INITIATIVE FOUNDATION
405 FIRST STREET SE, LITTLE FALLS, MN 56345 www.ifound.org

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Organizations Filed Purposes: TO EMPOWER PEOPLE TO BUILD THRIVING COMMUNITIES AND A VIBRANT REGION ACROSS CENTRAL MINNESOTA.

ECONOMYLOANS: THE FOUNDATION FUNDED 10 NON-EMERGENCY SMALL BUSINESS GAP LOANS TOTALING $1.6 MILLION. AS A RESULT OF THESE LOANS, $22 MILLION IN PRIVATE FINANCING WAS LEVERAGED THROUGH OTHER LENDING INSTITUTIONS. WE ESTIMATE THAT THIS LENDING VOLUME CONTRIBUTED SIGNIFICANTLY TO CREATE 76 AND RETAIN 132 JOBS. WE ALSO CONTINUED TO ENSURE THAT OUR ENTIRE REGION HAS ACCESS TO MICRO-LENDING PROGRAMS. MANY ORGANIZATIONS PARTNER WITH US IN THIS EFFORT, INCLUDING THE REGION FIVE DEVELOPMENT COMMISSION, SOUTHWEST INITIATIVE FOUNDATION, WELLS FARGO DIVERSE COMMUNITY CAPITAL, U.S. BANK AND ST. CLOUD STATE UNIVERSITY. TO STRENGTHEN OUR MICRO-LENDING NETWORK, WE MAINTAIN FUNDING AND REFERRAL RELATIONSHIPS WITH THE SMALL BUSINESS DEVELOPMENT CENTERS LOCATED IN OUR REGION. IN RESPONSE THE COVID-19 PANDEMIC, THE INITIATIVE FOUNDATION OFFERED FLEXIBILITY TO ITS FULL PORTFOLIO OF BORROWERS, AND 40 OF THEM EXERCISE THAT OPPORTUNITY FOR EITHER FULL TEMPORARY DEFERMENT OR INTEREST-ONLY PAYMENTS. THE VALUE OF THE LOANS WHERE DEFERMENT OPTIONS WERE IMPLEMENTED IS $2.85 MILLION. PANDEMIC RELIEF AND RECOVERY: IN PARTNERSHIP WITH THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED), THE INITIATIVE FOUNDATION DISPERSED AN ADDITIONAL 56 SMALL BUSINESS EMERGENCY LOANS ACROSS ALL 14 CENTRAL MINNESOTA COUNTIES WITH AN AVERAGE OF $20,000 PER LOAN AND A TOTAL VALUE OF $1.2 MILLION. WE ESTIMATE THESE LOANS CONTRIBUTED TO THE RETENTION OF 474 JOBS ACROSS THE REGION.THE INITIATIVE FOUNDATION, AGAIN IN PARTNERSHIP WITH DEED, VERIFIED AND ADMINISTERED 776 SMALL BUSINESS RELIEF GRANTS, EACH IN THE AMOUNT OF $10,000. THESE GRANTS WERE DISTRIBUTED TO MINNESOTA-OWNED AND OPERATED BUSINESSES THAT DEMONSTRATED FINANCIAL HARDSHIP AS A RESULT OF THE COVID-19 OUTBREAK. THIS WAS FAR AND AWAY THE SINGLE LARGEST GRANTMAKING EFFORT IN THE FOUNDATION'S HISTORY, CONTRIBUTING SIGNIFICANTLY TO A COMBINED ANNUAL GRANTMAKING TOTAL ROUGHLY FIVE TIMES THE PRIOR YEAR'S AMOUNT. INITIATORS FELLOWSHIP: THE ENTREPRENEURSHIP TEAM CELEBRATED THE SELECTION OF SEVEN INDIVIDUALS FROM ACROSS THE 41 COUNTIES SERVED BY THE INITIATIVE FOUNDATION, SOUTHWEST INITIATIVE FOUNDATION AND WEST CENTRAL INITIATIVE. THESE SEVEN FELLOWS MAKE UP OUR SECOND COHORT (2020-2021) OF THE INITIATORS FELLOWSHIP. THEIR TWO-YEAR FELLOWSHIP BEGAN IN JANUARY 2020. THE INITIATORS FELLOWSHIP IS A TWO-YEAR SUITE OF SUPPORTS-INCLUDING TRAINING, MENTORING, AND FUNDING-FOR BEGINNING OR EARLY-STAGE