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Communities build new local philanthropies (Continued from page 1) residents participate in the business of the community fund, they gain ex- perience in financial and legal matters while keying in on issues affecting their community. Result: a growing supply of community leaders. Community spirit. Jacobson observes the building of community spirit as com- munity funds develop in small towns. There is a sense of pride as goals are ac- complished. Starting philanthropy The reasons and ways in which Min- nesota cities and towns started com- munity foundations or funds are as varied as the number of the organizaions themselves. For example: The Eden Prairie Community Founda- tion was established in 1981 by repre- sentatives of the Chamber of Commerce, the city, the school district and the local Rotary Club who wanted funds for the community that they could not get through other means such as levies or federal or state programs. Arthur Copier, a Fargo attorney who worked with estates and had read about community foundations in legal publica- [ions, was the impetus behind the Fargo - Moorhead Community Foundation 30 years ago. He and his wife Clara were active in numerous community activities and established the foundation's first major fund, a scholarship fund which has supported numerous students. A group of Ellendale residents wanted to invest in their community, and or- ganized a community fund to help achieve their vision forAr year 2010. How community foundations/funds grow The ways community funds or com- munity foundations add to their assets can be as varied as the circumstances of their birth. In Mimiesota, most community -based philanthropic organizations start out gradually building endowment assets — often through bequests —and make only a limited number of small giants. As en- dowment grows, more income from investments becomes available for grantmaking. And as more and larger grants are made, the foundation or fund becomes more visible to the community. Local residents thus are increasingly aware of the community philanthropic organization and more disposed to con- tributing to it. At that point, the fund often experiences a growth spurt. Several Minnesota community founda- tions illustrate such growth. The Fargo -Moorhead CommunityFoun- dation reached its first million in assets in 1980. They grew to to $2.8 million in 1985 with an increasing number of gifts made by living persons. Since 1985-86, assets have grown to $6 million —a 218 percent growth in five years. There has been a 230 percent increase in the num- ber of individual funds since 1985. The Duluth -Superior Area Community Foundation, incorporated in 1983, recently reached the $6 million asset mark and is still growing. "People are now coming. us to create funds," said Sampson. "We lrave built some credibility, and we ate pretty visible in the community." Not all Minnesota community founda- tions can build those kinds of assets. Nevertheless, they are a viable philanthropic vehicle in the community. The Richfield Community Foundation is less than two -years -old. Current assets are $14,000, and it recently completed its second grant round in which $2,000 was disbursed, said Bill Kirchner, head of the distribution committee. Grant amounts were $500 or less, but they gave a boost to local nonprofits ranging from a volunteer program which helps senior citizens care for their homes to a local library. Good philanthropic intentions do not, however, guarantee the success of com- munity -bared philanthropy. The Bloomington Community Foundation has not gotten its organization off the ground. The foundation incorporated in 1989 and started out well, said Tim Cul- ver, president of the board. A planning meeting was called gramprocedures and policy were established, and the foundation received a grant from a local corporation. The grant required match- ing funds, however, and since the foun- dation was not successful in raising money from the community, it will it= the grant. Growing pains An article on the growth of community - based philanthropy in the March 12, 1991, Chronicle of Pbianthropy said competition for donations is a concern for many community funds and other charitable groups (including United Ways) across the country. With 13 community foundations, six in- itiative fonds, 50-some community funds, several United Ways/federated funds drives, and numerous charitable in- stitutions, turf problems would seem inevitable in Minnesota Whether one Minnesota Council on Foundations 425 Peavey Building Minneapolis, MN 55402 (612) 338-1989 Address Correction Requested 12 Giving Forum, October 1991 chalks it up to "Minnesota polite," Open communication, the state's philanthropic culture or a combination of the three, there appears to be a min- imum of problems. In some cases, would-be competitors work together. The Duluth -Superior Area Community Foundation, for example, holds the Duluth United Way's endowment. In fact, the idea for the foundation started at United Way, said the foundation's Sampson. The Greater Winona Community Foun- dation is housed at the United Way's of- fices, and was the brain -child of the United Way. United Way officials believed the community needed another source of revenue for non- profits, said Mark Kristensen, former executive director of the foundation and on staff at United Way. A grant from the United Way provided for the hiring of the foundation's executive director, Sue Cornwell, who joined the staff in September. In another situation, the Owatonna Community Foundation gave the Southeastern MIF (headquartered in Owatonna) a $50,000 contribution. If any organization has the potential for turf problems, it would be the West Central MIR Like all the MIFs, it covers a large area and overlaps some community foundations' geographic territory. It has 26 community funds lo- cated throughout the MIF region. "It would be dishonest to say we haven't bumped up against competition a few times," said Susan Hunke, execu- tive director of the Fargo -Moorhead Area Foundation, whose Moor- head/Clay County area is within the West Central MIF region. But sincerity and communication came through. Executive committees of the community foundation and the MIF boards met, talked, sorted out strategy, "hammered out a few rules" and went away friends. In a couple instances since then, they have referred potential donors to one another when a proposed fund was a better fit the other organization. -- - Situations are not always so amicably settled. In another instance, a com- munity fund which initially was af- filiated with a community foundation later chose to affiliate with an initiative fund. Competition is inevitable no matter where you are, said Leland (Sam) New- man, executive director ofthd Central Minnesota Community Foundation, Martin Asleson City of Lino Lakes 1189 Main Street Lino Lakes, Mt; 55014 17437 which shares territory with the St. Clc United Way, the Central Minnesota Iv and the Minnesota Foundation. He works to minimize potential turf problems by trying to reach agreemer with other parties on their respective missions, the timing of funding cam- paigns and other issues. In the long run, the gifts are a little ferent, and we may not be competing the same dollars, said Newman. To kt good relations with others, he recom- mends defining the mission of the fur or foundation, keeping communicatio open and involving policy people in discussion. The Southeastern MIF's Jacobson acknowledges the potential for com- petition, but believes that through cooperation, philanthropy in general i grow. "We're still building a philanthrop mind -set in (Greater) Minnesota," slu said. "If we collectively work togethe we're going to be better off." Despite the risk of starting new fm arms, enduring their growing pains at potential competition, Fargo- Moorhead's Hunke agrees. 'Philanthropy, no matter what fen takes, is good." For more about community founds community funds and other communi based philanthropy, try these publica tons. Most are available through Foundation Center Collections in art libraries. Information on how to pur- chase them is available from the Min nesota Council on Foundations at (6, 338-1989. "Community Foundations at 75: A Re the Status of Community Foundations," Council on Foundations, Washington, D( 1989. "Coveting Territory: Community Four Area Funds and Affiliates." Community Foundation for Southeastern Michigan. 11. Filipovitch, Anthony I. and Zane Bail "Upper Midwest Community Foundatior Study of Tbeir Development in Small Co munities," Minnesota Council on Founds lions, Minneapolis, MN. 1990. Magat, Richard. "An Agile Servant," Foundation Center, New York, NY. 198! Steinberg, Roger A. "Starting a Comm Foundation in a Small Community." Edt tional Development System, Minnesota I tension Service. 199 1. Struckhoff, Eugene C. "Ways to Gm, Council on Foundations, Washington D( 1991. Nonprofit Organization U.S.Postage PAID Minneapolis, MN Permit No. 839