

board members and paying closeattention to potential members’ skills.

Hendricks Olson also feels the organizationis on firmer financial ground because they’ve

learned about effective ways to pursue fundingand present a stronger image.

The Initiative Foundation started the HOPprogram in 2001, and has helped 118 nonprofitstune up their operations. The program nowserves the needs of nonprofits in three life stages.Start Strong helps new organizations. GrowStrong supports those experiencing growth andchange. Stay Strong is designed for establishednonprofits that would like to refine their efforts.

“We focus on training board and staffteams, because we believe strong boards areessential to a thriving nonprofit.” said CathyHartle, the Initiative Foundation’s senior pro-gram manager for organizational effectiveness.“Our outcomes are not always jazzy or easy toexplain, but the end result is that these nonprof-its become more effective and the community isbetter served.”

VISTA

Ashley Grahek, a St. Cloud State Universitygraduate with a degree in social work, had someexperience working with nonprofit organizations.But she couldn’t find a full-time job in her field.So she made the difficult decision to quit herwaitressing job and join AmeriCorps VISTA

(Volunteers In Service To America).Joining VISTA meant living on reduced

means, but it also provided Grahek with theopportunity to obtain real-world experience.Through VISTA, Grahek landed a year-longposition working with the after-care program atAnna Marie’s Alliance in St. Cloud.

Founded in 1965, VISTA pairs volunteerswith organizations involved in anti-povertywork. Central Minnesota VISTAs have doneeverything from launching programs to providecars and repairs for people in need to creating acurriculum for financial literacy.

After her year with VISTA, Anna Marie’sAlliance hired Grahek as after-care services coor-dinator and women’s advocate. “Everythingabout this job is what I was looking for,” Graheksaid of the position she began in August 2010.

When Chris Fastner, Initiative FoundationVISTA program manager, meets new VISTAslike Grahek, he’s struck by the fact that he’s look-ing at the next generation of nonprofit leaders.“We realize that these people are emerging non-profit leaders, and we have the privilege of offer-ing them some fantastic training in both leader-ship and technical skills,” Fastner said. “It’s abenefit to the entire nonprofit sector.”

Fastner leads the central Minnesota effort tohelp nonprofit organizations recruit, train, andsupervise 25 VISTA members in the region. It’sanother way the foundation is investing instrengthening nonprofits from the inside out, andthe VISTA program is often paired with HOP tomaximize impact.

In return, VISTAs receive a monthly livingallowance of $891, basic medical coverage, train-

ing opportunities, and an education or cashaward at the end of their service. “I waslooking for more opportunities, becauseworking in a restaurant wasn’t where Iwanted to be,” Grahek said. “AmeriCorpsprovided a way for me to do somethingcloser to my heart.” IQ

Renee Hendricks Olson

Child Care Choices Executive Director

Ashley Grahek

Anna Marie’s Alliance

Chris Fastner Cathy Hartle

Initiative FoundationVISTA Program

Manager

Initiative Foundation SeniorProgram Manager for

Organizational Effectiveness

Central Minnesota VISTAs: . . . . . . . . . . . . . . . . . . . 138Nonprofits Served: . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Volunteers Mobilized: . . . . . . . . . . . . . . . . . . . . . 8,000+Volunteer Hours: . . . . . . . . . . . . . . . . . . . . . . . . 253,753Funds Raised: . . . . . . . . $2.8 million cash and in-kind

Source: Initiative Foundation

VISTA Impact 2000-2010


By

Liz

Pot

ase

k

P

hoto

gra

phy

by J

ohn

Lin

n

Hoenig’s request made sense to Julie Guth, thecenter’s volunteer coordinator, who also has har-nessed the talents of a sketch artist and a scrapbookdesigner for her unpaid workforce. “These aren’tthings that I would necessarily be advertising for, butare based on the skills that a particular person has,”she said. “And they really help the women and thekids staying in the shelter.”

Like most nonprofits, the Women’s Center ofMid-Minnesota is always on the lookout for morevolunteers. The organization needs legal advocates,mentors for children and office assistants. But Guthalso advertises for what she calls “you-nique” positions,which has brought web programmers and eventfundraisers to the center.

