Gifts, Giving. Transforming. to the Community. annual report 2012 AUSTIN AREA FOUNDATION

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1 AUSTIN AREA FOUNDATION 110 1st Avenue SE PO Box 6 Austin, MN Transforming Gifts, Giving to the Community annual report 2012

2 Dear Area Residents, The Austin Area Foundation experienced another good year in For the first time in the Austin Legacy Endowment Fund exceeded $500,000 ending the year at $529,780 compared to the end of 2011 at $ The progress means that the Austin Area Foundation can be more involved in the Austin area to help donors carry out their charitable intentions. We of the Austin Area Foundation mourned the passing of Mr. I.J. Holton on April 11, Like many organizations in Austin, the Austin Area Foundation benefited from his generosity, encouragement, and help in other ways. Mr. Holton was known as a visionary leader, an outstanding community supporter, a gracious philanthropist and a modest man with a sense of humor. Helen Keller once said that, Alone we can accomplish very little but together great things can happen. We appreciate all those who have embraced this community foundation and are committed to have it grow. Sincerely Mike Ruzek, Chair Austin Area Foundation Mike Ruzek, Chair Belita Schindler,Vice Chair Jeff Baldus, Secretary Ron Walth, Treasurer Janet Anderson Peggy Benzkofer AUSTIN AREA BOARD OF TRUSTEES 2012 Gayle Bergstrom George Brophy Gail Dennison Steve Hovey Darrell Ingvaldson Nitaya Jandragholica Maryanne Law Glenn Mair John Morrison Rod Nordeng Jeanne Sheehan Paul Wahlstrom The Austin Area Foundation (AAF) is a community foundation that is a publicly supported philanthropic, nonprofit organization governed by a volunteer board of private citizens. It administers individual funds contributed or bequeathed by individuals, organizations, governments and other foundations. The mission of the AAF is To Enhance Our Community Through Charitable Giving. This is primarily accomplished by professionally managed donations and the distribution of income, maintain and enhance aspects of our community by supporting qualified nonprofit organizations and provide charitable leadership and improve the quality of life in our area.

The progress means that the Austin Area Foundation can be more involved in the Austin area to help donors carry out their charitable intentions.

3 The Austin Area Foundation seeks to enhance our community through charitable giving. Clifton Larson Allen Amy & Greg Baskin James & Jeanne Sheehan Michael & Barbara Ruzek Janet Holton IMO Adelaide Holton Gary & Patricia Ray Michael & Ruth Biedermann Norbert & Mary Lou Nelson Tim & Heather Ruzek Lee & Judith Bjorndal George & Catherine Brophy Donald & Jane Rysavy Harald & Patricia Schmid Timothy & Louise Davis 2012 Contributors Austin Legacy Endowment Fund Darrell & Diane Ingvaldson Darlys Smith Steve & Debra Binder Bruce & Reilly Loeschen Diette Marx Lee & Judith Bjorndal Barbara Meany John & Terry Gray Maryanne Law John & Mary Jo Morrison Dan & Carla Conradt Myron & Susan Jordan Paul & Sally Wahlstrom Phil & Gail Minerich Joe & Cindy Fuhrman Robert & Kelly Collier Doug & Judy Myers Glenn & Barbra Mair Dave & Sue Ruzek Total Contributions for 2012: $49,205 Austin Area Foundation In-Kind Contributions Janice Krambeer Gene & Marilyn Muchow John & Joan O Rourke Richard & Judith Bergen Bradley & Jennifer Lindberg Art & Karen Goembel Joel & Pearl Schieck Jeffery & Leeann Ettinger Jeff & Kris Baldus John Thill Dick & Peggy Benzkofer Steve & Joyce Hovey Jon & Jean Erichson Randy & Wendy Kramer Richard & Carol Young Ronald & Darlene Walth The Hormel Foundation Lowell Foster Larson Allen LLP Steve Hovey Hoversten, Johnson, Beckman and Hovey, LLP Wendy Roy Grand Rapids Area Foundation Ron Walth Hill, Larson, Walth and Benda, PA Sherri Wessels Larson, Allen LLP Austin Legacy Endowment Fund Grant Distributions 2012 $15,000 Matchbox Children s Theatre Paramount Austin Symphony Mower County Historical Society Children s Dental Health Summerset Theatre Mower County Advocacy Austin Community Bank Freedom Fest 13 Donor Advised Distributions 2012 $ Qual Memorial Fund to the ARC St. Olaf Back Pack Program Mower County Humane Society Parenting Resource Center Cornerstone Church Arc Mower County Other Donor Advised Distributions 2012 $9,500 KSMQ TV Vision 2020 Austin Community Scholarship

