iq magazine - spring 2011

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Contents

FEATURESNew DawnDespite the recession’s lingering impacts, a period of historicgenerosity may be on the horizon.

Passion in PersonAmong the thousands of silent, selfless and inspiring givers in centralMinnesota, we chose four.

Present TenseLike any other investment decision, central Minnesota businessesemploy strategies for their charitable gifts.

Exotic GenerosityDonors use creative vehicles to achieve win-win philanthropy.

Donors, Dreamers & FriendsInitiative Foundation Program and Endowment Supporters

DEPARTMENTS

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:

Outpourings: Illustration by Chris McAllister.

IQ Magazine SPRING 2011

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Kathy’s Note4 What’s love got to do with it?

IQ Points8 Your Two-Minute Digest

Signs of the Times10 Generosity 2.0

Donors, nonprofits click with online giving.

12 Frontline PhilanthropyMore young Americans believe thatgiving isn’t a spectator sport.

Tip Sheet14 Raising Kids Who Give

How to help young people catch thegenerosity bug.

16 Where There’s a Will . . .Legacies often begin with a simple bequest.

Brainiac56 An IQ & A with national author and

researcher Penelope Burk

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3SPRING 11

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Dear Friends,

The cell phone rang in the car. It wasn’t good news.

“Anna, I know this is not what you want to hear, especially right now,” the social work-er began, “but you and Luke shouldn’t come to the hospital.We may have some problems.”

With a flood of emotions, my son and daughter-in-law made a slow U-turn. Theyput the brakes on their pending adoption, one that seemed unbelievably fast and flaw-less, maybe even too good to be true. After days of frantic planning, there was just onefamiliar task left to do.

Wait . . .The root of the word, philanthropy, means brotherly love—a love for humanity, a

desire to improve the lives of others. In this issue of IQ, you will find stories of people whohave acted with love to help people help themselves. Their motivations are different, buttheir choices are the same.

Whether it’s giving time, money, ideas or encourage-ment, we can all do something to help others. It alwayscomes with some sort of personal sacrifice, but those whogive insist that they get the better end of the transaction.

Perhaps there has never been a more momentousopportunity for a generation to consider leaving their legacy.Between now and 2030, about $48 billion in hard-earnedwealth will be passed on from the Greatest Generation tothe Baby Boomers in Minnesota. A tiny fraction of thoseresources, invested in local charitable funds, could literallyendow a brighter future for Minnesota families.

Much like one mother’s precious sacrifice did for myson and his wife.

This young woman made the heartfelt, courageousand loving decision to seek an open adoption for her unborn child. Just 11 days aftertheir first meeting, Luke and Anna took Baby Theo home, overwhelmed and full oflove for their new son.

The phone call? A hospital administrative error. How dreary would our lives be if notfor drama?

Enjoy the magazine,

Kathy Gaalswyk

Kathy’s Note

What’s lovegot to do with it?

Initiative Quarterly Magazine IQmag.org4

Birth mom, Ashley, withAnna, Luke and

Theodore Jeshua Gaalswyk.

P.S. That makes four baby boys joining our family in lessthan two years (in case you’ve lost count). Cousins Jackson,Truman and Benaiah are excited to have a playmate.

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Initiative Quarterly Magazinewww.IQmag.org

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Grants & Communications Specialist | Anita Hollenhorst

EDITORIAL

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Writer | Laura Billings

Writer | Martha Coventry

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

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� Minnesotans lead thenation as the most gener-ous digital givers, donating anaverage of $175 per household,according to a study from thenonprofit Network for Good. Infact, a survey of GiveMN donorsfound that the number of peoplewho prefer digital giving went upfrom 46 percent in 2009 to 68percent in 2010. Learn moreabout how the Internet is changingcharitable giving on page 10.

� Whether it is participating in adance marathon or volunteering ata nursing home, youngerAmericans seek a relation-ship with the people they arehelping, whereas many of theirolder counterparts don’t alwayscrave that face time. Read howGenerations X and Y approach giv-ing on page 12.

� Between 2011 and 2030, as anentire generation of BabyBoomers reaches retirement ageand beyond, an estimatedhistoric sum of $47.9 billionwill be passed on inMinnesota. In the 14 centralMinnesota counties, that wealthtransfer is approximated to be$5.8 billion. Read more aboutwhy we may be entering a new eraof historic generosity on page 18.

� Minnesota businessesgave $669 million in grantsfrom June 1, 2008 to May 31,2009, a 14 percent increase overthe previous year. As needsgrow, they ’re stepping up in allkinds of creative ways to helptheir communities. Find out howcentral Minnesota businesses aremanaging their philanthropicefforts on page 32.

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“For the donor, there are less common ways of giving that haveopened up a whole world of possibilities. Most donors don’tthink they can afford to be as generous as they ’d like to be, butwith these alternatives, they end up making the gift they hopedto make.”— Craig WruckSt. Cloud State University

“In smaller towns, especially where resources are limited,employers play a pivotal role in improving the health of theircommunities through their giving.”— Kathy GaalswykInitiative Foundation

“Two years after the start of the recession, Minnesota’s overallnonprofit economy continues to grow. And now foundation andindividual contributions are getting back to their previous levels.”— Jon PrattMinnesota Council of Nonprofits

“The only time you should look down at your fellow man iswhen you are extending your arm to help him up.”— John SchlagelCambridge, Minn.

“I’ve watched students fill a dome with cans of food, createawareness for child soldiers in Africa, and raise millions for othercauses. I believe this generation, with its commitment to work-life balance and desire to be part of the solution, will make it thenext greatest generation.”— Greg TehvenStudents Today Leaders Forever

— Lee HansonGray Plant Mooty &Initiative Foundation Trustee

“Skilled businessowners give from their hearts,

but they write the checkswith their heads.”



Generosity 2.0

By Laura Billings | Photograph by John Linn

When it comes to charitable donations, thedays of the check might be numbered.

Just consider the giving habits of Sarah Lightner, a 33-year-old motherof three in St. Paul, who supports every statewide walk-a-thon herfriends e-mail her and follows nonprofits she cares about on Facebookand Twitter.When the earthquake rocked Haiti last January, Lightner went

straight to her laptop and searched Google for a reputable nonprofitthat provides health care to Haitians. She sent a donation to Boston-based Partners in Health with just a couple of clicks. “It took about twominutes, and I felt really good knowingthat my donation could go right to workfor an organization that already had a his-tory in Haiti,” she said.Donations like Lightner’s con-

tributed to a nearly 35 percent increase inonline giving in 2010 over the yearbefore, according to study fromBlackbaud, a nonprofit software compa-ny. “What we’re seeing is that when peo-ple are motivated to give, as they are during a crisis like we saw in Haiti,they’re going to look for the things they care about online,” said DanaNelson, executive director of GiveMN, an online charitable givingorganization that has helped Minnesota nonprofits raise more than $27million since it went live in November 2009.Minnesotans lead the nation as the most generous digital givers,

donating an average of $175 per household, according to a study fromthe nonprofit Network for Good. In fact, a survey of GiveMN donorsfound that the number of people who prefer digital giving went up

Donors, nonprofits clickwith online giving.

from 46 percent in 2009 to 68 percent in 2010. Check writers, by con-trast, dropped from 83 percent to 30 percent by 2010.GiveMN provides profile pages for every nonprofit in the state,

which can be customized with video, photos and narratives. Duringtheir annual “Give to the Max Day”every November, nonprofits compete formatching funds by soliciting online giftsfrom their donors. New initiativesinclude coordinating a one-stop shop fordisaster relief giving, with spring floodstopping the list of Minnesota priorities.Yet, as donors are embracing the

online giving revolution, many nonprof-its are anxiously struggling to keep up.

At a technology conference sponsored by the Minnesota Council ofNonprofits last February, more than 800 nonprofit professionals tookpart in training sessions to learn how to write effective “tweets” onTwitter and turn Facebook fans into financial supporters. Balancingthe potential of receiving an online windfall “against the fact that mostsmall organizations don’t have another 10 to 20 hours a week todevote to these resources, and you can see there’s a lot of stress outthere,” said Peter Panepento, assistant managing editor for TheChronicle of Philanthropy.

DANA NELSON, GIVEMN.ORG: “When people are motivated to give, asthey are in a crisis like we saw in Haiti, they're going to look for the thingsthey care about online.”

Signs of the Times

Minnesotans lead the nationas the most generous digitalgivers, donating an average

of $175 per household.


Still, many nonprofits find that provid-ing online giving options is well worth theinvestment. The North American BearCenter in Ely raised nearly $40,000 duringlast year’s “Give to the Max Day,” thanks tothe more than 120,000 Facebook friendswho followed the progress of Lily the blackbear on a “den cam.” “Pages with video raisean average of 20 percent more than pageswith a photo, and that really speaks to howthis medium is different,” said Nelson.

Another common denominator in suc-cessful online giving is urgency. When atechnical director fell through the floor-boards of a stage at Minneapolis’s BedlamTheatre last May, grants manager Ben Marcycreated a “Fill the Hole” campaign, invitingperformers and supporters to be part of alive-streaming event that raised $2,000 forrepairs. “People just naturally want torespond to a crisis,” he said.

