Community Vitality Center

Minutes of the January 9, 2004 Governance Board

Present: Dan Brown, Burt Chojnowski, Emily Eide (Randy Pliema), Jim Erb, Mark Hamilton, Rick Morain, Lars Peterson, Randy Pilkington, Severin Roberts, Carol Smith, Richard Warwick.

In Attendance: Sandy Burke, Mark Edelman, Rand Fisher, Ellen Huntoon, Stan Johnson, Laura Klesel.

The quarterly meeting of the Community Vitality Center (CVC) Governance Board was held on January 9, 2004 in Rm. 275 of the Scheman Building, at the Iowa State Center in Ames, IA. Chair Mark Hamilton called the meeting to order at 9:30 A.M.

Hamilton asked for discussion on the agenda. It was noted that the agenda may be subject to change during the meeting. Brown moved to accept the agenda. Pilkington seconded. The agenda was approved.

Hamilton asked for any comments or corrections relating to the minutes of the October 10, 2003 board meeting. Erb moved to accept the minutes of the previous board meeting. Peterson seconded. The minutes were approved as written.

Chairman’s Report

Hamilton reported that a meeting was held with several board members and ISU President Gregory Geoffroy. The President was briefed about CVC projects and performance and issues related to indirect costs and CVC space were discussed. ISU indirect cost charges for the CVC had increased from 0 in year 1 to 13 percent in year 2 and was scheduled to increase to 26 percent in year 3. An appeal was made to the president concerning the scheduled increase. Although a final decision has not been made, Hamilton indicated that the appeal was favorably received.

Hamilton stated that the pre-caucus event with Richard Bender from Senator Harkin’s office had been scheduled.

Administrative Report

Johnson reported that he felt the meeting with ISU President Geoffroy was extremely valuable and indicated that an indirect charge of 8 to 10% was anticipated.

Director’s Report

Edelman reported that space issue for the CVC office staff is close to being resolved. It was also mentioned that monthly issues of the new CVC newsletter has been distributed via email since November and that feedback has been positive.

Edelman reported on the Committee of 82 Economic Indicator Study and reviewed some of the findings. It was noted that much of the information is similar to previous USDA analysis. Discussion focused on the intended use of the study and Jim Erb recommended that newsletter information should be sent to elected officials in communities and supervisors at the county level.

Board members were encouraged by Mr. Edelman to attend the Capitalization on Rural America Symposium to be held April 15th-16th, 2004 in Des Moines. It was announced that the CVC board will meet after the morning session of the Symposium on April 16th at the ISU Downtown Extension office from 1-4 P.M.

Representatives from the CVC Board are requested to attend the ICOF meetings and to serve on the Community Matching Grant Board. If interested contact Edelman. An update followed on the Community Seed Grant Program.

Community Foundation Initiative and Funding Proposals

Edelman announced 5 upcoming events related to the Community Foundation Initiative:
Jan 21st, 2004, the CVC will report to the ISUE Citizen Advisory Council.
Jan. 21st, 2004 - IDED-CVC-ICOF Stakeholder Lunch.
Jan 22, 2004 - Iowa Council on Foundations Board Meeting
Feb. 9th, 2004 – IDED-IRCD-CVC ICN Meeting.
March 29, 2004 the CVC is planning a Statewide Academy on Community Foundations and Philanthropy to be held at the Gateway Center in Ames. An outline of the workshop was presented with a request for suggestions from the board concerning the itinerary.

An update was given by Edelman on the Endow Iowa timeline for implementing the matching grants and tax credit programs. It was noted that Johnny Danos of the ICOF anticipates that half of the tax credits offered may go quickly within a few weeks because qualifying permanent endowment donations made after January 1, 2003 are eligible.

Burke reported that data from Boston University, the IRS, and ICIS are being gathered for use in the Transfer of Wealth Study being conducted by the CVC. Discussion was held on the expected completion date and contents of the study. Edelman commented that the study will be ready before the Statewide Academy to be held March 29th. Johnson suggested that the study be completed with adequate time to be reviewed and vetted with appropriate stakeholders.

Edelman gave an update on the UI Non-profit Resource Center Community Foundation Survey and the CVC- IDED Community Foundation Cookbook. The cookbook is to be a resource of best practices for starting community foundations and lessons learned for dealing with issues faced by community foundations.

Two proposals were submitted to the board for consideration related to the goal established by the Board at a previous meeting related to having a Certified Community Foundation established by July 1, 2004. The Grow Iowa Foundation (SW Iowa) submitted a proposal for $12,500 representing a regional approach. The Iowa Area Development Group submitted a proposal for $10,000 representing a statewide approach.

Pilkington moved that the CVC fund both the Grow Iowa Foundation proposal as well as the Iowa Area Development’s proposal with FY 02 revenue. Brown seconded.

A lengthy discussion followed concerning the possibility of future competition between the two foundations. It was decided that collaboration between foundations is likely and that it is desirable to have both in operation to open up dialogue, foster communication, and have the documentation of both processes.

Erb called the question and Hamilton asked for a vote on the motion to fund both foundation certification proposals. The motion was adopted unanimously.

Edelman opened discussion on Community Foundation Service Bureau Funding for FY 03. Clarification was given concerning existing sources of revenue and the timing of the remaining sources being available in relation to second and third year funding.

