Annual Report - Otto Bremer Trust
2015
Annual Report
Otto Bremer’s vision and longstanding commitment to communities during and after the Great Depression endure today through the work of the Otto Bremer Trust. We sustain the legacy of our founder by investing in people, places and opportunities in the Upper Midwest.
OTTO BREMER TRUST Annual Report 2015
Our New Logo
LETTER FROM THE TRUSTEES
The Otto Bremer Trust: Investing in People, Places and Opportunities in the Upper Midwest Words on a page mean nothing unless they convey an ultimate truth: when combined in a compelling way they can be a tool for innovative and powerful action. Our name and new mission statement contain such words. Our name acknowledges the man whose vision has been the driving force for significant community investments for more than 70 years. The word Trust speaks to the obligation of the Trustees to fulfill Otto Bremer’s aspirations for the region. In our mission statement, the word Investing captures the essence of the core work of the Otto Bremer Trust. The structure of the Trust is complex, yet simple. We are charged with the oversight of banking, investment and philanthropic activities that have paved the way for significant and enduring community commitments over the years. The Trust’s primary holding, Bremer Bank, with assets now greater than $10 billion, is a model of sound banking practices and outstanding commitment to stakeholders. Our investment portfolio and its careful management generate additional resources that support our strategic goals.
This new mission statement is one manifestation of several changes we put in motion following our 70th anniversary in 2014. Organizationally, we realigned our philanthropic leadership into seven regions spanning Minnesota, North Dakota and western Wisconsin, with a dedicated staff member to serve as each region’s point person. We have also increased our programrelated investments, identifying community needs that we believe can significantly benefit from innovative financing. This evolution of purpose drove the need to update and expand our mission statement. Investing in People, Places and Opportunities in the Upper Midwest recognizes not only the individuals and communities of the region where we have operated, but also the increasingly diverse needs of dynamic organizations throughout the region which present unique and compelling opportunities for the Trust’s investment. Our response is to build upon and expand our knowledge of the issues and challenges facing these communities and help make a measurable and meaningful impact for positive change. Our expectations for these community investments are similar to those of our financial investments—long-term positive returns will be measurable indications of community growth and individuals moving forward. With prudent management of all our investments, both financial and philanthropic, we can expect to continue to grow our assets for even greater philanthropic distributions in the future. This is what Otto Bremer envisioned.
Charlotte S. Johnson
S. Brian Lipschultz
Daniel C. Reardon
CO – CEO AND TRUSTEE
CO – CEO AND TRUSTEE
CO – CEO AND TRUSTEE
The Otto Bremer Trust logomark is inspired by the geographic locations of the Trust’s activities — with the circles marking the corners of North Dakota, Minnesota and Wisconsin on a grid that suggests both scope and connection. This geographic “map” is enhanced by the repetition of the gold color used both for the mark and the word ‘Trust.’
OTTO BREMER TRUST Annual Report 2015
2015 GRANTS OVERVIEW
The Otto Bremer Trust, based in St. Paul, Minnesota, is one of the nation’s largest charitable trusts. Created in 1944 by banker and community leader Otto Bremer, the Trust was established to perpetuate his life’s work of growing his investments in community banks, which over time evolved into OBT’s 92 percent ownership of Bremer Bank and a portfolio of other investments. From modest beginnings, OBT has made over half a billion dollars in grants and program-related investments to nonprofit organizations in Minnesota, North Dakota and western Wisconsin, with assets exceeding $900 million. OBT seeks to build healthy, vibrant communities. We do this by investing in people, places and opportunities in the Upper Midwest. In 2015 the Trust made over $45 million in grants and program-related investments that were distributed to more than 500 organizations in our region. Nearly 70 percent of these awards went to communities, regional centers and metropolitan areas in the Greater Bremer region. The balance went to organizations throughout the metro area of Minneapolis-St. Paul.