Though “live-streaming” may be outsidethe comfort zone of small nonprofits still instamp-licking mode, adapting to the world ofdigital giving may be less difficult than it firstappears. In 2010 the Initiative Foundationraised $47,000 online for Wadena tornadorelief—all through GiveMN and in a matterof days. The Foundation also partnered withan anonymous donor to create the RippleEffects Giving Challenge, which provided$25,000 in matching funds to five Brainerdarea nonprofits. Each of the chosen nonprof-its was given training in how to make the mostof their GiveMN pages and mobilize support-ers online. “We had one faith-based organiza-tion, Salem Lutheran Church, that was reallyon square one when it came to using thesetools,” said Matt Kilian, Initiative Foundationvice president for external relations and mem-ber of the GiveMN strategy cabinet.

Even so, the church met their match byexcelling at the one aspect of nonprofit fundrais-ing that hasn’t been changed by the digital revo-lution—relationships. “Because they had a con-gregation of really committed people, they wereable to convert people from putting money intothe collection plate, to contributing online,”Kilian said. “I think the lesson is that you don’tneed to have the technical skills right away, butyou do want to be part of the game.” IQ

SPRING 11 11

going digital?Five points to consider beforerebooting your fundraising strategy.

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facebook is not a strategySimply having a Facebook page or Twitter account is not enough formost nonprofits to generate interest or dollars. “Eventually people willchose not to follow organizations or businesses that don’t add value totheir life,” says Panepento, of The Chronicle of Philanthropy. Insteadof using social media to ask for money, effective nonprofits use it bepart of the conversation about solving problems.

think strategicallyWith so many new giving platforms, from Network for Good toDonorsChoose, it can be tempting for nonprofits to set up a page atevery site and forget about it. “But all that does is make sure that everysingle community thinks you’re lame,” says Amy Sample Ward, asocial technology consultant, who adds that using a GiveMN.org pagefor just one day a year is also a mistake. “You have to look at how youcan integrate these platforms into your everyday operations.”

remember your missionMake sure your online presence tells potential donors exactly whattheir contributions can accomplish. “The only reason that people giveto any organization is to make things possible,” says the InitiativeFoundation’s Matt Kilian. “Digital giving makes it possible for peopleto give when they’re most inspired.”

take a riskThe low cost of staging an online fundraiser lowers the risk offailure—and allows for a little more fun. During last year’s Give tothe Max Day, the Bedlam Theatre put its grant manager Ben Marcyin a cage for 24 hours, while he gave live shout-outs to onlinedonors, and was allowed snacks and bathroom breaks only whendonation goals had been reached.

think before you thankGiveMN.org’s Dana Nelson says online donors can be put off if theysee their $10 contribution has been answered by $15 in postage forglossy annual reports, appeal letters and thank you gifts. “As onlinegiving continues to grow, organizations have to be open to doingthings a little differently,” she says.


FrontlinePhilanthropy

By Mackenzie Lobby | Illustration by Chris McAllister

During a late-night Ramen noodle dinner in 2003,Greg Tehven and a small group of University ofMinnesota freshmen invented an organizationthat would give them what they weren’t finding in other

nonprofits—a chance to actively participate in giving back.Since then, Students Today Leaders Forever has engaged more

than 5,000 high-school and college volunteers in national service ven-tures, and along the way, redefined what it means to make memoriesduring spring break. “Above all, young people really desire to have animpact,” Tehven said.

It’s an impact that goes far beyond writing a check. In fact,Americans born after 1964 are approaching philanthropic giving in away that is markedly different frombaby boomers and older Americans.“They give because they want to beengaged in some way and participatein the change,” said Kathryn Keeley,a founder of theWomen’s EconomicDevelopment Corporation who isnow a business and nonprofit con-sultant. Younger givers, she said,need to see and experience a directeffect that stems from their support.

“We generally like to have an idea of how our work fits into thebigger picture,” Tehven added. “We want to count the boxes we packedat the food shelf and walk on the trail we created at the wildlife reserve.”

But it’s not just good works that marks younger Americans con-tributions to nonprofits. They also have the financial muscle to makean impact, even if they aren’t transferring as much wealth as theirolder counterparts. According to “The Next Generation ofAmerican Giving,” a study released last year by Edge Research, 58percent of Generation X (Americans born between 1965 and 1980)donate to charities each year, giving roughly $28.6 billion.Generation Y (Americans born between 1981 and 1991) give anestimated $9.7 billion annually.

Organizations that allow for relationship building and enhancecommunity involvement also appeal to younger givers. Whether it isparticipating in a dance marathon or volunteering at a nursing home,

More young Americans believe thatgiving isn’t a spectator sport.

younger Americans seek a relationship with the people they are helping,whereas many of their older counterparts don’t always crave that face

time. “Our generation seems to getexcited about having direct connectionsto the stories of people who have beenleft out,” said Tehven.

Those connections extend into thevirtual world. “This generation has awhole different way of defining com-munity,” said Keeley. They feel just asclose to their virtual community as theydo to their physical one, and giveaccordingly, she said. More focused on

social issues such as poverty and education than older Americans,Generations X and Y also like to keep tabs on their impact throughsocial media and the Internet, whether it’s an online thermometer gaug-ing fundraising totals or progress updates on Twitter.

While “The Next Generation” study found that donating money isthe primary philanthropic method across all generations, it also showedthat younger Americans aren’t as focused in their giving and tend todonate time and money to a wider range of causes and organizations—from fundraising concerts to service learning trips to giving moneythrough Facebook and text messages.

“I've watched students fill a dome with cans of food, create aware-ness for child soldiers in Africa, and raise millions for other causes,” saidTehven of his Generation Y volunteers. “I believe this generation, withits commitment to work-life balance and desire to be part of the solu-tion, will make it the next greatest generation.” IQ


Signs of the Times

“We want to count the boxes we packedat the food shelf and walk on the trailwe created at the wildlife reserve.”


SPRING 11 13

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Studies show that young people who participate in philan-thropy—whether its donating money to the local animal shelter ormowing an elderly neighbor’s lawn—not only become more aware ofsocial issues, but also develop better decision-making skills and feel

more intimately connected to their communities.Unfortunately, many of us don’t talk to our children about charitable giving.

A study by the Minnesota-based Lutheran Brotherhood, a financial servicesorganization, found that while 75% of parents feel they should provide financialguidance to children, only 36% offer any money management advice, whichincludes philanthropy.

That’s a lot of missed opportunities when you consider that research showsinvolving kids in your family’s giving efforts when they are young is the best wayto instill habits of lifelong generosity. Here’s how to get started.

Rethink allowance. If you give your child a weekly or monthly amount of money,set aside a portion of it for a “Give” jar. Then have special family dinners where youdecide together where the money will go.

Walk the walk. If you volunteer, talk to your children about your experience.If possible, bring them along with you.

Make it fun. Give money to and volunteer at organizations that build on yourchildren's interests.

Look for the teachable moment. When you’re at the zoo, explain that you’rethere because people donate their time and money to keep it running, suggestsSusan Crites Price, the Washington, DC-based author of The Giving Family:Raising Our Children to Help Others. If you give to organizations in your commu-nity, deliver the check in person and bring your child with you.

Include giving in family rituals and traditions. One Minnesota family des-ignates one night of Hanukkah as “giving night.” Each child chooses a charitythat her parents contribute to in her name. Another family asks guests to bringgifts for homeless children to their birthday parties.

Introduce media that promote selflessness. Read Tomie dePaola’s TheLegend of the Bluebonnet, The Giving Tree by Shel Silverstein, Aesop’s The Lionand the Mouse fable, or 100 School Days by Anne Rockwell. Both Mr. Rogers’Neighborhood and Sesame Street can be counted on to consistently bring mes-sages of good works into your home. IQ


Raising KidsWho Give

By Elizabeth Foy Larsen | Illustration by Chris McAllister

How to help young peoplecatch the generosity bug.

Tip Sheet

Adapted from a story that originally appeared in Child magazine.


SPRING 11 15


Where There’sa Will . . .

By Lawrence Schumacher | Photograph by John Linn

Those who leave charitable gifts in their wills—less than 5 percent of the total population—often consider their community as another child, one whorequires thoughtful care and will carry on family values. It

can be a simple process to continue supporting causes that are impor-tant to you, according to Bradley Hanson, attorney at St. Cloud-basedQuinlivan & Hughes.

BRADLEY HANSON, QUINLIVAN & HUGHES: “We talk to people aboutwhat charities have been important to them in their lives.”

Legacies often beginwith a simple bequest.


Tip Sheet

As in life, so in death. Hansonasks, why not continue to supportyour favorite charities after your life-time? Causes and organizations thatinspire your current financial giftsare usually the best places to desig-nate for future donations.

% instead of $. A dollar amountset aside for a charity today can be amuch different slice of your overallestate in 10 or 20 years. Considerdesignating a percentage of yourestate; the proportion will remainthe same but your gift might have alarger impact.

Consider a foundation. By leav-ing money to a personalized fund ata foundation, you can often simplify

your will-making process, Hansonadded. Donors can still make deci-sions about how to spend themoney, and changing those agree-ments are much simpler and cheap-er if you are working through afoundation.

Get creative. Foundation funds,living trusts and other estate options(see “Exotic Generosity” on page 36)avoid the sometimes-lengthy pro-bate process and allow your dona-tions to reach your selected charitiesfaster than a traditional will.

Make it last. Establishing anendowment fund ensures that onlyannual investment earnings aregiven to the charities you select. For

donors who desire a long-term lega-cy, an endowment fund can generatemuch more support for charitiesover time than a direct donation.

Reduce your taxable estate.With the exception of Roth IRAs, allother retirement funds are subjectto taxation if left to family orfriends. But if the money from thosefunds is donated to charities, thegift is tax-free.

