September 8, 2017 at 4:08 p.m.
Community foundation seeks to raise $1 million
Goal is to fund forward-thinking community projects and programs
Community foundation seeks to raise $1 million
For years, various individuals and organizations have discussed the idea of creating a organization to facilitate charitable giving and enhance the quality of life in Rhinelander now and for generations to come.
Two years ago, those ideas coalesced into the Rhinelander Community Foundation and now the group is ramping up its effort to establish a permanent endowment.
Gina Heck, OD, volunteer president of the foundation, explained the genesis of the group.
"About two years ago, interestingly enough, there were about three separate, unrelated groups that were talking about the need for a community foundation that were having these parallel conversations," Heck said. "One of them was initiated by George and Sondra Juetten. George Juetten is an alum to the area who lives here on a part-time basis and he was researching Rhinelander for outlets for his philanthropic efforts. Through his research he found that there wasn't a community foundation. So he approached several community members to help him with his philanthropic goals."
At that same time, the mayor's office was looking at options for a community foundation, Heck explained.
"They had interested parties who would like to donate for city projects and it is difficult to do that on a tax-effective basis," she said.
Meanwhile, Forward Rhinelander was also discussing the possibility of developing community tools and the need for reinvestment in the community.
"These parallel conversations all eventually crossed paths and members of all those parties and other individuals all came together and formed the initial board of the Rhinelander Community Foundation," Heck said. "Our first meeting was in December of 2015 and throughout that next year we worked diligently to establish our organization as a 501(c) (3) tax exempt organization with the IRS, which we received at the end of last September. So now we are recognized as a public charity and any donations are eligible to be tax exempt."
The goal of the Rhinelander Community Foundation is to help community members invest in their own community. Heck stressed that donations can come in any amount, as they will be combined with other investments and any form of giving is embraced.
"That is a missing element here in progress, instead of waiting for someone else to come in and say this is what is going to be done, which hasn't always been fruitful. This is an entity where we're investing in ourselves and making progress on our own, on our own accord," Heck explained, adding that all donations, whether they meet the criteria for the founder's circle or not, are important in building the endowment.
The founder's circle has several levels based on the amount donated.
The goal of the founder's campaign is to raise $1 million in gifts and pledges.
"Once you are a founder, you will always be recognized as being an integral part of the start of the organization," Heck said.
She also stressed that the Rhinelander Community Foundation has its own board of directors and is independent of other community groups such as the Rhinelander Area Chamber of Commerce, Downtown Rhinelander Inc. and Forward Rhinelander.
"The foundation arose out of positive discussions about how we can help Rhinelander and encourage progress in the area," she said. "Beyond that, the groups are made up of largely independent members."
Since 2016, the foundation board has been laying the groundwork for its initial grants.
"Through some early support and early donations, we've been able to have some money for some small projects in the area," she said. "Some of these were designated for specific organizations and we've had success with that; it's been well received."
The initial donations were for the docks at Hodag Beach and to support the Tri-County Council on Domestic Violence and Sexual Assault and the Rhinelander Area Food Pantry.
"There will also most likely be some additional ones in 2018 as we build our support," Heck said. "But these (early donations) have been a good catalyst to get the word out about our organization as we are starting to build the basis of it."
"We're looking to establish the founders of our organization, and the board took a lot of time to consider its options of this process," she added. "We wanted to come out of it with some support for current needs, projects and programming and we also wanted to come out of it with a mechanism for future support."
In that regard, of the unrestricted donations that come in during the founder's campaign, which will run through the end of 2018, 20 percent will be earmarked for non-profit support. Those funds will go to shovel-ready projects that are being operated by nonprofits in the Rhinelander area. Another 20 percent will go toward community enhancement projects to update and develop some of the community spaces. Fifty-five percent will be earmarked for the establishment of an unrestricted community endowment. The remaining 5 percent will go toward the operational costs of the foundation, Heck said.
"At the end of that, we're hoping that we have significant funds to start granting out for current needs, yet we'll be able to provide long-term support through our endowment," she said.