TWIN CITIES METROPOLITAN AREA
WESTERN NORTH DAKOTA
RED RIVER REGION
CENTRAL AND NORTHERN MINNESOTA
$16,649,017
$2,857,478
$3,081,709
$2,727,151
MN Breckenridge, Crookston, Detroit Lakes, Fisher, Moorhead, Warren
Aitkin, Baxter, Brainerd, International Falls, Princeton, Rice, Sartell, Sauk Rapids, St. Cloud
252 GRANTS AND PRIs
Arden Hills, Brooklyn Center, Eagan, Eden Prairie, Edina, Inver Grove Heights, Lakeville, Maplewood, Minneapolis, Minnetonka, Plymouth, Richfield, Roseville, South St. Paul, St. Anthony, St. Louis Park, St. Paul, Stillwater, White Bear Lake, Woodbury
44 GRANTS
Bismarck, Carrington, Devils Lake, Max, Minnewaukan, Minot, Richardton, Rugby
WESTERN WISCONSIN
$4,115,166 WESTERN AND SOUTH CENTRAL MINNESOTA
$3,706,478 67 GRANTS
Alexandria, Brandon, Fergus Falls, Mankato, Marshall, Morris, Owatonna, Perham, Redwood Falls, Starbuck, Watertown, Willmar
92 GRANTS
Amery, Bayfield, Colfax, Danbury, Eau Claire, Elk Mound, Frederic, La Crosse, La Pointe, Menomonie, New Richmond, Siren, Washburn
54 GRANTS
ND Casselton, Fargo, Fordville, Gilby, Grafton, Grand Forks, Larimore, Lisbon, Wahpeton
SOUTHEASTERN MINNESOTA
45 GRANTS
MINNESOTA STATEWIDE
$8,506,914 72 GRANTS AND PRIs
$2,416,372 23 GRANTS
Austin, Eyota, Houston, Kasson, Rochester, Rollingstone, St. Charles, Stewartville, Winona
NORTH DAKOTA STATEWIDE
$1,056,500 12 GRANTS
OTTO BREMER TRUST Annual Report 2015
While the Trust invests in a wide spectrum of issues to help move communities forward, these issues can be broken down into four categories: Basic Needs, Children and Youth, Economic Well-Being and Healthy Communities. Below are examples— by region—of the leading type and category of requests we received and funded over the past year.
METRO AREA MINNESOTA
WESTERN NORTH DAKOTA
RED RIVER VALLEY
Children and Youth
Healthy Communities
Healthy Communities
Program support for a citywide, multi-sector coalition that uses multiple intervention strategies to curb the growing tide of youth crime and provide culturally specific programming, services and developmental supports.
Support for an organization that provides education and follow-up services to professional and family caregivers of those with Alzheimer’s disease and dementia living in rural North Dakota.
Capital investments to renovate a senior center to increase accessibility and serve more seniors in the community.
Capital support to build a second location for a day treatment center in western Hennepin County designed for adolescents who have emotional and behavioral challenges. Program support for the launch of a college success program for high school seniors through summer training and internship initiatives and college application and enrollment support.
WESTERN AND SOUTH CENTRAL MINNESOTA
Basic Needs
General operating support for an organization that provides shelter and supportive services to homeless men. Investments for the purchase of dental equipment for clinics in Hawley and Fergus Falls, Minnesota.
Program support for an organization that works to reduce and eliminate poverty, and to build assets for lowand moderate-income North Dakotans through public policy education, grassroots organizing and consensusbased approaches to solving community problems.
WISCONSIN
Healthy Communities and Basic Needs Support for prevention outreach, health care and social service programs for individuals living with HIV. General operating support for an organization that recruits, develops and coordinates volunteers to assist seniors and adults with disabilities to maintain their independence. General operating support for an organization that provides shelter and supportive services to homeless individuals and families so that they can attain self-sufficiency. Support for an organization providing legal services to low-income victims of domestic violence, sexual assault and child abuse in Bayfield and Ashland counties.
Capital investments to support a new training and development center that will include a sensory gym to provide shared work space, education, training for nonprofits, and services to individuals with disabilities.
SOUTHEASTERN MINNESOTA
CENTRAL AND NORTHERN MINNESOTA
Healthy Communities General operating support for an organization that provides independent living services to low-income seniors and persons with disabilities. Program support for an organization that provides basic ESL and workforce development training to newly arrived immigrants and refugees. Capital investment for emergency repairs to keep a domestic violence shelter open.
Healthy Communities MINNESOTA STATEWIDE
Program expansion support for an organization that works to provide isolated, homebound older adults with physical activities through use of technology and college student volunteers. Capacity building for a social service organization serving immigrants, refugees, and their families through employment, health care access, vocational training and victim services in Rochester.
