AUSTIN AREA FOUNDATION BOARD OF DIRECTORS 2016 Mike Ruzek, Chair George Brophy Gail Dennison, Vice Chair Mark Coffey Paul Wahlstrom, Secretary Carla Conradt Ron Walth, Treasurer Darrell Ingvaldson Janet Anderson Nitaya Jandragholica Amy Baskin Glenn Mair Peggy Benzkofer Sarah Nelsen Steve Binder Rod Nordeng Fred Bogott Belita Schindler Paul Worlein Executive Director, Jeff Baldus

Dear Friends,

After officially starting the Austin Area Foundation (AAF) in March 2003, its board of directors was grateful that all bills were paid and the year ended with a balance of about $15,000. Then came the challenge of finding ways to grow, on behalf of AAF, I am pleased that this 2016 annual report will show more that $1 million of assets and just under $30,000 in total distributions.

After 2016 concluded, I also chose to step down as AAF chair after 14 years in that role. There is a theme about leadership that says, “You have to do it yourself but you can’t do it alone.” Starting this concept of a community foundation has been the most demanding service work I have encountered but the ultimate success has come from others who saw the vision and have been willing to get things done. This includes good board members, donors and other foundations.

In 2013, AAF’s 10th anniversary strategic planning sessions revealed the need for more help and finding people who would assume leadership roles on the board. With funding secured, AAF hired in May 2014 its first part-time executive director, Jeff Baldus. He already has met the purpose of growth at a faster pace through this role, and AAF has the utmost confidence that Jeff will continue to be successful.

Rod Nordeng will serve as the AAF chair for 2017, and I’m very pleased he is willing to assume this role. AAF has new and experienced board members along with good leadership in key positions. Given this, I remain very optimistic that AAF will continue to grow and have a significant role in making the Austin area a good place to live.

There are many people to thank, and I always will appreciate their support. I will single out one person. However, and that is the late I.J. Holton. Mr. Holton told me once that he felt that a community foundation could be a good thing for the Austin area. You will see by this report that he was right. Serving as the AAF chair these past 14 years truly has been an honor and privilege. Thanks to all of you who believe in the Austin Area Foundation.

Kind regards, Mike Ruzek

Austin Legacy Endowment Fund Grant Recipients 2016 - $21,010

Austin Area Commission for the Arts Austin Community Band Austin Symphony Orchestra Cedar River Watershed District Faith Church - Car Care Clinic Freedom Fest 2016 Friends of the Jay C. Hormel Nature Center Hormel Historic Home Matchbox Children's Theater Mower County Senior Advocacy Northwestern Singers Real Hope for the Hungry Salvation Army - Feed a Family St. Olaf Back Pack Program SE MN Women's Center (Rachel's Hope) Summerset Theatre

2016 In-Kind Contributions

Ron Walth - Hill, Larson, Walth & Benda, P.A.

Wendy Roy - Wendy Roy Consulting

TRANSFORMING GIFTS, GIVING to the Community

“You have not lived today until you have done something for someone who can never repay you.” – John Bunyan

Austin Legacy Endowment Fund

Funds community projects and nonprofit organizations

Austin Area Foundation Balance Sheet

December 31, 2016

INVESTMENTS 31 - Dec - 15 31 - Dec -16 Checking 47,357 102,486 Money Market 78,210 78,289 Total Cash 125,567 180,775

Investments 770,501 887,647 Total Cash & Investments 896,068 1,022,161

FUND BALANCES Unrestricted General Operating Fund 26,605 21,099 Temporarily Restricted Donor Advised Funds 4,190 3,690 Mower County Veterans Memorial Fund 13,710 20,300 Greatest Needs Fund 13.927 33.797

Matching Fund 61,980 55,593 Permanently Restricted 775,657 841,386 Total Fund Balances 896,068 1,022,161

AUSTIN LEGACY ENDOWMENT FUND:

Established in 2004 and the Basic Needs Endowment Fund

established in 2014, are funds for the benefit of nonprofit

organizations within the City of Austin.

The earnings from these endowment funds are distributed to

applicants who have a specific need. A total of $111,893 has been given year to date.