Talk to your family. It’s generallybetter for family members to knowwhat your charitable intentions arewhile you’re still alive than for themto find out after the funeral, Hansonsaid. Consider involving them inyour estate-planning process. IQ

Here are his Top Tips:


SPRING 11 17


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A quietly confident man with an unbounded passion for addressing community needs, Leonard was afounding trustee and first board chair of the Initiative Foundation from 1986 to 1998. A judge for three decadesin Mille Lacs, Kanabec and Morrison counties, he passed away in 2003. “His spirit lives on in so many waysincluding charitable gifts to the foundation and the library in Milaca,” said Initiative Foundation presidentKathy Gaalswyk. “I’ll never forget his soft-spoken encouragement of others to leave their own legacies.”

When it comes to giving in Minnesota, the Paulsons’ generosity is not unusual. While the state’s repu-tation for philanthropy has been bolstered by celebrated names like Bush, Cargill, Dayton, McKnight andPohlad, a new study reveals that a significant percentage of future giving may come from unexpected sourcesin greater Minnesota.

By Christine Murakami Noonan, Minnesota Council on FoundationsPhotography by John Linn

rowing up on Midwest farms, Gladys Paulson and her husband, Leonard,

learned to give, even if they didn’t have much. “Giving something was

always important, no matter the amount,” she said. “The Great Depression

taught us never to waste what we were fortunate to have. Leonard, especially,

had great respect for the value of money and the things it allowed us to have.”

G



Stories of unassuming farmers who have left thousands—and in some cases, millions—to their hometown schools,churches and favorite charities will become increasingly

common, according to the recently published “MinnesotaGenerational Transfer of Wealth” (TOW) study commissioned bythe Minnesota Initiative Foundations. “Farmers and business own-ers, who retire and sell their assets because their children don’t wantto carry on, often find themselves with sizeable estates,” said BillKing, president of the Minnesota Council on Foundations (MCF).

Such windfalls can trigger introspective moments when peo-ple consider whether or not charitable giving is something theyvalue and want to pursue. “Every person, no matter how much orhow little they have, reaches a moment in their lifetime where theyconsider doing something greater than themselves,” said MattKilian, Initiative Foundation vice president for external relations.“In the next 20 or so years, many will have the financial resourcesto bring their dreams to life, thanks to the hard work of their par-ents and grandparents.”

Between 2011 and 2030, as an entire generation of BabyBoomers reaches retirement age and beyond, the TOW researchestimates that the historic sum of $47.9 billion will be passed on.In the 14 central Minnesota counties, that wealth transfer isapproximated to be $5.8 billion.

“Now, think if a tiny portion of those dollars—say, five per-cent—were to be invested in permanently endowed funds,” Kilianadded. “What a gift from one generation to future generations.”

ECONOMIC IMPACTSThose optimistic numbers, however, don’t tell all there is toknow about giving trends across central Minnesota. The truth isthat when it comes to charitable giving, the toll of the recessionstill lingers.

Individual giving in the state sank 7.7 percent from $4.19billion in 2007 to $4.02 billion in 2008, the start of the down-turn and the most recent year for which complete giving data areavailable. That’s a significant statistic, when you consider thatindividual contributions account for nearly 75 percent of all giv-ing in Minnesota, with the remainder coming from foundationsand corporations.

Philanthropy, however, tends to trail behind measurableimprovements in the economy and consumer confidence.According to the “Current Conditions Report” published by theMinnesota Council of Nonprofits (MCN), 31 percent of non-profits saw an uptick in individual contributions in 2010, com-pared to just 21 percent in 2009. The survey also found that 40percent of organizations predict a rise in individual giving in2011, which could be among the positive signs for economicrecovery in the state.

GLADYS PAULSON: “Giving something was always important,no matter the amount.”

Why Do We Give?There are as many motivations for a person’scharitable giving as there are people. While eachgiving story is unique, they likely share one or moreof the these motivations.

• To help fulfill lifetime goals and passions.

• To feel a sense of value and satisfaction.

• To leave a lasting imprint on society while making asignificant difference.

• To perpetuate a certain viewpoint or philosophy.

• To unite family members around a purposeful mission.

• To honor or memorialize a friend or loved one.

• To give something back to a community.

• To fulfill a responsibility or desire to be a leader in acommunity.

• To connect with others who share your interestsand passions.

• To benefit from tax advantages.

• To express gratitude or say “thank you.”

Source: Minnesota Council on Foundations “Toolkit for Giving.”Access the entire toolkit at www.mcf.org/donors.


THE GREAT

Succession

$461.8 MILLION

$296.8 MILLION

$219.7 MILLION

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From 2011 to 2030, $47.9 billion inMinnesota wealth may be passedfrom one generation to the next. Thismap shows the estimated wealthtransfer by county, as much as $5.8billion in central Minnesota alone.Only time will tell if such windfallsinspire charitable legacies in the formof increased nonprofit donations orendowed funds.

COUNTY POPULATION WEALTH TRANSFER(in millions)

Benton 38,451 $219.7Cass 28,567 $429.1Chisago 53,887 $471.6Crow Wing 62,500 $722.5Isanti 37,816 $283.0Kanabec 16,239 $153.7Mille Lacs 26,097 $257.7Morrison 33,198 $296.8Pine 29,750 $301.0Sherburne 88,499 $461.8Stearns 150,642 $1,025.2Todd 24,895 $207.0Wadena 13,843 $154.7Wright 124,700 $782.5Source: Minnesota Generational Transfer of Wealth Study, 2010 U.S. Census Data.

Visit www.mcf.org/resources/transfer to learn more and see estimates for other counties.

PROJECTED2010



“Two years after the start of the recession, Minnesota’s overallnonprofit economy continues to grow,” said Jon Pratt, MCN exec-utive director, “and now foundation and individual contributionsare getting back to their previous levels.”

CHANGING RELATIONSHIPSThe slow recovery may have changed the relationship betweendonors and the nonprofits they support. “There are so many goodand worthy causes that need help,” said Paulson. But supporting allof them is not realistic. Many people have been forced to be morethoughtful—and in some instances make tough decisions—abouttheir philanthropy.

While some people continue to give even in the toughesttimes, the recession and its aftermath have made donors morethoughtful and intentional in their giving choices, according toHeidi Droegemueller, president of the Minnesota Chapter of theAssociation of Fundraising Professionals.

“Donors are asking nonprofits more questions and have high-er expectations for a return on their investment,” she said.“Individuals will continue to respond to nonprofits that can maketheir case effectively.”

Drogemueller added that donors are also drawn to organiza-tions that engage them in meaningful ways, demonstrate resultsand accountability, and share inspiring stories of how their dona-tions have made an impact. She also believes that donors wantorganizations to be honest about what is going well and what helpis needed.

For Gladys Paulson, what’s most important is leaving a lega-cy of generosity within her own family. “Our children grew upunderstanding frugality,” she said. “But never to the point that wewouldn’t share.” IQ

Support SavvyHow do you sort through the many worthy organi-zations that touch your heart? The MinnesotaCouncil on Foundations offers these tips.

1. Think about your values. And then develop agiving plan that aligns with what is meaningfulto them.

2. Be strategic. “Many of us are taught how tomake money,” said Bill King. “But we also need tobe just as thoughtful and earnest about choosinghow to give back to our communities.”

3. Consider a partner. Some nonprofits and founda-tions can help prospective donors develop plansthat align with each donor’s wishes, resources,and unique situation. “Community foundationsare trusted, independent nonprofit organizationsthroughout the state,” said King. “Using theirknowledge, services and connections, citizenshave a tremendous opportunity to build theircharitable assets and create a positive impact.”

MATT KILIAN: “Every person, no matter how much or how little theyhave, reaches a moment in their lifetime where they consider doingsomething greater than themselves,”

“Many of us are taught how tomake money. But we also needto be just as thoughtful andearnest about choosing how togive back to our communities.”— BILL KING,PRESIDENT OF THE MINNESOTA COUNCIL ON FOUNDATIONS


SPRING 11 23

Among the thousands of silent, selfless and inspiringgivers in central Minnesota, we chose four.

By Rachel Reabe NystromPhotography by John Linn


Initiative Quarterly Magazine IQmag.org24

“We come fromvery meagerbackgrounds.God has beenvery good to us,and we try todo what Hewants us to do.”—Arnie Johnson


SPRING 11 25

Arnie Johnson knows what it’s like to be trapped in a job trying to makeends meet. Growing up on the Iron Range, he made $5,000 a yearworking swing shifts in the mines. Johnson said those memories arehelpful when it comes to charitable giving. “I see people in desperateneed,” he said. “It’s great to be able to help.”

Johnson’s successful business ventures, including Brainerd-basedUniversal Pensions, have enabled him and his wife JoAnn to give backto the community. So when his wife heard about Teen Challenge, thefaith-based drug treatment program in Brainerd, they got involved.

“Young people have an opportunity at Teen Challenge to get their livesstraightened out,” said Johnson. “When you hear their faith stories at grad-

uation, it moves your heart.”Although he didn’t have the chance to go to college, Johnson also pro-

vides scholarships for Central Lakes Community College and St. Scholastica. “Ididn’t even graduate in the top half of my high school class,” he said. “So these

scholarships are strictly for B and C students.”The Johnsons have supported numerous local organizations including the

Initiative Foundation (where Arnie also serves on the board of trustees), YMCA,Timberwood Church, the Brainerd Lakes Health cardiovascular center, and NisswaLake Park. “The Initiative Foundation believes in helping people to help themselves,”he said. “What it has and is accomplishing is doing wonders for all of us.”

