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Initiative Foundation

EIN 36-3451562 · Little Falls, MN

Public records show a registered, tax-exempt organization in good standing.

LegitimacyPassesRegistration and standingFinancial healthStrong93 out of 100GovernanceStrong90 out of 100Impact evidenceDescribes programsHow well its results are evidenced

Points to look into

  • It reported loans to or from officers, directors or other insiders.

These come from the organization's own tax return. There may be a good explanation; ask the charity.

What it says it does

TO EMPOWER PEOPLE TO BUILD THRIVING COMMUNITIES AND A VIBRANT REGION ACROSS CENTRAL MINNESOTA.

Income
$15.2 million
Spending
$15.7 million
Spent on programs
86%
Reserves
43 months of spending
Largest source of income
donations and private grants, 39%
Employees
34
Volunteers
226
Highest pay
$193,885, president

Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Financial health

Strong: 93 out of 100. Higher than 88% of charities in its peer group (community improvement, $10m to $100m).

  • Reserves

    35 of 35

    Spendable reserves would cover 43.0 months of spending.

  • Debt

    20 of 20

    It owes 8% of what it owns.

  • Living within its means

    8 of 15

    Spending exceeded income by 3% of income.

  • Income trend

    15 of 15

    Income rose 52% on the year before.

  • Spending floor

    15 of 15

    86% of spending went to programs and raising each dollar of donations cost 7 cents.

Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Governance

Strong: 90 out of 100. Higher than 22% of charities in its peer group (community improvement, $10m to $100m).

  • Independent board

    25 of 25

    15 of 15 voting board members are independent.

  • Conflict of interest policy

    15 of 15

    Has a written conflict of interest policy.

  • Whistleblower policy

    8 of 8

    Has a written whistleblower policy.

  • Record keeping policy

    7 of 7

    Has a written policy on keeping and destroying records.

  • Board minutes

    5 of 5

    Keeps minutes of board meetings.

  • Board sees the tax return

    10 of 10

    Gave the board a copy of this return before filing it.

  • Pay set independently

    5 of 5

    Sets its chief executive's pay through independent review and comparison.

  • Independent check of accounts

    15 of 15

    Its accounts were audited by an independent accountant.

  • No reported misuse

    0 of 10

    Reports at least one of: diversion of assets, excess benefits, loans to insiders.

Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Impact evidence

Describes programs. Its tax return describes what it does but we have found no measurable results in it.

