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WHY ESTABLISH A COMMUNITY ENDOWMENT FUND? |
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For years,
we have used this newsletter to highlight the wonderful successes of
our Community Endowment Funds. From Richardton to Grafton,
Breckenridge/Wahpeton to Tioga and everywhere in between, hundreds
of volunteers are finding creative and unique ways to make their
communities better. But perhaps you live in a community that does
not have a fund and have been wondering whether this may be an
option for your area. Who can start a fund? What is the process?
What is the benefit of using the North Dakota Community Foundation
to establish an endowment fund for my community? These are the
questions we will outline for you in this issue’s “Community
Connection”.
For starters, any concerned resident may begin the process of
creating an endowment fund for their community. Step one is finding
an Advisory Board to take on the responsibility. Most of our
communities create an Advisory Board which consists of between five
and ten members. These individuals serve as volunteers and should
represent a broad cross-section of your community in terms of age,
gender, occupation etc.
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The board
need not be a sub-set of some government entity. Actually, those
that operate independent of any other organization or government
structure tend to work better. |
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Once the Advisory Board is in place, you
next need to find a donor whose gift will initiate the fund. Once
the gift is made, an agreement signed between the North Dakota
Community Foundation and the community/donors. This agreement states
that all monies raised for your community will be used for the
purpose in which they were given, to benefit your community or area.
The endowment fund is by definition a permanent fund and income is
used to fund projects in your community. Staff members from the
North Dakota Community Foundation will help your Advisory Board get
organized, establish a fund-raising plan, educate your Board on
methods of giving and approaching donors, and work with your Board
members to create a public relations plan to also educate other
residents of the area. |
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The benefits of establishing an
endowment fund through the North Dakota Community Foundation are
plentiful. First, you have the benefit of locally running an
endowment fund (i.e. raising and distributing money for community
projects in your area) without the administration and overhead. All
paperwork, tax filing, auditing, reporting etc. is handled at a
centralized location which creates a very efficient organization.
All overhead is shared with 400+ funds, making the cost of running
an endowment fund very minimal. Sharing the experiences and
expertise of other communities across the state is a priceless
benefit. The North Dakota Community Foundation also offers
professional investment management of your hard-earned dollars.
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Finally, and most importantly, the North
Dakota Community Foundation offers a matching gift program. In the
first year of operation, a community commits to raising $25,000.
When this is achieved, the North Dakota Community Foundation adds
$5,000 to your fund bringing your beginning balance to $30,000. Once
the $25,000 initial goal is reached, NDCF matches dollar-for-dollar
the first $10,000 raised. There is a $5,000 bonus if the community
can raise $25,000 in that same year. Taking into account the
benefits of part ne ring with the North Dakota Community Foundation,
it is easy to see that establishing a fund in this manner is a smart
way to build a permanent resource for the future of your community.
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For more information on how you can
begin the process of creating a community endowment fund for your
area, please contact President Kevin Dvorak at 701-222-8349 or
Development Director Amy Warnke at 701-795-1531. Below is a list of
current active community funds and their endowment balances as of
12/31/2004: |
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NDCF WELCOMES NEW COMMUNITY FUNDS |
The year 2004 has been another busy one
at the offices of the North Dakota Community Foundation. Two
communities joined the NDCF family this year with several others
which have expressed an interest in the program still in the
organization phase.
The Jamestown Community Foundation, an existing foundation, made the
decision to operate under the umbrella of the North Dakota Community
Foundation. This decision was based upon the economics of running an
independent foundation. The Advisory Board decided that working with
the North Dakota Community Foundation is a much more efficient way
to service the donors of the Jamestown area and continue to grow
their fund. By transferring the funds to the North Dakota Community
Foundation, the Jamestown Community Foundation will now benefit from
the NDCF staff experience, diversification benefits of an investment
portfolio of approximately $23 million and the efficiency of sharing
overhead costs with 400+ other funds. |
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A former
resident of Cavalier sent a very generous anonymous donation of
$25,000 in appreciated stock to capture the $5,000 NDCF match for
the Cavalier Community Foundation. The newly created Advisory Board
is now in the process of educating their residents as to methods of
giving and the possibilities for uses of the income from the
Foundation. With an All-School Reunion looming for the summer of
2005, this was the perfect timing for the Cavalier community.
Thousands of residents and former residents
 will
be gathered together to celebrate their roots and with that brings
the potential of getting the word out about the exciting things
happening in the community. Board Chair, Lynette Flage, has been
organizing mailings and putting finishing touches on the community
brochure. The Advisory Board also has had the opportunity to tell
their story on the 5:00 pm news on WDAZ television. Congratulations
to our newest fund!
For more information on these funds please contact our website at
www.ndcf.net or call Kevin Dvorak
at 701-222-8349 or Amy Warnke at 701-795-1531. |
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Amy Warnke
e-mail 701.795.1531.
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