Building a region of choice

Southwest Initiative Foundation is a community foundation dedicated to advancing southwest Minnesota through leadership, relationship building, program development and philanthropy. One of six regional foundations established by the Minneapolis-based McKnight Foundation, Southwest Initiative Foundation works to ensure that southwest Minnesota is a highly productive and engaged region where growing numbers of people choose to live. Since it was established in 1986, the foundation has contributed over $46 million to its region through grants and loans. The foundation also manages The Aging Trust, an approximately $4 million endowment that each year makes more than $200,000 available to support the needs of older residents in the region.

Expanse of experience

The 18-county southwest Minnesota region is rural and aging. A 12,340-square-mile geographic expanse, its average community numbers fewer than 1,200 people. Across Minnesota, one in eight people are age 65 or older—but in the southwest region, one in five have attained that age. By 2030, residents 65 or older are expected to account for nearly 30 percent of the southwest Minnesota region.

The older population is an economic, social and cultural asset to families, communities and to the entire southwest Minnesota area.

— Nancy Fasching

For more information

Southwest Initiative Foundation
Nancy Fasching, Grants Officer
Diana Anderson,Chief Operating Officer
320-587-4848

Wisdom for an aging endowment

Southwest Initiative Foundation has already prioritized quality of life for the aging residents of the region it serves. With its creation of a special endowment called The Paul & Alma Schwan Aging Trust Fund in 1990, the foundation regularly applies resources to the tasks of keeping seniors well and engaged in community life, and supported by a prepared community.

Now, as a result of an extensive region-wide assessment conducted through support from the Community Experience Partnership, the foundation has uncovered what’s available, what works, what doesn’t, what people think, and what’s needed when it comes to civic engagement among the region’s older residents—a growing segment of southwest Minnesota.

The foundation is using the assessment results to inform the use of The Paul & Alma Schwan Aging Trust Fund and to develop a continuum of civic engagement for older adults—a planning tool that has identified barriers and will develop opportunities to shape the region’s future.

One of the most notable themes that emerged from the assessment was the interest in encore careers and entrepreneurship opportunities. It is apparent that many older adults are experiencing the effects of the economic downturn and are finding themselves in need of paid work opportunities after their first career has ended. Others simply have found that they are not ready to ‘retire’ after their first career and want to match their passions and interest with a paid work opportunity. From this insight, the foundation feels the important work of encore entrepreneurship is just beginning.

Encore entrepreneurs

The work the foundation intends to do through its new Encore Entrepreneurship Initiative is to connect people age 55 and better in the region who wish to engage in an encore career through entrepreneurship, with services and resources that will make their dream a reality. To strengthen the connections in this work, the “encore entrepreneurs” will be provided opportunities with other people of similar age and interests through networking opportunities.

To strengthen this program and connect it to other work that the Southwest Initiative Foundation does, loan options and technical assistance will be provided to help those 55 and better successfully start and/or grow their business.

Understanding and influencing engagement, Southwest Initiative Foundation is undertaking the following:

Connect potential Encore Entrepreneurship Network participants through existing foundation educational programs like pre-venture classes, walk-in business consultations, presentations made throughout the region about the foundation’s loan programs, and the network of economic development professionals, including the Step Up Your Business network
Publicize the Encore Entrepreneurship Network through the foundation web site, print publications, and informational presentations
Create an Encore Entrepreneurship Network with older adults throughout the region that allows participants to work through issues and share opportunities with like-minded individuals
Develop a no-cost, one-on-one technical assistance program to support Encore Entrepreneurship Network participants, whether or not they are loan recipients
Conduct a regional capacity-building and educational event that increases public awareness about civic engagement for older adults, as well as provides education for individuals age 55 and better about available paid work opportunities, entrepreneurship, and volunteer civic ventures (the event also provides an opportunity to speak to employers about engaging older adults in the work place)
Provide loans ranging from $500 to $35,000 to start-up or existing for-profit small businesses and entrepreneurs who do not have reasonable access to capital to assist them in starting a business

Guiding The Aging Trust

This work provides a knowledge base the foundation is using to shape the strategic plan for The Paul & Alma Schwan Aging Trust Fund endowment fund in its stewardship. The success of the Encore Entrepreneurship Network will be measured by the number of people who participate, the number of successful entrepreneurial ventures that are started or sustained through this program, and the number of people who attend the regional event. In addition, anecdotal stories about the benefit of the program for individuals age 55 or better is being collected and the overall benefit to the region, both economically and socially, is being assessed and documented.