IQ: What brings you the most joy?AJ: Seeing the results of giving is very satisfying. Watching the Nisswa Park beingdeveloped or seeing the changes in people’s lives because of Teen Challenge is great.Wecome from very meager backgrounds. God has been very good to us, and we try to dowhat He wants us to do.”

IQ: Which moment will you always remember?AJ: I was checking out at Target and the cashier, a young man, told me I had changedhis life. He said, “You don’t remember me, but you spoke in one of my classes abouttenacity. You said, ‘Get out there and don’t give up.’ Now that was a payday for me.”

IQ: Anything surprise you?AJ: When you do good and still get criticized.With some of our gifts people have said,“What is Johnson trying to do?” Unfortunately, that comes with it sometimes, but itdoesn’t change my view that being able to help others is a responsibility and a privilege.”

IQ: Who is your greatest influence?AJ: My wife of 52 years has the biggest heart of anybody in the world. She says weshould do something here or there. Then she tells me not to be cheap, to give more.Whatever I want to give, she doubles it.

Arnie & JoAnn JohnsonBrainerd Lakes Area



John and Bonnie Schlagel met doing volunteer work. They soon discoveredthey were both committed to serving and helping other people. “When wewere on our honeymoon, we made a list of boards we were on to see if wewere overlapping,” said Bonnie. “We agreed they didn’t need two Schlagelson the same board!”

Both Schlagels feel strongly about giving to others, but they invest theirtime and resources in different areas. Bonnie takes an annual trip to fiveMexican orphanages. “It’s not just giving money. When we go to the orphan-ages, we do what needs to be done,” she said. Closer to home, she also workswith disabled adults, students and the local humane society. John concentrateshis efforts on scholarships, building community and faith-based organizations.

Ten years ago, the Schlagels set up a donor-advised fund through theInitiative Foundation, where John served on the board of trustees. Their con-tributions go into an endowed fund, and the annual earnings fund the chari-ties they support. “It’s a nice feeling to know that regardless of what happensto us medically or financially, we still have the ability to keep giving becausewe’ve set that money aside in a fund,” John said. “For us, it was a morethoughtful approach of how we do our giving. If we’re in the nurs-ing home with no disposable income, we could still select thecharities we want to support. Everybody is going to die some-day, and you can’t take it with you.”

IQ: What inspires you to give?BS: I’m motivated by the need. When you look out and seepeople hungry and in such despair and you can do something tohelp, that makes me feel better.

IQ: Which moment will you always remember?BS: Every Christmas we get a huge envelope from the Mexicanorphanages containing handmade Christmas cards.The kids have very lit-tle to work with, paper and crayons and maybe a bit of glitter. You can see bythe cards how hard they have tried. It’s very touching.

IQ: Anything surprise you?JS: It’s a sad feeling when you realize that even if you have all the money ortime in the world, it still would not solve all the problems. I became practi-cal. I can’t solve everything, but I can still help.

IQ: Give us your best advice.JS: I run into people who say they don’t volunteer because they haven’tfound an organization that interests them. I tell them to just volunteer andyou will find your passion. Remember: You are not volunteering for yourself,but for others. My brother, Robert, told me once that the only time youshould look down at your fellow man is when you are extending your arm tohelp him up.

John & Bonnie SchlagelCambridge


SPRING 11 27

“The only timeyou should lookdown at yourfellow manis when youare extendingyour arm tohelp him up.”—John Schlagel


“I was raised ona farm in Rogersand if anybodyneeded help,Ma just linedus kids up and

we droppedwhat we weredoing andwent to help.”—Chuck Christian


SPRING 11 29

Chuck Christian learned long ago that giving is fun. For decades,Christian Brothers, his Elk River-based construction company, hashosted an annual golf tournament where the proceeds go to variouscharities. “We get everything from the pig roast to the prizes donated,and we have a great time,” he said.

For the first few years, the money the event raised was donated toa national cause. But, after seeing the needs at home, Christian and oth-ers formed Three Rivers Community Foundation, a partner fund of theInitiative Foundation, to help families in the Elk River, Otsego, Rogersand Zimmerman area.

“We got fired up to raise money because it would be used locallywhere we live and work,” said Christian. Soon the golf tournament was gen-

erating five times the money. “We had one big year when we collected pledgesfor multiple years and raised $120,000,” he said. “That was a big shot in the

arm for the community foundation.”Christian’s roots stretch deep into the community where his parents and

grandparents were raised. He hopes his 15 grandchildren and 10 great-grandchil-dren will continue the family tradition of helping others. “It’s fun to do it without get-ting found out, secret giving,” Christian said. “Now that’s a joy.”

IQ: What’s behind your giving tradition?CC: I was raised on a farm in Rogers and if anybody needed help, Ma just lined us kidsup and we dropped what we were doing and went to help. It was just our way of life.My parents and grandparents were very generous even though they didn’t have much.

IQ: Which moment will you always remember?CC: One of the biggest thrills is to help get people into homes they never thought theywould be able to live in. There was a kid who had taken a wrong turn on drugs andalcohol. He shaped up and got working but didn’t have any credit. I took a chance onthe kid. He sure worked his butt off. He is forever grateful for that house.

IQ: What do you get out of it?CC: I just love this community, and I’ve met wonderful people in the process. In orderto get the Three Rivers Community Foundation going, we worked with the InitiativeFoundation. They have big hearts and are dedicated, smart people.

IQ: Who is your greatest influence?CC: I admire people who can shed their possessions. It’s so easy to get attached tothings and they become so important to you.

Chuck ChristianElk River



MarkWood’s life came to an end when he was 47-years-old. But hiscommitment to the kids of Little Falls will last forever. Three weeksbefore he passed away from cancer, Wood decided to donate every-thing he had to provide educational opportunities to impoverished andunderprivileged children.

Wood was a physical therapist, but his passion was helping kids.One day he walked into Lincoln Elementary School in Little Falls andasked how he could help. Soon he was mentoring struggling students for afew hours each week. “Even that short amount of time made a huge differ-ence in the kids’ lives and their school work,” said his sister, Jackie AnnJackson. “Some of the kids Mark helped probably wouldn’t have even made itto high school.”

His family was not surprised that Wood wanted to give everything away tohelp others. “During the end of his five year battle with cancer, Mark startedthinking about what he could do to help people with or without him,” accord-ing to his younger brother,DaveWood. “Hemade the decision to turn his estateover to the Initiative Foundation to help students in the Little Falls area. Today,the Mark Wood Foundation provides jackets, books, band instruments, activityfees and photo supplies for kids. It also helps send students to camp.”

Wood’s siblings agree that their brother would be mortified with all theattention his generosity has received. “In his final days, we talked about the lega-cy he was leaving, but he didn’t want to hear it,” said Dave Wood. “Mark neverset out to leave a legacy. He didn’t need publicity or a pat on the back. His pay-off was making a difference for kids. Nothing else mattered.”

IQ: What made Mark such a special person?DW: Mark made a deliberate decision not to work 60 hours a week.Accumulating wealth would get in the way of what he believed was his mis-sion in life and that was helping others. He didn’t get on a soapbox. Markled by example.

IQ: Did his final gift surprise you?JAJ: Our brother’s generosity didn’t surprise any of us. He was always look-ing out for other people and was drawn to the neediest. Mark caught thefever, and he touched a lot of people. He was great for pushing you pastwhere you were comfortable, but he was always there to encourage you.Mark lived big.

IQ: What did he get out of it?DW: The payoff for Mark was making a difference in a kid’s life. He told meabout a student who had failing grades in elementary school. When the boygot an “A,” it was a joy for Mark.

IQ: What lesson can we learn from Mark’s life?JAJ: Mark would say you can’t run the race if you don’t take the first step.The message is, you don’t have to be Bill Gates and have two hundred bil-lion dollars to make a difference. Mark gave what he had, and he’s morealive today than ever. IQ

Mark Wood (1958-2005)Little Falls


“Our brother’sgenerositydidn’tsurpriseany of us.He wasalwayslooking outfor otherpeople andwas drawnto theneediest.”—Jackie Ann Jackson



By Lawrence Schumacher • Photography by John Linn

04.IQSpring11_32-35_48-49:Layout 1 4/12/11 5:29 PM Page 32

SPRING 11 33

Like any other investment decision,central Minnesota businesses employ

strategies for their charitable gifts.

Those are just a few examples of how central Minnesota com-panies support their communities through business giving, a termthat used to refer mostly to cash donations to charities.While busi-nesses still believe in giving money—according to the MinnesotaCouncil on Foundations, Minnesota businesses gave $669 millionin grants from June 1, 2008 to May 31, 2009, a 14 percent increaseover the previous year—as needs grow, they’re stepping up in allkinds of creative ways to help their communities.

“There are a lot of requests out there and a lot of them areworthy,” said Chuck Albrecht, the CEO and president at Mid-Minnesota. “Nobody has enough money to say yes to all of them.But there are ways for businesses to do more than just donate cash,if you have a good plan in place.”

Once each week, staff from Baxter-based

Mid-Minnesota Federal Credit Union teach

financial education classes at the local high

school. They also offer free seminars to the

public on financial planning. At St. Cloud-

based Marco, which provides technology and

other services to businesses, employees offer

discounted tech support to nonprofits. They

also loan out laptops and projectors and give

free or discounted copy and print services.

CHUCK ALBRECHT, CEO, MID-MINNESOTA FEDERAL CREDIT UNION:“There are ways for businesses to do more than just donate cash.”