SOCIAL ENTREPRENEURS IN CENTRAL, SOUTHWEST AND WEST CENTRAL MINNESOTA. THESE GREATER MINNESOTA LEADERS ARE HELPING TO BUILD THE ECONOMY AND QUALITY OF LIFE IN THEIR HOMETOWNS BY DEVELOPING PURPOSE-DRIVEN, FOR-PROFIT BUSINESSES AND NONPROFIT ORGANIZATIONS THAT HAVE A POSITIVE SOCIAL OR ENVIRONMENTAL IMPACT.ENTERPRISE ACADEMY: THE ENTREPRENEURSHIP TEAM CONTINUES TO GROW THE ENTERPRISE ACADEMY PROGRAM, PROVIDING BUSINESS TRAINING, ONE-ON-ONE TECHNICAL ASSISTANCE AND DIRECT LENDING TO LOWER-INCOME ENTREPRENEURS WITH AN EMPHASIS ON BLACK, INDIGENOUS AND PEOPLE OF COLOR (BIPOC) COMMUNITIES. THIS PROGRAM HAS SERVED MORE THAN 100 LOW-INCOME OR MINORITY ENTREPRENEURS SINCE ITS INCEPTION IN 2018. THE INITIAL TARGET POPULATION OF THE ENTERPRISE ACADEMY WAS NEW AMERICANS FROM THE EAST AFRICAN COMMUNITY IN ST. CLOUD. THE PROGRAM THEN EXPANDED TO SERVE THE BRAINERD REGION AND THE GREATER AFRICAN AMERICAN COMMUNITY IN 2019 AND 2020. WE ARE NOW PILOTING PROGRAMMING IN THE MILLE LACS BAND OF OJIBWE TRIBAL ECONOMY.COMMUNITY ENGAGEMENT: FOCUSED OUTREACH WITH COMMUNITY BANKS, CHAMBERS OF COMMERCE AND VOLUNTEER BUSINESS GROUPS, COMBINED WITH TARGETED ECONOMIC DEVELOPMENT GRANTMAKING, REMAINS A PRIORITY TO INCREASE LOANS AND TECHNICAL ASSISTANCE OPPORTUNITIES IN ALL COMMUNITIES. THE FOUNDATION PROVIDED FUNDING AND OTHER SUPPORT FOR LOCALLY DRIVEN STRATEGIC PLANNING, LINKING TO OTHER FUNDERS AND JOB CREATION OPPORTUNITIES, MEMBERSHIP GROWTH EFFORTS, AND DEVELOPMENT OF TECHNOLOGY TOOLS AND/OR PROGRAMS TO ATTRACT AND RETAIN SKILLED WORKERS. ATTRACTION, DEVELOPMENT, AND RETENTION OF A SKILLED WORKFORCE REMAIN A PRIMARY INTEREST TO EMPLOYERS THROUGHOUT OUR REGION, AND A NAMED STRATEGIC PRIORITY OF THE FOUNDATION.

COMMUNITYCHILD CARE SOLUTIONS: IN 2020, THE INITIATIVE FOUNDATION SUPPORTED THE SECOND YEAR OF ITS CHILD CARE SOLUTIONS PILOT PROGRAM TO WORK IN SIX COMMUNITIES WITH A GOAL OF EXPANDING ACCESS TO QUALITY, AFFORDABLE CHILD CARE. CENTRAL MINNESOTA HAS THE GREATEST DEFICIT OF AVAILABLE CHILD CARE SLOTS IN GREATER MINNESOTA-ESTIMATED AT BETWEEN 15,400 AND 17,000-WHICH CREATES A BARRIER TO WORKFORCE ATTRACTION AND RETENTION AT A TIME OF RECORD-LOW UNEMPLOYMENT. IN ADDITION, BECAUSE SO MANY PROVIDERS FACE PROFITABILITY CHALLENGES, THE PROGRAM EMPHASIZES AND OFFERS SOUND BUSINESS MANAGEMENT TRAINING AND CONSULTING. IT ALSO SEEKS TO DEVELOP PARTNERSHIPS WITH LOCAL UNITS OF GOVERNMENT, OFTEN ECONOMIC DEVELOPMENT AUTHORITIES, AND COMMUNITY-BASED EMPLOYERS TO EXPLORE ALTERNATIVE MODELS SUCH AS ALLOWING A PROVIDER TO OPERATE ON EMPLOYER PROPERTY IN EXCHANGE FOR PRIORITY PLACEMENT OF EMPLOYEES' CHILDREN. THIS PROGRAM IS A PARTNERSHIP WITH FIRST CHILDREN'S FINANCE, A