Community Savings Account challenge to benefit Philip area
Wed, 11/04/2015 - 10:31am admin
DeMaris (Paulsen) Nesheim has begun a matched donation challenge process to benefit nonprofit efforts in the Philip area.
Through the South Dakota Community Foundation, Nesheim has challenged the people in the Philip area to start a community savings account. She will donate a total of $100,000, though in increments to match what the Philip community raises first. After the Philip area raises $50,000 of new donations, she will provide a $50,000 match. Thereafter, she will match incremental donations up to another $50,000. Once a total of $200,000 from all other parties and Nesheim has been reached, the SDCF will then contribute another $50,000. This will result in a community savings account beginning at $250,000.
The interest on this permanent account, up to 4.5 percent of the principal each year, will be available as grants to local, verifiable nonprofits throughout the year. That is at least $11,250 each year benefiting the community. Through an application process, these grants may go for activities, building, expenses, benefits or other reasons. Nesheim does not envision these grants, though, as any kind of scholarship base.
Nesheim announced this donation challenge to a gathering of Philip leadership, Tuesday, Oct. 27. Represented were Philip Charities, Philip City Council, Scotchman Industries, First National Bank in Philip, Philip Health Services, Ravellette Publications and others. After reciting a history of why she is profoundly fond of the Philip area, and what the area has to offer to everyone’s quality of life, Nesheim concluded, “Everything I have is a gift from God, and I am to share those gifts joyfully. The proceeds will make a real difference.”
Beth Massa is the West River development officer for the South Dakota Community Foundation. She and Nesheim have worked out this challenge for the Philip community, using community savings account programs from 70 other South Dakota communities as working models. “The idea of an endowment is to grow,” said Massa. “This is not going to die, but live on.” There will be a one percent administrative fee to the SDCF.
One of the working models illustrated for discussion was the Huron community. Some of the nonprofit activities supported by its community savings account include little league baseball, an arts council, community theatre, junior achievement, a YMCA, a family safe center, the school system and more.
Speaking only for himself and the bank, Ray Smith said, “We accept your challenge.” Many people in the room echoed that enthusiasm. Before the end of this meeting, Jerry and Karen Kroetch put in a donation of $25,000 for the future of their community.
A working committee, or advisory board, will be made up of Philip area volunteer leaders to oversee the raising of the account and eventually the dispersement of its interest to applying non-profits or their fiscal sponsors. Massa said the SDCF will not micro-manage. For now, Roger Porch has been asked to be the initial contact for Philip area people wishing to donate or inquiring about the application process by non-profits.
Massa concluded, “The intent is not to raise the $250,000, but to use it as a vehicle to do something.”