Page 1 PO Box 296 | Pierre, SD 57501 | SDCommunityFoundation.org | 800.888.1842

Summer 2016 UpdateRapid City Nonprofits Benefit

from Couple’s GenerosityIn early 2016, the South Dakota Community Foundation (SDCF) gathered six Rapid City area nonprofits to celebrate the first distributions from the John F. & Ruth D. Cannon Fund. As long-time Rapid City residents, Jack and Ruth Cannon were deeply involved in the community and wanted to make a lasting impact. With the help of their attorney, Patrick Goetzinger, the Cannons made provisions

in their estate plan to create a $2 million designated fund at the SDCF before their deaths in 2010 and 2014.

The couple had a deep connection to each of the organizations they chose to benefit. The recipients include Behavior Management Systems Endowment, Black Hills Playhouse Foundation, Black Hills Workshop Foundation, South Dakota Children’s Home Society, Storybook Island, Western South Dakota Catholic Foundation and LaSalle Academy of Providence, R.I. Each organization will receive a share in an annual distribution from the fund.

“The fact that a check was going to come out in their name every year was very important to them,” Goetzinger said. “Each of the organizations listed is very personal to Jack and Ruth. Their imprint has been made in several different organizations and in several different ways throughout this community. It brings a tear to my eye just thinking about Jack and Ruth’s generosity because they did it right, and they did what they wanted to do in their hearts.”

The Cannons felt volunteering time, talent and sometimes treasure is part of the rent we pay for the space we occupy on earth. That philosophy drove their philanthropy. Jack was a longtime Rapid City Journal reporter and editorial page editor. Ruth was an administrative assistant for presidents of Norwest Bank, now Wells Fargo, for more than three decades. The couple was also deeply involved in their church, the arts community and other community organizations.

A Lasting Legacy

In This Issue

One decision by the Cannons to incorporate charitable wishes into their estate plan will positively impact South Dakotans forever. Call the SDCF at 800.888.1842 to leave your own lasting legacy.

Find us on Facebook & Online News Highlights - pg. 2

South Dakota Ag Foundation - pg. 3

Grants - pg. 4

Grants in Action - pg. 5

New SDCF Funds - pg. 6

At a Glance & Foundation Flashback - pg. 7

CSA Success: Philip - pgs. 8 & 9

Gift Type Spotlight:IRA Rollover - pg. 10

Estate Planning Resources - pg. 11

SDCF Board of Directors & Staff - pg. 12

Representatives of the six Rapid City nonprofits who will benefit from the Cannon’s generosity gathered for lunch to celebrate the couple’s future impact on their city.

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The news section of our website features the most recent SDCF updates, including grant awards, giving tips and stories from our partners. Visit SDCommunityFoundation.org/News. Below are excerpts from recent posts.

Watchdog Donor Recognition EventOn February 19, the Watchdog Education Foundation hosted a donor appreciation dinner in Beresford. The event recognized donors for their past and continued support. Since its inception in December 2009, the Watchdog Education

Foundation has raised nearly $100,000 to enhance educational opportunities for students in the Beresford School District.

Mitchell VFW GrantTrudy Morgan, a SDCF board member, awarded a $10,000 grant to the Veterans of Foreign Wars Post 2750 Auxiliary in Mitchell. The VFW in Mitchell lost its club when a wall collapsed during demolition to an adjoining building. Now, the VFW has

a new home, and the grant will assist with interior needs in the new space. We can’t wait to see the end result!

Stephanie Miller Davis FoundationIn 2010, Murdo resident Stephanie Miller-Davis passed away from cancer. Stephanie was one of the founders of the Dolly Parton Imagination Library in Jones County. To honor her memory, her family established the Stephanie Miller-Davis Fund, which provides financial resources to start Imagination

Library programs in rural communities across South Dakota. The program provides one age-appropriate book a month to children ages birth to five. Funds are available to start a Dolly Parton Imagination Library in your community. Call 800.888.1842.

