TOWER — The Gundersen Trust is back in business with a newly formed board ready to begin distributing community grants following a major restructuring that promises to dramatically increase the trust’s annual payouts.
The five-member Gundersen Endowment Fund Board held its organizational meeting last week, electing officers and laying groundwork to begin accepting grant applications later this year. The meeting marked a milestone in the trust’s revival after the city council approved transferring nearly $1 million in trust assets to the Duluth-Superior Area Community Foundation for professional investment management.
City councilor Bob Anderson was elected board chair, with Dan Jones as vice chair, and Aaron Kania as secretary. The board also established staggered terms, with two members serving one-year initial terms, two serving two years, and one serving three years to ensure continuity as the program develops.
The restructuring represents a turnaround for the trust, which had generated minimal returns for years that barely covered expenses. Under the new arrangement with the community foundation, the city and trust expect to generate enough money to dole out grants.
The distribution plan calls for 75 percent of annual proceeds to support city operations, with the remaining 25 percent available for grants administered by the new board.
“We’re going to be given the authority to allocate these funds,” Anderson explained to fellow board members, noting the committee will operate with considerable autonomy in selecting grant recipients.
Much of Thursday’s meeting focused on establishing operational procedures, though several key decisions were postponed pending consultation with the community foundation and legal clarification on the board’s authority versus city council oversight.
The board discussed meeting quarterly rather than monthly, recognizing the seasonal nature of grant cycles. Since funding arrives in mid-May each year, members envision concentrated activity in late spring and summer when applications will be reviewed and awards distributed, with lighter schedules during other periods.
“It’s kind of hard to discuss what we’re going to give out as a grant if we don’t know how much money we’re getting for the year,” Jones noted.
Board members emphasized keeping the application process accessible while ensuring accountability. Early discussions suggested relatively informal procedures for what are expected to be modest grant amounts, potentially ranging from a few hundred to several thousand dollars.
“The whole thing is to help the community,” Anderson said, expressing concern about creating barriers that might discourage applications.
The board plans to require basic project budgets and follow-up reporting to verify funds are used as intended, but stopped short of imposing extensive oversight requirements.
“I don’t want to make things so difficult that they don’t even want to bother applying,” Jones said.
Some procedural questions require clarification, including whether the board has final authority over grant awards or must seek city council approval.
The original trust
agreement indicates the committee should have direct authority, but city ordinance language suggests council involvement.
City administrator Michael Schultz will research these questions with legal counsel and the community foundation before the board’s next meeting, tentatively scheduled for later in July.
The board aims to finalize policies before the Aug. 11 city council meeting. Applications would likely be accepted on a quarterly basis, with 30-day advance deadlines before board meetings.
Board members expressed optimism about restoring the trust’s community benefit mission after years of dormancy.
“We’re starting at the beginning, so we’re going to have it all tracked and everything,” Kania said.