Ottawa County Community Foundation

INSPIREINVESTENRICH2015-2016 Annual Report

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INSPIRE·INVEST·ENRICHOttawa CountyCommunity Foundation inspires the community to support local charities and to celebrate philanthropy through a pool of funds, responsibly invested and maintained. By providing donor services and flexible charitable giving, the Community Foundation helps donors support all their passions & causes.

Ottawa County Community Foundation inspires the community to support local charities and to celebrate philanthropy through a pool of funds, responsibly invested and maintained. By providing donor services and flexible charitable giving, the Community Foundation helps donors support all their passions & causes.

Our mission is to build permanant endowment fundsand meet charitable needs.

TABLE OF CONTENTS4 GIVE NOW GIVE LATER

6 DONORS & MEMORIALS

7 FOUNDING DONORS

8 FUNDS & GRANTS

10 MATCH MADNESS

11 TWIN VALLEY GRANT

12 HANSEN PARTNERSHIP

13 FOUNDATION FINANCE

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LETTER FROM THE BOARD CHAIRInspire. Invest. Enrich. I was inspired when I attended an informational meeting that the Dane G. Hansen Foundation held to explain why they are partnering with community foundations in the northwest corner of Kansas. The Hansen Trustees gave attendees a history of where their foundation started and what they have accomplished, and where they want to be in the future. Hansen Trustees realize the struggle many of the small rural communities have to survive and want to invest in them to enrich the lives of their citizens. They also realized that each community has its own issues to deal with and that the local community foundations would be better suited to address these issues. The great generosity of the Dane G. Hansen Foundation has inspired our board to work harder at getting our message out so we can help with these local issues.

In the coming year, we are finishing up GROW II, a matching grant program with the Kansas Health Foundation. As many of you know, this is the program that inititally built up our community foundation so that it could make a difference in Ottawa County. The Dane G. Hansen Foundation is also offering a one-time matching program that, when the two programs are paired up, will generate three dollars for every one dollar of local investment in the Ottawa County Community Foundation.

Our local board of directors is very excited about the upcoming year and proud of our accomplishments. We would like to thank Leslie Hargis and Dr. Kermit Wedel for their efforts in making OCCF successful as they retire from the board and want to welcome our newest board members, Sarah Thompson, Eric Shupe, and Kay Baccus.

We have several projects in mind for next year that will enrich the lives of the people of Ottawa County, but if you identify a need we can help with, please contact one of our board members.

Jeff McHenryChairman of the Board

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GIVE NOW

The Community Foundation makes it easy for you to give: both to start your own charitable fund and to support an existing fund held at the Foundation. Whether you’re donating cash or complex assets, we will work diligently with you to ensure we achieve the greatest benefit for you and the charitable causes you believe in.

CASH GIFTS, also payable by check/credit card, are simple to make, create immediate impact, and are easily earmarked to support your favorite charitable organization.

AGRICULTURAL COMMODITY gifts may provide significant income tax savings to a producer. Because the commodity is gifted, no revenue is recognized, and the cost of production may still be deducted as a business expense.

STOCKS, BONDS & MUTUAL FUNDS can translate to a charitable deduction for the current market value of your asset, even if you bought it for far less, and may help you avoid paying capital gains tax.

CLOSELY HELD STOCK gifts offer you a charitable deduction for their appraised fair market value and may help you avoid paying related capital gains tax.

REAL ESTATE gifts of home, business or land offer an income tax deduction for 100% of the fair market value of real estate held for more than one year. In addition, the capital gains taxes due, if the property had been sold, are bypassed when the real estate is gifted. The outright gift of the property reduces your taxable estate.

PRIVATE FOUNDATION CONVERSION can help you avoid burdensome, costly administration while continuing your charitable purpose. The foundation’s 501(c)(3) status results in greater tax benefits and no mandatory payouts.

When is the best time to make agift to charity?

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GIVE LATER

The Community Foundation makes it easy for you to give: both to start your own charitable fund and to support an existing fund held at the Foundation. Whether you’re donating cash or complex assets, we will work diligently with you to ensure we achieve the greatest benefit for you and the charitable causes you believe in.

