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ANNUALANNUALANNUALANNUALANNUALANNUALANNUALREPORTREPORTREPORTREPORTREPORT201620162016

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LETTER FROM OUR

LEADERS

MicroGrants

MISSION

HOW IT

WORKS

Dear Stakeholders:

We issued just over 700 grants in 2016, a 55% increase over the previous year. A major reason is that several large grants were received in the last weeks of 2015, for a record total of $926,000. But those funds came too late to be used in 2015. Instead, a large carry-over fueled our record-breaking 2016 grant making. We fully expect to equal 700 grants again in 2017.

Our Partner Agencies told us that they could more than double their grantee-prospects without any compromise in the quality of their quali� cations. � at meant, there were hundreds of people, who did not apply for grants, only because of the limit of our resources. In addition, there were a dozen aspiring Partner Agencies, each with additional people of potential, waiting in the wings to become partners. Consequently, our 250 additional grants were so quickly absorbed by the overwhelming demand.

We also improved our transportation grant-making in a new partnership with Bobby and Steve’s Auto World. � ey restore and sell road-worthy, used cars to our grantees, at an average of 35% below market value. In addition, we increased our $1,000 transportation grants to $1,400, their estimated minimum for purchasing a serviceable vehicle. So, our grantees are no longer vulnerable to the proverbial Used Car Salesman, the lemon that fails right o� the lot or the cheaply acquired, used car that just sits there because of unfeasible repair costs.

In this season of political and funding uncertainties, some things remain constant. Our high-potential grantees continue to need a timely boost. Generous donors, like you, continue to reach back and provide a hand-up. And MicroGrants continues to connect you both, e� ciently and economically. We are triangulating for transformation.

Cordially,

To spur economic self-su� ciency by giving strategic grants to low-income people of potential through Partner Agencies.

We receive generous donations from our supporters

Our partner agencies recommend their best quali� ed clients as possible grant recipients

We review grant applications and fund qualifying requests

Our partner agencies mentor the recipients and oversee use of the grant

� e partner agencies follow up with the recipients and report the results to MicroGrants

Don SamuelsCEO

Joe Selvaggio Chair of the Board

Joe Selvaggio

1

African Development Center of Minnesota

American Dream Law

BiiGiiWiin Community Development/American Indian Community Development

Bolder Options

Bridge for Youth

Daily Work

Emerge Community Development

Franciscan Outreach

Goodwill Easter Seals of MN

Incarnation Church

Jeremiah Program

Metropolitan Consortium of Community Developers (MCCD)

Metropolitian Economic Development Association (MEDA)

Midtown Global Market

Minneapolis Urban League

MN Family Justice Center

Northside Achievement Zone (NAZ)

Neighborhood Development Center (NDC)

Partnership Academy

PRISM

Project for Pride in Living (PPL)

Ramsey County Workforce Solutions

Resource, Inc. / Women Achieving New Directions (WAND)

Salvation Army – Booth Brown House

Salvation Army Adult Rehab.

St Paul Housing Authority

St Paul Youth Services

Summit Academy OIC

TechDump/Jobs Foundation (logo in dropbox)

Think Small

Twin Cities Rise!

Wilder Foundation

WomenVenture

ChicagoSt. Pius V Parish,

Habitat for Humanity

Providence House

Grace Place

St Matthew’s House

Goodwill Industries

Lorenzo Walker Technical College

Shared missions and

distinct roles makes

MicroGrants work!

Partner agencies

select, coach and

track the progress

of grant recipients.

MicroGrants’ on site

visits, evaluations,

and annual partner

summits fuel new

ideas and growth.

Self-su� ciency of

low-income people

continues to grow.

AGENCIES WE CALL

PARTNERS

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t 22 years old, Jerry is a 2016 Grantee of the year. He has a clear vision of being a successful business owner. He received his property management training from our Partner Agency, Emerge and nurtured visions of owning

and managing rental properties. Jerry used his grant for real estate classes and license. He says, “I now own a property management company and a property! While I’m growing my management company, I intend to sell a certain number of houses each year. I am on track for success, and I acknowledge that my successes aren’t solely based upon my e� orts and hard work but upon my accountability to others and the relationships I’ve built.”

drian is our MicroGrants Grantee of the Decade. He graduated from our Partner Agency MEDA and received MicroGrants, in 2012 and 2013. He used his grants to

start his online shoe business, XLFeet and to purchase the � rst major brand, Florsheim. Back then, he had sales of $6,000. Today he has a physical store and over 50 brands of socks slippers boots and shoes. He expects to break $1,000,000 in sales. Adrian says, “� anks to MicroGrants, that $1,000 has been multiplied exponentially, and was far more impactful than the dollar amount of $1,000. If it wasn’t for MicroGrants, I’d still be selling cell phones at an entry retail job to this day. � ank you MicroGrants!”