Today, more and more nonprofits are attractingvolunteers by offering opportunities that allow volun-teers to utilize both their workplace skills and learn newones to improve their future prospects. Volunteers alsowant flexible schedules and to develop their own proj-ects. “Just like people right now want a wide choice inconsumer goods, they also want a wide choice of volun-teer opportunities,” said Mary Quirk, the volunteerresources leadership project manager at the MinnesotaAssociation for Volunteer Administration (MAVA), aMaplewood-based nonprofit that helps organizationstrain and nurture volunteers and volunteer leaders.“They’ll go into an organization and if they’re onlyoffered two or three choices, they’ll look around and say,‘Well, there’s some other place my skills can be used.’”

When Laurie Hoenig decided to volunteer at the Women’s Center of Mid-Minnesota—a shelter and

parental visitation dropoff center in Brainerd—she wasn’t interested in stuffing envelopes. A massage

therapist from Crosslake, Hoenig wanted to make a difference by using her talents. Would it be possible,

she wondered, to come in once or twice a month and give massages?

OCTOBER 2010 35

Women’s Center of Mid-Minnesota

volunteer coordinatorJulie Guth (right) helps

volunteers such asCrosslake massage

therapist Laurie Hoenig(left) design their own

opportunities.


Inside the Numbers : : This changing face of volunteerism reflects the genera-tional shift in the volunteer workforce. The national volunteer rate in 2009 increased to 26.8percent, up from 26.4 percent in 2008, according to data from the Corporation for National& Community Service. That’s 63.4 million people who were willing to donate their timeand talents.

Many experts anticipate an even larger jump in volunteer hours as Baby Boomers retire. In2009, 22.8 million boomers dedicated 3.1 billion hours of service to communities across the coun-try. Sixty-two percent of boomers who currently volunteer expect to volunteer more when theyretire, according to a study by AARP, a national advocacy organization for people ages 50 andolder. And 36 percent of people who hadn’t volunteered in the last year expect to do more whenthey retire. “There’s a pretty big gap in what the boomer generation and younger generations wantto do as volunteers versus the generations that came before,” said Quirk.

Accommodating these requests can mean more work for nonprofit staffs. But the numbersshow it’s worth the effort. Minnesota’s volunteer rate is third in the nation, according to MAVA;one and a half million residents dedicate 171.1 million volunteer hours annually. The averagevalue of an hour of volunteer service is $20.85, and it’s estimated that the annual economic con-tribution of all those volunteer hours is $3.4 billion dollars.

As funding gets tight, more and more nonprofit organizations are relying on volunteers; 60percent of Minnesota organizations have increased their reliance on volunteers, according toMAVA. But while more than 50 percent of those organizations report an increase in volunteerhours, only 12 percent have increased funding for their volunteer programs.

Unique Opportunities : : Volunteers’ motivations have also changed with thetimes. “It used to be volunteers would come into an organization and say ‘What volunteer jobsdo you have?’” said Quirk. “Now a lot of volunteers expect the organization to spend time under-standing what they have to offer and mutually design a volunteer position.”

Some volunteers customize their own positions. Friends Vicki Morgan and Debbie Ericksonwere huge fans of the Imagination Library, a free program that gives children under the age of sixage-appropriate books each month to help them build their own libraries. Erickson had previous-ly volunteered for the United Way of Central Minnesota, which runs Imagination Library withsinger Dolly Parton’s Dollywood Foundation. When she learned that central Minnesota had about9,200 children enrolled in the program and the annual cost to provide books to the children was$35 per child, she teamed up with Morgan to host a progressive dinner party to support the cause.They raised more than $12,000 and are planning another event for April 2011.

Honor the volunteer’s desireto make an impact and engagein lifelong learning.

Learn individual passions anddesign volunteer roles to fit them.

Keep a project wish list to takeadvantage of the opportunitiesa volunteer may bring to you.

Offer a wide choice of volunteeropportunities in all areas of theorganization’s operations.

Include short-term andseasonal volunteer positions.

Tap professional strengths byoffering skilled volunteeropportunities.

Be open to moving volunteersinto project leadership rolesand positions of higherresponsibility.

Recruit through social media,electronic communication,nonprofit networks, andpartnerships with schoolsand employment agencies.

Understand that somevolunteers wish to advancetheir job prospects. Designpositions that offer professionalskills development. Writeletters of recommendation.

Engage immigrant/refugeevolunteers by creating trustingrelationships with new communi-ties. Take time to understandcultures and build opportunitiesaround family-centered systems.Rethink procedures— includingextensive paperwork andreference requirements—that can present barriers.

