2011 annual report - Otto Bremer Foundation

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the otto bremer foundation assists people in achieving fulleconomic, civic and social participation in and for the bettermentof their communities.Ccontents2011 annual report4 bill lipschultz: 51 years of service7 a letter from the trustees10 executive director’s message12 mission & meaning14 history16 bremer communities18 2011 financial overview19 2011 grants overview2012 guide to grantmaking22 grantmaking overview24 eligibility25 grant application26 principles for minnesota grantmakers

passina tribute to 51 years of service: Bill LipschultzThe year 1961 was a seminal year forthe Otto Bremer Foundation. Whilethe Foundation had been a legal entityas a charitable trust since 1944, this wasthe year that Otto Bremer’s assets weretransferred to the Foundation, in the amountof $4.6 million. This was also the year thatWilliam H. Lipschultz succeeded his father,Samuel Lipschultz, as trustee.The year 2012 marks the 51st year Bill hasserved as a trustee of the Foundation andthe year he will retire and be succeededby his son, Brian. Bill has lent a steady hand and broughtcontinuity and insight to a multitude of changes that haveoccurred throughout the years.Bill began his time at Bremer working alongside trusteesLarry Carr and Ben Ridder, who, with Samuel Lipschultz,were key architects in helping Otto Bremer design and beginto implement his vision for the Foundation. The trusteeswere responsible for overseeing the operationof a growing for-profit banking enterprise whileorganizing and executing a philanthropic missionin accordance with Otto’s wishes. Each trusteebrought important skills to the table in areas offinance, community relations and philanthropy.When he joined the Foundation, Bill was alreadya successful sales executive in the paper andpackaging industry. He was an entrepreneurwhose people skills and focus on the needsof all his stakeholders (customers, employees,investors) led to his prominence in the localbusiness community. He also invested time and effort innumerous charitable organizations, often serving in leadershiproles. All these pursuits helped to shape Bill’s approachto his work as a trustee as the Foundation grew and itsactivities evolved.Over the years, new trustees were appointed, includingRobert Reardon and Gordon Shepard, who, along with Bill,4 · ottobremer.org

looking aheada letter from the trusteesWe are pleased to provide this report on the OttoBremer Foundation’s activities over the last year.The Foundation’s success is due in large part to itslong-term investment in Bremer Financial Corporation. Thislegacy from Otto Bremer has provided a steady stream ofdividends that fund the Foundation’s grantmaking activities.The continued growth of Bremer banks has allowed theFoundation’s grant awards to grow exponentially over nearlyseven decades.After a year of strategic planning in 2010, the Otto BremerFoundation turned to implementation in 2011. As wereported last year, by the end of 2010 we had reaffirmedour vision and mission and our ongoing commitment toBremer communities, now expanded to include Owatonnaand Mankato, Minnesota, and Bismarck, North Dakota. In2011, we were ready to translate our words into actionsand begin transforming our broad vision into reality. As wemade changes, we continuously monitored the effect of ouractions to ensure that we were moving toward our shortandlong-term objectives.We developed several new communications. The Foundation’sMission and Meaning statement articulates ourdefinition of healthycommunities andhighlights factorsshared by vibrantcommunities. TheGuide to Grantmakingand grant applicationdocuments expandupon conventionalgrant guidelines,asking grant seekersBill Lipschultz, Charlotte Johnson, Dan Reardonto consider andexplain how their organization and proposed work movetheir community forward. We provide additional informationto help grant applicants understand the grant applicationprocess and specific requirements, limits and deadlines.All of this information is part of our newly updated website,ottobremer.org.In 2012, we are unveiling our new logo, a visual articulation ofthe Foundation’s message. The logo, which incorporates theforward-leaning signature of Otto Bremer, honors our founder,reminds us of our history and helps to connect current2011 annual report · 7

and future actions to that history. The signature and colorcommunicate energy, movement and vibrancy, suggesting ourvision for Bremer communities and our active, involved andoptimistic role in helping to create a positive future.The strategic planning process gave clarity to the Foundation’schallenge of funding in multiple communitiesacross three states and devising a grantreview process that is both responsive andefficient. We now dedicate two of the sixannual grant rounds to applications fromthe Minneapolis/St. Paul metropolitan area,with the remaining four rounds open to applicants fromthe greater Bremer region. This schedule change allows usto give concentrated focus to the large metropolitan areawhile helping to ensure that staff have sufficient time totravel throughout the region to meet with applicants.Recognizing the slow pace of economic recovery over thelast few years, we committed approximately $7.9 million in2011 to help meet basic needs throughout the region. Thesegrants supported a spectrum of projects and programs thatoffered immediate relief or provided services to end thecycle of poverty.Moving from a strategic vision to an action plan takes time.We will meet our goals only if we continually assess andevaluate both internal processes and the results of ourinvestments in and partnerships with community organizations.We continue to develop both an evaluation processin 2011 we were ready to take on the task ofconverting words to actions and make a broadvision reality.and a data-collection system that will help us learn fromindividual communities, understand topical issues andidentify strong community partners.Thank you for your interest in our work and for your partin building healthy communities.charlotte s. johnson william h. lipschultz daniel c. reardon8 · ottobremer.org