Companies who want to create or expand their business giv-ing programs can benefit from taking time to analyze and developa comprehensive plan that incorporates donations of cash, servicesand employee time, said Jackie Reis, who heads the MinnesotaChamber of Commerce’s Business Gives program.

Getting Started

For small business owners in outstate Minnesota communities, say-ing no to requests for help can be hard because they come fromfriends, neighbors and people they see every day.

The Minnesota Business Gives program helps educate busi-ness owners who want to support their communities on strategiesfor smart giving—what Reis describes as “when to say yes and howto say no.”

The program’s origins go back to an effort begun in 2001 thatincluded the Chamber, the Initiative Foundation and several otherfoundations interested in promoting business giving. The need forthese services continues to be profound. “A small percentage ofbusinesses have written guidelines or criteria for who to supportand very few have a budget for their giving,” said Reis.

The Initiative Foundation also has many resources available tohelp small businesses figure out a giving program, said KathyGaalswyk, the foundation’s president.Those services can includeestablishing business giving funds, advising businesses in the grant-making process and raising questions to inform and educate busi-nesses on setting up giving programs.

While businesses stillbelieve in giving money,they’re stepping up in allkinds of creative ways tohelp their communities.

JEFF GAU, CEO, MARCO: “You have to think about thepersonality of your company and who buys your goodsand services when you give to causes. It's an extensionof a company's marketing efforts.”


SPRING 11 35

in Philanthropy from the Central Minnesota CommunityFoundation, and in 2008 was recognized by the United Way ofCentral Minnesota with a Community Builder award. A commit-tee of seven employees that is chaired by a non-managerial employ-ee meets monthly to decide on charitable requests of $500 or less,drawing on a budget based on setting aside a percentage of thecompany’s pretax profits.

For larger contributions, Marco’s management team reviewslong-term commitments, employee-suggested projects and newcommunity undertakings to see if they fit within the company’scharitable emphasis on support for youth.

Mid-Minnesota Federal Credit Union decentralizes its giving,allowing branches in Cass, Crow Wing, Douglas, Morrison, ToddandWadena counties to decide how to respond to local requests fordonations of $500 or less. “It seems appropriate to tie the levels anddecision-making to our membership,” Albrecht said. “As our mem-bership grows in a community, we’re able to give more back to itand they have more control over how it’s spent.”

The credit union’s philanthropy guidelines emphasize supportfor education and families, especially other organizations that pro-vide services to individuals and communities in which they havebranches, Albrecht said.

When to Say “Yes”and How to Say “No”Six tips for businesses wanting to give back

• Make the time. Set aside time each year tocreate an annual plan for your giving. Include cash,donated products and services, volunteer time andemployee involvement.

• Identify your values. Understand why you aregiving and what you want to accomplish with yourdonations. Determine your company’s priorities foryour philanthropy. Decline funding requests that falloutside these priorities.

• Involve employees. Consider forming anemployee giving committee to advise financialcontributions. This can promote a sense of pride,teamwork, and awareness of community needs.

• Plan. Establish a process, procedures, and abudget and follow them consistently.

• Be transparent. Consider sharing your plan withyour employees and your community.

• Come back. Review and revise your plan annually.

Sources: Minnesota Chamber of Commerce and Initiative Foundation.

“In smaller towns, especiallywhere resources are limited,employers play a pivotal rolein improving the health oftheir communities throughtheir giving.” — Kathy Gaalswyk,

Initiative Foundation president

“Sometimes it’s cash, sometimes it’s allowing employee volun-teers time to work on projects, sometimes it’s offering the use ofyour building for a meeting or your products or services,” Gaalswyksaid. “In smaller towns, especially where resources are limited,employers play a pivotal role in improving the health of their com-munities through their giving.”

Having a good giving plan can also help businesses avoid con-troversy. Reis advises business owners to separate their own person-al interests from what types of charitable giving fit their companies.It’s a sentiment echoed by Jeff Gau, CEO at Marco. “You have tothink about the personality of your company, who buys your goodsand services, when you give to causes,” he said. “It’s an extension ofa company’s marketing efforts. We like to do what our customerslike us to do.”

For that reason, Marco stays away from donations to politicaland religious groups, aside from humanitarian and service organi-zations such as Catholic Charities.

Better Business

At Marco, “doing well and doing good,” has been part of thecompany’s culture since it was founded in St. Cloud in 1973, saidGau. The company was one of a handful in outstate Minnesotathat qualified for the Minnesota Keystone Program, which recog-nized companies that gave five percent or more of their pretaxprofits back to the community.

The employee-owned company won the 2009 Business AwardCONT INUED ON PAGE 48


Betty and Jack Thomas live on what may be the most beautiful parcelof land in Cass County, with 1,000 feet of shoreline on Mann Lake,towering white pines and a 100-year-old log cabin. Their business,Mann Lake Ltd., sells beekeeping supplies all over the world. Havingno heirs, they wanted to find a way to leave their assets in goodhands when they died, and use them wisely now. With some imagi-native thinking, the Thomases forged an elegant plan.

To secure Mann Lake Ltd., the Thomases sold the company to theiremployees through an ESOP (employee stock ownership plan).They thengave a portion of their land to the Initiative Foundation, realizing a size-able tax deduction. (They will donate the remainder as property valuesrise.) By paying rent to the Foundation, now the landowner, the Thomasescan continue to live on the land they love.

At the end of their lifetimes, the Foundation will sell the land andgive the proceeds to help support a nonprofit animal shelter that theThomases and others in the community are now creating. Called Pawsand Claws (pawsandclawsanimalshelter.org), it will be the first refuge forhomeless animals in Cass County, one of the few counties in the statewithout such a resource.



Setting up a charitable gift annuity with the Initiative Foundation has allowedPease resident Gloria Cessna to earn a lifetime income while supporting thecauses she holds dear.

BETTY THOMAS: “We knew we wanted to do somethingwith our land and it was really important that our estatebenefit the animals of Cass County.”

Planned as a state-of-the-art facility, Paws andClaws will also board pets and train helper dogs fordisabled veterans. The Thomases are currently part ofa volunteer effort to raise funds to build, staff andmaintain Paws and Claws.

“We knew we wanted to do something with ourland and it was really important that our estate benefitthe animals of Cass County,” said Betty. “The founda-tion made it very easy to accomplish both.”

More Bang than the BuckThis kind of creative generosity is capturing the imag-ination of donors of many different means and causes.Whether it’s pooling funds to endow a communitytheater or forming a trust to support rural renewal,people are finding novel ways to make meaningful,lasting gifts while reducing their taxes and often pro-viding for themselves.

“For the donor, these less common ways of givinghave opened up a whole world of possibilities,” saidCraig Wruck, vice president for university advance-ment at St. Cloud State University and a nationalexpert on gift planning. “Most donors don’t think theycan afford to be as generous as they’d like to be, butwith these alternatives, they end up making the giftthey hoped to make.”

Rewards for Doing GoodIf the term “annuity” is in the same category for you as“quantum” and “anaerobic,” you’re not alone. A charita-ble gift annuity is actually a simple tool that allows adonor to increase a nonprofit organization’s futurewindfall while being guaranteed a lifetime income.

CONTINUED ON PAGE 52


SPRING 11 39

BEQUESTSA charitable bequestin your will or livingtrust is entitled to anestate tax deduction forthe gift’s full value.

BENEFICIARYDESIGNATIONSName a charity as abeneficiary of yourretirement plan, lifeinsurance, or insuranceannuity assets.

LIFE INCOME GIFTS(annuities, charitableremainder trusts, etc.)These gifts allow you togive a sum of money to acharity in return for aguaranteed annual income.You receive an income taxdeduction, and the charityreceives the remainingbalance after your lifetime.

MEMORIAL ANDHONORARY GIFTSGive to a nonprofit directlyor through your will tohonor a loved one.

ENDOWED FUNDS(or Donor-Advised Funds)Usually established withina foundation, an endowedfund is like a charitablesavings account. Theprincipal is never spent,and only annual investmentearnings are used tosupport specific charities.

Donors may makerecommendations regardinghow much, how often, andto which organizations thefunds are granted.

CHARITABLE LEAD TRUSTDonor-created trusts thatmake payments to a charityfor a defined period oftime. Assets are eventuallydistributed back to thedonor or others. Theyprovide the donor with giftor estate tax deductions.

CASHA simple way of giving—you can see the resultsof your generosity andrealize an immediate taxdeduction. But giving inother ways may result ingreater tax advantages.

STOCKDonating publicly tradedstock you’ve owned formore than one yearexempts you from payingcapital gains taxes and

earns you a federal incometax deduction based on itscurrent value.

RETIREMENT PLAN ASSETSLeaving retirement planassets in your final estatemakes them subject toincome taxes totaling up to35 percent. A charity canreceive the full or partialassets tax-free.

SAVINGS BONDSSavings bonds are normallytaxed when they’re cashedin, reissued to anotherperson, or they reach finalmaturity. If you leave bondsto a charity, you can reduceor eliminate these taxburdens.

REAL ESTATEDonating real estateproperty eliminates thecapital gains tax owed ifyou were to sell it. You

receive an income taxdeduction equal to theproperty’s fair marketvalue, and the gift reducesyour future taxable estate.

LIFE INSURANCEName a charity as theprimary beneficiary ofyour policy or assign itownership, and receive anincome tax deduction and areduced estate tax liability.


Donor-advised funds

Corporate giving funds

Community funds

Agency/association funds

Scholarship funds

Memorial funds

Every donorhas a dream.We have the privilegeof bringing it to life.

Your legacy begins here. Help people to help themselves throughthe Initiative Foundation endowment, or create a fund to nourishthe local causes that nourish you.