Healthy Communities Support for a physician volunteer program that cultivates and coordinates placement of critically needed doctors to Minnesota’s medically underserved communities. Support to develop a state-wide mental health training institute to provide professional education and increase access to training and evidence-based curricula.
NORTH DAKOTA STATEWIDE
Basic Needs
Investments in the activities of a statewide oral health coalition to improve the oral health care of residents throughout the state through prevention and education. Capacity building for an organization that focuses on immediate hunger needs and works to address the root causes of hunger throughout North Dakota.
In 2015 the Trust made over $45 million in grants and program-related investments that were distributed to more than 500 organizations in our region.
2015 FINANCIAL OVERVIEW for the year ended December 31, 2015
52,450,734
Corporate stock
843,974,239
Other
7,524,905
$945,257,043
$761,102,155
Fixed income
$906,202,779
$248,311
Investments
$795,565,635
Cash
$898,842,764
END OF YEAR MARKET VALUE OF ASSETS
Other Assets 1,852,852 ASSETS
(dollars in millions)
REVENUE AND EXPENSES Revenue Interest from investments
22,832
OBT’s investment holdings have grown significantly over the years. At the end of 2015, our Total Assets were over $900 million.
Taxes
466,000
Grants and program-related investments
45,131,785
Total Expenses and Disbursements
$50,246,469 $(66,917)
GRANTS/PRIs
(dollars in thousands)
2011
Excess Revenue over Expenses
The annual return on our bank and other investments supports our philanthropic output. Focusing on quality investing is fundamental to our trust structure.
30 E. 7th St. Ste. 2900 St. Paul, MN 55101–2988 OT TOBREMER.ORG
Main
Toll-free
651 227 8036 888 291 1123
$45,131,785
4,648,684
$42,296,824
Operations and administration
$30,567,764
Expenses and Disbursements
$36,229, 373
$50,179,552
2012
Total Revenue
2014
1,030,727
2015
4,750,819
Other income
$38, 321,048
44,375,174
Net gain on sale of investments
2013
Dividends from investments
2014
$906,202,779
2011
Total Assets
2015
151,738
2013
Accrued receivables
2012
Fixed assets
Annual Report
Otto Bremer’s vision and longstanding commitment to communities during and after the Great Depression endure today through the work of the Otto Bremer Trust. We sustain the legacy of our founder by investing in people, places and opportunities in the Upper Midwest.
OTTO BREMER TRUST Annual Report 2015
Our New Logo
LETTER FROM THE TRUSTEES
The Otto Bremer Trust: Investing in People, Places and Opportunities in the Upper Midwest Words on a page mean nothing unless they convey an ultimate truth: when combined in a compelling way they can be a tool for innovative and powerful action. Our name and new mission statement contain such words. Our name acknowledges the man whose vision has been the driving force for significant community investments for more than 70 years. The word Trust speaks to the obligation of the Trustees to fulfill Otto Bremer’s aspirations for the region. In our mission statement, the word Investing captures the essence of the core work of the Otto Bremer Trust. The structure of the Trust is complex, yet simple. We are charged with the oversight of banking, investment and philanthropic activities that have paved the way for significant and enduring community commitments over the years. The Trust’s primary holding, Bremer Bank, with assets now greater than $10 billion, is a model of sound banking practices and outstanding commitment to stakeholders. Our investment portfolio and its careful management generate additional resources that support our strategic goals.
This new mission statement is one manifestation of several changes we put in motion following our 70th anniversary in 2014. Organizationally, we realigned our philanthropic leadership into seven regions spanning Minnesota, North Dakota and western Wisconsin, with a dedicated staff member to serve as each region’s point person. We have also increased our programrelated investments, identifying community needs that we believe can significantly benefit from innovative financing. This evolution of purpose drove the need to update and expand our mission statement. Investing in People, Places and Opportunities in the Upper Midwest recognizes not only the individuals and communities of the region where we have operated, but also the increasingly diverse needs of dynamic organizations throughout the region which present unique and compelling opportunities for the Trust’s investment. Our response is to build upon and expand our knowledge of the issues and challenges facing these communities and help make a measurable and meaningful impact for positive change. Our expectations for these community investments are similar to those of our financial investments—long-term positive returns will be measurable indications of community growth and individuals moving forward. With prudent management of all our investments, both financial and philanthropic, we can expect to continue to grow our assets for even greater philanthropic distributions in the future. This is what Otto Bremer envisioned.
