By Rosalee Block, Guest Column

Albert Lea native Herb Anderson likes to tell the story of an ordinary couple who did an extraordinary thing. From the residue of an estate, an Albert Lea couple gave a charitable gift in five $25,200 portions. Two portions went to churches, two went to nursing homes, and the fifth went to a foundation for scholarships. The churches and nursing homes spent the money outright. However, to date, the scholarship fund, set up in 1995, has paid out $18,000, and the original $25,200 has grown to $45,000. Anderson emphasized that someone giving a charitable gift through a foundation is giving a gift that continues to give.

Anderson, a cashier at NorWest Bank for 30 years, also became involved with the Kenneth W. Olson Foundation at its inception. Managed by the Minnesota Community Foundation and advised by the Freeborn County Communities Foundation, the fund has grown steadily. &8220;From 1993 to 2006, the Kenneth W. Olson Foundation has paid out over a million dollars,&8221; said Anderson, &8220;with 77 percent coming to Albert Lea.&8221; Anderson added that the entire community benefits from people like Olson, who look outside themselves, have a desire to help others, and give back to their community.

Anderson indicated that about 15 similar foundations have been established in Freeborn County. Some are designated to provide support for specific nonprofit groups; others are donor advised and respond to grant requests. All are managed in an orderly and systematic way by the Minnesota Community Foundation, which provides complete professional service at a minimal cost.

While many believe that foundations are an option only for the wealthy, Anderson said, &8220;Anyone can start a foundation with $10,000. How many automobiles do you need?&8221;

Contacting the Freeborn County Communities Foundation, the local arm of the Minnesota Community Foundation, is a first step individuals or families can take to establish their own foundations. The FCCF Board can put people in contact with a MCF representative, who will work with them to create a giving tool that is tailored to their specifications.

Anderson, who serves on the FCCF board, expressed the hope that other &8220;ordinary&8221; people in this area will see the need to improve the lives of others by establishing an individual or family foundation.

Henry Savelkoul

Albert Lea attorney Henry Savelkoul believes strongly in the philosophy of giving something back to the community in which he and his wife have raised their children. He sees the establishment of a community foundation as an avenue for individuals and families to make charitable contributions without the expense and complications of more traditional options.

&8220;You can give to the community, answer its needs, and control where your money goes,&8221; said Savelkoul. He added that a good example of someone doing just that is the existing Cuppage Foundation.

Some years ago, an Albert Lea resident and businessman started the Cuppage Foundation with a contribution of $200,000. That original amount has now grown to $700,000 and, in addition, the Foundation has distributed approximately $500,000 to local nonprofit organizations. The effects of the Cuppage Foundation can be felt in Albert Lea in many ways: new band uniforms, a piano at the high school, projects at the Family Y, library renovation, programs to prevent domestic abuse, help for the Historical Society, and support for Lutheran Social Services and Catholic Social Services. While organizations can apply for funds, Savelkoul noted that the Foundation does not provide regular annual funds for charities, but seeks to answer unique needs as they occur.

Since a local board of directors determines where the Cuppage Foundation dollars are spent, the funds stay in the community.

Foundations, large and small, can be structured to avoid federal and state taxes, which effectively provides more dollars for charitable needs. Local accountants or attorneys can help set up foundations in a simple and, if desired, totally confidential way. Personnel from the Minnesota Community Foundation deliver the same service.

In fact, the Minnesota Community Foundation was created in part to assist people in smaller communities with foundation creation, simplifying the process and reducing initial expenses. Foundations may be set up as endowments, allowing only the income on the initial funds to be used, thus retaining principal.

Although Albert Lea has a diverse economic base, it has no large corporation to look to for charitable needs. &8220;That is why we need to be more pro-active in having individuals make gifts to charity,&8221; said Savelkoul, who serves on the boards of the Cuppage Foundation and the Freeborn County Communities Foundation. He added mat foundation giving is a simple way to facilitate charitable giving and has become increasingly more user-friendly.

Paul Overgaard, Herb Anderson and Joe Johnston

Several years ago, Paul Overgaard, Herb Anderson, and Joe Johnston founded the Freeborn County Communities Foundation, establishing a relationship with the Minnesota Community Foundation. According to Overgaard, the larger foundation is an &8220;umbrella&8221; designed to help individuals in smaller communities establish individual charitable foundations at minimal cost. That statewide foundation, in turn, was an outgrowth of the St. Paul Foundation, a venerable old-line institution.

The MCF and, through association, the FCCF offer flexible, simple, and customized charitable giving options. They represent a trusted resource for potential donors and their professional advisors as individuals and families define their philanthropic goals.

The local board of directors, who serve without compensation, is responsible for seeking additional donors, advising on funds under the MCF, and making grants in consideration of the communities&8217; needs. Most recently, three of the small foundations overseen by the FCCF assisted with the public library&8217;s renovation project.

Overgaard, currently president of the FCCF, added that assets that may become a foundation gift include cash, stocks, real estate, life insurance, and retirement plan assets. Such gifts often result in tax benefits to the donor.

Using this already existing structure, nearly anyone can start a charitable fund. Completing a simple two-page application is all the paperwork required, and the MCF provides a professional gift planner&8217;s assistance for that step. The resulting fund can be tailored to the donor&8217;s specifications.

According to Overgaard, currently approximately 15 foundations exist in Freeborn County that have some kind of relationship with one or both of these parent foundations. Overgaard also emphasized the power of endowed funds, one of the options chosen by several individuals and families. Using this option, a gift of $25,000 will provide approximately $1,250 each year to a charitable cause, while the original $25,000 remains invested and continues to grow.

After stressing the benefits of local control over the granting procedure, Overgaard concluded that the FCCF strives to create a permanent legacy in Freeborn County &8212; one gift at a time &8212; in order to promote and sustain its high quality of life.

Rosalee Block lives in Albert Lea.