GRANT HISTORY

2007 - $5,769 2012 - $15,000 2008 - $7,000 2013 - $17,000 2009 - $6,000 2014 - $19,000 2010 - $7,000 2015 - $20,000 + $3,124* 2011 - $12,000 2016 - $21,010

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. *Basic Needs distribution

Qual Family Memorial Fund - ARC Mower County

Donor Advised Distribution 2016 - $2,073

DONOR ADVISED FUNDS

In memory of her husband, Bob, Alice and her

children established the Qual Family Memorial Fund for the eternal care of programming opportunities at ARC of Mower County. Setting up a donor advised fund allowed the Qual family to honor Bob and financially support the organization he was passionate about into the future. Over the past 7 years, the Qual Family Memorial Fund has awarded over $10,000 in grants to support various activities at the ARC of Mower County.

What is a Donor Advised Fund? A donor advised fund is a charitable giving vehicle wherein

an individual, family or corporation makes an irrevocable, tax-deductible contribution of personal assets to the Austin Area

Foundation and thereafter can recommend grant distributions to qualified charitable organizations.

Donor Advised Funds provide a number of benefits that

direct donations to a charity, including:

Ability to accept and process appreciated securities an which the donor does not

have to pay capital gains tax. Capacity to receive one block of securities that can benefit multiple charities.

Creation of a legacy versus providing a one time gift.

Separation of tax planning and charitable giving, donor receives tax deduction

when contribution is made, but grants to charity can be made later.

Simplicity, a single contribution can benefit multiple charities while only

requiring one tax substantiation letter.

Other Donor Advised Funds:

Bogott Family Fund * Worlein Family Fund

Donors make a difference with the gifts they provide for charitable funds.

These funds benefit the community forever and create lasting legacies.

We invite you to set up your own Donor Advised Fund to support the

organizations you would like to support now and into the future.

Get in touch with us to learn more!

•

•••

•

AUSTIN AREA FOUNDATION ENDOWMENT FUNDS Thank you to the many donors of these funds

Austin Dog Park Austin Symphony Orchestra Austin Area Commission for the Arts Friends of the Austin Public Library KSMQ Media Fund Mower County Agricultural Society Mower County Chapter of Habitat/Pheasants Forever Mower County Historical Society Mower County Veterans Memorial Project Qual Family Memorial Ruby Rupner Auditorium Fund* Spruce Up Austin * Trees & Wild Flower Fund* YMCA YMCA “Dale Bartley Campership” *NEW in 2016

Greatest Needs Fund

Funds opportunities that serve the mission of the Austin Area Foundation

Basic Needs Endowment Fund

Funds emergency needs of Austin Area organizations

HELPING STRENGHTEN OUR NON-PROFITS FOR

TOMORROW

Austin Area Foundation is more than a charitable giving partner. And it’s more than a way to positively

impact our community. It’s a shared belief that together we will meet each day knowing that in real and tangible

ways, we are making tomorrow better. On behalf of the Board of Directors of the Austin Area Foundation I would like to thank everyone Who contributed this past year to our organization. Your generous giving is a tribute to this great community we call home. Your gifts help us fulfill our mission to “Enhance the Community through Charitable Giving.” Jeff Baldus AAF Executive Director