We make it easy. You make it possible.

877-632-9255 | www.ifound.org


SPRING 11 41

Platinum Keymaster($100,000 or more)Bush FoundationCorporation for National andCommunity Service

Department of Health & Human ServicesArnold & JoAnn JohnsonThe McKnight FoundationMinnesota Public RadioOtto Bremer FoundationSouthwest Initiative FoundationJack & Betty ThomasUSDA Rural Development

Gold Keymaster($50,000 or 99,999)Gloria M. CessnaCenter for Rural Policy & DevelopmentConnexus EnergyEast Central EnergyEmma B. Howe Memorial Foundation, afund of The Minneapolis Foundation

Beverly M. JohnstonMinnesota PowerThe Minneapolis FoundationState of Minnesota,Department of Commerce

Keymaster($25,000 to 49,999)Anderson Brothers Construction CompanyBlandin FoundationCity of Little FallsCommunications Alternatives,a subsidiary of Benton CooperativeTelephone Co.

County of BentonCounty of CassCounty of Crow WingCounty of IsantiCounty of Morrison

County of SherburneCounty of StearnsEich Motor CompanyThe Jay & Rose Phillips FoundationLittle Falls Scholarship FundMedica FoundationMorgan Family FoundationSchlagel, Inc.Stearns Electric AssociationFran & Mil VoelkerWest Central Telephone Association

Portal($10,000 to $24,999)The Anderson Family LegacyFoundation Agency

Benton Telecommunications FoundationBlue Cross Blue Shield of MinnesotaFoundation

Bremer BanksCity of St. CloudCity of St. MichaelConsolidated TelecommunicationsCompany

County of ChisagoCounty of PineCounty of WrightdiversiCOM/Melrose Telephone CompanyFirst National Bank of Milaca

Funders’ Network for Smart Growth andLivable Communities

Kathy & Neal GaalswykGranite Equity Partners, LLCKuepers, Inc. Architects & BuildersLake Region Conservation ClubThe Laura Jane Musser FundManufacturing Fund of Central MinnesotaMid-Minnesota Federal Credit UnionLoren & Kathryn MoreyNorthwest Area Foundation Fund of TheMinneapolis Foundation

Robins, Kaplan, Miller & Ciresi LLPFoundation for Education, Public Health& Social Justice, a supporting organiza-tion of The Minneapolis Foundation

SPEDCO Economic DevelopmentFoundation of The St. Paul Foundation

Stearns-Benton Employment & TrainingCouncil

U.S. Bancorp FoundationEugene & Bernadine WaldorfEstate of Mark WoodXcel Energy Foundation

Gateway ($5,000 to $9,999)AgStar Fund for Rural America / AgStarFinancial Services

American Heritage National Bank

Bank of the WestCambridge Medical CenterCentraCare Health FoundationCentral MN Jobs & Training ServicesCharles & Barbara ChristianCity of Big LakeCity of CambridgeCity of Long PrairieCity of MelroseCity of MilacaCity of MoraCity of PierzCity of SartellCity of Sauk RapidsCity of StaplesCity of WadenaClow Stamping CompanyCounty of KanabecCounty of Mille LacsCounty of ToddCounty of WadenaCuyuna Regional Medical CenterDonald & Deanna EngenEssentia Health—St. Joseph’sMedical Center

Gray Plant MootyLee & Jan HansonLakeland Mold Company, Inc.Lakewood Bank, Brainerd/Baxter

July 1, 2007 to March 31, 2011

Endowment & Program Supporters

The Initiative Foundation is the embodimentof the phrase “Think Globally, Act Locally.”

The Initiative Foundation gives us the opportunityto do our part in creating a better world by creatingbetter communities.

—Dan Meyer, CEO, Atomic Learning

“

Initiative Foundation



Larson Boats, LLCLarsonAllen, LLP, St. CloudLittle Falls Area Chamber of CommerceMarco, Inc.Mardag FoundationMinnesota National Bank & AgencyNOR-SON, Inc.The Hyduke Foundation of The St. PaulFoundation on behalf of Peoples Bankof Commerce

Pequot Tool & Manufacturing, Inc.Pine Country BankSchlenner Wenner & Co.Stephen & Gwyn ShelleyEverett & Rita SobaniaSt. Cloud Morning Optimist ClubThe Sheltering Arms FoundationViking Label & Packaging, Inc.Widseth Smith Nolting and Assoc., Inc.Sharla & the late Warren WilliamsWoodland BankXcel Energy, St. Cloud

Corridor($3,000 to $4,999)Citizens State BankCity of AnnandaleCity of BaxterCity of ClarissaCity of CokatoCity of CrosslakeCity of Lake ShoreCity of LindstromCity of Maple LakeCity of NisswaCity of PaynesvilleCity of Pine CityCity of PrincetonCity of SandstoneCity of St. JosephDeZURIK, Inc.Gold’n Plump PoultryCurt & Mary Beth Hanson

Happy Dancing TurtleDon Hickman & Sandra KaplanMatt & Jeanne KilianLindar CorporationWilliam & Diane ScarinceShelley Funeral Chapels, Inc.Thelen Heating & Roofing, Inc.Todd-Wadena Electric CooperativeVenture Allies LLC

Passage ($1,000 to $2,999)Anakkala, Berns, & Co, PLLPBarb & Duane AndersonKeith H. AndersonAtomic Learning, Inc.Mayuli & James BalesBankVistaSteven & Ann BendaBrainerd Lakes Area Chambers ofCommerce

Lynn & Darren BushingerCentral Minnesota Community FoundationCentral MN Habitat for HumanityCity of AlbanyCity of AlbertvilleCity of AvonCity of BackusCity of BeckerCity of BelgradeCity of BerthaCity of BrahamCity of Breezy PointCity of Cass LakeCity of Chickamaw BeachCity of Cold SpringCity of Eagle BendCity of East Gull LakeCity of Eden ValleyCity of EmilyCity of Fifty LakesCity of FoleyCity of GarrisonCity of Hinckley

City of IsantiCity of MonticelloCity of MontroseCity of MotleyCity of OnamiaCity of Pequot LakesCity of RandallCity of RiceCity of Rock CreekCity of RockfordCity of RockvilleCity of RoyaltonCity of Rush CityCity of SebekaCity of SwanvilleCity of VerndaleCity of Waite ParkCity of WalkerCity of WaverlyCity of WyomingChristopher & Amber Close FamilyFund of the Central MinnesotaCommunity Foundation

Gloria L. Contreras-EdinCrow Wing PowerD. J. Bitzan Jewelers, Inc.DeGraaf Financial, Inc.Richard & Kerwin DonatDonlar ConstructionLinda Eich DesJardins & Joseph DesJardinsFarmers & Merchants State BankChris Fastner & Kathy Hakes-FastnerFirst National Bank of WalkerDan & Annette FrankPat GorhamGreat River EnergyDavid GruenesCathy Hartle & Doug LarsenHBH Associates, LLC.Anita & Brad HollenhorstHunt Utilities Group, LLCIPEX, Inc.John Kaliszewski

Paul & Shirley KleinwachterLawrence & Joyce KorfKristine & Kenneth KowalzekLakeland IncorporatedLakes PrintingLarsonAllen LLP, BrainerdMark A. LeaseLittle Falls MachineMcDowall CompanyEugene MenzelMINPACK, Inc.Glen F. Palm, Ph.D.Northern Technology InitiativeGladys & the late Leonard PaulsonPlaza Park BankDr. Earl H. Potter, IIIMary L. SamJohn & Bonnie SchlagelDorothy & Mike SimpsonThe Moran Family Fund of the CentralMinnesota Community Foundation

Rockwoods Grill & Backwater BarDavid ToebenSt. Gabriel's HospitalSandy VoigtDr. George & Raquel WallinThe Whitney Foundation

Access (Up to $999)AccountAbility Solutions, LLCAdvance Design & Systems, LLCAdventure Creative GroupAgStar FinancialAltobell Imagery, LLCAmcon Block and Precast, Inc.Annandale Community TeamArnold S. Johnson Enterprises, LLCAtscott Manufacturing Co., Inc.Mary & Joe BauerBetter Way Foundation, Inc.Dr. & Mrs. Jerry BobeldykKaty & Steve BotzLyle & Patricia BourdonBrain Magnet IndustriesBrainerd Daily DispatchBrainerd Lakes Area EconomicDevelopment Corp.

Brainerd Public SchoolsBromelkamp Company, LLCRobert J. BungerCambridge Launderers & Cleaners, Inc.Cambridge Orthodontics, P.A.Bethany CarltonCentral Minnesota Manufacturers Assoc.Central MN Housing PartnershipCity of BockCity of BowlusCity of Boy RiverCity of BuckmanCity of Burtrum

Following a devastating tornado in June of2010, we were a community in crisis. The

foundation made resources available immediately toaddress our critical and basic needs. We are deeplygrateful for their continuing efforts to support thelong-term effort of rebuilding Wadena.”