Source: Minnesota Association of VolunteerAdministration (MAVA)

10 Nonprofit TipsTO MAXIMIZE

Today’s Volunteers

“Just like peoplewant a wide

choice inconsumer goods,they also wanta wide choiceof volunteer

opportunities.”: : Mary Quirk : :

MAVA Volunteer ResourcesLeadership Project Manager


1

2

3

4

5

6

7

8

9

10

OCTOBER 2010 37

Offices in Brainerd, Little Falls,Long Prairie and Staples.

218.829.3235 | 800.566.3235www.npmh.orgServing Aitkin, Cass, Crow Wing,

Morrison, Todd and Wadena counties.


results. Before the economy turned downward,a group of almost two dozen St. Cloud-areanonprofits began meeting regularly to identifyadditional ways they could share resources andavoid duplication. The dialogue enhanced thecommunity’s referral network—essential intoday’s economic climate. It also led to simple

practices that are improving their bottom lines,including a shared buying arrangement foreverything from cleaning supplies to paper.

RecoveryWhile nonprofits are starting to see some signsof an improved economy, demand for servicesstatewide has not decreased. In fact, 58 percentof Minnesota nonprofits expect to see anincrease in services through this December. Atthe same time, expenses are rising. Many non-profits will have to turn to their cash reservesand tap additional funding sources.

Despite the tough times, nonprofits con-tinue to be our society’s safety nets. For Ashleyand Vinny, Stepping Stones was the lifeline theyneeded. After enrolling in the program, theyeach set individual goals and earned essentialitems for their baby. “I knew I was going to needdiapers, but the Stepping Stones programhelped me figure out what else I needed andhelped me think about what goals I wanted tohave for myself,” said Ashley.

Their son Zachary Christopher was bornlast July. The sleepless nights and unknowns ofbeing a first-time parent aren’t easy, butZachary makes it worth it. “He’s smilingalready,” Ashley said of her six-week-old son. “Iknow they say they are not supposed to besmiling already, but he is.” IQ

heartdrive CONTINUED FROM PAGE 20

Nonprofits are a key component to a community’s

economic and social vitality.

OCTOBER 2010 39

it’s time to getREACQUAINTED

“Hi.” We’ve been your neighbor since 1977.Founded as a service cooperative, the NationalJoint Powers Alliance® (NJPA) has been serving

services and innovative solutions for over 30 years. What you probably don’t know is that we also

the nation, all without cost or obligation. Visit ourwebsite to learn how we can help you.

www.njpacoop.org

Happy to call Staples


Bremer Bank in St. Cloud. As state and localgovernments cut their budgets to eliminatedeficits, and foundations see endowmentsyielding few returns in stagnant financial mar-kets, they have little choice but to reduce theirfunding for nonprofits.

MCN reported that 34 percent of thestate’s nonprofits rely on government fundingas their primary source of financial support.Another 23 percent of Minnesota nonprofitssaid that foundation support was their primarysource of revenue. Fifty-three percent of non-profits reported a drop in funding from foun-dation support in the first six months of thisyear, while 27 percent of nonprofits reporteddelays in receiving their scheduled paymentsfor services from government sources.

In this climate, it’s no surprise MCN’ssurvey found that earned income from feesand sales was the most stable source of rev-enue for nonprofits during the past sixmonths. Nonprofits are raising more revenuethrough earned income since the recessionbegan. “They’re charging for more services,broadening their base of fee-paying clients,opening thrift stores and relying on federal

Storm Chasers CONTINUED FROM PAGE 31

N

OCTOBER 2010 41

grants, which are the one government fundingsource that hasn’t dried up yet,” said Barr.

Building Jobs, CommunitiesThe need for economic development help hasnever been greater, yet the past three years havebeen equally difficult for the many Minnesotanonprofits dedicated to creating jobs in theircommunity. “With the current economic condi-tions, there is reduced revenue available to sup-port job enhancement, but an expanded need forjob growth,” said Sheila Haverkamp, executivedirector of the Brainerd Lakes AreaDevelopment Corporation (BLADC).

A nonprofit that focuses on economicdevelopment in Crow Wing County and countsbusinesses, local governments and other non-profits among its members, BLADC cut itsfinancial membership request to local govern-ments by 5 percent last year. To compensate, theBrainerd-based nonprofit has cut costs, foundone-time grants and trimmed operating costs tomake up for the reduced revenue.

But it ’s not all doom and gloom.BLADC is moving forward with the creation


Most nonprofitsmaintained or

even stepped upservices in the

face of increaseddemand, despitehiring freezes, furloughs and even layoffs.