THANK YOU CONTRIBUTORS

to the 2016 AAF funds Austin Builders Art & Karen Goembel Gary & Darlene Nordland Austin Rotary Club John Gray John & Joan O’Rourke Jack & Rhonda Akkermann Lavonne Griffin Larry & Teresa Pfeil Scott & Janet Anderson Vern & Sue Grove Dr. Ruth Pickering Jeffrey & Diane Baker Gary & Jill Hart Karen Placek Jeff & Kris Baldus Scott & Jana Haynes Peggy Hamilton-Queensland Baudler, Maus & Forman LLP Heartman Insurance Gary & Pat Ray Greg & Amy Baskin Al & Alice Holst Cliff & Nancy Reed Larry & Cindy Bellrichard Bob & Deb Holt Dr. Tim & Bonnie Rietz Dick & Peggy Benzkofer Janet Holton David & Sue Ruzek Thor & Merrilyn Berg Michael & Cynthia House Mike & Barb Ruzek Steven & Debra Binder Darrell & Diane Ingvaldson Belita Schindler Lee & Judith Bjorndal Myron & Sue Jordan Dean & Leanna Seeck Norm & Marlene Blaser Glen & Peggy Keener Rosalie Seltz Fred & Carolyn Bogott Dr. Keith & Mary Kleis James & Jeanne Sheehan George & Katie Brophy Janice Krambeer Kenneth Sims Astrid Brown Randy & Wendy Kramer Dick & Kay Smaby Alan & Jackie Bumgardner Paul & Debra Leif Darlys Smith Kenneth & Signe Carlson Brad & Jennifer Lindberg James & Tammy Snee Mark & Tammy Coffey Vernon & Cindy Lippert Sterling State Bank Dr. Bob & Kelly Collier Glenn & Barb Mair Dean & Harriet Ulland Dan & Carla Conradt Diette Marx Jack & Kim Underwood Duane Dahlback Linda Maschka Art & Gwen Volstad Gail Dennison Peter & Karen Mattson Paul & Sally Wahlstrom Terry & Diane Dorsey Barbara Meany Dr. Duane Wallaker Jeff & LeAnn Ettinger Dr. Phil & Gail Minerich Ron & Darlene Walth Bob & Kay Finney Kurt & Annette Mueller Paul & Joanne Worlein Jerry & Sunne Flink Martin Ehmke & Julie Mullen Dr. Richard & Carol Young Barbara Follstad Jacob & Sarah Nelsen The Hormel Foundation Lowell Foster Norbert & Mary Lou Nelson Anonymous (4) Joe & Cindy Furhman Jim & Jeanine Nelson Michael & Kathleen Garry Rod & Mary Nordeng John & Sally Garry Dick & Gloria Nordin

AUSTIN AREA FOUNDATION ENDOWMENT FUNDS Thank you to the many donors of these funds

Austin Dog Park Austin Symphony Orchestra Austin Area Commission for the Arts Friends of the Austin Public Library KSMQ Media Fund Mower County Agricultural Society Mower County Chapter of Habitat/Pheasants Forever Mower County Historical Society Mower County Veterans Memorial Project Qual Family Memorial Ruby Rupner Auditorium Fund* Spruce Up Austin * Trees & Wild Flower Fund* YMCA YMCA “Dale Bartley Campership” *NEW in 2016

Greatest Needs Fund

Funds opportunities that serve the mission of the Austin Area Foundation

Basic Needs Endowment Fund

Funds emergency needs of Austin Area organizations

HELPING STRENGHTEN OUR NON-PROFITS FOR

TOMORROW

Austin Area Foundation is more than a charitable giving partner. And it’s more than a way to positively

impact our community. It’s a shared belief that together we will meet each day knowing that in real and tangible

ways, we are making tomorrow better. On behalf of the Board of Directors of the Austin Area Foundation I would like to thank everyone Who contributed this past year to our organization. Your generous giving is a tribute to this great community we call home. Your gifts help us fulfill our mission to “Enhance the Community through Charitable Giving.” Jeff Baldus AAF Executive Director