—Wayne Wolden, City of Wadena Mayor

“


SPRING 11 43

City of Center CityCity of Chisago CityCity of ClearwaterCity of CrosbyCity of DeerwoodCity of GrasstonCity of Grey EagleCity of HackensackCity of HardingCity of HenrietteCity of HewittCity of HoldingfordCity of IsleCity of JenkinsCity of KimballCity of LongvilleCity of MenahgaCity of NimrodCity of OgilvieCity of PeaseCity of PillagerCity of QuambaCity of RemerCity of RichmondCity of RivertonCity of RonnebyCity of South HavenCity of St. MartinCity of St. RosaCity of Taylors FallsCity of UpsalaCity of WahkonClose-Converse, Inc.Coborn's, Inc.Cold Spring Area Chamber of CommerceColdwell Banker ResultsHelen L. ComnickConnections, Etc.Continental Press, Inc.Cook's World of WaterCross Lake Association of Pine CountyDonald & Carol CrustSara E. DahlquistDAKA CorporationDES OF ST. CLOUD, INC.Edin ConsultingSusan Fairchild & Steven WinnFaith In Action-Cass CountyFirst National Bank of Cold SpringMargaret FlolidBruce & Mary FogleCurt & Judy ForstFrandsen Bank & TrustStefan & Michele FreemanRobert & Barbara GaleRay & Gwynne GildowGiveMNVirginia GlennSharon & Chuck GottwaltGrand View Lodge

Hallett Community Center FoundationRonald & Barbara HedlundJack Heule & the late Kathy BussardTricia & John HoligKeith & Laura BeckmanHorizon BankJolene HowardPaul & Lynn HuntPeter & Lynne JacobsonAl & Lynda JohnsonDiane C. JohnsonSue JohnsonJerome E. JohnsonKim & Sally JohnsonLois & Len Kallsen

Kanabec HospitalLinda KaufmannRonald & Judith KidderNorman & Julie KrauseCharles E. KryselIrene Kurpius-LindvallGary W. Y. KwongLake Country Journal / Evergreen PressLakewood Health SystemJanet LeachColleen H. LeBlancMaryAnn & Pete LindellLine's Building Center, Inc.Little Falls OrthopedicsPaul & Joan LombardiLong Prairie Packing CompanyCarol LovdahlMahowald Insurance Agency, LLPMartin & Betsy MahowaldRobert McLeanDiane M. MendelRonald & Barbara MiddelstadtMille Lacs Band of OjibweMinnesota Business Finance CorporationMunicipal Development Group

Walter & Adele MunstermanDana NelsonTimothy C. NelsonNorth American State BankNorthern Star TherapyNorthway Group, Inc.Louise NysatherRobert & Marilyn ObermillerDennis & Evie O'DonnellKristin & Daniel OlsonThe Order of Saint Benedict/Saint John’s Abbey

The PartnershipPine City Area Chamber of CommercePine City Early Childhood Coalition

Pine River Chamber of CommercePine River-Backus School DistrictPine Technical CollegeGeri PohlkampPortage Crooked Lakes Improvement Assn.Leah & Dennis PosterickDonald F. QuaintanceRandall State BankRange PrintingKatie & Tom RiittersRural Renewable Energy AllianceAnn M. SandSauk Rapids-Rice School DistrictMaryAnn SchefersRob & Michelle SchmiegJulie SchuellerThe Selective Group FoundationShing Wako Resort and CampgroundJana & Michael ShogrenShort-Elliott Hendrickson, Inc.Shelley A. ShrefflerSt. Cloud Area Chamber of CommerceSt. Cloud State University FoundationState Bank of Cold SpringState Bank of Kimball

Stearns, Inc.Charles & Penny SwanumSwanville Women's Civic ClubJim & Liz TharesChristopher & Beth ThorsonTri-County Abstract & Title Guaranty, Inc.Timothy & Carrie TrippValaurie G. TrummDianne C. TuffUpfront ConsultingJoseph & Diane VanBeckAshley Vargo-GuggemosGeorge & Elizabeth VilfordiGriff J. WigleyPaul & Alice Wirth

Dave & Luann WoodWright County Human ServicesTina YorekAl & Carol Zahn

COMMONWEALTHMajuli & James BalesMary & Joe BauerLynn & Darren BushingerLinda Eich DesJardins & Joseph DesJardinsRichard & Kerwin DonatDonald & Deanna EngenKathy & Neal GaalswykDavid GruenesCurt & Mary Beth HansonLee & Jan HansonCathy Hartle & Doug LarsenDon Hickman & Sandra KaplanArnold & JoAnn JohnsonMatt & Jeanne KilianLawrence & Joyce KorfGladys & the late Leonard PaulsonBill & Diane ScarinceJohn & Bonnie SchlagelStephen & Gwyn Shelley

CONTINUED ON NEXT PAGE

Iappreciate what the Initiative Foundation is not.It is not a bureaucracy that eats up a large share

of funds trying to accomplish a task. It is not distantfrom the donor or the recipient. The InitiativeFoundation is local and collaborative. I was witnessto the passion of the people in the organization,and they sincerely believe in what they are doing.”

—Bill Scarince, President, W.F. Scarince, Inc.

“



BRAINERD | BAXTER

Arts in the ParkJuly 2, 2011

Celebrating 37 Years of HandmadeArt in the Brainerd Lakes Area!

140 ARTISTSENTERTAINMENT:

Pat Surface – Folk SingerPaul Imholt – DulcimerMike the Banjo Man

Dave Herzog – Steele Drums

ParkingReserve your parking spot NOW!Come and go as much as you want

for the 4th of July activities.

PRICES: $15.00 in advance,or $20.00 on the day of July 4.Choose from East River Road

or 5th Street.

Call and make your reservation TODAY!We except cash, check, or credit card.

Please call Brainerd Community Action at 218-829-5278Visit our website for more informationwww.BrainerdCommunityAction.org

MINNESOTA’S 4TH OF JULY CAPITAL

We keep active adults in step... Dancing is just oneof the over thirty activities that we have to offerseniors in our community.

Our activities are supported in part by donationsfrom members, businesses and others who supportour mission. For a tour or additional information,please stop in or call.

Lakes Area Senior Activity Center803 Kingwood Street, Brainerd, MN 56401

218-829-9345

1

Everett & Rita SobaniaEugene & Bernadine WaldorfSharla & the late Warren Williams

TRIBUTESIn Memory of Ian Joshua Miller

Robert J. Bunger

In Memory of Harry NysatherLouise Nysather

In Memory of Robert WestvigJoanne B. BurdickRonald & Barbara MiddelstadtCurtis & Margaret Powell

In Memory of Olivia GilbertsonJanet Leach

LEGACY GIFTSGloria M. CessnaGladys M. PaulsonFran & Mil Voelker

TURN KEY FUNDSAlternative Sources of Energy FundAnderson Brothers Family FundBetty Ford Menzel Scholarship FundBeverly M. Pantzke Scholarship FundBob & Pauline Johnson MemorialScholarship Fund

Bob Wright Memorial IFPA Scholarship FundBob & Marsha Bunger Endowment FundCrosby Ironton Public Schools Foundation FundCrow Wing Environment Protection-Advised FundFamily Farm FundFriends of Sherburne National WildlifeRefuge Fund

Granite Equity FundGreater Pine Area EndowmentIsle Area Community FoundationJohn & Bonnie Schlagel EndowmentLake Region Conservation Club FundLeech Lake Area Watershed FoundationLittle Falls Scholarship FundMenahga Loan FundMinnesota Pioneer Park Endowment FundMorrison County Area Foundation

Hanowski Family FundMark Wood Foundation

Paws & Claws Animal ShelterPrinceton Loan FundRum River Community FoundationSt. Cloud State University MicrolendingProgram Fund

Shawn Grittner Scholarship Memorial FundStaples Community Foundation

Julius & Tracy Kurpius Fund


SPRING 11 45

“Through the InitiativeFoundation we areteaching our childrenabout the significanceof “giving back,” andwe believe that isthe most importantlegacy we canprovide for them.”

—Mel and Jeanette Beaudry,Mel and JeanetteBeaudry Fund(established in 2003)Elk River, Minn.

www.mnpowerfoundation.org

Loren & Kathy Morey Family FundStaples-Motley Dollars for Scholars FundStaples-Motley Early Childhood ProjectStaples Knights of Columbus-Lloyd & Marion

Giddings Scholarship FundSacred Heart-Knights of Columbus Fund

Three Rivers Community FoundationArchie & Isabelle Powell Family Memorial

Scholarship FundFriends of the Elk River Library FundMel & Jeanette Beaudry FundJosh Richardson Youth Arts FundZimmerman PTO-Lions Scholarship Fund

The Thrive FundTodd-Wadena Loan FundTrees for Wadena FundVeterans Art Project FundWadena Tornado Relief & Business Loan FundsWilliam & Ethel Nelson Zimmerman MemorialScholarship Fund

Wright County Historical Society IQ



The Friends of Nisswa Lake Park are raising funds to build the infrastructure for our lakeside park on Nisswa Lakein the City of Nisswa.

• 2.3 Acre Park Area• Located across 371 from Downtown Nisswa Square• Swimming Area• Fishing Pier• Boat Slips for Boat Docking• Walking & Biking Trail connecting to thePaul Bunyan Trail

• Pavilion area for weddings and special events• Mature White Pines• Picnic area• Beautiful Sunsets• Overlooking Nisswa Lake

For more information contact the Friends of Nisswa Lake Park [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” witha 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 Generation

s..


SPRING 11 47



Focused Philanthropy

Hunt Utilities Group in Pine River focuses itsphilanthropic efforts on community and eco-nomic development, including clean and renew-able energy development, said LynnHunt, com-pany cofounder and chairwoman. The companyeven set up a separate foundation, HappyDancing Turtle, that supports food and water,energy and environmental efforts.

The company was a co-sponsor of anInitiative Foundation forum in February thatlooked at long-term issues affecting the region.It also sponsors clean energy conferences, com-munity gardens, farmers markets and otherefforts that promote sustainability.