BEQUESTS left via a will or trust can help you reduce your estate taxes while supporting your community in a permanent, public way.

CHARITABLE GIFT ANNUITIES offer you stable, secure income while giving you an immediate tax deduction for a portion of your gift.

CHARITABLE LEAD TRUSTS may enable you to transfer appreciating assets to family tax-free while making gifts to your fund in the interim.

CHARITABLE REMAINDER TRUSTS pay you income for life while offering you an immediate tax deduction for a portion of your gift. You can make additional gifts to the trust as circumstances allow.

CHARITABLE REMAINDER ANNUITY TRUSTS offer you predictable income and an immediate tax deduction for a portion of your gift. They are invested and managed separately, and you avoid all capital gains tax on any appreciated assets you contribute to them. They also reduce your estate tax liability.

LIFE INSURANCE allows you to make a significant charitable impact at very little cost. Name your fund as a beneficiary and give later. Donate an existing policy and take an immediate tax deduction.

RETIREMENT PLANS, when passed to an heir, are quickly depleted by double taxation. Name your fund as the beneficiary and avoid taxes, leave more to your family, and preserve your hard-earned assets for the good of your community.

When is the best time to make agift to charity?

Need help with your charitable estate plan? Attorney John Griffin with Stewardship Counseling, LLC, provides free estate planning services once a month through the Greater Salina Community Foundation. Call for more information 785-823-1800.

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INSPIREOne way the Ottawa County Community Foundation achieves its mission is to inspire and enable donors to fulfill their charitable desires. The Foundation connects donors’ passions to causes and charities in this community and beyond.2015-2016 DONORS

2015-2016 MEMORIALS

Don & Kathy AllisonSteve & Patricia BaccusThe Bank of TescottBennington Development CorpBennington Lions Club Inc.Bennington State BankHal & Eleanor BerkleyJeff & Denise BerkleyKent BerkleyMark & Jane BerkleyRichard DargThe Davidson AgencyDeckert & Sons Trucking, Inc.Scott & Karen DeckertMarsha EverhartDiana FraserChantan FrenchLinda GansJenny & Mike GottiDane G. Hansen FoundationFred & Leslie HargisRay & Joyce Hemphill

G. L. HuyettKansas Health FoundationMadonna McCallJim & Karen McClainRobert & Jennifer McClureJohn & Paula NelsonGerald & Barbara NewellTimothy & Carol O’KeeffeWayne & Shelia ReedBernie & Cindy RegnierDick & Janice SchmidtDavid & Sonja StanleyJack & Susie StenforsDaryl & Leah StoneJoan StrunkJudith SwagertyUSD 240Dwayne & Sharon WallsMelinda WalmsleyKenneth & Dardanella WedelKermit & Kathleen WedelGreg & Lisha Wolf

Mike GansJohn IhnkenJack WertsRandon Regnier

2015-2016 Board of DirectorsJeff McHenry, ChairDwayne Walls, Vice-ChairKaren Deckert, SecretarySteve Baccus Amanda Davidson

Leslie HargisJim McClainDustin NicholsDavid StanleyDr. Kermit Wedel

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It was the faith and commitment of our Founders that inspired the creation and growth of the Foundation. The Ottawa County area was given a vehicle for good, forever.

FOUNDING DONORS

INDIVIDUALS & FAMILIESSteve & Patricia BaccusR.B. BarefieldHal & Eleanor BerkleyMark & Jane BerkleyMike BerkleyKevin & Sandra ClineFred & Leslie HargisDean & Illa Rae JohnsonRobert MartinIn Memory of Mason Carl McHenryTimothy & Carol O’KeeffeDardanelle E. WedelKenneth Wedel, M.D.Kermit & Kathleen Wedel Trust

BUSINESS ENTITIESBank of TescottBennington State BankG.L. HuyettOttawa County BankRupert Land & Cattle Co.