THANK YOU CONTRIBUTORS

to the 2016 AAF funds Austin Builders Art & Karen Goembel Gary & Darlene Nordland Austin Rotary Club John Gray John & Joan O’Rourke Jack & Rhonda Akkermann Lavonne Griffin Larry & Teresa Pfeil Scott & Janet Anderson Vern & Sue Grove Dr. Ruth Pickering Jeffrey & Diane Baker Gary & Jill Hart Karen Placek Jeff & Kris Baldus Scott & Jana Haynes Peggy Hamilton-Queensland Baudler, Maus & Forman LLP Heartman Insurance Gary & Pat Ray Greg & Amy Baskin Al & Alice Holst Cliff & Nancy Reed Larry & Cindy Bellrichard Bob & Deb Holt Dr. Tim & Bonnie Rietz Dick & Peggy Benzkofer Janet Holton David & Sue Ruzek Thor & Merrilyn Berg Michael & Cynthia House Mike & Barb Ruzek Steven & Debra Binder Darrell & Diane Ingvaldson Belita Schindler Lee & Judith Bjorndal Myron & Sue Jordan Dean & Leanna Seeck Norm & Marlene Blaser Glen & Peggy Keener Rosalie Seltz Fred & Carolyn Bogott Dr. Keith & Mary Kleis James & Jeanne Sheehan George & Katie Brophy Janice Krambeer Kenneth Sims Astrid Brown Randy & Wendy Kramer Dick & Kay Smaby Alan & Jackie Bumgardner Paul & Debra Leif Darlys Smith Kenneth & Signe Carlson Brad & Jennifer Lindberg James & Tammy Snee Mark & Tammy Coffey Vernon & Cindy Lippert Sterling State Bank Dr. Bob & Kelly Collier Glenn & Barb Mair Dean & Harriet Ulland Dan & Carla Conradt Diette Marx Jack & Kim Underwood Duane Dahlback Linda Maschka Art & Gwen Volstad Gail Dennison Peter & Karen Mattson Paul & Sally Wahlstrom Terry & Diane Dorsey Barbara Meany Dr. Duane Wallaker Jeff & LeAnn Ettinger Dr. Phil & Gail Minerich Ron & Darlene Walth Bob & Kay Finney Kurt & Annette Mueller Paul & Joanne Worlein Jerry & Sunne Flink Martin Ehmke & Julie Mullen Dr. Richard & Carol Young Barbara Follstad Jacob & Sarah Nelsen The Hormel Foundation Lowell Foster Norbert & Mary Lou Nelson Anonymous (4) Joe & Cindy Furhman Jim & Jeanine Nelson Michael & Kathleen Garry Rod & Mary Nordeng John & Sally Garry Dick & Gloria Nordin

Austin Area Foundation Balance Sheet

December 31, 2016

INVESTMENTS 31 - Dec - 15 31 - Dec -16 Checking 47,357 102,486 Money Market 78,210 78,289 Total Cash 125,567 180,775

Investments 770,501 887,647 Total Cash & Investments 896,068 1,022,161

FUND BALANCES Unrestricted General Operating Fund 26,605 21,099 Temporarily Restricted Donor Advised Funds 4,190 3,690 Mower County Veterans Memorial Fund 13,710 20,300 Greatest Needs Fund 13.927 33.797

Matching Fund 61,980 55,593 Permanently Restricted 775,657 841,386 Total Fund Balances 896,068 1,022,161

AUSTIN LEGACY ENDOWMENT FUND:

Established in 2004 and the Basic Needs Endowment Fund

established in 2014, are funds for the benefit of nonprofit

organizations within the City of Austin.

The earnings from these endowment funds are distributed to

applicants who have a specific need. A total of $111,893 has been given year to date.

GRANT HISTORY

2007 - $5,769 2012 - $15,000 2008 - $7,000 2013 - $17,000 2009 - $6,000 2014 - $19,000 2010 - $7,000 2015 - $20,000 + $3,124* 2011 - $12,000 2016 - $21,010

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. *Basic Needs distribution

Qual Family Memorial Fund - ARC Mower County

Donor Advised Distribution 2016 - $2,073

DONOR ADVISED FUNDS

In memory of her husband, Bob, Alice and her

children established the Qual Family Memorial Fund for the eternal care of programming opportunities at ARC of Mower County. Setting up a donor advised fund allowed the Qual family to honor Bob and financially support the organization he was passionate about into the future. Over the past 7 years, the Qual Family Memorial Fund has awarded over $10,000 in grants to support various activities at the ARC of Mower County.

What is a Donor Advised Fund? A donor advised fund is a charitable giving vehicle wherein

an individual, family or corporation makes an irrevocable, tax-deductible contribution of personal assets to the Austin Area

Foundation and thereafter can recommend grant distributions to qualified charitable organizations.

Donor Advised Funds provide a number of benefits that

direct donations to a charity, including:

Ability to accept and process appreciated securities an which the donor does not

have to pay capital gains tax. Capacity to receive one block of securities that can benefit multiple charities.

Creation of a legacy versus providing a one time gift.

Separation of tax planning and charitable giving, donor receives tax deduction

when contribution is made, but grants to charity can be made later.