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executive director’s messageThe financial difficulties of 2008 and after have causedwaves of change in our region, affecting needs andopportunities. To some extent, we’re all aiming atmoving targets. Despite that fluidity, there are a few thingswe’re crystal clear about at the Otto Bremer Foundation.The main point of clarity is our vision for the communities weserve: we hope they will be places where basic needs aremet, mutual regard is prized and opportunities for economic,civic and social participation are within everyone’s reach. (OurMission and Meaning statement on page 12 explains thisvision in detail.)We’re also clear about our role in helping to build healthy,vital communities. We seek to support opportunities thathave the potential to move a community forward in powerfulways. This requires us to understand the region and thecommunities. We devote significant time and effort toincreasing our understanding and to capturing and sharingthat learning.clarity oStrategically Responsive Grantmaking—ourbasic workThe Foundation’s basic work is responding torequests from our communities. We are opento a broad variety of issues important to theplaces we serve. Because the requests fromcommunities, taken together, usually ask formore money than we have in our budget,the Foundation is strategic in choosing whichof the many good proposals to fund: we tryto support the work that will best move thecommunities toward the vision explained above. We assesswhat to support by looking at how grant applicants addresssix main topics. We seek to understand the community, theproposed work, the impact the work will have, the applicantorganization and its resources, the applicant’s partners in thework and what the future is likely to bring for this work. Moredetails are provided in our grant application, available on ourwebsite, ottobremer.org.10 · ottobremer.org

f visionLearning and Strategically Proactive Grantmaking—respondingto themes we see throughout the greater Bremer regionWe learn a lot by reviewing more than one thousand grantapplications every year, talking to grant applicants and participatingin meetings throughout the region. Certain themescome up over and over again:° Economic issues, including the need for people in ourcommunities to find and retain good jobs° Youth issues, including the need for teenagers to havebetter support as they navigate the path toward healthydevelopment° Library and literacy issues, including the opportunity forlibraries to be community centers° Access to dental care, particularly in the rural areas ofthe greater Bremer regionSharing Our Learning with the CommunitiesThis year we look forward to sharing what we’re learning withthe communities and others. Our new website allows for:° Easy searching for grants by type, region and year° Spotlights on selected grants° Resource pages to share what we are learning fromapplicants and others° A blog that provides brief discussions of community andgrantmaking initiatives, as well as other Foundation newsAs the year goes on, we’ll issue periodic e-newslettershighlighting Foundation news, lessons learned and otherinformation. To sign up, please visit our website.We will continue to share news about the communities andFoundation as the next year unfolds.As we identify themes, we try to elevate our learning inthese areas and sometimes initiate a cluster of targetedgrants to support the communities’ efforts to make progresson these important issues. Targeted grants last year includedfunding to providers aiding homeless youth in the Twin Citiesand funding to help the city of Mankato support healthydevelopment for all its teens.randi ilyse roth2011 annual report · 11

mission & meaningthe otto bremer foundation assists people in achieving full economic, civic andsocial participation in and for the betterment of their communities.Our mission is based on the intent of our founder, Otto Bremer.His vision and longstanding commitment to communitiesduring and after the Great Depression are carried forward todaythrough our work in the places that are homes and neighbors toBremer banks.We strive to help build healthy, vibrant communities—communitieswhere basic needs are met, mutual regard is prized and opportunitiesfor economic, civic and social participation are within everyone’s reach.We start by saying “basic needs are met,” because weunderstand that for any individual, meeting basic needs—likethe need for food, warm and stable housing, and access tomedical care—has to come first. Once people are able to attendto their basic needs, they are in a better position to accesscommunity resources that can help them achieve long-termeconomic stability. While the Foundation cannot address all of acommunity’s unmet basic needs, we are committed to partneringwith organizations whose work contributes significantly tomeeting those needs in Bremer communities.When we say “mutual regard is prized,” we mean that membersof the community work together with respect and compassionto solve problems and build on opportunities. Bremer communitiesare increasingly home to people from all parts of the worldand from all paths of life. In our vision, multiple voices are partof the conversation to ensure that solutions reflect the goals ofthe whole community.When we say “opportunities for economic, civic and socialparticipation are within everyone’s reach,” we mean that active,vibrant community life is available to all, not just to some.° By “economic participation,” we mean that the communityis a place of deep opportunity, where all people have thechance to build an economic foundation for themselves andtheir families. In our vision, economic opportunity means realpossibilities for advancement, not just ways to scrape by.° By “civic participation,” we mean that the community is aplace where people are informed about and engaged in theissues that affect their community, a place where people12 · ottobremer.org