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2016 FEATURED GRANTEES

JERRY

EVANS

ADRIAN

COULTER

TSEREGEDA

CHERINAT

A

A

T

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seregeda is a Grantee of the Year for 2016. She had everything she needed to open her sewing and alteration business. She had the skills, vision, motivation, determination, and even clients but she did not have the

money to purchase the sewing machine and serger she needed. Tseregeda says, “It was either pursue my sewing business or give up the dream and get a job just to pay the bills. I will always be grateful for your help in getting the supplies I needed to get my business started and make my living at what I love to do!”

A GRATEFUL GRANTEEDear MicroGrants:

I would like to take the time out and thank everyone that was involved in the process of approving me for the microgrant. � e decision you all made on my behalf was a once in a lifetime opportunity. I am now a proud business owner, words cannot describe the feeling I have. � e microgrant changed my life overnight, I am able to leave behind a legacy for my children. I can now show my kids that hard work and dedication can make all the di� erence in the world. My sons will know what it is like to earn a decent living, while teaching my daughters to never give up. Because you all gave me a chance and considered my need and said yes to granting me a second chance I am ever so grateful. I asked for a boost to get me going in the direction I needed, I thank you all for the help and believing in my dream, my idea, and really helping! I cannot thank you enough, I must apologize for not thanking, especially the sta� , the donors and the founder, soon enough. However, right after receiving the grant I took a portion of the money and paid HomeAdvisors for the lead generation service they provide for professionals and since then I have had endless work for my company. I have been so busy with my janitorial service I have not had any time to formally write a thank you letter. � e rest of the grant went to supplies and insurance so the janitorial service could run e� ceitnely. I did not expect things to take o� so fast. I am ever so grateful to everyone at MicroGrants, the sta� and the donors and the founder. � ank you! � ank you! � ank you!

Sincerely,

Quentin McKnightMcKnight Unlimited Services

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2016 2015

Unrestricted Temporarily restricted Total Total

Support and Revenues

Individual contributions $382,478 $382,478 $378,257

Foundations and donor-advised funds. $300,499 $215,292 $515,791 $506,938

Event income

Corporate contributions $31,157 $31,157 $903

Investment income $2,755 $2,755

Net assets released $161,954 $(161,954)

Total support and revenues $878,843 $53,338 $932,181 $926,297

Expenses

Grants/Program services $784,984 $784,984 $525,232

Support services

Management and general $79,270 $79,270 $85,764

Fundraising $146,843 $146,843 $131,496

Total expenses $1,011,097 $1,011,097 $742,492

Change in Net Assets $(132,254) $53,338 $(78,916) $183,805

Net Assets

Beginning of year $707,715 $95,380 $803,095 $619,290

End of year $575,461 $148,718 $724,179 $803,095

2016

FINANCIALS2017 2016

Assets

Current Assets

Cash & cash equivalents & total current assets $726,254 $828,703

Equipment at cost

Less accumulated depreciation of $3,382 $4,216 $1,633

Prepaid Insurance $826 $389

$731,296 $830,725

Liability and Net Assets

Current Liability

Accounts payable and total current liability $7,117 $27,630

Net assets

Unrestricted $575,461 $707,715

Temporarily restricted $148,718 $95,380

$731,296 $830,725

STATEMENT OF FINANCIAL POSITION Year ended December 31, 2016

TOTAL INCOME $929,427

STATEMENT OF ACTIVITIES Year ended December 31, 2016

$900k

$800k

$700k

$600k

$500k

$400k

$300k

$200k

$100k

$0

2006

2007

2008

2009

2010

2011

2013

2014

2015

2012

In 2016, total revenues were comparable to 2015 as we focused on increasing our impact on the community by streamlining distribution of funds to keep up with a diverse and changing society. MicroGrants increased monetary dissemination to indivuals by 33%.

Autumn, 2016 was dedicated to developing new programs to diversify our impact. The “Lights On” program was launched late in the year and we are already beginning to see signs of relations between police and citizens being repaired.

Total grants given from 2006 to 2016 is 3978

2016

500

400

300

200

100

0

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

98

Karon, Robert I. & Stefanie M.Kaufman, Pamela K.

