Community Vitality Update

Sept-Oct 2005 Issue No. 21

This newsletter provides community leaders, economic developers, entrepreneurs, and other Iowans interested in community vitality with features on innovative strategies, updates on CVC projects, and info about opportunities for learning and networking.

Community Entrepreneurship Academy Oct 21 in Manning

The 2005 Community Entrepreneurship Academy on October 21 at the Manning Hausbarn features an all-star cast of entrepreneurial experts. Speed Herrig, Cookies BBQ Sauce from Wall Lake will share his entrepreneurial experiences following lunch. RUPRI’s Brian Dabson will kickoff the Academy with a national perspective on rural entrepreneurship. A panel of successful local entrepreneurs and community leaders will tell Manning’s award winning efforts. Participants can also visit local entrepreneurial businesses. Leaders from other Iowa communities will showcase CVC incentives for starting community-based entrepreneur support projects.

“Accessing Entrepreneurial Capital” will be addressed by an afternoon panel featuring Matt Crouse of Pro-Vision Development, who will discuss the principles used in ethanol project equity drives. Community-based seed capital fund development will be presented by Cali Beals, IDED; Bruce Nuzum, Iowa Area Development Group will talk about accessing Iowa’s Revolving Loan Funds. In addition, representatives from the SBA, USDA Rural Development, and the Federal Home Loan Bank will outline their respective programs for entrepreneurs and technical assistance opportunities.

A “Wind Entrepreneurship Workshop” will be held as a separate breakout session. The workshop features David Osterberg from the Iowa Policy Project; Keith Kutz from the Iowa Energy Center, private consultant Tom Wind, and Bob Mulqueen representing the Iowa Environmental Council. The panel will discuss the status of wind generation in Iowa, new state and federal production tax credits, and the necessary steps in developing a wind energy project. CVC will unveil a newly developed Internet-based Wind Project Cash Flow Model. To register for the full Entrepreneurship Academy click here.

Approximately $63,000 to each County Endowment Fund

One-half of 1% of the net gambling proceeds to the state of Iowa are allocated to support the County Endowment Program on an annual basis. The Department of Revenue has calculated that there is $5,573,294 available for the County Endowment Fund program for the 2005 year. It is anticipated that approximately 85 county-wide community foundations or community affiliate organizations will qualify for these funds, resulting in approximately $63,000 per organization for 2005. See Endow Iowa website.

IDED sets 5% Guideline on Philanthropy Promotion Activities

A guideline that will allow Community Foundations and County Affiliates to spend up to 5% of the available County Endowment funding for “philanthropic promotion” activities has been announced on the IDED Endow Iowa website. “Philanthropic Promotion” might include items such as administrative or training purposes, organizational planning, board education and training, outreach, needs assessments, etc. The 5% guideline means up to $3,060 could be used from 2005 funds. If the Community Foundation and/or Community Affiliate Organization wishes to use any of the County Endowment Funds for such purposes, they must not come from the 25% of the funds reserved by law for the countywide permanent endowment. Funds used for such purposes should have complete documentation similar to that required for local grant applications. This provides opportunity to consider all funding requests with equal merit and equal rigor in accounts for all expenses. See Endow Iowa website for more information.

CVC $500/County Incentive for Multi-County Needs Assessment

The CVC Board approved a $500 per county incentive for nonmetro countywide foundations and affiliate groups interested in participating in a multi-county philanthropy needs assessment project under development by ISU Extension’s CD-DIAL. CD-DIAL plans to use a scientifically based random sampling process and a common survey instrument to manage costs. An estimated total fee will be $2,600 per county, so the local cost would be $2,100 per county with the CVC incentive.

CVC wishes to encourage collaborative multi-county efforts because they can reduce the total cost per county by about 40 percent. While some counties are conducting more informal processes, others may conclude that a comprehensive needs assessment is important for establishing countywide credibility or as a tool to stimulate awareness of countywide needs. This opportunity may be particularly useful in counties that have not recently conducted a comprehensive needs assessment. To stay current on local needs and priorities, a needs assessment is something that might be done every three to five years. A limited amount of CVC funds are available on a first come-first serve basis. To reserve the $500 incentive for your county foundation or affiliate, email cvc@iastate.edu and indicate interest along with the county, group, and contact information.