Programs described in its return (4)
  1. $4.5 million spent. COMMUNITYCHILDCARE SOLUTIONS: THE CHILDCARE SOLUTIONS PROGRAM ENHANCES COMMUNITY AND WORKFORCE DEVELOPMENT THROUGH ACCESS TO AFFORDABLE, QUALITY CHILDCARE. IN 2024, $275,000 WAS ALLOCATED TO PARTNER ORGANIZATIONS TO FOSTER ECONOMIC GROWTH THROUGH EXPANDED CHILDCARE OPTIONS AND A SKILLED EARLY CHILDHOOD WORKFORCE. THE FOUNDATION FUNDED EFFORTS IN 10 CENTRAL MINNESOTA COMMUNITIES TO DEVELOP AND IMPLEMENT STRATEGIC PLANS ADDRESSING THE CHILDCARE SHORTAGE. THESE COMMUNITIES RECEIVED SPECIALIZED CHILDCARE CONSULTING AND TECHNICAL ASSISTANCE TO EXPLORE NEW PARTNERSHIPS AND CREATIVE SOLUTIONS WITH THE PUBLIC AND PRIVATE SECTORS. AS A RESULT, NEW CHILDCARE SUPPORT PROGRAMS WERE CREATED WITH EMPLOYERS, LOCAL UNITS OF GOVERNMENT, AND COMMUNITY ORGANIZATIONS. THESE EFFORTS RESULTED IN 10 CHILDCARE CENTERS OPENING MORE THAN 350 NEW SLOTS. ADDITIONALLY, 80 FAMILY CHILDCARE BUSINESSES WERE ESTABLISHED OR INCREASED THE NUMBER OF SLOTS, CREATING OVER 150 NEW CHILDCARE SLOTS IN THE REGION. FUNDING TO ATTRACT, TRAIN, AND MAINTAIN THE EARLY CARE WORKFORCE RESULTED IN SUPPORT FOR MORE THAN 700 EARLY CARE PROFESSIONALS. PRELIMINARY DESIGN BIDS TO CREATE OR EXPAND BUSINESSES, TRAINING AND SUPPORT TO ENHANCE BUSINESS PRACTICES, AS WELL AS OTHER DEVELOPMENTAL AND SAFETY TRAINING TO INCREASE QUALITY RATING SCORES AND EARLY POTENTIAL WERE FUNDED. THE THREE LOCAL REGIONAL COMMUNITY COLLEGES COLLABORATED ON EARLY CHILDHOOD WORKFORCE INITIATIVES, ENABLING STUDENTS TO OBTAIN SCHOLARSHIPS TO RECEIVE CREDENTIALS TO ENTER THE FIELD OR ADVANCE THEIR CAREERS.COMMUNITY RESILIENCY: OUR LONG-STANDING SUPPORT FOR ECONOMIC TRANSITION ASSOCIATED WITH THE DECOMMISSIONING OF THE SHERBURNE COUNTY COAL GENERATION STATION CONTINUES TO YIELD BENEFITS FOR BECKER AND OTHER SURROUNDING COMMUNITIES. OUR MOST RECENT PILOT PROJECT SUPPORTED AN ANALYSIS OF THE COST BENEFIT OF ENERGY INVESTMENTS AT ELK RIVER (SHERBURNE COUNTY) AND WALKER (CASS COUNTY) FOOD SHELVES. THIS ANALYSIS WILL HELP BOTH PARTNERS SECURE GRANTS FOR INSTALLATION SO THEY CAN QUICKLY RETIRE ANY DEBT AND GENERATE REVENUE. GRANTMAKING: OUR DISCRETIONARY GRANTMAKING DELIVERED OVER $365,000. WE SERVED AS THE STATE-WIDE ADMINISTRATIVE HUB FOR THE 2024 ROUND OF OTTO BREMER TRUST COMMUNITY RESPONSIVE FUND WHICH TOTALED $3 MILLION. WE AWARDED OVER $600,000 IN MINNESOTA MAIN STREET ECONOMIC REVITALIZATION GRANTS TO BUSINESSES WITHIN QUALIFIED COMMUNITIES. THE INVESTMENTS SERVED AS MATCHING FUNDS TO SPUR PRIVATE REINVESTMENT IN DOWNTOWNS.NONPROFIT DEVELOPMENT: THE NONPROFIT ACADEMY SUITE OF PROGRAMS, INCLUDING EXECUTIVE ROUNDTABLE, VIBRANT AND EQUITABLE COMMUNITIES COHORTS, FUNDRAISING SUMMITS, CONTINUOUS IMPROVEMENT, AND VARIOUS SINGLE-DAY TRAININGS AND LUNCHTIME LEARNING SESSIONS, SERVED 260 TOTAL ORGANIZATIONS AND MORE THAN 457 UNIQUE PARTICIPANTS ACROSS THE REGION. COHORT TRAININGS FOCUSED ON ORGANIZATIONS LED BY AND SERVING UNDERSERVED COMMUNITIES. IN 2024, THE NONPROFIT ACADEMY PROGRAM PROVIDED CONSULTING, TRAINING, AND SERVED AS A TRUSTED INTERMEDIARY TO AWARD ALMOST $1 MILLION IN GRANTS TO SUPPORT SPECIFIC REGIONAL NONPROFIT PROJECTS. NONPROFIT ACADEMY FURTHER REFINED THE FOUNDATION'S CONTINUOUS IMPROVEMENT PROGRAM, OPENING THE TRAINING TO LOCAL GOVERNMENT UNITS AND NONPROFIT ORGANIZATIONS.