emer communitiesthe otto bremer foundation is rooted in and committed to thecommunities that are homes and neighbors to bremer banks. werecently welcomed the communities of bismarck, north dakota, andowatonna and mankato, minnesota, to the family of bremer bankcommunities.To build our understanding of community concerns andchallenges, Foundation trustees and staff look for opportunitiesthroughout the year to visit Bremer communities and meetwith local leaders. Convenings provide opportunities toconnect with nonprofit and community leaders in ways thatmight not happen in the normal course of foundation life.These discussions give all involved a chance to hear aboutpressing issues and emerging or unacknowledged problems.Convenings can be the first step in identifying new waysfor the Foundation to work with communities and nonprofitorganizations and may lead to collaborations within andbetween communities around common issues.We value the perspectives of those who understand andwork on local issues, and we encourage ideas about formatsand agendas that bring people together to learn from eachother. Convenings help the Otto Bremer Foundation fulfill itscommitment to listen, learn and respond.In addition to contacting the Foundation with ideas forconvenings or questions about grantmaking, local nonprofitleaders can turn to Nonprofit Resource Specialists in nineBremer banks. These Bank staff act as resources within theirlocal nonprofit communities, helping individual organizationsstrategically develop organizational capacity and resources.More information about the Bremer Bank Nonprofit ResourceSpecialists can be found at nonprofitresource.blogspot.com.16 · ottobremer.org

MinotMaxRugbynorth dakotaDevils LakeGilbyLarimoreMinnewaukanGrand ForksCarringtont win cities metroFordvilleGraftonFargoWarrenFisherCrookstonInternational FallsminnesotaCasseltonDetroit LakesBayfieldRichardtonBismarckLa PointeMoorheadWashburnPerhamAitkinBreckenridgeLisbonFergus Falls Baxter BrainerdWahpetonDanburyBrandonRiceSirenAlexandriaMilacaFredericSartellPrincetonMorrisAmeryStarbuck Sauk Rapids Zimmerman Deer ParkSt. CloudNew RichmondKnappColfaxArden HillsWillmarMinneapolisElk MoundWhite Bear LakeMenomonieWatertownBrooklyn CenterSt. AnthonySt. PaulPlymouthMaplewoodEau GalleRosevilleRedwood FallsStillwaterMinneapolisMinnetonkaMarshallSt. Louis ParkOwatonnaSt. PaulMankatoEdinaWoodburySouth St. PaulEden Prairie Richfield Inver Grove HeightsEaganwisconsinLakeville2011 annual report · 17

1552011 financial overview for the year ended December 31, 201120072008200920102011end of year market value of assetsCash $ 549,006InvestmentsFixed income 71,224,539Corporate stock 680,328,535Other 8,577,452Other AssetsFixed assets 260,133Accrued receivables 162,490Total Assets $ 761,102,155revenue and expensesRevenueInterest from investments 726,838Dividends from investments 36,120,387Net gain on sale of investments 1,955,737Other income 1,207,752Total Revenue $ 40,010,714Expenses and DisbursementsOperations and administration 4,078,136Taxes 763,000Grants and program-related investments 30,567,764Total Expenses and Disbursements $ 35,408,900Excess Revenue over Expenses $ 4,601,814assets$1b.8.6.4.22007 2008 2009grants/pris$35m251552007 2008 2009201020102011201118 · ottobremer.org

