Growing & Sowing
Community endowment funds ensure steady stream of hometown support
By Lisa Meyers McClintick | Photography by John Linn
Families that struggle to put food on the table while facing rising rent and higher energy bills know they can find help at Community Aid of Elk River (CAER) and its food shelf. Those with school-aged children also know they can grab a pre-packed, ready-to-go weekend care kit at the end of every week.
Each Kids Weekend CAER Package includes milk, cereal or oatmeal, bread or pasta, meat, fresh produce, and sometimes pizzas. It’s a way to feed kids when they don’t have access to free breakfast and lunch at school. “We do about 120 kids packs every Thursday and Friday,” said Heather Kliewer, executive director at CAER. “They can just stop in.”
Frequent grants to support CAER and its weekend care packages have come from the Three Rivers Community Foundation (TRCF), an endowed fund managed by the Initiative Foundation. Grants from the community foundation also have helped CAER stock culturally specific foods like fufu flour and fresh produce, including habanero peppers, sweet potato greens and kittley—a bitter, tiny eggplant supplied by the Minnesota African Immigrant Farmers Association.
Kliewer has seen the relief wash over the faces of parents who pick up weekend CAER kits. She’s also seen the excitement of food shelf customers who discover ingredients that provide the comfort of familiar family recipes. The array of options lets residents know their struggles are recognized and that someone is looking out for them.
“We saw about 7,400 individuals last year,” Kliewer said—about 1,000 more than the food shelf served in 2023. Support from Three Rivers Community Foundation, she said, has helped the food shelf manage and meet increasing local demand.
Across Central Minnesota, community funds serve an essential role by supporting food shelves, nonprofit programs, arts and culture initiatives, and investing in projects that create a richer sense of place.
“I really see community foundations playing a central role in supporting all of the great work going on in a community,” said Amy Gray, community philanthropy manager at the Initiative Foundation. “Creating a community fund is like planting an apple tree. You don’t eat the whole tree. You nurture it, harvest the apples year after year and use them to make good things.”
Three Rivers Foundation Thrives
Established in 1989 as the Greater Elk River Area Foundation, the fund was created on the belief that a local community foundation can spur economic development by investing directly in the area it serves. Renamed the Three Rivers Community Foundation in 1991, it focuses on four areas: social, cultural and leisure; public issues and information; human services; and education and lifelong learning.
Guided by a binding agreement, the Initiative Foundation manages and invests the fund’s assets and assures legal compliance. The Foundation’s back-shop services enable volunteer advisory team members to focus on fundraising and grantmaking to enhance the quality of life in Elk River, Otsego, Rogers and Zimmerman.
“I call it ‘smart money’ because it allows the community to invest in itself for long-term projects,” said David Monroy, a former Three Rivers Community Foundation board member and immediate past chair of the Initiative Foundation’s board of trustees.
Today, the Initiative Foundation’s Partner Fund program features more than 130 funds, including 11 community funds, 11 education funds and an array of donor-advised and agency funds that benefit specific causes such as early childhood education, public lands or lake associations, nonprofits and schools. Initiative Foundation-held community funds have broad goals to help residents of all ages. Grants from the funds provide student scholarships and support for senior citizens, veterans, and teens experiencing homelessness. They also provide furniture and clothing for families in need, supplement local food shelves, and align with social services, youth mentoring and mental health assistance.
People who support local community funds are not just making a one-and-done donation, Monroy said. “They’re serving multiple causes and getting more investment return for their dollar.”
Small City, Big Fund
The Staples-Motley Area Community Foundation, which serves about 9,000 people living within local school district boundaries, has made a difference since 1993.
“We have a large endowment for the [size of the] community we have,” said Daniel Douts, who chairs the Staples-Motley Area Community Foundation advisor team. Corporate sponsors, current and former residents who want to give back to keep their community thriving, and local donors who have included the fund in their wills have helped to build the endowed fund to $625,000.
“It’s a great way to make sure the community they love and where they have raised their family will be cared for and will benefit from their investment for years ahead,” Gray said.