An endowment is a savings account the foundation will invest in various ways.
"While the principal is not spent, a portion of the investment earnings will be granted out toward qualified organizations," Heck said. "Those (endowments) are sometimes referred to as forever funds because they last forever into perpetuity. Any gifts to the endowment will last for generations and generations because only a portion of the earnings are granted out yet the original gift of principal remains untouched."
One point those involved in the organization want to make sure is understood is the foundation is a way everyone, regardless of income, can help the community grow.
"You don't really need to be wealthy to contribute, it's not about how much wealth you have to obtain an effective and meaningful giving," Heck said. "It's really about your thoughtfulness and your planning. It's the community foundation because the donors reflect everyone in the community. So the donations, small or large or anywhere in between, are welcome and can be pooled with other like- minded individuals to create a lasting impact."
The "community" the group is focused on is not limited to the city of Rhinelander, Heck explained.
"Our geographic area of philanthropy matches that of the School District of Rhinelander," she said. "So it extends out into the township areas, as well."
Going forward, foundation grants will be distributed on a competitive basis to qualified organizations.
"The qualified organizations that we are able to grant to are additional 501 (c) (3) organizations, government entities such as municipalities, schools and churches that are doing projects that involve the community at large," she said.
Because of the initial support, the foundation will be able to award some grants while the founder's campaign is going on next year, but it is still too early to tell how much will be awarded to which projects, she added.
"We have some funds established already and some of those funds are for community impact projects," Heck said. "We will be looking at those, as well next year."
In researching other area county foundations, Heck said it was interesting to learn that the Rhinelander Community Foundation is one of several in the Northwoods formed over last 10 years. Merrill and Antigo now have community endowments that have been in existence for several years, Boulder Junction and Three Lakes have recently formed foundations while the Lakeland area is exploring its options for a foundation.
"I think that the northern communities are finding that in order to encourage progress in their area they really need to create a community tool for avenues to invest from within," Heck said. "If you look at a community like Wausau, back in 1987 they started their community foundation, which is now called the Community Foundation of North Central Wisconsin. I think their first year they had less than $10,000 and now they have grown up to $50 million. Just last year, they granted $3 million to their community. Now I'm not comparing communities, I know we have different dynamics and populations. But I think it is worth noting the impact over time that community foundations can have."
One of the goals of the Rhinelander Community Foundation is to be able to make grants to organizations and projects that might not otherwise receive funding.
"We want to encourage shovel-ready projects and programing while collaborating with the area's non-profit organizations and other tax exempt organizations," Heck said.
This can be especiallyhelpful in funding community impact projects that cash-strapped government bodies would otherwise be unable to accomplish.
"Budgets are tough, and you can argue which way is right or wrong, but the bottom line is we need to embrace an organization where we can invest within our own community," Heck said. "Because otherwise we have community spaces that will continue to fall into disrepair or not get modernized, be underdeveloped. Again, we're a grant-making organization where we'll be supporting other nonprofits and their projects for progress. It's all in the name of progress in Rhinelander."
Another of the foundation's goals is to be a resource for innovative projects and programs that would make the community more attractive to people looking to move here.
"I think that is important in order to take Rhinelander to the next level," Heck said, while adding that the foundation is not set up with the intention of supplanting the fundraising of other non-profit groups.
"It's a central way of giving, it's a different way of giving then giving to individual non-profits. It is not a substitute for doing that and we certainly don't want to keep people from that process," Heck said. "It is a way to establish funds that are permanent and will last for generations through the endowment."
The foundation has a community general impact fund where donations can be awarded at the discretion of the foundation's board of directors through the competitive grant process, she noted.
"We also have avenues where if someone wants to establish a fund that is only for certain charitable purposes, that can be set up as well," she said. "We are an organization that can customize your philanthropic goals."
For more information on the founder's campaign and the Rhinelander Community Foundation, visit www.rhinelandercommunityfoundation.com.
Jamie Taylor may be reached via email at [email protected].
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