MINNEAPOLIS-BASED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION (CDFI) THAT WORKS EXCLUSIVELY WITH CHILD CARE PROVIDERS, AND IS FUNDED BY THE MINNESOTA DEPARTMENT OF HUMAN SERVICES. IN ADDITION TO HELPING COMMUNITIES DEVELOP LOCAL SOLUTIONS TO THE CHILD CARE SHORTAGE, IN 2020 THE INITIATIVE FOUNDATION ADMINISTERED NEARLY $200,000 IN DISASTER RESPONSE GRANTS TO CHILD CARE PROVIDERS TO HELP WEATHER THE INITIAL EFFECTS OF THE COVID 19 PANDEMIC. THIS PROGRAM WAS QUICKLY DEVELOPED AT THE REQUEST OF MINNESOTA GOV. TIM WALZ. THE GOVERNOR REQUESTED THE SUPPORT OF ALL SIX MINNESOTA INITIATIVE FOUNDATIONS AT THE ONSET OF THE PANDEMIC TO TIDE THE CHILD CARE SECTOR OVER UNTIL MORE SUBSTANTIAL RELIEF COULD BE SUPPORTED BY THE MINNESOTA LEGISLATURE.ENERGY TRANSITION: STAFF CONTINUE TO HELP THE CITY OF BECKER AND SHERBURNE COUNTY PREPARE FOR THE DECOMMISSIONING OF UNITS AT SHERCO, THE LARGEST COAL-FIRED POWER PLANT IN THE MIDWEST. EFFORTS TO DIVERSIFY THE BECKER ECONOMY HAVE RESULTED IN THE GROUNDBREAKING FOR A NEW NORTHERN METALS RECYCLING FACILITY (PROJECTED WORKFORCE OF 150) AND EXPLORATION OF THE OPPORTUNITY TO HOST A GOOGLE DATA CENTER TO SERVE THE UPPER MIDWEST. IN 2020, OUR ENERGY TRANSITION WORK PAUSED WHILE THE REGION NAVIGATED THE COVID-19 PANDEMIC. THE INITIATIVE FOUNDATION EXPECTS TO RESUME ROBUST SUPPORT OF COMMUNITIES IN ENERGY TRANSITION AS THE EFFECTS OF THE PANDEMIC EASE.PANDEMIC RELIEF AND RECOVERY: WE CONTINUE TO PARTICIPATE IN THE PHILANTHROPIC PREPAREDNESS, RESILIENCY AND EMERGENCY PARTNERSHIP (PPREP) COLLABORATION THAT HELPS TO BUILD THE CAPACITY OF COMMUNITY FOUNDATIONS TO SUPPORT HOMETOWNS IN TIMES OF CRISIS. BECAUSE OF THE ONGOING PANDEMIC, NO NEW PROGRAMMING WAS DEVELOPED IN 2020. HOWEVER, STAFF ARE EXPLORING A POTENTIAL PARTNERSHIP WITH THE LEECH LAKE BAND IN 2021.THE NASHVILLE-BASED CENTER FOR DISASTER PHILANTHROPY AWARDED $160,000 TO THE INITIATIVE FOUNDATION TO SUPPORT HOUSEHOLDS IMPACTED BY COVID-19 IN THE THREE REGIONAL COMMUNITIES THAT HAPPEN TO HAVE MEAT-PROCESSING OPERATIONS AS A PRIMARY EMPLOYER (COLD SPRING, MELROSE AND LONG PRAIRIE). MEAT PROCESSING IS A SECTOR THAT POSES A HIGH RISK OF COVID-19 TRANSMISSION. THE FOUNDATION HAS CONTRACTED WITH THE CENTRAL MINNESOTA COMMUNITY EMPOWERMENT ORGANIZATION AND THE LATINO ECONOMIC DEVELOPMENT CENTER TO PROVIDE SOMALI- AND SPANISH-SPEAKING, CULTURALLY APPROPRIATE RELIEF AND RESOURCE REFERRAL TO THE LARGELY EAST AFRICAN AND LATINX WORKFORCE IN THESE COMMUNITIES.HEALTHY LAKES AND RIVERS PARTNERSHIP (HLRP): THE FOUNDATION COMPLETED ALL REPORTING ASSOCIATED WITH THE $4 MILLION GRANT FROM THE LESSARD-SAMS OUTDOOR HERITAGE COUNCIL TO SUPPORT INNOVATIVE PILOT PROJECTS THAT PREVENT THE SPREAD OF AQUATIC