Online News Highlights

Visit Facebook.com/SDCommunityFoundation to see the latest SDCF updates. You can watch videos about our latest philanthropic efforts, read about grant recipients and learn more about our partners from around the state. “Like” our page to stay updated on how the South Dakota Community Foundation is impacting lives on a day-to-day basis.

Follow @SouthDakotaCF updates on Twitter.

Find us on Facebook

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Seeds Planted to Support Agriculture’s FutureOn National Ag Day – March 15, the South Dakota Agricultural Foundation announced the establishment of an endowment fund within the South Dakota Community Foundation focused on investing in the future of the industry. Initial foundation partners have committed $1.5 million to this effort over the next five years. They include First Dakota National Bank, Farm Credit Services of America, Dacotah Bank, Valley Queen Cheese Factory, Legend Seeds, farmers, ranchers and other individual donors.

“The South Dakota Community Foundation supports the efforts of the South Dakota Agricultural Foundation to give ag producers, entities and individuals an opportunity to benefit South Dakota’s ag industry now and long into the future,” says Stephanie Judson, president of the

South Dakota Ag Foundation

South Dakota Community Foundation. “We will take great care to responsibly manage the funds entrusted to us so the future of agriculture within our state remains bright.”

The South Dakota Agricultural Foundation will support initiatives in the areas of workforce development, industry development and diversification, working lands conservation and promotion of and service to agriculture. Funds will be used to tackle unaddressed issues as well as support existing initiatives that are positively impacting the ag sector in South Dakota.

The South Dakota Agricultural Foundation, led by a volunteer advisory council and Executive Director Chris Maxwell, will oversee the fundraising efforts and grant distributions from the endowment fund established at the SDCF. The advisory council includes Bernie Christenson, Nate Franzen, Christine Hamilton, Nathan Jensen, Bob Schmidt, Bob Sutton, Greg Von Wald and James Walti.

“We are so excited about the momentum the Ag Foundation has experienced since the public launch earlier this year,” says Maxwell. “This work is about encouraging long-term investment in the future of South Dakota agriculture, and we have a good start down that path. We are extremely thankful for the support of our current partners and are excited to connect with others who share our vision and will commit to join us.”

The South Dakota Agricultural Foundation has set a goal of raising

$20 million within the next five years and $100 million by 2031. The group will partner with farmers and ranchers, co-ops and commodity group, agribusiness entities and other individuals.

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South Dakota Fund Grant: Consumer Credit Counseling Service of the Black Hills

CCCS/BH received a

$4,000 South Dakota

Fund grant to help

conduct a financial

literacy and home

buying program on

Native American

Reservations in

western South

Dakota. CCCS/BH

believes services for

families, individuals

and tribes will help

residents have a better chance of achieving long-term

financial stability and home ownership.

Community Innovation Grant: Community Services Connection of the Black Hills

Community Services Connection of the Black Hills

will use its $1,000 Community Innovation Grant to

launch the Aging Gracefully Expo. The event will

connect community members with the resources

available to support proactive aging. The group aims

to increase knowledge about housing options; home

modifications; pre-planning, legal and financial issues;

retirement options and volunteer opportunities.

South Dakota Fund Grant: Canton Senior Center

The Canton Senior Center offers an exercise class for community members over the age of 55 to help seniors live in their own homes and be a participating member of the community for as long as possible. A certified trainer leads 20-30 participants in exercises focusing on muscle retention, balance and strength, three days per week.

South Dakota Fund Grant: South Dakota Lions Eye & Tissue Bank

The South Dakota Lions Eye & Tissue Bank is responsible for the safe processing of transplantable corneal tissue for recipients

in South Dakota, nationally and internationally. The organization received a $6,000 grant from the SDCF to construct an updated modular clean room, which will allow for the processing of corneal tissue in a shorter period of time with the highest possible level of quality and safety. The South Dakota Lions Eye & Tissue Bank anticipates this piece of equipment will process more than 5,000 corneas for transplant in its service area over the next five years.