Simplicity, a single contribution can benefit multiple charities while only

requiring one tax substantiation letter.

Other Donor Advised Funds:

Bogott Family Fund * Worlein Family Fund

Donors make a difference with the gifts they provide for charitable funds.

These funds benefit the community forever and create lasting legacies.

We invite you to set up your own Donor Advised Fund to support the

organizations you would like to support now and into the future.

Get in touch with us to learn more!

•

•••

•

AUSTIN AREA FOUNDATION BOARD OF DIRECTORS 2016 Mike Ruzek, Chair George Brophy Gail Dennison, Vice Chair Mark Coffey Paul Wahlstrom, Secretary Carla Conradt Ron Walth, Treasurer Darrell Ingvaldson Janet Anderson Nitaya Jandragholica Amy Baskin Glenn Mair Peggy Benzkofer Sarah Nelsen Steve Binder Rod Nordeng Fred Bogott Belita Schindler Paul Worlein Executive Director, Jeff Baldus

Dear Friends,

After officially starting the Austin Area Foundation (AAF) in March 2003, its board of directors was grateful that all bills were paid and the year ended with a balance of about $15,000. Then came the challenge of finding ways to grow, on behalf of AAF, I am pleased that this 2016 annual report will show more that $1 million of assets and just under $30,000 in total distributions.

After 2016 concluded, I also chose to step down as AAF chair after 14 years in that role. There is a theme about leadership that says, “You have to do it yourself but you can’t do it alone.” Starting this concept of a community foundation has been the most demanding service work I have encountered but the ultimate success has come from others who saw the vision and have been willing to get things done. This includes good board members, donors and other foundations.

In 2013, AAF’s 10th anniversary strategic planning sessions revealed the need for more help and finding people who would assume leadership roles on the board. With funding secured, AAF hired in May 2014 its first part-time executive director, Jeff Baldus. He already has met the purpose of growth at a faster pace through this role, and AAF has the utmost confidence that Jeff will continue to be successful.

Rod Nordeng will serve as the AAF chair for 2017, and I’m very pleased he is willing to assume this role. AAF has new and experienced board members along with good leadership in key positions. Given this, I remain very optimistic that AAF will continue to grow and have a significant role in making the Austin area a good place to live.

There are many people to thank, and I always will appreciate their support. I will single out one person. However, and that is the late I.J. Holton. Mr. Holton told me once that he felt that a community foundation could be a good thing for the Austin area. You will see by this report that he was right. Serving as the AAF chair these past 14 years truly has been an honor and privilege. Thanks to all of you who believe in the Austin Area Foundation.

Kind regards, Mike Ruzek

Austin Legacy Endowment Fund Grant Recipients 2016 - $21,010

Austin Area Commission for the Arts Austin Community Band Austin Symphony Orchestra Cedar River Watershed District Faith Church - Car Care Clinic Freedom Fest 2016 Friends of the Jay C. Hormel Nature Center Hormel Historic Home Matchbox Children's Theater Mower County Senior Advocacy Northwestern Singers Real Hope for the Hungry Salvation Army - Feed a Family St. Olaf Back Pack Program SE MN Women's Center (Rachel's Hope) Summerset Theatre

2016 In-Kind Contributions

Ron Walth - Hill, Larson, Walth & Benda, P.A.

Wendy Roy - Wendy Roy Consulting

TRANSFORMING GIFTS, GIVING to the Community

“You have not lived today until you have done something for someone who can never repay you.” – John Bunyan

Austin Legacy Endowment Fund

Funds community projects and nonprofit organizations

AU

STIN

AR

EA

FO

UN

DA

TIO

N

110

1ST

Ave

S.E

.

PO B

ox 6

Aus

tin, M

N. 5

5912

NO

NPR

OFI

T O

RG

U.S

. PO

STA

GE

PAID

AU

STIN

, MN

PERM

IT N

O. 1

10

TR

AN

SF

OR

MIN

G G

IFT

S, G

IVIN

G t

o t

he

Co

mm

un

ity

Creating opportunities to connect donors’ wishes to the needs of the Austin Area.

Annual Report 2016 AUSTIN AREA FOUNDATION