History Established in 1987 as part of Gov. George S. Mickelson’s vision for the State of South Dakota Created to memorialize South Dakota native William L. McKnight Funded by challenge grants from the McKnight Foundation and 3M Corporation

Today Total assets exceed $85 million. Nearly $30 million in grants have been awarded to charities and nonprofits. Through continued generosity and solid investment returns, the people of South Dakota will benefit for generations.

Mission of SDCF Promote philanthropy Receive and administer charitable gifts Invest in the social and economic well-being of South Dakotans

Anyone, regardless of wealth or position, can make a difference in the future of South Dakota by donating to the SDCF. Impact A donor’s charitable wishes will be carried out in present and future generations. Perpetual Unless donors choose to be anonymous, their names will be honored forever. Recognition

Trust Gifts will be administered in accordance with a donor’s wishes. Flexibility Contributions can be made anytime and to any charitable cause. Experience Rely on the expertise and commitment of the SDCF’s professional staff.

Effectiveness Pooling gifts with other funds at the SDCF provides a better investment rate of return. Simplicity After establishing a fund, there is no separate tax return to file. Tax Advantage Donors receive the maximum tax benefit from a gift to the SDCF.

Foundations vs. Endowments Foundation: Legal entity IRS recognized Reporting requirements Endowment: Managed Fund a new fund the South Dakota Fund

Services Estate planning services are available at no cost or obligation to the donor. SDCF sells philanthropy— not products or policies We are simply a vehicle to help others give back to society and accomplish their charitable goals.

Types of Funds 1)Donor Advised Funds: Donors reserve the right to recommend agencies to be considered for grants. The Christen Hohm Lusk Greater Huron Area Foundation provides financial support for charitable and non-profit purposes in Huron and the surrounding area.

Types of Funds 2) Designated funds: Benefit specific charitable institutions named by donors. The income from the Larson Family Foundation Childcare Fund is used to support operations of the Child Development Center and United Retirement Center in Brookings, SD.

Types of Funds 3) Agency Endowment Funds: Non-profit agencies benefit from the investment returns and management expertise of the SDCF. The Abbott House Foundation provides funding for Abbott House, Inc., a residential treatment facility for girls in Mitchell.

Types of Funds 4) Scholarship Funds: Benefit South Dakota high school graduates pursuing higher education opportunities. The G.A. & Pearl Ann Johnson Memorial Scholarship Fund provides educational scholarships to students in Montrose, Pierre and Fort Pierre.

Types of Funds 5) South Dakota Fund: Benefits a variety of organizations working to meet the state’s most pressing needs today and tomorrow. Organizations such as Junior Achievement, a program where local professionals teach students financial responsibility, receive support from the South Dakota Fund.

Types of Funds 6) Community Savings Accounts (CSA): Benefit a specific community or region of South Dakota. The Miller Area Foundation is a successful and active CSA member with an endowment of nearly $500,000.

Types of Funds 7) Field of Interest Funds: Benefit areas of interest, specific issues, populations or geographic areas without identifying individual organizations. The Native American Education Fund established by Lois Irwin will perpetually generate earnings to financially support Native American education in South Dakota. The Native American Education Fund

South Dakota Community Foundation

SDCF Guidelines Funds must be invested for one year to be eligible for valuation. All funds are valued as of Dec. 31 of each year and are available for distribution the following year. The annual grant making distribution is up to 5% of average fair market value of the total endowment, which is computed based on a sixteen quarter trailing average.

Funds established in 2009 will be valued 12/31/10 Established Distributions from the fund will be available in 2011 Distributions Money can be held outside of the endowment for distributions during the 1 st year Average Rate of Return: Last 15 years: 6.25

Example Fund 2009 Administrative Fee $100,000 x 1.20% =$1,200 Distribution Rate $100,000 x 5%=$5,000 A $100,000 Fund=.15% of the entire endowment pool