2011 grants overviewThe concept of community lies at the core of theFoundation’s work. As described earlier in our Missionand Meaning statement, we understand that eachcommunity has its own vision, its own ways of solvingproblems and building on opportunities. We are interested insupporting a community’s efforts to move toward its visionwhen those efforts are consistent with the Foundation’smission to ensure that everyone has the opportunity toparticipate in and for the benefit of the larger community.The following overview identifies 2011 grants by regional grantclusters to better illustrate the areas where grants were awarded.minneapolis/st. paulmetropolitan areaIncludes Minneapolis, St. Paul and the communities of ArdenHills, Brooklyn Center, Eagan, Eden Prairie, Edina, Inver GroveHeights, Lakeville, Maplewood, Minnetonka, Plymouth,Richfield, Roseville, St. Anthony, St. Louis Park, South St. Paul,Stillwater, Watertown, White Bear Lake and Woodbury.319 grant payments were made in the Minneapolis and St. Paulregion totaling $13,585,770.central/northern minnesotaIncludes the communities of Aitkin, Alexandria, Baxter,Brainerd, Brandon, Detroit Lakes, Fergus Falls, InternationalFalls, Milaca, Morris, Perham, Princeton, Rice, St. Cloud,Sartell, Sauk Rapids, Starbuck and Zimmerman.141 grant payments were made in the Central and NorthernMinnesota region totaling $5,280,073.southern minnesotaIncludes the communities of Mankato, Marshall, RedwoodFalls and Willmar.30 grant payments were made in the Southern Minnesota regiontotaling $1,146,971.red river valleyIncludes the communities of Breckenridge, Crookston, Fargo,Fisher, Grand Forks, Moorhead, Wahpeton and Warren.57 grant payments were made in the Red River Valley regiontotaling $2,572,202.Note: Grant payments in the Red River Valley include grants tocommunities in both North Dakota and Minnesota. These RedRiver Valley grants are not also included in the North Dakota andMinnesota regional totals.2011 annual report · 19

north dakotaIncludes the communities of Bismarck, Carrington, Casselton,Devils Lake, Fordville, Gilby, Grafton, Hoople, Larimore,Lisbon, Max, Minnewaukan, Minot, Richardton, and Rugby.81 grant payments were made in the North Dakota region totaling$4,338,450.wisconsinIncludes the communities of Amery, Bayfield, Colfax,Danbury, Deer Park, Elk Mound, Frederic, Knapp, La Pointe,Menomonie, New Richmond, Siren and Washburn.86 grant payments were made in Wisconsin totaling $2,731,798.otherOne grant payment was made to an organization headquarteredoutside the region for programs within the region. This grant totaled$62,500.program-related investmentsTwo program-related investments were awarded in 2011 in thetotal amount of $850,000.2011 grant distribution717 grants and PRIs totaling $30,567,764Minneapolis/St. PaulMetropolitan Area44%Central/NorthernMinnesota17% 4% Southern Minnesota14% North Dakota9% WisconsinOther

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guide to grantmakinggrantmaking overviewFunding focusHonoring the spirit of our founder, Otto Bremer, and thedirection given by the trust he created, the Foundation fundsa variety of work important to a community’s future. Wegive highest priority to those opportunities with the potentialto move a community forward in meaningful, powerful andbroad-based ways. This broadness of vision is intentionalin order to encourage innovative responses to communityopportunities and challenges.Grant typesThe Foundation provides grants to support programs, generaloperations, capital projects and—for community foundationsonly—endowments. The trustees currently prefer to makeone-year grants. We are open to making two-year grantswhen that is demonstrably the most effective way to advancework that is important to a community. In rare circumstances,we will make three-year grants.Activities that we generally do not fundWe discourage proposals for funding the following activities,which generally fall outside the trust instrument or ourstrategic vision:° Annual fund drives and benefit events° Endowments other than for the development of communityfoundations° Environmental or conservation projects° Medical research° Core education programs for kindergarten through twelfth grade° Projects that are primarily artistic in nature, including books,theatrical productions, film, video and other media projects° Historical preservation, museums and interpretive centers° Sporting events22 · ottobremer.org

Twin Cities fundingA portion of our funding is devoted to support for the sevencountyMinneapolis/St. Paul metropolitan area. The TwinCities area is densely populated and is served by many otherfunders in addition to the Otto Bremer Foundation. To achievethe greatest impact with our resources in the Twin Cities, wefocus more narrowly there. In 2012, grants in the Twin Citiesmetro area will focus on programs that meet basic needs andbuild on community and individual assets to help people moveout of poverty. Please look at our website for updates on TwinCities funding in 2013.Amount of grants awardedThere is no set dollar limit on grant requests. We prefer thatthe proposed work has funding from diverse sources whenpossible. When Otto Bremer Foundation funding is added toother revenue sources, there should be sufficient total fundingto enable the work to be successful. You may wish to reviewa list of Foundation grants on our website.