The Keep 5 in Kansas campaign asks every Kansan to consider designating at least 5% of their estate wealth to their local community foundation. By designating as little

as 5% to our communities, we can create a permanent source of funding that will improve our quality of life, ensuring our cities, towns and counties remain great places to live for future generations of Kansans.

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OTTAWA COUNTY IMPACT FUND

The Ottawa County Community Foundation has been used as a philanthropy investment tool to make communities better for seven years. Since inception, OCCF has awarded over $189,000 in grants that support a broad range of charitable causes-some grants directed by donors and some determined by the board of directors.

FOUNDATION FUNDS & GRANTS

INVEST

Bennington Lions Club - $1,489Rodeo facilities improvements(Also funded by the Dane G. Hansen Community Grant Fund)Bennington Senior Center - $5,000Senior center kitchen renovations

FUNDS FOR FUTURE

ADMINISTRATIVE FUNDS

Current FundsKenneth & Madonna McCall FundJohn and Rosalie Merriman Fund

Current FundsOttawa County Administrative Fund

DESIGNATED FUNDSCurrent FundsKansas Health Foundation Operating Fund for Ottawa CountyTwin Valley Education Foundation Fund2015-2016 Grantees-$3,355 total grantsOttawa County Administrative Fund

DONOR ADVISED FUNDSCurrent FundsKenneth & Madonna McCall Fund for Bennington Senior Center

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FIELD OF INTEREST FUNDSCurrent FundsBennington Community FundCity of Tescott Improvement FundDane G. Hansen Community Grant FundKansas Health Foundation for Ottawa CountyOttawa County Public Health FundTescott Community Fund2015-2016 Grantees-$47,427 total grantsBennington Lions ClubBennington Senior CenterCity of DelphosCity of TescottGolden Wheel Senior CenterMinneapolis Community GardenOttawa County Arts & Humanities CouncilOttawa County Service CorporationRock City, Inc.Tescott SchoolsUSD 239 Parents as TeachersVFW Auxiliary Post 3201

The Community Foundation awarded a $5,000 grant to Tescott Schools from the Dane G. Hansen Community Grant Fund. The grant enabled the school to purchase leveled readers for grades K-2 and also provide some technology.

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Local nonprofits earned over $15,000 at the Foundation’s Match Madness event on March 8. Over 20 area benefactors donated more than $10,000 to endowment funds held at the Foundation. Then those contributions were matched with an additional $5,291 directly from the Foundation.

Six funds grew their endowments while also earning a matching donation from the Community Foundation when donors contributed to the fund of their choice.

Funds at the Foundation that received donations included Bennington Community Fund, City of Tescott Improvement Fund, Kenneth & Madonna McCall Fund for Bennington Senior Center, Ottawa County Impact Fund, Ottawa County Service Corporation Fund, and Tescott Community Fund.

Power of Endowment $10,000 endowed gift

Assumes 5% annual payout with a 1% administrative fee and a 8.5% rate of return

$15,500 endowed fund

$18,600 endowed fund

$35,000 endowed fund

YEAR 1

$51,000 in cumulative grants

$19,000 in cumulative grants

$10,000 in cumulative grants YEAR 15

YEAR 25

YEAR 50

OVER $15,000 RAISED FOR LOCAL CHARITIES

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ENRICH

HEALTHY COMMUNITYHEALTHY ENVIRONMENTUSD 240 Twin Valley was awarded a $3,000 grant from the Ottawa County Impact Fund for new water bottle refill stations, helping promote the protection of the environment by recycling, re-purposing, preventing waste and the over-consumption of resources for the school system.

Janet Nuefeld, Superintendent, reported the project was a huge success. “It has been great having the water bottle filler machines, one in each school. They are used by students, staff and visitors at our schools. It is a healthier and more environmentally friendly option to keep our students and staff hydrated without the use of disposable water bottles. The machines encourage kids to drink more water, which keeps them healthier. The water is delivered in a more sanitary way, cutting down on spreading

germs, and we are using less disposable water bottles which is better for the environment.”

The station is used by students and staff during the school day and is also used by community members that attend school activities.

