Southwest Initiative Foundation

“The executive committee is comprised of the officers of the corporation; chairperson, vice-chairperson, secretary and treasurer as well as the immediate past chairperson. The executive committee may act on behalf of the board to review and act upon grants and loans, review and act upon policies, review and act upon budgetary variances, and conduct other business of the corporation between regularly scheduled board meetings. All actions of the executive committee are reviewed by the full board through the approval of executive committee meeting minutes at the next scheduled full board meeting. Form 990 part vi section a, line 2: board members do not have family or business relationships with each other. A conflict of interest questionnaire is distributed annually and each board meeting has a standing agenda item asking for disclosures as well.”

“The irs form 990 is reviewed by appropriate staff in the foundation and then presented to the audit/finance committee for review and recommendation to the board. The full board of directors receive a copy through the secure board portal of the website one week prior to filing. The audit/finance committee receives a full copy of the form 990. The board receives a public inspection copy of the form 990 that does not include the confidential list of major donors. Other than this list, the form is given in its entirety to the board and committee for review.”

“At the start of each fiscal year, the conflict of interest policy, accompanying questionnaire, and the code of ethics and conduct are distributed to all board members to complete. Disclosure of conflicts is the standing first item on every board agenda. The board of directors are instructed at each meeting to disclose if they feel there is a conflict of interest on any agenda item before it is brought to discussion. The board and/or ceo question and determine if the conflict is valid; and if so, the board member does not participate in the vote. The conflict is noted in the minutes. If the item is located on the consent agenda, it is removed prior to the vote to approve all items on the consent agenda and moved to the regular agenda where the conflict is noted and the board member with the conflict abstains from discussion and voting. The employee conflict of interest policy is distributed to key decision making employees, reviewed, and signed annually with updates to any potential conflicts of interests noted. Potential conflicts of interest for staff must be reported to the president/ceo and are handled according to the board approved policy requirements.”

“Southwest initiative foundation's executive compensation program is administered by the executive committee of the board. The executive committee is responsible for establishing and maintaining a competitive compensation program for the key executives of the foundation. The executive committee undertakes an annual review to evaluate the foundation's executive compensation program against the competitive market using information gathered on comparable positions within the specific industry sector and from independently published surveys. The executive committee meets independent of the president/ceo to discuss performance relative to the position description. During these deliberations, the committee also considers input obtained from other board members, staff, professional advisors, grant recipients and other informed community leaders. The date of deliberations and subsequent meeting with president/ceo are documented in the minutes of the board meeting and the outcome maintained in the confidential personnel files of the foundation. The last review was completed in 2018 for the president/ceo, d. Anderson.”

“Condensed financial statements are available on the organization's website and audited financial statements are available upon request. The organization's governing documents and conflict of interest policy are not made public.”

“Our mission is connecting people, investing in ideas and building communities. Since 1986, southwest initiative foundation has been committed to social and economic growth in southwest minnesota. The 18 counties and two native nations we call home are continuously evolving, and swif has grown and responded to our region's changing needs. Swif is a spark for change through philanthropy, leadership, innovation and collaboration. These qualities are widely recognized as core to swif's approach and success. Swif's original mission was to strengthen southwest minnesota in three ways: improving the region's economic self-reliance, overcoming human distress, and promoting regional leadership, coordination and partnerships. While our work continues to address these broad areas, the changing regional reality calls swif to act in new ways. Swif adopted a new focus we're calling grow our own to help all southwest minnesota kids succeed. Our work today represents a deep history and vibrant vision for the future: our vision is a southwest minnesota where all people thrive. Swif's 12-member volunteer board of directors-which represents diverse geographic locations, professions and backgrounds-together with swif's professional staff and research partners, explored demographics and trends impacting the region. In southwest minnesota, there is a growing income disparity among families with children. Median incomes for families in the bottom 20 percent of the income distribution declined by 9 percent between 1999 and 2014, while median incomes for families in the top 20 percent rose by 9 percent during that same period. As communities across the region change, kids from low income families are facing obstacles that remove stepping stones to upward mobility-or their ability to do better than their parents through hard work. Research shows that these children have less access to everything from quality early childhood education to advanced placement courses in high school to sport and enrichment activities that provide mentoring, teambuilding and other life-long skills they need to be good citizens and good employees. This divide is commonly known as "the opportunity gap." swif believes the region's future economic success depends on the success of our next generation and most vulnerable residents. For the region, 17 percent or 11,000 kids under age 18 are living in poverty. Even more alarming, 21 percent or 4,499 kids are living in poverty before they reach elementary school. As southwest minnesota's future employees, entrepreneurs, community leaders, volunteers, homeowners and taxpayers, their success will directly impact not just individuals and families, but also businesses and entire communities. Swif is uniquely positioned to provide leadership for the region on this issue, offering a trusted perspective that can unite efforts and leaders throughout southwest minnesota. As an independent community foundation, swif carries a long-term commitment to the region and can leverage outside funding and expertise. Swif also has a deep history of bringing people together from all sectors to explore and implement local solutions. Swif's experience delivering education and programming directly aligns with the framework of what kids need to succeed: stable family and parenting, high quality early childhood education, engagement in the k-12 years in and out of school, safe and caring communities, and career and workforce readiness. The "how" of swif's mission continues through its business finance and economic development, grantmaking and community programming, and community giving and philanthropy. The "why" is our vision and grow our own, which will help all our kids learn, grow, build a career and experience a good quality of life right here in southwest minnesota.”

