The FM Area Foundation loaned over $1.2 million back into the Fargo-Moorhead area by investing in local projects focused on creating a vibrant community.
The Foundation is offering Mission Related Investments (MRIs) to leverage more of its assets for good right here in Cass and Clay counties. MRI’s are below-market loans that finance a variety of local projects that generate both a social and financial return. Once funds are returned to the Foundation, new investments can be made into the community.
The following organizations have secured funding through the FM Area Foundation’s MRI program to help carry out their mission:
“Access to high quality early childhood education is simply unattainable for far too many families in our community. Long waiting lists and high costs prevent the most disadvantaged children from receiving a high-quality early childhood education. Given that the highest rate of return in early childhood education comes from investing in disadvantaged children ages birth to five, it’s time to invest in our future. With the help of the FM Area Foundation, Lakes & Prairies is working toward the goal of expanding our early childhood programs by opening a new center in south Moorhead,” said Lori Schwartz, Executive Director Lakes & Prairies Community Action Partnership.
Lakes and Prairies Community Action Partnership works with and for low-income children, families and seniors throughout the area. Lakes & Prairies helps people take the journey from barely surviving to fully thriving in our community by connecting them to opportunities for work, education, health care, housing, food, child care, financial education and asset development. Lakes & Prairies works in partnership with the broader community to provide a hand up not a hand out to those in need.
Lakes and Prairies’ main office is located in the Family Service Center of Clay County. With no room to expand, and yet, a growing need for the services they provide, such as Head Start, supportive housing programs and child care assistance, Lakes and Prairies set out to purchase additional space for program operations. Last year, they located a space previously used as a commercial child care center at 861 Belsly Boulevard in Moorhead.
“This facility is a perfect fit for our needs to expand our early childhood services in the community. With the addition of this space we will have the ability to convert our Head Start classrooms to provide full-day programming and pursue opportunities for growth and expansion,” said Schwartz.
It was serendipitous that they connected with FM Area Foundation Executive Director, Tim Beaton, who was at the same time exploring the potential of Mission Related Investments (MRI’s). MRI’s are investments that have both a financial and social return. The idea is to make an impact in the community by taking a portion of assets typically invested in Wall Street and invest into projects that are making a meaningful difference in the community. This is where the idea of Wall Street to Main Street comes in.
“Our board has been discussing how to selectively invest a portion of the assets that support our endowment directly into our community. This is a concept that has been used successfully by other community foundations across the nation. The goal is to achieve even more positive good than we can achieve with grants alone,” said Beaton.
After meetings between the Foundation and Lakes and Prairies, discussion with the Board and a formal request to the Impact Investing committee, the Foundation chose to make its first-ever MRI to Lakes and Prairies. Based on the need in the community, the moderate risk and great rewards, the FM Area Foundation made a $100,000 loan to help complete their down payment for the purchase of the building in south Moorhead. The space will be used for a variety of programs, acting as an extension to their existing services. With Lakes and Prairies’ 53-year history of serving Clay County, it was evident this was a great opportunity and partnership to initiate the FM Area Foundation’s first MRI.
“The Mission Related Investment from the FM Area Foundation provided us with the remainder of the down-payment we needed to secure the purchase of this facility. We greatly appreciate the partnership we have with the FM Area Foundation on this project,” said Schwartz.
The FM Area Foundation’s ultimate goal is to create an MRI revolving loan pool to use for projects like this one to continue to make a more meaningful difference in our communities.
“The MRI’s will not replace the Foundation’s grant making efforts, but instead, add to the ways we impact the community,” said Beaton. “Ultimately, we would like the community to help us create a fund that will allow donors’ gifts to be invested locally and recycled forever.”
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“We wanted the scholarship to live on as a legacy for Norman and I in our communities to encourage a young person as they seek their dreams.”
“Serving on the Foundation board enables me to support efforts to strengthen our community.”
“We are thrilled to engage our daughters as future advisors to our fund. Knowing there will always be a family member to guide our charitable intent makes us feel great.”
“Anything that can motivate a child’s love of reading deserves support. Read to Lead can be such a vehicle.”
“Thank you to the Women's Fund for supporting our moms and children.”
“The community foundation is specifically created to encourage and nourish the giving spirit in the community.”
“Thanks to support from the FM Area Foundation, we completed two major projects. We're very grateful for the Foundation’s generosity as these projects support our mission to preserve and maintain the historic facility.”