—Kate Barr, Executive Director of the Nonprofit Assistance Fund


Storm Chasers CONTINUED FROM PAGE 41

of a foundation that will assist economic devel-opment efforts in the Brainerd area when theeconomy recovers. “We’re looking for ways tohelp startup companies and encourage entre-preneurs, as well as retaining and growing jobswith existing businesses,” said Haverkamp.

And despite the recession, Haverkamppoints to Wausau Paper’s recent $27 millioninvestment in its Brainerd paper mill as anexample of positive outcomes to which BLADChas contributed.

Planning for the FutureThe role that nonprofits play in strengtheningcommunities, despite their financial strains, wasillustrated this past summer when an F4 torna-do struck the city of Wadena and surroundingareas. The Initiative Foundation and Otter Tail-Wadena Community Action Council served asfiscal hosts for tornado relief donations. Bothare working with community leaders and theFederal Emergency Management Agency(FEMA) to coordinate plans and funding torebuild the community.

“Every crisis—be it an economic or naturaldisaster—affords nonprofits the opportunity torethink and rebuild, to become smarter and

Sheila Haverkamp, Executive Director of theBrainerd Lakes Area Development Corporation(BLADC)

GREAT RIVER AREA FAITH IN ACTION

Becker (763) 263-4277 Sauk Rapids (320)258-8678

Elk River (763) 633-0089

www.gra-fia.com

Touching Lives, Changing Communities...

Professional Volunteer Services Supporting Family Caregivers Bridging Generations Elder Care Program Furniture for Families Distribution Providing Support to Families in Crisis The GREAT

OCTOBER 2010 43

stronger,” said Kathy Gaalswyk, InitiativeFoundation president. “If there’s one commontrait among successful charities, it’s the ability toinnovate and ignite change, even with limitedresources. In the future, nonprofits may be dif-ferent, but they’ll also be more effective.”

Encouraged by the community’s tornadoresponse and participation in the InitiativeFoundation’s Healthy OrganizationsPartnership program, Community Action isrethinking its entire approach. Plans includecreating a one-stop shop for intake of newclients so that families who come looking forenergy assistance don’t miss out on educationopportunities or job training help they mightalso qualify to receive. “In this economy, we needto expand the opportunities for our clients toaccess the services we provide to their greatestpotential,” said Leino-Mills.

Despite the current difficulties govern-ments and other traditional nonprofit supportersare having providing financing help, communi-ties need the services nonprofits provide.

“The long-term trend still is growth,”said MCN’s Jon Pratt. “The world needsmore of what nonprofits do and they are agrowing part of the economy. Unfortunately,the larger economy continues to suffer andwe’re a part of it.” IQ

Want to lower your insurance premiums?See us for all your risk management needs.

Facility Safety Audits Workers’ Comp. Assistance Written Safety Programs In-house Safety Training On-call 24/7

Masters Degree in Safety Engineering, 40+ years experience.Covering the 5 state area and beyond.

partnerslosscontrol.com 218-829-4325 Terry Fischer


Skilled Service : : Since the eco-nomic downturn, an increasing number ofworkers volunteer to keep their skills fresh whilethey look for new jobs. “We’ve seen a lot moredisplaced workers between the ages of 55 and 62who have been working all their life and thensuddenly find themselves laid off,” said Lisa J.Braun, director of the Retired Senior VolunteerProgram (RSVP) in St. Cloud. “They’re at thattransition point in their lives where they’re notsure if they want to retire or if they want to lookfor other work.”

People just starting their careers volun-teer as a way to gain experience or explore anew field. Guth has recently been approachedby several people who hope that volunteeringat the Brainerd women’s shelter will givethem needed social work experience.Likewise, the St. Cloud Hospital has seen anincrease in volunteer requests from studentspursuing careers in health care. To meet thoseneeds, the hospital has created new partner-ships with the local Workforce Center andarea technical colleges. “Talented volunteershelp to support new specialties or new pro-grams,” said Janene Riedeman, director ofvolunteer services at the hospital.

Flexible Options : : Between work,family and other obligations, many volunteers—

VolunteerismCONTINUED FROM PAGE 36

Friends Vicki Morgan (left) and DebbieErickson raised over $12,000 forImagination Library, a free programthat provides books to children.

The Great MinnesotaGive Together — 24 Hours to Drive 40,000 Donors!

Give us a click at GiveMN.org.Because on November 16 yourgift makes a BIG difference.

www.GiveMN.org

OCTOBER 2010 45

including retirees—are finding it difficult tocommit to a regular schedule. “When I firststarted at RSVP 23 years ago, most volunteerswanted to serve in on-going opportunities,where they volunteered at the same place duringthe same time every week,” said Braun. Today,the majority of Braun’s volunteers are lookingfor short-term or one-time projects they can fitinto their schedule.