Johnson reported that the ISU Foundation is willing to work with the CVC and ISU Extension to provide educational resources on philanthropy to counties in Iowa. The objective would be to help educate Iowans how to access financial instruments to encourage giving. Johnson suggested that a trial with one county would be a starting point and that Steve Noah is the contact.

Community Entrepreneur Seed Grant Proposals

A total of eight entrepreneur community seed grant proposals were submitted for board consideration. Edelman noted that this year, the proposals submitted by more diverse entities and had more regional focus than in the previous year. Discussion was held concerning the merit of each proposal. Discussion continued concerning the adoption of proposals #2 and #8.

Brown moved to accept proposal #1 and proposals #3-8. Erb seconded.

Further discussion was held including the feasibility of proposal #3. It was suggested that a committee may be needed to decide on several of the proposals and on firmer guidelines. Another suggestion was to return proposals with contingencies or conditions for acceptance; thus providing a chance for revisions to be made.

Hamilton called the question to vote. Brown and Erb voted in favor. The remaining board members voted against. The motion was denied.

Chojowski then moved to approve proposal #1 and proposals # 4-7. Erb seconded. All board members with the exception of Brown voted in favor. The motion was adopted.

Pilkington made a motion to fund proposal #3 subject to acceptance that no more than 1/3 of total budget be spent on equipment. Roberts seconded. The motion was adopted after debate.

Brown made a motion to fund proposal #8. Erb seconded. After discussion regarding the appropriateness of business plan development, a vote was taken and the motion failed.

Hamilton adjourned for lunch at 12:05 P.M.

The meeting was reconvened at 1:00 P.M by Mark Hamilton

Additional Recommendations for Year 2

Edelman introduced Youth Marketplace a program developed by the ISU Pappajohn Center for Entrepreneurship targeting upper elementary and middle school students. A proposal was submitted for a scholarship model to provide funding in the amount of $10,000 for 10 scholarships of $1,000 each to be implemented in Iowa school systems as a Phase I Youth Initiative. Several items created by students were showcased to demonstrate the type of products sold at Youth Marketplace events. Also recognized was the UI youth program and teacher training model that would be a possible Phase 2 Youth Initiative. Discussion followed concerning the impact and need of reaching youth in rural communities.

Additional discussion ensued regarding funding of the Fairfield Entrepreneur Association’s 2004 Projects and Speakers Bureau. Chojnowski gave an update on 2003 achievements along with information on planned projects, workshops, and conferences for the 2004 calendar year. Chojnowski stated that the Fairfield Entrepreneur Association is in need of seed capital to continue to develop services, foster collaboration, and provide mentoring opportunities to other communities.

Pilkington updated the board on MyEntre.net a virtual incubator developed by UNI. Funding may be needed in the future once implementation in local circles and educational training is complete.

Huntoon reported on federal funding stating that it was a difficult budget year in which many organizations were trimmed. She said the CVC remains “high on the radar screen” and that the Senator is very supportive of CVC.

Morain moved that $10,000 be allotted for the ISU Pappajohn proposal, $15,000 to the Fairfield Entrepreneur Association for a CVC entrepreneurs academy and community outreach, and $10,000 to the UNI for assistance with MyEntre.net implementation. Chojnowski seconded. The motion was adopted unanimously.

Year 3 Funding Projects

Edelman presented the Director’s budget recommendations for FY 2003-2004. Edelman asked board members to keep in mind there was a reduction in program funding.
Operating costs were presented along with the following 3 project recommendations:
(1) Strengthening Community Entrepreneurship in Iowa, (2) Strengthening Iowa’s Community Foundations, and (3) Continued CVC Policy Studies & Response Capacity. Discussion following the budget recommendations focused on the need to find partners willing to help generate supplemental funding for the CVC.

Hamilton suggested that private sector sources should be discussed at the next meeting. Chojnowski suggested that it would be helpful to diversify the funding base and find corporate sponsorship to foster statewide awareness of CVC programs.

Roberts moved to accept the budget as recommended. Morain seconded. The motion was adopted unanimously.

Discussion of CVC Affiliate Centers Concept

Board members received an outline of principles for consideration regarding the approval of CVC Affiliate Centers. Pilkington suggested that the use of the term “Affiliate Center” may connect the CVC too directly and suggested that partners/collaborators or allied organizations may be better terminology. Hamilton stated that an allied organization needs time for consideration and to define the concept.

Discussion of CVC Year 4 Funding Request Priorities

Several priorities, strategies, amounts, and contingencies were discussed and consensus was developed related to many items, however no motions were made because of the iterative nature of the requesting process.
• A strong consensus was present for continuation of current initiatives as priorities.
• A consensus appraisal was that the funding of the CVC is very small in relation to the problems that exist in Iowa.
• Iowa has a great need for development of entrepreneurship and the CVC doesn’t have enough resources to fully fund the projects that are presented.
• CVC should grow the organization and include all 99 counties.
• CVC should have a goal of creating 3 new businesses in each county per year.
• CVC should request a two million budget for an enhanced focus on pilot projects, development of successful models, and outreach assistance for transplanting lessons learned to other communities and other states.

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