Through the generosity of inspired donors investing in the Ottawa County Community Foundation, charities in Ottawa County and many other locations are able to enrich communities through arts, education, science, spirituality, and countless other missions.

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THE FUTURE IS BRIGHTMore than a year ago, the Ottawa County Community Foundation (OCCF) was given a $100,000 grant from the Dane G. Hansen Foundation to distribute to Ottawa County charitable projects. This grant established the Dane G. Hansen Community Grant Fund. From that time, the Hansen Foundation has only increased their partnership with OCCF.

Through the Dane G. Hansen Community Grant Fund, a component fund at OCCF, the OCCF Board of Directors awarded over $40,000 to charities across Ottawa County. Some examples of projects include rodeo facilities improvement for the Bennington Lions Club, bleachers for the City of Delphos, renovating a building to a learning center at Rock City, and restroom renovations at Golden Wheel Senior Center.

Another program initiated by the Hansen Foundation is an opportunity for the OCCF to increase the Ottawa County Impact Fund, an unrestricted community grant fund. Every dollar given to the Impact Fund in November 2016 by donors will earn an additional dollar from the Hansen Foundation. By supporting the Impact Fund donors are ensuring that local charitable needs are being met now and in the future.

The final phase introduced in the summer was the Dane G. Hansen Community Clean-Up Fund. This fund offers residents the opportunity to beautify their communities by removing trash and overgrowth. More information about it can be found at www.ottawacountycf.org.

The Dane G. Hansen Foundation was established as a charitable organization in 1965 through the generous donation of Dane G. Hansen. Hansen was an exceptional Kansas citizen who had a personal interest in promoting education and helping make communities in northwest Kansas better places to live.

HANSEN PARTNERSHIP

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30

41

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7

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Administrative- 4%

Designated- 30%

Field of Interest- 41%

Donor Advised - 4%

Pass-Through- 7%

Unrestricted- 14%

Investment InfoGSCF INVESTMENT PORFOLIO

OCCF ASSETS BY TYPE

OCCF TOTAL ASSETS

The Foundation believes the best long-term performance will be achieved through a balanced portfolio consisting of 75% equities and 25% fixed income and cash.As an affiliate of the Greater Salina Community Foundation (GSCF), the funds at the Ottawa County Community Foundation are pooled together with all the funds held by GSCF and their affiliates. The funds are invested with Vanguard and governed by a finance committee at GSCF.We are confident in our performance and rate well when compared to other investment pools. Our 5 year annualized return is 7.31% and our 10 year annualized return is 6.09%.

2nd Quarter 2016 + 2.10%

Trailing 1 Year - 0.30%

Trailing 3 Years +23.34% Absolute + 7.24% Annualized

Trailing 5 Years +42.31% Absolute + 7.31% Annualized

Trailing 10 Years +80.59% Absolute + 6.09% Annualized

$1,265,636

$- $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000

2010

2011

2012

2013

2014

2015

2016

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REVENUESGifts & Bequests-Principal $273,184.49Gifts & Bequests-Income $102,182.00Dividend Income $21,972.26Realized Gain on Investments $445.37Unrealized Gain on Investments $(9,436.96)

Total Revenues $338,347.16TRANSFERSInterfund Gifts $(7,555.00)Interfund Grants $7,555.00

Total Transfers $0EXPENSESGrants Authorized $54,684.62Foundation Administrative Contribution $8,952.99Operating Expenses $940.06

Total Expenses $64,583.67NET ACTIVITY $323,763.49

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF ACTIVITIES

ASSETSWells Fargo CMM $84,274.46Pooled Investment– Vanguard $1,181,362.41

Total Assets $1,265,636.87LIABILITIESTotal Liabilities $0FUND BALANCESFund Balance—Principal $1,000,798.49Fund Balance—Income $181,020.00Fund Balance—Spendable $83,818.38

Total Fund Balances $1,265,636.87TOTAL LIABILITIES & FUND BALANCES $1,265,636.87

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INSPIREINVESTENRICH

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P.O. Box 203Minneapolis, KS 67467785-523-4410www.ottawacountycf.orgottawa@gscf.org