“Strong employers with quality job opportunities are critical to swif's grow our own initiative, a comprehensive approach to help all southwest minnesota kids succeed. More employees are also needed to enter the workforce and successfully stay there. Southwest initiative foundation provides flexible and innovative economic development finance solutions for business retention, expansion, startup and ownership succession projects through its business finance program and its microenterprise loan program. Its financing programs support projects in the retail, service and industrial sectors, with a special interest in supporting business projects in food and agriculture, manufacturing, renewable energy and bioscience. In addition, the microenterprise loan program provides valuable technical assistance for borrowers in the areas of business management and operations, finance and accounting and marketing. Swif also operates the center of rural entrepreneurship (core) website mncore.org and the initiate prosperity website (in partnership with northern economic initiatives corporation) initiate prosperity.org. Core focuses on providing valuable resources and educational opportunities to new entrepreneurs. Initiate prosperity is exclusive to swif's loan clients providing blended technical assistance with interactive tools, templates, videos and guides. Swif is a lender for the minnesota emerging entrepreneur loan program through the minnesota department of employment and economic development. Through a network of nonprofit lenders, this program is designed to provide financing and support the growth of businesses owned and operated by women, veterans, persons with disabilities, minorities and low-income persons. Swif was a participant in the second national cohort of the community foundation circle coordinated by the business alliance for local living economies (balle). This group is comprised of both community and place-based foundations from rural and metropolitan areas and is focused on developing capacity and systems, relationships and opportunities for impact investing. Swif was one of nine community foundations nationally participating in the rural economic development philanthropy innovators network (redpin) coordinated by the aspen institute and the center for rural entrepreneurship. Swif has selected the availability of affordable, quality child care in the region as its area of focus for the redpin initiative. Child care is one of the most critical economic development issues facing southwest minnesota, businesses and families. In addition to child care, southwest minnesota employers face challenges with workforce recruitment, retention and development. Swif received funding from the greater twin cities united way for the development of career pathways for students in the worthington, windom, and jackson county central school districts, in collaboration with minnesota west community and technical college and other local partners and stakeholders. Career readiness is a key strategy to advance grow our own, connecting future workforce with the job opportunities located in their own communities and region. Swif has supported professional development of the region's economic development professionals and sponsored targeted conferences and events. Rural communities face unique challenges, as well as opportunities to collaborate around these and other issues. Workforce housing and broadband represent two areas critical to building the workforce and preparing future generations of families, businesses and communities.”