In response to this trend, United Way ofCentral Minnesota created “GIVE it GET itVolunteer Days,” which offer a variety of short-term projects designed to engage a wide rangeof volunteers. “Sometimes if people aren’toffered a variety of different things, they mayfeel that volunteering isn’t for them,” Braunsaid. “But there really is an opportunity foreverybody. Depending on their skills and inter-ests and time availability, there’s always some-thing that will be fulfilling.”

Diverse Backgrounds : :While nonprofits adapt to meet the changingneeds of volunteers, they’re also working on howto bring new immigrants into their volunteerforces. The annual immigration rate inMinnesota is triple what it was in 1985, accord-ing to MAVA. Latino and Asian populations inthe state grew by over 160 percent between 1990and 2000, while the African population in theTwin Cities boomed by 629 percent during thesame time period.

That demographic shift has forced non-profits to broaden policies to include the cus-toms and beliefs of other cultures. When Somalimen and women started volunteering at the St.Cloud Hospital, the hospital reexamined itsdress code to make sure it was inclusive. “We’vereally worked hard to be as open and supportiveas we can be,” says Janene Riedeman, director ofVolunteer Services at the hospital.

Nonprofits also value the informal volun-teering that takes place outside their doors.“When I look at the Somali community mem-bers that I know in the St. Cloud area, they arehelping each other all the time with rides, withtranslation, with connecting people toresources,” said Betty Schnettler, director ofpartnerships and services at the United Way ofCentral Minnesota. “They don’t necessarily callit volunteering, but it is, because it’s helpingtheir community members have success and agood life.” IQ

Lakeshore Conservation Club is the Brainerd Lakes Area choice for Trap & Skeet Shooting.

Trap & Skeet Shooting • Rifle, Pistol & Archery Range • Classes & Private LessonsBirthday Parties, Bachelor Parties, Private Parties • Open to the PublicFamily ($40 annually) and Corporate Memberships Available

Serving the Brainerd Lakes Area for more than 50 years.

Contact Dale Walz, Range Manager, at 218-831-5412 or [email protected].

218-963-4003 | www.lakeshoregunclub.com | 9911 County Road 77, Nisswa

While shopping or visiting downtown Nisswa, did you ever wish there was a lakeside park close by whereyou could hang out, rest, go walking, fish or even take a dip in the lake?

The Friends of Nisswa Lake Park are raising funds to protectand acquire a 2.3 acre parcel of land for the purpose of alakeside park on Nisswa Lake in the City of Nisswa.

The funds you contribute will support the work of protectingand acquiring the land needed for the Nisswa Lake Park. Allcontributions are tax deductible through our partnership withthe Brainerd Lakes Area (BLA) Community Foundation which isa 501c-3 non profit organization.

There are several ways to give to the Nisswa Lake Park to leave yourown legacy: Individual Donation - Become a “Friend ofNisswa Lake Park”; Gifts from the Heart - Give a gift insomeone's name in memory or in honor of someone you love;and Planned Giving - Leave a legacy gift so future generationscan enjoy a wonderful lakeside park.

For more information regarding the park design, maps, pledge forms, brochures, etc., e-mail the Friends of Nisswa Lake Park [email protected]; 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.

Leaving a Legacy for Future Generations..

• 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

“It is our belief that the addition of a public parkand beach area on Nisswa Lake has regionalsignificance and will greatly enhance the BrainerdLakes Area’s appeal to visitors and the greatercommunity...this proposed facility's close proximityto the businesses in Nisswa and the Paul BunyanTrail will also make it unique in our region.”–Brainerd Lakes Area Development Corporation.

OCTOBER 10 47

Brainerd > (888) 605.5982 > (218) 829-5982

Proud to design and print IQ magazine.

print

marketing

creative

publications

fulfillment

branding

promotions

websites

CO N S U LT I N G, IN C.

LE H M A N& AS S O C I AT E S

Keeping Your Business Healthy

BRIAN LEHMAN

cell. 218.838.4158 • [email protected]

D O C T O R

TheBusiness• Marketing &

Advertising• Business Reviews

& Assessments• Business Planning

& Development• Management Services

& Strategizing• Public Relations

& Communications

role each of us has in supportingour fellow human beings. Butwhen voices come together fromthe different sectors, they can have a positive impact. For example, ifbusinesses emphasize the importance of a strong public educational sys-tem to ensure a productive future workforce, the impact of that messageis stronger than if it is voiced only by public education advocates.