Grant Awards

Helping Nonprofits Help OthersThe South Dakota Community Foundation offers a variety of grants to support the work of nonprofits across the state.

Each grant program has a different focus and application procedure which is explained at SDCommunityFoundation.

org/Grants. The SDCF awarded 21 South Dakota Fund grants from January 1 – May 31 totaling more than $140,000. In

the first round of 2016 Community Innovation Grants, the SDCF selected 15 nonprofits to receive more than $139,000.

Below are just a few of the nonprofits assisted by our grant programs during the first two quarters of 2016.

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Grants in Action

In 2015, the South Dakota Community Foundation distributed more than $867,000 through its South Dakota Fund and Community Innovation Grant programs. These projects are impacting local communities, and the grants below are just a snapshot of the grants at work across the state.

Freshman Impact Program

In 2015, Community Organized Resources for Educating Youth (C.O.R.E.) of Box Elder received a $10,000 Community Innovation Grant to present the Freshman Impact Program to students. The program’s goal is to save teenagers from injuries or death related to car crashes, suicide, drugs or alcohol. The organization brings together community, county, state and federal agency volunteers to educate students through interactive scenarios that bring destructive issues to life.

Through break-out sessions, a drama presentation and a mock car accident, students witness how poor decisions can lead to injury and even death.

Ft. Pierre DepotIn 2008, the Verendrye Museum Board of Directors began discussing bringing the depot home to Ft. Pierre from a ranch near Mud Butte, SD. Since March 2013, volunteers, including project-leads Gary and Connie Grittner have poured hours into the restoration.

In 2014, the South Dakota Community Foundation awarded a $7,500 South Dakota Fund grant to the project as a part of its commitment to support history-related initiatives in the state. Currently, volunteers and Verendrye Museum staff are working to curate the depot museum.

Izaak Walton League of America - Sunshine Chapter

The SDCF awarded the Izaak Walton League of America - Sunshine Chapter in Pierre with a $10,000 South Dakota Fund grant in 2015 for trap range upgrades. The upgrades made the launch of a school-sanctioned, youth shooting team possible for students at T.F. Riggs High School. The students are participating in the inaugural season of the South Dakota State High School Clay Target League.

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New SDCF Funds

Allied Arts Endowment Fund — To provide financial support to Allied Arts.

James & Jeanne Arneson Memorial Scholarship Fund —

To provide financial support to graduates of Wilmot High School.

Jim Cordts Memorial Scholarship Fund — To provide financial support for scholarships as recommended by the Madison Central School Educational Foundation.

Jacob Dahl Memorial Scholarship Fund — To provide financial support for scholarships as recommended by the Board of Directors of the Castlewood Education Foundation.

Deadwood BPOE #508 Fund — To provide financial support to charitable and nonprofit purposes at the recommendation of the donor.

John & Delice Gleysteen Scholarship Fund — To provide financial support to graduates of Castlewood High School pursuing a degree in music, music education and fine arts.

Gropper Clement Legacy Fund — To provide financial support to graduates of Huron, James Valley Christian, Kadoka and Miller High Schools.

Larry & Darlene Hutchinson Fund — To provide financial support to White River Methodist Church as designated by the donor.

Joy Ranch Endowment Fund — To provide financial support to Joy Ranch at Lutherans Outdoors in South Dakota as designated by the donor.

Make-A-Wish Foundation of South Dakota — To provide financial support to Make-A-Wish Foundation of South Dakota.

Diana McCann Math Education Scholarship Fund —

To provide financial support for scholarships to South Dakota high school graduates pursuing additional education in mathematics as recommended by the South Dakota Counsel of Teachers of Mathematics.

NESODAK Endowment Fund — To provide financial support to NESODAK at Lutherans Outdoors in South Dakota as designated by the donor.

Outlaw Ranch Endowment Fund — To provide financial support to Outlaw Ranch at Lutherans Outdoors in South Dakota as designated by the donor.