Appleton School & Community Foundation Collaboration Model

As public resources become tighter, networks of interest groups are likely to become interested in creating tax-exempt nonprofit entities to attract private donations and wealth transfer. The last thing rural Iowa needs is more duplication and extra work for the already thin layer of volunteer leaders in nonmetro areas. So many rural leaders are thinking about whether there are ways to coordinate efforts and collaborate so that multiple local interests don’t end up poisoning the well by visiting the same set of potential donors over and over again. One solution was articulated at the recent National School Foundation meetings in Des Moines by the Appleton Wisconsin School Foundation. Appleton’s School Foundation is actually organized as a support entity with its accounts in a local Community Foundation. The school selects half the school foundation board and recommends a slate to the Community Foundation, which appoints the other half. The Community Foundation does all of the accounting, legal, and annual IRS filings for an annual fee.

Why would such a model be of interest in Iowa? First, schools, housing trusts, churches and other foundations might want higher returns on their endowments. Community Foundations typically earn about 9 percent on their endowments long term due to professional portfolio management. This can make more funding available for local programs annually. Second, donors to school, church, or any other permanent endowments can only receive Endow Iowa’s extra 20% Tax Credit if funds are deposited in the Community Foundations meeting national standards. Finally, as Tom Scullen, Superintendent, Appleton Area School District says, the Community Foundation does all the paperwork and filings so the School Foundation can focus on alumni relations, donors, bequests, and fund raising. The only cautionary note is any agreement for long term relationships should also include balanced provisions for separation and portability; and should be reviewed by experienced legal counsel. CVC has approved a study of alternative approaches to portability that may provide some useful guidelines and models in the future.

Entrepreneurial Case Studies Feature Three Iowa Communities

CVC released a National Entrepreneurial Rural Communities Case Study Series in mid-September at two conferences in Washington. The CVC Series describes the concepts and principles behind Northern Initiatives of Upper Michigan, ACEnet of Ohio, Douglas-Coffee County Georgia, Tupelo’s Idea Center in Mississippi, and Tapetes de Lana of Mora, New Mexico. AgVentures Alliance, NIACC’s North Iowa Initiative, and Fairfield’s Open Sourced Mentoring Networks are also featured in the Series. CVC Board Member Burt Chojnowski presented the Fairfield Case Study at the 21st Century Economic Development Conference sponsored by the Economic Development Administration and Penn State. The Series is based on presentations and information collected in a June 2005 workshop in Fairfield. The project was sponsored by Farm Foundation, the Community Vitality Center, Creative Fairfield, and Sohodojo. They tell a fascinating story of community institutions and capacity. Links to each community’s website are in each report. To access the Series, click here.

The Entrepreneurial Community Series was also distributed at the National Policy Conference sponsored by Farm Foundation. The National Policy Conference featured several speakers on 2007 Farm Bill topics. To find farm bill and other presentations, click “2005 Washington DC” on Farm Foundation’s website.

PDI Press Conference Announces 2006 MyEntreNet Incentives
Applications are now being taken for the 2006 MyEntreNet program, a community-based program designed to organize community entrepreneur support, and provide two years of training, technical assistance, and networking opportunities for rural entrepreneurs. The program has been developed by the UNI Regional Business Center and is supported by the Iowa SBDCs statewide. CVC supported a pilot project in Northeast Iowa during this past year and will provide four $2,500 incentives for nonmetro communities to participate in the program during the coming year. The 2006 MyEntreNet program was announced via a press conference at the Professional Developers of Iowa conference in Des Moines last week. For more info and community applications see www.myentre.net.

Water and Wastewater Collaboration Feasibility Encouraged

Iowa Rural Water recently completed an analysis of alternative models for collaboration in water and wastewater service delivery designed to assist local leaders in thinking through the possibilities for the future. While this CVC project has been three years in the making, its release follows a recent initiative and conference co-sponsored by Iowa DNR, USDA Rural Development, and other collaborators. According to USDA Rural Development, 235 rural communities representing about 30,000 people in Iowa, lack public water or sewer utility services. As communities grow and decline, they often face differing alternatives for provision of water and wastewater services. Several case studies are outlined to demonstrate various approaches that have been used to provide quality services on a cost effective basis. For more information, click here.

Sociology Symposium Shares Best Practices on Business Networks

ISU Sociologists held a Research Symposium on rural economic shocks on September 29. Participants received a series of reports on “Developing Effective Business Networks.” For more info see here.

CVC Begins Recent Mover Study in 19 Counties

CVC is conducting a study of recent movers to and from selected Iowa nonmetro counties. The purpose of the study is to identify why people move and to identify any actionable strategies for sustaining and enhancing the population base of non metro areas of the state. The project was initiated by CVC Board members and informational meetings have been held with selected leaders in the counties being surveyed. The results should be available early 2006. For more information contact: scburke@iastate.edu.