The Endowment Fund

The first donations were individual donations of $25, $100. It was an expression of commitment.

Some businesses contributed up to $1,000. A tractor raffle brought in $5,000.

They were all small but confident steps toward a goal of $250,000.

To encourage giving in the Itasca County area, the Blandin Foundation had offered a challenge grant to match donations of up to $250,000 toward each of eight endowed funds with the Grand Rapids Area Community Foundation. The challenge grant totalled $1 million.

In November 2000 the Bigfork Valley Board of Directors decided to take advantage of this opportunity and the Bigfork Valley Hospital Endowment Fund was established. The $25 and $100 contributions would become $50 and $200.

The goals were straightforward; interest from the fund would be used to forward the mission of the health care center including provisions for educational scholarships, staff recruitment and retention needs, acquisition of new technology, support for new and innovative development, and support for unfunded or under-funded programs and services.

Because the Community Foundation was a nonprofit 501 c(3) organization, there would also be opportunities for those wanting to contribute to give in a variety of ways; through gift annuities, stocks and property, and estate planning as well as cash gifts. The foundation was knowledgeable about the benefits of each type of gift, and the current laws regulating taxes and limitations for donations.

Local resident Ed Paulson learned of the fund, and decided to make a provision in his will to give a portion of his estate to benefit the hospital. It was a tremendous gift. When his property was sold, over $200,000 came to the endowment fund and was matched with the last $120,000 available in the Blandin Foundation challenge grant.

“Eddie was such a nice, modest fellow,” recalled a friend, Janice Evensen. “He left his mark.”

Today the Bigfork Valley Hospital Endowment Fund is the second largest individual fund in the more than $6 million in assets administered by the Community Foundation. At the end of the first half of 2004 this fund totaled $432,000, and this year for the first time Bigfork Valley Hospital will be able to draw out $20,000 to use toward its goals, an amount that would not be available except for the fund.

How does the Community Foundation administer the money? The funds are invested semi-conservatively, explained Director Wendy Roy. Interest and dividends earned are applied to each account. Then, as long as there is enough interest earned during the year to cover it, five percent of the fund balance can be withdrawn annually by the organization.

Why five percent? Over time, the goal is to earn about eight percent on the invested money, said Roy, and allow the fund to grow by about three percent to allow for inflation. If this allowance is not made, the money in the fund will gradually be worth less as goods and services cost more in the future. The foundation also charges a small management fee.

Although many of the giving options carry considerable tax benefits for the donor, Roy said that her philosophy was that people are not going to give because of a tax break, but because they want to give to an organization or a cause. However, she pointed out, there are many different and interesting ways to give that also are smart for the donor.

For instance, a charitable gift annuity can allow a one time income tax deduction up to 50 percent of adjusted gross income with a carry forward provision. There is a guaranteed income to the donor of eight percent during his or her lifetime, and some of this income also has tax benefits. Younger donors can set a date in the future for taking payments, or payments can be designated for a limited time period to cover college costs, for example.

Along with the donor’s attorney or CPA, Roy is available to describe these and many other ways to tailor planned giving at her office in Central Square Mall or by calling (218) 327-8855.

Whether donating directly with a check or through estate or planned giving options, contributors are able to participate in the future of the area. “It’s a way,” said Roy, “that they can leave a legacy in their community.”

Wendy Roy can be reached at the Grand Rapids Area Community Foundation, 201 NW Fourth Street, Grand Rapids, MN 55744, by telephone at (218) 327-8855 or by email at wroy@gracf.org. The web site for the foundation is .

Helping out

Along with the Endowment Fund, contributions are accepted at Bigfork Valley for any purpose where the donor sees a need or would like to recognize a friend or loved one with a gift or memorial. Those gifts are set aside and used for the purpose requested.

Funds have been also been set up to receive donations for broader needs. Those funds include Caleb’s Basket, for the care and maintenance of the pets in the Communities; a fund for quality of life improvements and events for the Communities from garden planting to parties and individual massages for residents; a fund to cover visits from the Parish Nurse; Home Visitor program fund; landscaping fund; and transportation fund.

For more information or to donate to one of these funds call Laurel Laudert, Activities Director for the Communities, or Darla Anderson, accountant, at (218) 743-3177, or write c/o Bigfork Valley Hospital, P.O. Box 258, Bigfork, MN 56628.

The generosity of the community also allows residents of the Villa and Communities some extra things to enjoy through direct donations. “Wish List” items in good condition are gladly accepted. Here are some items currently on the Wish List:

• Arbor- contributions for materials or gifts of labor!
• Subscriptions to Reminisce magazine
• Videos, 100-250 piece jigsaw puzzles, table games
• Bird feeders and bird seed
• Large print books
• People interested in assisting via Garden Club and/or landscaping
• People interested in helping elders write Christmas cards, letters