South Dakota Agricultural Foundation Fund — To provide financial support to the South Dakota Agricultural Foundation as designated by the donor.

Tripp County 4-H Trust Fund — To provide financial support to 4-H programs in Tripp County as recommended by the First Fidelity Bank & Tripp County Board of Directors.

Glen Wilbur Memorial Endowment Fund — To provide financial support for scholarships as recommended by the Madison Central School Educational Foundation.

F i n d a FUND

You can search our full list of funds online at:

SDCommunityFoundation.org/Funds

January 1, 2016 through May 31, 2016

The South Dakota Community Foundation manages more than

760 funds.

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1,364

$7,500,000.

From January 1 through May 31, 2016,

gifts were received totaling

Each year, growth is our goal. We aim to grow the funds we manage and the opportunities we provide, so communities and organizations can flourish. The graphs below show how the SDCF is impacting South Dakotans through accepting and managing gifts from donors.

At a Glance

Grants Distributed

Foundation Flashback: 2000

The Pollock Community Foundation started as a Community Savings Account with the SDCF in 2000. Early leaders of the Pollock Community Foundation included Dennis Moser, John LaFave and Wayne Reierson. Today, the board of directors includes Cindy Moser, Betty Sjomeling and Delores Kluckman.

Since 2000, the community has raised $183,000 to add to its endowment fund. Grant distributions

from the fund help support community projects, such as the community fitness center, the purchase of a new truck for the Pollock Volunteer Fire Department and handicap accessible picnic tables. By partnering with the Pollock Men’s Club, the group has funded a park gazebo, the relocation and renovation of the town’s historic jail and a tree planting project, which planted 900 trees in the town’s park over three years.

Former Campbell County Bank CEO Bruce Brandner, pictured in this newspaper article, currently serves as a board member of the South Dakota Community Foundation. He was also a founding member of the Herreid Community Foundation, which began in 1999. The two Campbell County communities of Pollock and Herreid, just 16 miles apart, have built endowments totaling close to $400,000.

To donate to the Pollock Area Foundation, visit SDCommunityFoundation.org/csa/pollock-community-foundation.

Please visit:

SDCommunityFoundation.org/DonorList

to view a complete list of donors from January 1, 2016

to May 31, 2016.

Thank you to our donors for your continued support.

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Community Savings Accounts (CSA) are enhancing

the quality of life in 72 communities across South

Dakota. The endowment funds are part of the South

Dakota Community Foundation but are led by a local

board of directors who raise and distribute funds. The

CSA concept has taken root and grown very quickly

in the community of Philip. And it all started with a

conversation over coffee between Beth Massa, SDCF’s

West River Development and Program Officer, and

DeMaris Nesheim.

It has been years since Nesheim had a Philip

address, but her connection to her hometown has

remained strong since she left for college in 1963. She

followed Philip news for years and appreciated the

improvements and investment residents made to keep

the community thriving. Recently, Nesheim decided

to put into practice something she learned in a Philip

Sunday School room years ago – everything I have

is a gift from God, and it is my job to share that gift

with others.

As a result, Nesheim committed $100,000 to start a

Community Savings Account in Philip if the community

could match her donation. A board assembled and

the Philip Area Community Foundation began. The

board started fundraising in the community, and only a

few weeks later, the goal was met. The South Dakota

Community Foundation contributed $50,000 as part

of a matching challenge grant. On March 5, a group

of 150 community members celebrated exceeding

their goal at the American Legion Hall in Philip. The

Philip Area Community Foundation has existed for nine

months and 23 donors have answered Nesheim’s call

to support Philip with $324,680.

“It is truly astonishing what a community can

accomplish when one person steps forward with a

vision, puts skin in the game and encourages others to

join,” says Massa. “DeMaris is a caring and motivated

individual who wants her hometown to thrive for

years to come. Less than a year ago this CSA didn’t

even exist, and now, it’s on the way to distributing

approximately $13,000 to area nonprofits annually

going forward.”