Recent Staples-Motley projects include the addition of an indoor golf facility at The Nest to help the high school golf team get an early start on spring training. The Nest features a publicly available gym, walking track and workout area. Other recent grants support free rides for kids participating in summer recreation programs and the construction of two new pickleball courts that should open this year on the south side of Staples.
The fund helped support the Polar Xpress Holiday Festival at the Central Lakes College Staples Campus in December. The annual event draws about 1,000 area residents with model train displays, miniature train rides, railroad artifacts, a festival of trees, and other activities planned by the college and Staples Historical Society.
Adapting to Change
Having a community fund as a steady, stable and growing resource helps cities meet evolving needs when changes—big and small—arise. It might be the loss of a major employer, a lack of childcare or rising poverty. Or it might be an increase in demand for mental health services or emergency financial support—both of which spiked after the pandemic.
At CAER in Elk River, Kliewer said nearly 80 families in the past year sought help to meet rent payments. The nonprofit had to raise its threshold for rental assistance, which can be requested once every 18 months, from $400 to $1,000 to meet rising housing costs.
“There are a lot of people needing help,” she said. Gray said community funds can help meet ongoing local needs. “Even small donations add up,” she said. “And they’ll continue to be there for the community. No matter what you give today, it will still be there tomorrow and for future generations.”
Three Rivers Community Foundation
Since its inception, powered by active local fundraising and market returns, the endowed fund of the Three Rivers Community Foundation has grown from $37,000 in 1992 to more than $1.6 million at the end of 2024. Grants and scholarships have funded myriad projects.
Grants and scholarships since inception: $926,000
Staples-Motley Area Community Foundation
Established in 1993, the Staples-Motley Area Community Foundation has delivered difference-making grants and scholarships for decades. Supported by local fundraising and market returns, the fund grew to more than $625,000 at the end of 2024 and serves as a source of pride for community investments.
Grants and scholarships since inception: $423,000
Gifts That Keep Giving
Starting a community fund for your hometown can be a powerful way to invest in the long-term well-being of the place you care about:
- Address Local Needs: A community fund can support pressing local issues such as housing, education, healthcare, small business development or environmental sustainability.
- Pool Resources for Greater Impact: By bringing together donations from individuals, businesses and local organizations, a community fund can create a larger pool of financial resources than any one donor might contribute alone. A collective giving approach creates a local rallying point and amplifies the fund’s impact.
- Support Local Organizations: Many nonprofits struggle with fundraising. A community fund can provide grants or financial assistance to local organizations, strengthening the nonprofit ecosystem and expanding their ability to serve the community.
- Build Civic Engagement & Pride: People who contribute to a community fund become more engaged in local affairs. It fosters a sense of ownership, collaboration and pride, encouraging a culture of giving and volunteerism.
- Honor Local Legacy & Values: A community fund allows donors to support causes that reflect their town’s unique character and values. It can also serve as a lasting tribute to individuals, families, or businesses that have shaped the community.
- Respond Quickly to Emergencies: A local fund allows communities to mobilize resources quickly in response to natural disasters, economic downturns, or public health emergencies.
Central Minnesota communities of all sizes can establish and sustain a thriving community fund with the right structure and local commitment.
How it works: An endowed community fund is a permanent financial resource created to support a community’s needs. Instead of spending all the money at once, the fund’s principal is invested, and only a portion of the earnings is used for grants each year. This ensures long-term, sustainable support for the community.
- Fund Creation & Donations: Individuals, businesses and organizations contribute money to establish the endowed fund with the Initiative Foundation.
- Ongoing Fundraising: Regular fundraising efforts, donor contributions and partnerships with local businesses or foundations build the fund over time.
- Investment for Growth: The donated money is invested in stocks, bonds or other assets to earn returns. This helps grow the fund while keeping the principal intact.
- Annual Grantmaking: Typically, 4 to 5 percent of the fund’s value is distributed annually as grants to support local initiatives.
- Clear Purpose & Governance: A well-defined mission and a dedicated volunteer advisory team from the community guide fund distribution and maintain transparency.
- Fund Stays Forever: Since the original donations (principal) are never spent, the fund continues to generate money for the community year after year.