& Keierleber, DennisKelen, Erwin A.Kelleher, James J. & SuzanneKing Family Foundation, Peter J.King, Dr. GaryKleinBankKleinman, Jan & Santosa, FadilKonety, M.D., M.B.A. BadrinathKrisbin Foundation Trust, TheLasoff, Susan A.Lee, Steven & MelindaLees, Joanna P.Leighton, Katherine & PatrickLenzmeier, Allen & KathleenLetang, EarlsworthLippert, Theresa

& Frederick K. GrittnerLongfellow, AnnLongfellow, BarbaraLovrien, Elmer W.Macchia Family FoundationMacDonald, Jr., Robert W. & Susan B.Madden Charitable Fund, JoanMadden, Dr. JoanManthey, Mark..Marbrook Foundation, TheMargolis, Laurence J.& KarinMarkwardt, Frederic& HelenkMarx, TimMascari, Joseph A. & MarilynMauer, JaneMauriel Family FoundationMayer, Jim & JaneMcCrea Family Fund of TMF,

Bob & Polly N.McFarland Fund of TMF,

Richard & JoyceMcGee, DarleneMcGowan, JohnMclaughlin, LeonMcNair Family Fund, The Jan &

DavidtMech, David L.Meristem, LLC/Charles J. Maxwell, Jr.Mickelson Media FoundationMiller, Rebecca & Karl A. JonesMische, GeorgeMitchelson, Peter

& Judith B. HendersonMitterer, Susan E.Morgan, BrianMorrison, George H. & MaryMorrison, Jack & ChrisMorton, Philip A.Moss, PaulMurphy Family Fund, TMF,

David & Patty .

Nelson, MargaretNewman, LeonardNewman, P.A., Matthew B.Nguyen, Minh Tri & Vu S. DinhNorris, JaneNorth Star Fund of TMFNorthwest Area FoundationNupen, Mark S. & Rita C.Nystrom, Suzanne B.O’Connell, Michael J. & Keller, CindyO’Connor, EdO’Rourke, Michael & AnneOlson, Mary JoOlzenak, Randy M.Oppegard, Mark & LisaOpus FoundationPadilla Court FundPage, Gregory & CynthiaParekh, Bharat M.Parker, JoshuaPearlstein, MitchPepin, Jr., Richard G. & Suzanne J.Peris, Jose A. & Gulden, DianaPeterson, Dale E. & Bridget A.Pham, Viet Nhu & Molly HendricksPhillips, Alicia Plonski, PatrickPluhar, ElisaPouliot, Ted & Mary JoPratt Family Fund of TMFRappaport, Gary & SusanRazidlo, ConradReid, George McKayReiling, William & JoanneRenaissance Charitable

Foundation, IncRice, AliceRitvo, Roberta A. & Lynn R. L. RitvoRoberts, PatRock, Thomas G. & Raphan, MelissaRolnick, ArtRoth, JimRustad, James W. & Kay A. ThomasSanchez, Samuel & Michelle L.Sanders Rev. Trust, The MiriamSchoen, Milton A.Schoppert, Bill & WendySchulze Family Foundation,

Richard M.Sell, Jack & SusanSelvaggio, Joe Selvaggio, Sam.Selvaggio, SharonSenn, Charles A. & PatriciaShoop, Michael & Prudden, Joyce

Silver, David & AllnSipkins, AliSlack, KaySlowinski Fund of TSPF,

Emil J & Emily D.Smikis FoundationSoucie, Linda B.St. Anthony, NealSt. Luke Presbyterian ChurchStandard Heating & Air ConditioningStanton, Jill M.Steiner, James P. & Tracy K.Stephen, Sr. Family FoundationStratton, ThomasStreitz, Thomas & MichelleSwain, Tom H. & Arlene M.Tank Hill Fund of TMFTarget CorporationThomas, Kay A.Thompson, Lynne W.Thompson, Peter J.Tovo, AaronTown, Dr. Louise A.Ulseth, Anne Q.Vig, GaryVincent, JoAnnVon Blon, JoAnneVos, RuthanneWagner, Dennis L. & Debra J.Wahlstrom, CharmaineWaldo, James & AliceWard & Ward CompanyWark, David & Mary AnnWarth, TomWatson - ForsbergWayne Family Foundation, TheWeber, Marlys J.Weisner, Ben & Margaret RogWelch, E. Thomas & Rita D.Welna Hardware, IncWelter, MarkWerness, Margaret B.White, Thomas & DarleneWiener Fund of