CSA Success: Philip

DeMaris Paulson Nesheim (left) is pictured with SDCF West River Development and Program Officer Beth Massa. Nesheim issued a $100,000 matching challenge to kickstart the Philip Area Community Foundation.

Dillion Kjerstad introduces a short video about Philip at the event held to celebrate the community surpassing its fundraising goal.

It is truly astonishing what a community can accomplish when one

person steps forward with a vision, puts skin in the game and encourages

others to join.

“”

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CSA Success: Philip

Funds from the Philip Area Community Foundation are

being invested and managed by the SDCF. A percentage

of the fund’s earnings will be available for distribution to

local nonprofits starting in 2017. The group decided to

keep $10,000 aside from the endowment fund to start

giving back right away. The Lake Waggoner campground

will receive funds for eight additional campsites with

electrical hook-ups, doubling the campground’s size.

The Bad River Sportmen’s Club will receive funds to

install metal targets to improve its public ranges.

There is no sign of Philip slowing down its fundraising

efforts. Ray Smith, president-elect of the Philip Area

Community Foundation, encouraged supporters at the

celebration dinner to keep giving back.

“There is always next year, and the advantage with this

fund is there will always be a next year,” said Smith. “This

is not about the end of a fundraiser, but continuing to

grow this foundation. If you know someone who has the

same feelings as you about helping your community, tell

them, and donate.”

We look forward to witnessing Philip’s bright future.

Pictured receiving the $100,000 challenge grant check to start the Philip Area Foundation are (left to right): Ray Smith, First National Bank Philip (FNB Philip); Jerry Kroetch, Scotchman Industries; Brittany Smith, City of Philip; Dillon Kjerstad, FNB Philip; Britni Ross, Philip Schools; DeMaris Paulson Nesheim; Roger Porch, FNB Philip; and Jerry Rislov, Scotchman Industries.

CSA Success: Philip Continued...

Keys to a Successful CSA:

1. Community Support

2. Strong Leadership

3. Clear Goals

A Community Savings Account can be an incredible asset for your community. A CSA enables communities to address needs in economic development, health, infrastructure, education, culture and human services.

If you believe the three keys to CSA success are present in your community, contact us at 800.888.1842 to get started.

PO Box 296 | Pierre, SD 57501 | SDCommunityFoundation.org | 800.888.1842Page 10

Gift Type Spotlight: IRA Rollover

In December 2015, Congress extended the IRA Charitable Rollover and made it permanent. That means if you are 70 ½ or older you can make a gift from your IRA account to benefit your community or a charitable organization. Gifts made from your IRA (up to $100,000 in 2016) will not be categorized as taxable income and may lower your taxes. IRA rollover gifts also qualify for your required minimum distribution.

The IRA charitable rollover recently allowed Gary and Connie Grittner to make a $100,000 gift to the South Dakota Community Foundation. The gift will support a number of organizations and causes.

“The beauty of the IRA charitable rollover is that it allows you to meet a number of objectives,” says Gary Grittner. “It is counted toward your

required minimum distribution and allows donors without an immediate need for that income to avoid the tax implications that would otherwise come along with it. It also allows me to make an immediate impact and long-term commitment to organizations I care about.”

Gifting an IRA distribution helped an SDCF donor, who wishes to remain anonymous, benefit students in Day County. The donor’s father died when he was 15 years old and college seemed like an unattainable goal. With no family financial assistance available, he worked throughout high school and college to complete his college education, which prepared him for a successful career in accounting and management.

“A few years ago, my first required IRA distribution resulted in nearly one-third going to the federal and state government as income tax,” says the anonymous donor. “With a short phone call to the South Dakota Community Foundation, they helped me understand how I could establish a scholarship fund for graduates from my hometown of Webster, and avoid a lot of taxes by using the IRA Charitable Rollover.”

The donor decided to give back to students who face the large cost of obtaining a college education.