  2. $4.3 million spent. ECONOMYLENDING: THE INITIATIVE FOUNDATION DEPLOYED 39 ECONOMIC DEVELOPMENT AND SMALL BUSINESS LOANS TOTALING $5,679,497. THE LENDING PROGRAM PROVIDES CAPITAL TO UNDERSERVED ENTREPRENEURS AND UNDERINVESTED COMMUNITIES, FROM MICROLOANS UNDER $50,000 TO LARGE GAP LOANS WITH THE POTENTIAL TO EXCEED $500,000. THIS FLEXIBILITY ALLOWS THE FOUNDATION TO SERVE STARTUPS TO ESTABLISHED BUSINESSES. LENDING IS FOCUSED ON GIVING ENTREPRENEURS A FAIR OPPORTUNITY AT WEALTH-BUILDING AND CREATING HIGH-QUALITY JOBS AND LOCALLY OWNED BUSINESSES. THE FOUNDATION MAINTAINS A WHOLLY OWNED SUBSIDIARY, THE INITIATIVE FOUNDATION IMPACT FUND, FOCUSED ON CDFI ACTIVITIES. THE IMPACT FUND DEPLOYED 12 LOANS TOTALING $829,528 USING INITIATIVE FOUNDATION STAFF THROUGH A MANAGEMENT SERVICES AGREEMENT. INITIATORS FELLOWSHIP: THE INITIATORS FELLOWSHIP IS A ONE-OF-A-KIND RURAL SOCIAL ENTERPRISE PROGRAM SERVING 53 COUNTIES AND SIX NATIVE NATIONS IN GREATER MINNESOTA. IT IS DEPLOYED IN PARTNERSHIP WITH THE SOUTHWEST INITIATIVE FOUNDATION, WEST CENTRAL INITIATIVE, AND NORTHWEST MINNESOTA FOUNDATION. THE PROGRAM HAS GRANTED 27 FELLOWSHIPS SINCE INCEPTION WITH PARTICIPANTS BENEFITING FROM MORE THAN $1.5 MILLION IN DIRECT PROGRAM INVESTMENTS RANGING FROM STIPENDS TO PROFESSIONAL DEVELOPMENT TO MENTORSHIP. IT HAS LEVERAGED OVER $5 MILLION IN OUTSIDE INVESTMENTS. THE FELLOWSHIP HAS BENEFITED FROM OVER 700 VOLUNTEER MENTORING AND ADVISING HOURS. THESE GREATER MINNESOTA LEADERS ARE BUILDING ECONOMIES AND IMPROVING QUALITY OF LIFE IN THEIR TOWNS BY DEVELOPING PURPOSE-DRIVEN BUSINESSES AND NONPROFIT ORGANIZATIONS.ENTERPRISE ACADEMY AND SMALL BUSINESS SUPPORT: THE ENTERPRISE ACADEMY PROGRAM PROVIDESBUSINESS TRAINING, ONE-ON-ONE TECHNICAL ASSISTANCE, AND LENDING TOUNDERSERVED ENTREPRENEURS. WE HAVE SERVED OVER 5,700 ENTREPRENEURS SINCE 2018. THIS INCLUDES 284 GRADUATES FROM ENTERPRISE ACADEMY, A 12-WEEK INTENSIVE BUSINESS TRAINING PROGRAM. IN 2024, THE PROGRAM GRADUATED COHORTS IN THE REGIONS OF SAINT CLOUD, LONG PRAIRIE, AND THE MILLE LACS TRIBAL ECONOMY. THE PROGRAM IS ONE OF THE FEW IN GREATER MINNESOTA DEDICATED TO ACCELERATING THE SUCCESS OF UNDERSERVED ENTREPRENEURS WITH COMPREHENSIVE SUPPORT AND TRAINING. IN 2024, PROGRAMS PROVIDED OVER 3,600 HOURS OF FREE ONE-ON-ONE AND GROUP BUSINESS COACHING TO MORE THAN 440 ENTREPRENEURS.WORKFORCE DEVELOPMENT: ATTRACTION, DEVELOPMENT, AND RETENTION OF A SKILLED WORKFORCEAREA PRIMARY INTEREST TO EMPLOYERS THROUGHOUT OUR REGION. TO SUPPORT GROWTH AND THE DEVELOPMENT OF TECHNOLOGY, TOOLS AND PROGRAMS TO ATTRACT AND RETAIN SKILLED WORKERS, THE FOUNDATION PROVIDED FUNDING AND OTHER SUPPORTS FOR LOCAL INITIATIVES, LINKING FUNDERS, EDUCATIONAL INSTITUTIONS, AND EMPLOYERS.
  3. $4.8 million spent. GENEROSITYPARTNER FUNDS: THE FOUNDATION'S 131 PARTNER FUNDS DELIVERED 351 GRANTS FOR OVER $1.4 MILLION IN AWARDS. THE AVERAGE GRANT IN 2024 WAS $4,079. TOTAL GRANTMAKING INCREASED IN 2024 COMPARED TO 2023 BOTH IN THE AGGREGATE AND AVERAGE GRANT AWARD. DONATIONS TO PARTNER FUNDS TOTALED $1,394,824 INCLUDING $605,200 TO ENDOWMENTS, $242,288 TO QUASI-ENDOWED FUNDS, $313,086 TO NON-ENDOWED FUNDS, AND $234,250 IN EVENTS REVENUE.
  4. IQ MAGAZINE: THE FOUNDATION PUBLISHED TWO EDITIONS OF IQ MAGAZINE IN 2024. THE MAGAZINE PROVIDES INCLUSIVE, SOLUTIONS-BASED EDITORIAL CONTENT AND PHOTOGRAPHY TO PROMOTE PROGRAMS, PARTNERSHIPS, OUTREACH EFFORTS, AND REGIONAL/STATEWIDE INITIATIVES THAT FOCUS ON ECONOMIC DEVELOPMENT, COMMUNITY DEVELOPMENT AND GENEROSITY. IQ MAGAZINE'S ROLE IN FILLING THE GROWING VOID AS TRADITIONAL NEWS OUTLETS SHRINK OR DISAPPEAR FROM THE MEDIA LANDSCAPE. IT IS THE LARGEST CIRCULATION PUBLICATION IN CENTRAL MINNESOTA.

Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Legitimacy checks

  1. Is it registered with the IRS? Passed.

    Listed in the IRS master file of tax-exempt organizations as a 501(c)(3) charitable organization.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  2. Has the IRS revoked its tax-exempt status? Passed.

    Not on the IRS automatic revocation list.

    Source: Automatic revocation of exemption list, Internal Revenue Service, file dated November 6, 2026.

  3. Are donations tax-deductible? Passed.

    On the IRS list of organizations eligible to receive tax-deductible contributions.

    Source: Publication 78 data: organizations eligible for tax-deductible contributions, Internal Revenue Service, file dated October 13, 2026.

  4. Is it keeping up with its IRS filings? Passed.

    Most recent return on file covers the year ending December 2024.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  5. How long has it been tax-exempt? Passed.

    Recognized by the IRS since August 1986.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  6. Is it in good standing with state regulators? Passed.

    Not on California's list of charities barred from soliciting. Other states are not yet checked.

    Source: May Not Operate or Solicit for Charitable Purposes list, California Attorney General, Registry of Charities and Fundraisers, file dated November 4, 2026.

Ratings and checks are our reading of public records, using the published method. They are not a statement about anyone's honesty. If you work for this organization, you can send corrections or results, confirm you want gifts through Veridonate, or ask to be removed from giving.