Headwaters Fndt., BarbraWilliams, CEO, PaulWurtele Family Fund,

Angus & MargaretYackel, John & EleanorYaeger, JasonYeager, Elizabeth

1335 FoundationAal, Esam M. & PaulaAdams, Jim & JuliaAdvance Consulting LLCAkbar, IlseAmplatz, CarolineAnderson, Daniel W. & AliceAnderson, NancyAndreas Foundation, L & NAnkeny Fund of TMF, Pete & MargieAnonymousAnson, Peter W. & Sally AnkenyArthur, AlanBachman, KarenBaig, Asim & NatalyBaker FoundationBaratz Family Foundation, Inc.Barstow, KristineBassett, James W. & Mary L.Beard, William H. & Barbara H.Benjamoin, Joann A.Benke, Donald R. & PaulineBergerson Family Fund of TMF,

John & RuthBerton, AndrewBigbee, Arnold W.Bloom, Paul R.BlueStem Holding, L.P.Bolsoni, JenniferBorer, Catherine & Dan ConlonBremer Foundation, The OttoBrookman, Mr. & Mrs.Brooks, John C.Brown, B.Brude, J.P.Buckley, ElizabethBurdick Family Fund of TMF, TheBuscis, LyndaCadwell, TedCampbell, Kathleen M.Caridad CorporationCarlson, Bruce M. & Jean A.Carlson, PaulCaroline’s Kids FoundationCarpenter, Josephine BenzCarter, MaryCauston, AmyCauston, Ron & JoanneChristenson, Michael D.Christos, Inc.

CLB FoundationCohen, Burton D. & Audrey K.Cohen, Daniel W.Cohn, MicheleCommunity Shares of MNCornwell, Ronald G. & JoanCowan, Robert L. & Judy K.Cowles, JayCowles, John & Elizabeth

Page KnudsonCraighead, Donald H. & Sandra L.Cramer, P. Doug & Theresa WeisCrolick, Sue.Crosby, L. H.Cuningham, John W. & SallyCunningham, GaryDahl, Christopher T.Dartmouth-Hitchcock HealthDavis, LincolnDayton Revocable Trust, Julia W.Dayton, Edward N. & Sherry AnnDelavie, LauraDillon, Craig & Hailey L. GabrielDonateWellDouglas & Sands Coleman

Fund of TMFDucar, Michael P. & DebbieDyer Foundation, Jaye F. & Betty F.Earley, James C & Wndy E. SharpeEgerman, JeanEichhorn, Richard E.Eisberg & Kline Charitable

Fund of TMFEittreim, Kent & JoanneElliott, Sean P. & Meghan E.Engasser, MarkEngelsma Family FoundationErickson, TracyExline, John L. & LindaFattah, Salah A. & Suzanne M.Feldman, ReynoldFetzer InstituteFilter, Kevin & Keosle RosemaryFingerhut Family FioundationFitterer, Cyril & Shirley JaneFondell, DaynaForster, Barbara L.Forsythe, Charlotte M.Foster, Helen B.Fraboni, RonFurek, Robert M. & Susan A

Garg Family Foundation, Satya & InduGarrity Family Giving, TheGarrity, Charles E. & ArleneGeorge Family Foundation, TheGilligan FoundationGiuffre, Mary R.Glass, AaronGodfrey, Tracy & AnnGoldbarg, Stuart & Phyllis BeattyGreene, Robert A

& Presberg-Greene, SusanGreymont, Scott & Margaret HallGrieman, JohnGriffith, CharlotteGrossman, Barbara E. & Prauer,

Jeffrey EGroten, JoanneH86 Property ManagementHall, Donald & MarionHall, JanisHannan, Michael L.

& Ingersoll, Mina C.Hartman, Jim & JeanHartwell, LucyHavelin, KateHead Family Foundation, TheHedberg, John W.Heegaard Family Fund of TMF,

Anne & PeterHeegaard Family Fund,

David & JoanneHeegaard, Roger & MargeHeine, Mary AnnHendrickson Family Fund, L. H.Hewitt DA Fund of the IFF, Brad & SueHillswood FoundationHinck, John D. & Elizabeth C.Holguin Family Charitable FundHoon, DavidHoward, James A.Hughes, JohnHumphries, Jr., C. Lee

& Susan Lee GenawHunter, Christopher C. & Barb BurkeHurst Charitable Fund, JackIntelligent Financial Strategies/

Jason GIsaacs, KariJacob Family Fund, Harry & LilaJAWCOJohns, Richard L. & Laurel D..Johnson Charitable Fund, T.L. & M.D.Johnson, Bradley A.Johnson, Susan M. & LarryJones, BillJordan Living Trust, CatherineJorgensen, Charles & SallyJungquist Fund, David & Kathy

THANK YOU TO OUR

DONORS

GRANTEE ETHNICITIES

AFRICAN AMERICAN 41%

WHITE/CAUCASIAN 20%

AFRICAN IMMIGRANT 18%

HISPANIC/LATINO 5%

ASIAN 5%

MULTIRACIAL 4%

NATIVE AMERICAN 3%

NA 4%

FEMALE 61% MALE 39%

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NUMBERSAT A GLANCE

68%

99%

97% 97% of grant recipients spent

their grant money as they intended.