eligibilityGrants are made only to organizations whose beneficiariesare residents of Minnesota, North Dakota or Wisconsin, withpriority given to communities that are homes and neighbors toBremer banks. Grants are generally restricted to organizationsdescribed in Section 501(c)(3) of the Internal Revenue Code andto governmental entities. The Foundation does not make grantsto individuals. The Foundation does not discriminate on thebasis of race, color, creed, sex, religion, age, disability, sexualorientation, marital status or national origin.Fiscal sponsorshipThe Foundation accepts grant applications from fiscal sponsors.Please review the information on fiscal sponsorship on ourwebsite before beginning the application process. If you haveadditional questions, please call us at 651-227-8036 or toll freeat 888-291-1123.Bremer Bank communityThe Foundation supports organizations and projects that benefitcommunities that are homes and neighbors to Bremer banks. Indetermining geographic eligibility for a grant, Foundation trusteesand staff consider a number of factors, including physical proximityto Bremer Bank communities and how the work of a specificprogram or organization will positively affect residents of thesurrounding communities.Overlapping grantsThe Foundation has a policy of providing one grant to an organizationat a time. If your organization has an open grant from theFoundation, we will not accept a new proposal until the currentgrant period is complete and your organization has submitted itsfinal narrative and financial reports. Please see the informationon our one-grant-at-a-time policy on the Foundation’s website foran explanation of how the process works and exceptions to thepolicy for fiscal sponsors and applications proposing to serve adifferent Bremer community.Waiting period after turndownWe will accept new applications one year after the date a priorapplication is turned down. In a few special circumstances, theFoundation will waive the one-year waiting period. In those cases,applicants will be notified of the waiver at the time their applicationis turned down.24 · ottobremer.org

grant applicationDetailed information on the grant application process,including deadlines and Frequently Asked Questions, isavailable on the Foundation’s website, ottobremer.org.° Our grant application consists of three parts: a cover sheet,a narrative and attachments.° Complete applications are considered by the Foundation’strustees at six annual grantmaking meetings, two dedicatedto Twin Cities applicants, the other four to the greater Bremerregion. Please see our website for application deadlines.° Previous Otto Bremer Foundation grant recipients shouldreview our one-grant-at-a-time policy before submitting anapplication.° Foundation staff review each application carefully and mayseek additional information through telephone conversationsor in-person site visits.° Applicants are generally notified of grant decisionsapproximately one week after each grantmaking meeting.° Approved grant funds are generally disbursed within amonth after a grantee returns a signed grant agreement tothe Foundation.The Foundation encourages your questions. We can be reachedat 651-227-8036 or toll free at 888-291-1123.° Foundation staff acknowledge receipt of grant applicationswithin one week. If you have submitted an application andhave not received an acknowledgment, please let us knowby sending an email to apply@ottobremer.org or by calling651-227-8036.2012 guide to grantmaking · 25

principles for minnesota grantmakersthe otto bremer foundation subscribes to the minnesota council onfoundations’ principles for grantmakers:Ethics and Law PrincipleTo sustain public trust by adhering to the highest ethicalprinciples and practices and abiding by all state and federallaws that govern philanthropy.Effective Governance PrincipleTo achieve effective governance by ensuring performancein the areas of stewardship of assets, donor intent, fiduciaryresponsibility, and sound decision-making.Mission and Goals PrincipleTo be purposeful in our philanthropy by having a clearly statedmission and explicit goals.Engaged Learning PrincipleTo foster continuous learning and reflection by engaging boardmembers, staff, grantees, and donors in thoughtful dialogueand education.Respectful Relationships PrincipleTo build constructive relationships with applicants, grantees,and donors by ensuring mutual respect, candor, confidentiality,and understanding.Transparency PrincipleTo achieve transparency in our relationships with the public,applicants, grantees, and donors by being clear, consistent,and timely in our communications with them.Diversity PrincipleTo reflect and engage the diversity of the communitieswe serve in our varying roles as grantmakers, trustees andemployers, economic entities, and civic participants.Self-Assessment and Commitment PrincipleTo uphold the highest standards by regularly assessingourselves against these principles and committing toimplement them.Adopted by the MCF Board of Directors in 2006; developed from the original 1996 version.26 · ottobremer.org

foundation trustees & stafftrusteescharlotte s. johnsonwilliam h. lipschultzretiring july 31, 2012daniel c. reardons. brian lipschultztrustee as of august 1, 2012staffdiane benjamin program officerdanielle cheslog grants managerliz fedor program officeraretha green-rupert program officerlue her program officertony lookingelk program officerann pagel newman executive assistant/communications associatedominic papatola program officerrandi ilyse roth executive directorkari suzuki director of operationsanthony vasquez manager of information technologytwana williams office administratordavid brokken contract program officernancy kleeman contract program officer2011 annual report · 27

445 Minnesota St., Ste. 2250, St. Paul, Minnesota 55101651 227 8036 main 888 291 1123 toll-free 651 312 3665 faxottobremer.org