Charlotte S. Johnson
S. Brian Lipschultz
Daniel C. Reardon
CO – CEO AND TRUSTEE
CO – CEO AND TRUSTEE
CO – CEO AND TRUSTEE
The Otto Bremer Trust logomark is inspired by the geographic locations of the Trust’s activities — with the circles marking the corners of North Dakota, Minnesota and Wisconsin on a grid that suggests both scope and connection. This geographic “map” is enhanced by the repetition of the gold color used both for the mark and the word ‘Trust.’
OTTO BREMER TRUST Annual Report 2015
2015 GRANTS OVERVIEW
The Otto Bremer Trust, based in St. Paul, Minnesota, is one of the nation’s largest charitable trusts. Created in 1944 by banker and community leader Otto Bremer, the Trust was established to perpetuate his life’s work of growing his investments in community banks, which over time evolved into OBT’s 92 percent ownership of Bremer Bank and a portfolio of other investments. From modest beginnings, OBT has made over half a billion dollars in grants and program-related investments to nonprofit organizations in Minnesota, North Dakota and western Wisconsin, with assets exceeding $900 million. OBT seeks to build healthy, vibrant communities. We do this by investing in people, places and opportunities in the Upper Midwest. In 2015 the Trust made over $45 million in grants and program-related investments that were distributed to more than 500 organizations in our region. Nearly 70 percent of these awards went to communities, regional centers and metropolitan areas in the Greater Bremer region. The balance went to organizations throughout the metro area of Minneapolis-St. Paul.
TWIN CITIES METROPOLITAN AREA
WESTERN NORTH DAKOTA
RED RIVER REGION
CENTRAL AND NORTHERN MINNESOTA
$16,649,017
$2,857,478
$3,081,709
$2,727,151
MN Breckenridge, Crookston, Detroit Lakes, Fisher, Moorhead, Warren
Aitkin, Baxter, Brainerd, International Falls, Princeton, Rice, Sartell, Sauk Rapids, St. Cloud
252 GRANTS AND PRIs
Arden Hills, Brooklyn Center, Eagan, Eden Prairie, Edina, Inver Grove Heights, Lakeville, Maplewood, Minneapolis, Minnetonka, Plymouth, Richfield, Roseville, South St. Paul, St. Anthony, St. Louis Park, St. Paul, Stillwater, White Bear Lake, Woodbury
44 GRANTS
Bismarck, Carrington, Devils Lake, Max, Minnewaukan, Minot, Richardton, Rugby
WESTERN WISCONSIN
$4,115,166 WESTERN AND SOUTH CENTRAL MINNESOTA
$3,706,478 67 GRANTS
Alexandria, Brandon, Fergus Falls, Mankato, Marshall, Morris, Owatonna, Perham, Redwood Falls, Starbuck, Watertown, Willmar
92 GRANTS
Amery, Bayfield, Colfax, Danbury, Eau Claire, Elk Mound, Frederic, La Crosse, La Pointe, Menomonie, New Richmond, Siren, Washburn
54 GRANTS
ND Casselton, Fargo, Fordville, Gilby, Grafton, Grand Forks, Larimore, Lisbon, Wahpeton
SOUTHEASTERN MINNESOTA
45 GRANTS
MINNESOTA STATEWIDE
$8,506,914 72 GRANTS AND PRIs
$2,416,372 23 GRANTS
Austin, Eyota, Houston, Kasson, Rochester, Rollingstone, St. Charles, Stewartville, Winona
NORTH DAKOTA STATEWIDE
$1,056,500 12 GRANTS
OTTO BREMER TRUST Annual Report 2015
While the Trust invests in a wide spectrum of issues to help move communities forward, these issues can be broken down into four categories: Basic Needs, Children and Youth, Economic Well-Being and Healthy Communities. Below are examples— by region—of the leading type and category of requests we received and funded over the past year.
METRO AREA MINNESOTA
WESTERN NORTH DAKOTA
RED RIVER VALLEY
Children and Youth
Healthy Communities
Healthy Communities
Program support for a citywide, multi-sector coalition that uses multiple intervention strategies to curb the growing tide of youth crime and provide culturally specific programming, services and developmental supports.