“I have now established two scholarships for Webster area high school graduates. Most of the monies used to establish these funds came from charitable rollovers of my required IRA distributions. I’ve needed to do minimal work and feel I’ve accomplished my charitable goals completely.”

Recently, Norbert and Jane Sebade of Wall also utilized the rollover program to start two

designated funds within the SDCF. Their $50,000 gift will be endowed and a percentage of the earnings will benefit nonprofits in Wall and the Children’s Home Society.

“The IRA Rollover Act provided us with an opportunity to help two of our favorite charities while we benefited from the tax exempt status of the rollover,” said Norbert Sebade. “The process is so easy and now that the Act is permanent, it no longer needs to be a year-end scramble. Whether you are giving in a financial way now or just thinking about it, the Act is something to consider when you receive that notice of a mandatory IRA withdrawal.”

*This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial advisor for information specific to your situation.

We Can Help

Call 800.888.1842 to learn more about making an IRA Charitable Rollover

gift or request a free estate planning guide. Our staff can answer questions regarding the

IRA Charitable rollover program.

Page 11 PO Box 296 | Pierre, SD 57501 | SDCommunityFoundation.org | 800.888.1842

The South Dakota Community Foundation works with communities to host estate planning seminars. A member of our development team coordinates with financial advisors and attorneys to assemble a panel of local experts. The group explains the basics of estate planning and shares how community members can ensure their financial and philanthropic wishes are fulfilled.

Many South Dakotans from different backgrounds and income levels desire to give back to their communities, and the South Dakota Community Foundation can explain how simply those wishes can become realities. The advantages of endowed funds, the tax savings associated with charitable giving and the types of assets you can give to charity are all topics covered in the seminars.

To schedule an estate planning seminar in your community or to request our helpful estate planning guide, email jveltkamp@sdcommunityfoundation.org or call 800.888.1842.

Growing for Good: Charitable Giving for LandownersMany South Dakotans have spent their entire lives growing crops to feed the world. They’ve put down deep roots in South Dakota’s soil. With the help of the South Dakota Community Foundation, landowners can keep growing for good during their lifetimes and beyond by gifting land and other types of real estate.

Steps to Gift Land:

Evaluate Tax Implications

Consider Gifting Options

Produce in Perpetuity

Gifting a portion of land to charity through the SDCF allows landowners to reduce or effectively eliminate capital gains and estate tax.

Donors can make an immediate gift of land, allow the SDCF to manage land allowing a portion of net income each year to benefit nonprofits, retain a life estate in land and continue to receive a stream of income off that property throughout life, and more.

Your land will continue to provide for others as proceeds from the sale of your land or annual net income benefits the charitable interests you and your family care about, forever.

Estate Planning Resources

Growing for Good — It is what you do. It is what we do. And we look forward to working with you to reduce your tax bill and benefit your community.

Call 800.888.1842 for more information.

PO Box 296 • Pierre, SD 57501800.888.1842

sdcommunityfoundation.orginfo@sdcommunityfoundation.org

SDCF Leadership

Chair

John Porter

Vice Chair

Jeff EricksonSecretary

Stephanie JudsonSDCF President

Board Members

The mission of the South Dakota Community Foundation is to promote philanthropy, receive and administer charitable gifts and invest in a wide range of programs promoting the social and economic well being of the people of South Dakota.

Our Mission

Treasurer

Curt Wischmeier

Karl AdamDavid AndersonBeth BenningBruce BrandnerJanet B. CroninKathy GundersonCharles HartJim HartMarilyn Hoyt

Al KurtenbachDeanna LienKeith MooreTrudy MorganAnita NachtigalStanley PorchNorbert SebadeDoug Sharp

Clay Cudmore, Chief Financial Officer

Beth Massa, West River Development & Program Officer

Kelly Nelson, Program Accountant

Ginger Niemann, Program Officer

Buddy Seiner, Community Development Coordinator

Jeff Veltkamp, Director of Development

Staff

Board of Directors - Officers