Heather Ruzek Lee & Judith Bjorndal George & Catherine Brophy Donald & Jane Rysavy Harald & Patricia Schmid Timothy & Louise Davis 2012 Contributors Austin Legacy Endowment Fund Darrell & Diane

4 Community Foundations Insights A community foundation carries out its programs and projects, not by operating those programs or projects directly (although it can in certain circumstances do so), but by making grants to other organizations. As long as the purpose is charitable there are few restrictions. Donors to a community foundation have many ways of directing the purposes for which their funds are used and how they are to be applied. At the time of making a gift, for example, a donor can give the community foundation s board full discretion to apply the funds as it sees fit in any charitable field; or he or she can specify the charitable field or fields, or designate a particular charitable organization or organizations. to receive the benefit of the fund. A donor can alo reserve the privilege to recommend, from time to time, charitable organizations to benefit from the donor s fund. Such flexibility and versatility give each community foundation great utility to its community, to the charitable organizations that serve the community and to donors who want to help the community. In these respects a community foundation differs from all other charitable organizations. Other organizations say, Give us a gift and our board will apply it to carry out the particular and specific purposes mandated by our organization s governing instruments. The community foundation, however, says Create a fund in the community foundation and our board will carry out the charitable objectives that you ask of it in the manner and ways and through the agencies that you designate in establishing the fund. We will, if you desire, continue to involve you in decisions about such agencies by working with you and helping to implement your grant recommendations. - Ways to Grow A study of Community Foundations by the Council on Foundations According to the Minnesota Generational Transfer of Wealth Study compiled in 2011, approximately 47.9 billion will be transferred from one generation of Minnesotans to the next in the coming 20 years. If community foundations could receive just 5% of that potential transfer, it is estimated that an additional 124 million per year could be distributed for non profits and community partners to work together to support residents and strengthen their regions. - Fall 2013 Minnesota Council of Foundations Newsletter The IRS acknowledges the effectiveness of community foundation in its 1993 training manual. It stated: As charitable vehicles, community foundations are particularly effective in serving the needs of their local communities: 1) They are knowledgeable. They focus on their communities needs. This helps them identify the neediest community institutions. 2) They are flexible. Their specialized knowledge of the community helps them quickly change beneficiaries when local needs change. 3) They are efficient. They provide economies of scale by aggregating modest gifts into endowments for similar purposes. Large endowments can tackle big community problems. They offer many attractions to donors. They provide professional investment management of charitable contributions. Donors making contributions to these foundations generally receive the maximum charitable deduction allowed because most community foundations are publically supported within the meaning of IRC 170(b).

Donors to a community foundation have many ways of directing the purposes for which their funds are used and how they are to be applied.

TRANSFORMING GIFTS G I F T S P R O G R E S S help L e g a c y COMMUNITY P.O. Box 6 Austin, MN 55912 507.

5 TRANSFORMING GIFTS G I F T S P R O G R E S S help L e g a c y COMMUNITY P.O. Box 6 Austin, MN info@austinareafoundation.org

MUNITY P.O. Box 6 Austin, MN 55912 507.434.

6 BALANCE SHEETS Statements of Revenue & Disbursements & Fund Balances For the Years Ended December 31, 2011 and 2012 December 31, 2011 and 2012 AUSTIN AREA FOUNDATION Fund Balance History AUSTIN LEGACY ENDOWMENT FUND INVESTMENT REPORT The Investment Committee is responsible for carrying out an investment policy approved by the AAF Board, investing our assets according to an investment strategy, and closely monitoring the investment performance of those assets. Our investment objective is to maximize our total return within acceptable levels of risk was a strong investment year. The S&P market indicator was +13.4% for the year, despite much publicity and focus on federal budget deficits, lack of job growth, a difficult housing market, and uncertainty surrounding the fiscal cliff negotiations in Washington. The overall performance of the AAF portfolio, taking into actual investment and transaction dates, was +10.5% for the year. We project a total grant pool (based on a percentage of a 3 year rolling average of monthly total asset values) for 2013 to be $17,400, compared to $15,000 for the Our investment philosophy recognizes that over the long term the risk of owning equities has been, and will likely continue to be, rewarded with somewhat greater returns relative to that available from fixed income investments, although with greater volatility. We appreciate your trust in the AAF as the steward of your gifts. As we grow in size and in maturity, we look forward to continued growth as the custodian for additional donations or endowment funds of non-profit organizations.

strategy, and closely monitoring the investment performance of those assets. Our investment objective is to maximize our total return within acceptable levels of risk.

Mission: Our Vision: United Way Services of Geauga County unites people and resources to improve lives.

Mission: Our Vision: United Way Services of Geauga County unites people and resources to improve lives. Create your legacy. Mission: United Way Services of Geauga County unites people and resources to improve lives. Our Vision: United Way Services of Geauga County is the organization recognized for collaborating