100%

100% of grant recipients had achieved their goals or were in the process of doing so.

68% of grant recipients reported that their income

increased as a result of MicroGrants funding.

99% of grant recipients reported that MicroGrants increased their

quality of life. Of these, 50% reported that their quality of life

increased “substantially.”

82% 82% of grant recipients were

employed within three months of receiving grants.

2016 DONORBREAKDOWN BY DOLLARS

$60,000 - $100,000

$30,000 - $ 59,999

$10,000 - $29,999

$1,010 - $9,999

$999 - $1,000

UNDER $998

3

4

19

56

50

161

45%

Business

32%

Transportation

13%

Education

9%

Other

GRANTEE CATEGORIES

KRISTINE BARSTOWInternal Operations Manager

LUIS SIOJOGrantwriter

MELISSA DEUTSCHExecutive Assistant to the CEOMicroGrants

1312

MEET THE

TEAM

ADVISORS

Community Council Members: Kristine Barstow, Ann Garrity, Susan Schneck, Joanna Lees, Pam Kaufman, Mindy Lee, Tricia, Haynes, Lynne Thompson, Barbara Grossman

The Community Council is a committed group of volunteers who meet to discuss various issues and projects related to MicroGrants. They are the force behind the annual Grantees of the Year awards.

1035 East Franklin AvenueMinneapolis MN 55404612.200.8174 info@microgrants.net www.microgrants.net

BOARD MEMBERS:Joe Selvaggio** (chair)Tom Rock** (secretary)Jim Weichert** (treasurer)Chuck Garrity Barbara Grossman Don HallJeff Heegaard

Neda Kellogg Allen Lenzmeier** Mitch Pearlstein ** Mirela MiresanSam Selvaggio Lynne Thompson Tom Welch

(** Executive Committee Members)

VOLUNTEERS: Kristine Barstow

Adrian Coulter

Anthony Dahl

Joanne Eittriem

Kent Eittriem

Tom Fiutak

Shotsie Forsythe

Chuck Garrity

Arlene Garrity

Barb Grossman

Tricia Haynes

Peter Heegaard

Shavette Jones

Pam Kaufman

Masami Kawazato

Isha Konety

Mindy Lee

Joanna Lees

Steve Lebeau

JoAnna Lees

Al Lenzmeier

Jerri Malone

Salvador de

Montesinos

Mirela Miresan

Carolien Moors

Mitch Pearlstien

Atlantis Riley

Sam Riley

Susan Schneck

Sam Selvaggio

Mike Stephen

Lynne Thompson

Sister Joan Tuberty

Jackie Wager

Alex Wager

Lucia Zavala

Mike CiresiBurt CohenNorm ColemanJudson Dayton

Joe ErrigoArchie GivensJim GravesPeter Heegaard

Berit JohnsonSteve LeBeauArt RolnickChuck Slocum

Dane Smith Sandy Vargas

IN KIND DONORS: African Development Center Checkerboard Web DevelopmentGrafi x By Derek - Derek ThomsonHardTalk Biz CoachingHaskell’s Wines

Media Relations, Inc. Palisade Asset Mgmt. Project for Pride in Living Westwords Consulting

Sam Selvaggio Sam Selvaggio Lynne Thompson Lynne Thompson Tom WelchTom Welch

THANK YOU TO OUR GENEROUS SPONSORSTHANK YOU TO OUR GENEROUS SPONSORSTHANK YOU TO OUR GENEROUS SPONSORSTHANK YOU TO OUR GENEROUS SPONSORS

DON SAMUELS, Chief Executive Offi cerDon took over as CEO of MicroGrants in January 2016. Mr. Samuels had a 27 year career as a Toy Industry executive and entrepreneur. During this time he became active in his Jordan Neighborhood, leading to his election to the Minneapolis City Council for three terms. Don cofounded the PEACE Foundation, which became the Northside Achievement Zone (NAZ), winner of a $28.5 million federal grant to educate low-income children in North Minneapolis. Don has served on the boards of Meet Minneapolis, Twin Cities Rise, Teach for America, Alafi a Place, Rock ‘n Read and

The Hub. He is currently a director on the Minneapolis School Board.

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