Support for an organization that provides education and follow-up services to professional and family caregivers of those with Alzheimer’s disease and dementia living in rural North Dakota.
Capital investments to renovate a senior center to increase accessibility and serve more seniors in the community.
Capital support to build a second location for a day treatment center in western Hennepin County designed for adolescents who have emotional and behavioral challenges. Program support for the launch of a college success program for high school seniors through summer training and internship initiatives and college application and enrollment support.
WESTERN AND SOUTH CENTRAL MINNESOTA
Basic Needs
General operating support for an organization that provides shelter and supportive services to homeless men. Investments for the purchase of dental equipment for clinics in Hawley and Fergus Falls, Minnesota.
Program support for an organization that works to reduce and eliminate poverty, and to build assets for lowand moderate-income North Dakotans through public policy education, grassroots organizing and consensusbased approaches to solving community problems.
WISCONSIN
Healthy Communities and Basic Needs Support for prevention outreach, health care and social service programs for individuals living with HIV. General operating support for an organization that recruits, develops and coordinates volunteers to assist seniors and adults with disabilities to maintain their independence. General operating support for an organization that provides shelter and supportive services to homeless individuals and families so that they can attain self-sufficiency. Support for an organization providing legal services to low-income victims of domestic violence, sexual assault and child abuse in Bayfield and Ashland counties.
Capital investments to support a new training and development center that will include a sensory gym to provide shared work space, education, training for nonprofits, and services to individuals with disabilities.
SOUTHEASTERN MINNESOTA
CENTRAL AND NORTHERN MINNESOTA
Healthy Communities General operating support for an organization that provides independent living services to low-income seniors and persons with disabilities. Program support for an organization that provides basic ESL and workforce development training to newly arrived immigrants and refugees. Capital investment for emergency repairs to keep a domestic violence shelter open.
Healthy Communities MINNESOTA STATEWIDE
Program expansion support for an organization that works to provide isolated, homebound older adults with physical activities through use of technology and college student volunteers. Capacity building for a social service organization serving immigrants, refugees, and their families through employment, health care access, vocational training and victim services in Rochester.
Healthy Communities Support for a physician volunteer program that cultivates and coordinates placement of critically needed doctors to Minnesota’s medically underserved communities. Support to develop a state-wide mental health training institute to provide professional education and increase access to training and evidence-based curricula.
NORTH DAKOTA STATEWIDE
Basic Needs
Investments in the activities of a statewide oral health coalition to improve the oral health care of residents throughout the state through prevention and education. Capacity building for an organization that focuses on immediate hunger needs and works to address the root causes of hunger throughout North Dakota.
In 2015 the Trust made over $45 million in grants and program-related investments that were distributed to more than 500 organizations in our region.
2015 FINANCIAL OVERVIEW for the year ended December 31, 2015
52,450,734
Corporate stock
843,974,239
Other
7,524,905
$945,257,043
$761,102,155
Fixed income
$906,202,779
$248,311
Investments
$795,565,635
Cash
$898,842,764
END OF YEAR MARKET VALUE OF ASSETS
Other Assets 1,852,852 ASSETS
(dollars in millions)
REVENUE AND EXPENSES Revenue Interest from investments
22,832
OBT’s investment holdings have grown significantly over the years. At the end of 2015, our Total Assets were over $900 million.
Taxes
466,000
Grants and program-related investments
45,131,785
Total Expenses and Disbursements
$50,246,469 $(66,917)
GRANTS/PRIs
(dollars in thousands)
2011
Excess Revenue over Expenses
The annual return on our bank and other investments supports our philanthropic output. Focusing on quality investing is fundamental to our trust structure.
30 E. 7th St. Ste. 2900 St. Paul, MN 55101–2988 OT TOBREMER.ORG
Main
Toll-free
651 227 8036 888 291 1123
$45,131,785
4,648,684
$42,296,824
Operations and administration
$30,567,764
Expenses and Disbursements
$36,229, 373
$50,179,552
2012
Total Revenue
2014
1,030,727
2015
4,750,819
Other income
$38, 321,048
44,375,174
Net gain on sale of investments
2013
Dividends from investments
2014
$906,202,779
2011
Total Assets
2015
151,738
2013
Accrued receivables
2012
Fixed assets