Every giving avenue is planned out inadvance.“We analyzed what we spent in thepast, looked at which ones we wanted to contin-ue to sponsor,” she said. “We looked at specificamounts to set aside for employee matches, andlooked for a percentage for new giving.”

Most companies don’t need to be motivat-ed to give to charitable causes, according toReis. Instead, they need to see how they canmanage the requests they get and decide howmuch they can give.

Every company has different needs andgoals for their giving programs, but foundationscan make it easier for businesses to give back to

Hunt Utilities Group (HUG) in Pine River set upa separate foundation called “Happy DancingTurtle” that supports sustainable communities

Present Tense, continued from page 35

218.828.0096 | www.growbrainerdlakes.org��

WWee’’rree rreeaaddyy.. LLeett’’ss ggrrooww!!

Expanding Business, Building Community, and Growing Jobs in Crow Wing County.


SPRING 11 49

the community, said Lee Hanson, InitiativeFoundation board chair. Establishing anendowed fund can help a company maintain asteady charitable presence through good yearsand bad.

“The greatest advantage for establishing anendowed fund is flexibility,” Hanson added.“Management can choose to grow their fund atyear-end when net profits are known, and theyalso have time to be strategic with their charita-ble distributions. That way, you’re not playing‘beat the clock’ in late December, and you havethe option of involving an employee team.”

Creating a fund before retiring or selling abusiness is a popular way for philanthropic busi-ness owners to direct more of their company’sworth to charity without having to pay taxes onthe fund. Companies don’t generally claim statetax deductions for their philanthropy, preferringto write them off as a business expense, Reis said.The additional paperwork involved in deduc-tions often makes it impractical for small busi-nesses, which are the majority of the participantsin the Minnesota Business Gives program.

Reis recommends companies develop a giv-ing plan, review it every year to look back atwhat they’ve done, and adjust it to look ahead tothe next year. “Skilled business owners give fromtheir hearts, but they write the checks with theirheads,” Hanson said. IQ

and environmental preservation. Pictured arecompany cofounders Lynn and Paul Hunt.

STEVE ENNIS Director of Secondary Lending

[email protected] | lakewoodbank.com



A community-driven, university-assistedpartnership to create a plan that inte-grates housing, transportation, land use,

and economic development. Theprocess develops strategies top r o v i d eopportunities for the region andimprove the quality of life for all

residents in Cass, Crow Wing,Morrison, Todd, and Wadena counties.

SCHEDULE FOR THE 2 YEAR PROJECTKick-off meeting .......... February 23, 2011Round 1.................... December 13, 2011Round 2 .............................. May 8, 2012Round 3 .......................... June 12, 2012Final meeting ................ August 14, 2012FOR MORE INFORMATION

www.incommons.org or www.regionfive.org

The work that provided the basis for this publication was supported by funding underan award with the U.S. Department of Housing & Urban Development. The substanceand findings of the work are dedicated to the public. The author and publisher are solely

responsible for the accuracy of the statements and interpretations contained in thispublication. Such interpretations do not necessarily reflect the views of the Government.

Improving theWayYou Look at Life

Comprehensive Eye Examinations,Complete Contact Lens Care, Children’s Vision Care,

Diagnosis & Treatment of Eye Diseases,The Best in Eyewear

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Brainerd, 218-829-1789, 1-888-420-2015Nisswa, 218-963-2020, 1-877-963-2010

Pine River, 218-587-2020, 1-888-970-3937

Dr. David Pelowski


SPRING 11 51

Safe and secure access to youraccounts wherever you roam.

Kayaking or just running errands,we’re always available.

Our user-friendly websitemakes online banking easy

brainerdsavings.com

(or balance your checkbook,pay your bills, transfer money...

you get the idea.)

BRAINERD OFFICE524 South 6th Street

BAXTER OFFICE14244 Dellwood Drive

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Kids & Horses

Let your kids experience the joys of learning about horses during our Little Spirits Summer Day Camp.Riding, horse care and education, and fun activities for ages 5-12. Visit our Web site for more information.

Register today! Camps fill fast!

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

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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 Membership Available

Serving the Brainerd Lakes Area for more than 50 years.

• 2011 Memberships Available • 218-963-4003 | www.lakeshoregunclub.com | 9911 County Road 77, Nisswa



Gloria Cessna lives in Pease, Minn.,about 33 miles east of St. Cloud. At 81, sheadmits that she has “carved out a very goodlife” for herself. Eleven years ago she receivedan inheritance from her mother, and being abig believer in “sharing blessings,” she decidedto put some of that money into charitable giftannuities with the Initiative Foundation.

“They are really painless to establish,”Cessna said.

With an annuity, donors give money to anonprofit, a portion of which is tax-deductible. The organization typically investsthe gift and pays the donor a guaranteed life-time income based on their age—the older theperson, the higher the annual percentage.Annuity payments can often exceed returnsfrom CDs, savings accounts, or other fixedincome investments, said Mary Bauer,Initiative Foundation development officer.

“These vehicles prove that you don’t haveto be wealthy to be a philanthropist,” Baueradded. “Sometimes, you just have to be opento giving in ways other than writing a check.”

At the end of the donor’s lifetime, theremainder of the gift reverts to the nonprofit.“I have the joy of knowing that it will be usedby a responsible group of people for the goodof many,” said Cessna. “And I like the fact thatI regularly receive a check. It’s one of thosewin-win situations.”

Beyond CashWhen it comes to charitable donations, cashmay be the most expensive way for a person togive. “For me the great untold story in chari-table giving is that if you own something thatis worth more than you paid for it, it’s a moreadvantageous gift than cash,” said Wruck.

A charitable gift of appreciated stock, forexample, allows the donor to avoid capitalgains tax that would have to be paid if he orshe were to sell the stock or pass it on in a will.That capital gains savings is greater than thetax credit the donor would have received bydonating cash. “Donors tend to look at chari-table giving by looking at their current budg-et,” said Wruck. “But we encourage them tothink in terms of asset wealth in addition tocash wealth.”

Generosity, continued from page 39

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

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SPRING 11 53

A More Common VehicleAn asset can be stocks, a retirement policy,or a vintage boat. But even an asset as mod-est as a used car can change a life. The non-profit Free to Be, Inc. (freetobeinc.org) givesdonated, mostly used cars to people inAnoka County who are living in poverty andneed reliable transportation to get a job andstay employed.

A few months ago, a young womanwalked into the offices and handed executiveDirector Cliff Korkowski a set of keys. Theywere for the car Free to Be had given her fiveyears earlier when she was unemployed andliving in a rented trailer. “She told me that carhad allowed her to get a job at the University,”said Korkowski. “Eventually, she was able tobuy a house and her own car. Now she want-ed to help someone else.”

Korkowski says Free to Be has had long-term success because donors and volunteerssee tangible results. “People know that othersin their community are benefitting from theirgenerosity and it makes them feel good aboutgiving,” he said.

Explaining these less conventional waysof giving used to fall to “a sort of rarefiedpriesthood” among gift officers, said Wruck.But now charities are making them even moreaccessible and easy to achieve.

“This kind of giving may take slightlylonger to explain and have a few more stepsinvolved,” said Wruck. “But if the donorand the charity keep in mind that they’reboth committed to the same cause, they canget there.” IQ

“These vehiclesprove that you don’thave to be wealthy tobe a philanthropist.”

Mary Bauer— Initiative Foundation —



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selves excited. Thosedonors tend to make a giftbecause they have investedtheir own time. And they tendto give significantly more when they give independently.

IQ: What are the lessons from these trends?PB: Nonprofits must move from a gatekeeper mentality to more of acustomer service role. It’s a shift from asking, “How fast can we getthe money?” to asking, “How can we serve you and make the givingexperience as positive and convenient as possible?”

IQ: How do some nonprofitsmiss the boat?PB: If someone gives$10,000 and anothergives $25, nonprofits willusually interact withthose donors relative totheir gift value. The vastmajority of donors—72percent—say that their firstgift is not a measurement ofwhat they can give. One ofthe reasons they don’t givemore is that they aretreated like the $25donor they are, insteadof the million-dollardonor they have thepotential to be.

IQ: What do donors wish nonprofits knew?PB: Three basic things—when they make a gift, donors want to beacknowledged promptly and in a way that shows they appreciate thatthe donor is a human being—not just a person with money. They wantto know that their donations are assigned to a certain cause or program,not a general fund. Donors also want a report that shows what progresshas been made as a result of their gift. Unfortunately, nonprofits don’talways provide them.

IQ: Why do some people stop giving?PB: Over-solicitation is the number one reason. Not only

do they feel that too many charities ask them for money,but also that some charities ask them too often.Organizations that over-solicit are demonstrating todonors that they spend a lot of money raising money.The second reason is that they aren’t informed ofmeasurable results from their last gift.

IQ: Are there parallels between giving to charityand buying a product?PB: If you buy something, you can get your money back if

there is something wrong with the product. That’s not the case withcharity. Unhappy donors simply choose to not give again or shift theirgiving to another cause.

IQ: How are giving preferences changing?PB: Donors are much more independent today. (With technology) theyhave the convenience of learning and researching and getting them-

An IQ&A with Elizabeth Foy Larsen, Managing Editor

With more than 30 years in nonprofit managementand consulting, Penelope Burk is the author ofDonor-Centered Fundraising, transforming the waythe sector serves its critical benefactors. Hergroundbreaking research continues to gain inter-national recognition for challenging and improvingfundraising practices.

National author and researcher Penelope Burk reveals whatevery donor needs to receive from the charities they love to support.


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new way of thinking

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