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Guest column by Tim Penny

November brings with it the spirit of gratitude, reflection and anticipation of the holiday season. It is a time when many of us turn our attention to giving. When we think about where to direct our charitable donations and volunteer efforts, I believe we should first consider the places where we live, work and raise our families: our local communities.

In my work with Southern Minnesota Initiative Foundation (SMIF), I’ve witnessed firsthand the profound impact of keeping our wealth and resources within our communities. It’s not just about making donations; it’s about creating a ripple effect that strengthens the fabric of our local economies and builds a more resilient and self-sustaining future for everyone.

In a recent report from the U of M Extension, it is estimated the SMIF region has a current household net worth of $212 billion and that $7 billion of that wealth is expected to transfer hands from one generation to the next over the next 10 years. For communities to thrive, they must invest in education, economic development and other community amenities. Understanding the scale of the region’s wealth can help community members start dreaming about what might be possible. And retaining our region’s wealth is as important now as ever.

One way to do this is by supporting your local Community Foundation. SMIF serves as the fiscal host for 32 Community Foundations across our 20-county region, so I get a front row seat in witnessing how effective their work is. These volunteer-run groups know best the unique needs of their communities. For example, Southland Community Foundation provided a grant for a girls’ empowerment camp to help girls navigate friendships, recognizing bullying and stand up for themselves. Wabasha Kellogg Community Foundation is helping to relocate their local food shelf to a bigger facility that will better suit their needs. Blue Earth Community Foundation is renovating their local humane society. Mapleton Area Community Foundation is purchasing and installing a new tornado siren. These are just a few examples of the kinds of projects happening right now across southern Minnesota.

On Nov. 21, Minnesota celebrated “The Great Minnesota Give-together,” Give to the Max Day, and the 32 Community Foundations under our umbrella collectively raised $97,436, which is a new record! Across Minnesota, donors have given more than $365 million to nonprofits and schools over the past 16 years. The thing I love most about Minnesota’s “Giving Holiday” is that all dollars raised stay local. Every year I am so thankful for all the donors that show up, and I know the donations made to SMIF’s Community Foundations will continue to fund projects specifically needed in their communities.

The truth is our most successful organizations and entrepreneurs, from local schools to community organizations to small businesses, rely on the support of people like you and me. When we support local, we foster long-term growth and sustainability. Local giving empowers individuals and communities to solve their own problems, generate local jobs and build pride. Every dollar that stays within our community has the potential to turn into something bigger. Let’s continue to invest locally by helping with a community project, supporting a new business or funding educational initiatives that prepare the next generation for success.

This November, I’m reflecting on the impact we all make when giving within our communities — and how, together, we can harness our region’s wealth to create a future where every neighbor can thrive.

As always, I welcome your comments and questions. You can reach me at timp@smifoundation.org or 507-455-3215.

Tim Penny is the president and CEO of Southern Minnesota Initiative Foundation. He represented Minnesota’s First Congressional District in the U.S. House of Representatives from 1982 to 1994.