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.

Promote philanthropy Invest in the social and economic well-being of South Dakotans

Mission of SDCF

Receive and administer charitable gifts

Impact Perpetual

• Anyone, regardless of wealth or position, can make a difference in the future of South Dakota by donating to the SDCF. • A donor’s charitable wishes will be carried out in present and future generations.

Recognition

• Unless donors choose to be anonymous, their names will be honored forever.

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 Simplicity Pooling gifts with other funds at the SDCF provides a better investment rate of return. 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.

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.

South Dakota Community Foundation

Scholarship Funds 7% Donor Advised Funds 26% Community Savings Accts.

19% Agency Endowment Funds 19% Field of Interest Funds 1% Designated Funds 11% South Dakota Fund 17%

SDCF Guidelines

Funds must be invested for one year to be eligible for valuation. 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.

All funds are valued as of Dec. 31 of each year and are available for distribution the following year.

• Funds established in 2009 will be valued 12/31/10 Established Distributions • Distributions from the fund will be available in 2011 • 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