INVASIVE SPECIES. GRANTMAKING AND SPECIAL INITIATIVES: IN RESPONSE TO THE COVID-19 PANDEMIC, THE FOUNDATION AMENDED ITS 2020 GRANT GUIDELINES TO ALLOW GENERAL OPERATIONS SUPPORT OF NONPROFIT ORGANIZATIONS. CURRENT GRANT RECIPIENTS WERE ALSO ALLOWED TO REALLOCATE THEIR AWARD TO SUPPORT GENERAL OPERATIONS.NONPROFIT DEVELOPMENT: FOUNDATION STAFF COMPLETED TWO COHORTS OF THE ORGANIZATION'S NONPROFIT ACADEMY PROGRAM (FORMERLY KNOWN AS FINANCIAL RESILIENCY) AND BEGAN A THIRD. PROGRAMMING IS OFFERED IN TWO TRACKS: ONE FOCUSED ON CLARIFYING AND REFINING EACH NONPROFIT'S BUSINESS MODEL, AND THE SECOND FOCUSED EXCLUSIVELY ON DONOR DEVELOPMENT CAPACITY-BUILDING. WITH GUIDANCE AND SUPPORT FROM FOUNDATION STAFF, VARIOUS OTHER NONPROFIT TRAINING PARTNERS AND BUSINESS AND MARKETING CONSULTANTS, A TOTAL OF 26 ORGANIZATIONS (INVOLVING MORE THAN 50 INDIVIDUAL TRAINEES) PARTICIPATED IN PROGRAMS TO ADVANCE NONPROFITS AND THEIR FUNDRAISING, FINANCIAL MANAGEMENT, LEADERSHIP, MARKETING AND PROGRAM-DELIVERY CAPACITY.FOUNDATION STAFF AND CONSULTANTS FACILITATED FIVE NONPROFIT ACADEMY LEADERS CIRCLES FOR NONPROFITS, INVOLVING 30 LEADERS FROM 29 NONPROFIT ORGANIZATIONS. THESE PEER-COACHING CIRCLES BUILD LEADERSHIP SKILLS/ABILITIES, HELP MEMBERS IN A CONFIDENTIAL SETTING TO IDENTIFY CONSTRUCTIVE STEPS FOR RESOLVING WORK CHALLENGES AND DECREASE PROFESSIONAL ISOLATION. MOST LEADERS CIRCLES MEMBERS REPORT GAINING NEW SKILLS IN THE AREAS OF PROBLEM-SOLVING, LISTENING, SPEAKING AND TAKING ACTION.FOUR QUARTERLY NONPROFIT LUNCHTIME LEARNING SESSIONS WERE COORDINATED BY THE INITIATIVE FOUNDATION IN CONJUNCTION WITH LOCAL PARTNERS. ABOUT 180 NONPROFIT PROFESSIONALS PARTICIPATED IN ONE OR MORE IN-PERSON OR VIRTUAL LUNCHTIME LEARNING SESSIONS, REPRESENTING APPROXIMATELY 98 ORGANIZATIONS.BECAUSE OF THE PANDEMIC, AN ADDITIONAL 10 ORGANIZATIONS WERE PROVIDED ACCESS TO TECHNICAL ASSISTANCE SIMILAR TO OUR NONPROFIT ACADEMY PROGRAM BUT FOCUSED ON A SINGLE TOPIC IDENTIFIED AS A NEED BY THE ORGANIZATIONS. TOPICS INCLUDED TECHNOLOGY, FUND DEVELOPMENT AND HUMAN RESOURCES.

GENEROSITYDURING AN UNPRECEDENTED YEAR OF PANDEMIC, THE COMMUNITY PHILANTHROPY PROGRAM ASSISTED NONPROFITS AND SMALL BUSINESSES WITH NEARLY $364,000 IN RELIEF GRANTS IN RESPONSE TO THE COVID-19 EMERGENCY. TOTAL COMMUNITY IMPACT THROUGH GRANT MAKING WAS APPROXIMATELY $1.2 MILLION. TEN RELIEF FUNDS WERE ESTABLISHED, AS WELL AS FOUR DONOR-ADVISED AND DESIGNATED FUNDS IN 2020 FOR A TOTAL OF 137 PARTNER FUNDS (INCLUDING RELIEF FUNDS). ELEVEN TRAINING SESSIONS WERE HELD IN 2020 (THREE IN-PERSON AND EIGHT BY ZOOM) WITH 133 PARTNER FUND ADVISORS PARTICIPATING IN THE TRAINING SESSIONS.

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