IQ: True or False: Nonprofits represent the next great

American innovators.

CJ: Very true. The expression “necessity is the mother ofinvention” has been increasingly evident over the past year or so. Byrecognizing that government dollars are diminishing, and public sup-port is increasingly competitive, nonprofits are looking to find ways todiversify their revenue streams through fees for services and other cre-ative strategies. Since the largest segment of support for nonprofitscomes from individual donors, it’s imperative that nonprofits contin-ue to push for new ways to maintain and growpersonal relationships.

IQ: What's the best gift a person can give

to a nonprofit?

CJ: The most obvious answer is money; finan-cial support is the fuel that keeps the enginerunning. But money alone won’t do it. We canalso give expertise, outside perspectives andconstructive criticism about new strategies forthe organization. When we support an organization, we can spread theword about the good work that is being done and call upon our friendsand associates to join the cause.

IQ: Otto Bremer has a foot in both the business and nonprofit

worlds. In your opinion, what’s the difference between leader-

ship in the two sectors?

CJ: While business success is often measured by a strong bottom line,nonprofit success is often less concrete. Nonprofits are charged withserving the public good, so people who work for them need to employgood management and effective programming to ensure that theirresources are used for the public’s benefit. In both arenas a leader has tobe committed to the organization’s values and coreobjectives, but a board member of a nonprofit is oftenexpected to support the organization financially andencourage others to do so.

IQ: Could business people learn anything from

their nonprofit counterparts?

CJ: Maybe they could learn how to always see theglass as half-full. In nonprofits, a tireless optimismis required to achieve an organization’s mission. Somecould also learn how to make due with scarce resources,

to cross-train highly skilled employees, and toteam up with other organizations to

meet customer needs.

IQ: What is one underappreciated strength

of charitable organizations?

CJ: They bring people together to collectivelyaddress a common challenge.

IQ: What challenge is the

elephant in the room?CJ: There is a great need for apublic conversation about the def-inition of our social contract with

one another and the role that the public, pri-vate and nonprofit sectors each play inupholding that contract. The most volatileconversations seem to take place aroundissues of personal accountability and what

IQ Talks Business & Benevolence withCharlotte Johnson, Otto Bremer Foundation

An IQ&A with E l izabeth Foy Larsen, Managing Editor

Charlotte Johnson is a trustee of the Otto Bremer Foundation, a St.Paul-based nonprofit that serves people and communities in Minnesota, Wisconsinand North Dakota. She also serves on the board of directors of BremerFinancial Corporation, the major asset of the foundation. She has been anactive member of several other nonprofit boards including the MinnesotaCouncil on Foundations.


Y O U R H O M E F O R H E A L T H C A R E

Women’sHealthHOSPITAL I CLINICS I SENIOR SERVICESSTAPLES • MOTLEY • PILLAGER • EAGLE BEND • BROWERVILLE

218-894-1515 • www.lakewoodhealthsystem.com

a dream fulfilledMissy Trees and her husband Bryan dreamed

of having a family, but infertility got in the way.

After failed attempts to get pregnant with

a second child, Missy became a patient

at Lakewood Health System. Thanks to a

partnership with Reproductive Medicine

Infertility Associates (RMIA) in Woodbury,

Missy received in vitro fertilization

and welcomed baby Isaac into

their family last September.

Missy Trees, NisswaInfertility Patient Thankful Mom

Infertility Care With ConfidenceAsk us about our money back guarantee. It’s just one of thereasons we’re central Minnesota’s preferred home for infertility care.

The care you get here...

you can’t compare it

to anywhere else.

Homes I We make it welcoming. You make it home.

Healthcare I Healing environments with a touch of home.

CONSULTING DESIGN/BUILD GENERAL CONTRACTING CONSTRUCTION MANAGEMENT

Nor-Son, Inc. A Construction Services Firm � 800.858.1722 � www.nor-son.com/iq

Hospitality I Create a comforting experience for every guest.

Commercial I Function and comfort aren’t mutually exclusive.

WOOD, S TEEL AND STONE ARE OUR MATER IAL S , BUT

SEE ALL WE DOAT NOR-SON.COM

iq magazine - october 2010

Documents

nonprofit mergers dissolutions

contentsf e

help makeit

u r e sheartdrivenonprofits

lines of economic hardship

e n t sour mission

new way of thinking

minnesotas future