North Brown Community Foundation

WHAT IS IT? The North Brown Community Foundation was established in April 2014 and is a community savings account of the South Dakota Community Foundation. The NBCF joins more than 65 other community savings accounts in South Dakota.

WHAT AREA DOES IT SERVE? The North Brown Community Foundation serves the area covered by the Frederick Area School District, including the communities of Frederick and Westport and the unicorporated areas of Barnard and Elm Lake.

HOW DOES IT WORK? Funds invested in the North Brown Community Foundation are invested by the South Dakota Community Foundation. The interest that the account generates is returned to the community to be distributed as grants. Once the fund is established, the North Brown Community Foundation's board will have 4.5 percent every year to give out to respond to community needs.

This can result in significant additional dollars being available for community projects. For example, using the actual rate of return that other SDCF community savings accounts did receive:

If a fund was established in 1994 with $100,000, and no additional funds were added, by 2014 that fund would have grown in value to more than $150,000. AND it would have given out nearly $125,000 in grants over those 20 years.

WHO MAKES DECISIONS ABOUT HOW GRANTS ARE AWARDED? All grant-making decisions are made by the North Brown Community Foundation board of directors, which has representation from across the North Brown area. Grants can only be given to recognized nonprofit organizations.

WHAT ROLE DOES THE SOUTH DAKOTA COMMUNITY FOUNDATION SERVE? The SDCF, through its volunteer board of some of the state's top investment minds, manages the fund. The SDCF takes care of the accounting and tax filings for the fund. They receive a 1 percent administration fee.

HOW CAN I GIVE? Individuals or businesses can give by check, including the form here. Donors can designate the North Brown Community Foundation in their wills. And donors can also give stock, real estate, insurance policies, or other intangible assets. The SDCF is available to advise on such donations.

WHY SHOULD I INVEST? The North Brown Community Foundation will become a perpetual resource for the community. As long as our communities are around, the fund will be available to support community needs.
Communities that have this kind of a resource to draw from often go through a change in what they see as possible for their communities.