“Southwest initiative foundation mobilizes volunteers and donors throughout southwest minnesota to create a culture of giving that is, at its heart, inclusive, transformative and locally-invested. This wide-reaching network extends swif's reach into local communities and offers a unique model for people to support the causes they care about most, in the place they call home. Swif's community foundation program establishes a local "foundation" known as an affiliate. A true partnership is developed that has proven mutually beneficial and functions as an effective method of retaining charitable dollars in the region. Volunteer advisory boards drive local mission, activities and impact for 26 affiliates, including one new in fiscal year 2018. Swif provides the administrative and 501(c)(3) infrastructure, as well as ongoing technical and professional support in areas like strategic planning, fundraising, marketing, public relations and grantmaking. Swif's 13 school foundation partners operate with a similar structure. Donor-advised funds allow an individual donor or family to provide input regarding grant distributions, resembling a private foundation. Funds can be endowed or non-endowed (pass-through) and are created with a specific purpose in mind. Many donors find swif funds are attractive options to support their charitable interests while relieving them of the administrative responsibilities that can often become overwhelming for families and volunteers. All funds can receive many types of gifts, including cash, appreciated stock, real estate, farmland-which can stay in production through swif's keep it growing program-and planned gifts, such as charitable gift annuities and bequests. Swif can create a fund that fulfills any charitable goal of a donor. Local affiliate volunteers become natural community leaders, making projects like park improvements, swimming pools, back pack food programs, band instruments, student field trips and so much more possible through special projects and annual grantmaking. Affiliates also represent a key group of swif partners digging into local youth poverty data and supporting the new grow our own focus to help all southwest minnesota kids succeed. In fiscal year 2018, many advisory boards aligned some of their resources for activities that support families, youth mentorship programs and educational outreach. Twelve affiliates participated in a swif challenge and granted $30,000 to local organizations working to close the opportunity gap. Swif funds offer unique potential to keep southwest minnesota communities, schools and organizations strong and vibrant. They connect community-minded people and local needs with the resources necessary for enduring impact.”

“Southwest initiative foundation has embarked upon a shift in focused programmatic work. Work in community impact, economic development and philanthropy are being aligned with the direction the board and leadership agreed to go-a comprehensive approach to help all southwest minnesota kids succeed, known as the grow our own initiative. Swif is well-known as a convener and facilitator and hosted its first grow our own summit in december 2016. It attracted more than 500 individuals, elected officials, employers, community leaders, educators and students to hear a full line-up of experts led by robert d. Putnam, malkin professor of public policy at harvard university and author of our kids: the american dream in crisis. Swif commissioned research from the carsey school of public policy at the university of new hampshire to understand what southwest minnesota kids face. The report, "a profile of youth poverty and opportunity in southwestern minnesota," was also highlighted at the summit and has been shared widely with the public. This data has been paired with additional local statistics and shared through dozens of community presentations. Swif staff began an intensive community engagement process with several regional communities to come up with local solutions to support their own local kids. Another valuable tool for these conversations is the grow our own 30-minute television program produced and broadcasted to 2.5 million households in pioneer public television's coverage area. This is a prime example of how swif leverages and enhances its work through strong partnerships. Swif is creating partnerships through its emerging leaders cabinet. It is a committee of the board of directors comprised specifically of people under the age of 40 who represent the diversity of the region. The role of the committee is to explore current realities and trends and to create avenues of influence, including through grantmaking. In the past year, swif grants were aligned with grow our own. An open grant round attracted projects and programs that support stable parenting and families, youth engagement, safe communities and career readiness. Examples include support for weekend food programs, financial planning, youth activities and job shadowing. An open grant round specific to early childhood care and education also attracted impactful projects. Grantees attended teacher and administrator trainings, expanded child care center hours and slots, developed curriculum and provided parent and community outreach. In addition, swif engaged in the statewide minnesota early childhood initiative, a network of coalitions focused on quality care and educational opportunities for children ages birth to 5. Swif started 16 southwest minnesota coalitions and supports their local work, like hosting read-along events, installing diaper changing stations in public restrooms, training first responders on how to interact with young children in a crisis, home and child care visits and more. Southwest initiative foundation also demonstrated the best practices learned through the philanthropic preparedness, resiliency & emergency partnership. Swif is one of 18 community foundations from across a 10-state network participating in a disaster-preparedness, response and recovery program. Swif's paul and alma schwan aging trust endowment fund continues to promote productive aging in southwest minnesota. Established in 1991, this is a key example of the legacy and impact donors can make through swif. It funded age friendly community work launched in 2016, which continues through a partnership with minnesota river area agency on aging. Swif also developed a plan to incorporate this resource into grow our own efforts moving forward, through intergenerational activities like mentorship.”

“Change in agency funds 158,649. Change in value of split interest agreements 45,339.”