Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
Rapid City approves Vision Fund administration agreement to create $3 million Rapid City Impact Fund endowment
Loading...
Summary
The committee approved an administration agreement with the Black Hills Area Community Foundation to steward a $3 million Vision Fund allocation aimed at creating a long-term endowment. The fund will delay disbursements until it reaches a target or a five-year threshold; governance and investment rules were discussed.
The City of Rapid City Legal/Finance Committee approved an administration agreement May 20 with the Black Hills Area Community Foundation (BHACF) to receive and steward a $3 million allocation from the city’s Vision Fund toward a new Rapid City Impact Fund endowment.
Daniel Ainsley, the finance director, told the committee the council earlier allocated $3,000,000 to seed the endowment. The stated purpose is long-term community impact: BHACF will manage fundraising and investment of the endowment with the goal of generating perpetual grant support for nonprofits and capital projects.
Chris Huber, president and CEO of the Black Hills Area Community Foundation, said the plan envisions a two-phase approach: a fundraising phase followed by granting once either five years have passed from inception or the fund reaches a target threshold (the committee discussed $6,000,000). “We really see this fund as as two phases...we’ll have to figure out if it’s council or the mayor or how that gets chosen,” Huber said, describing a proposed community fundraising board that would be assembled and empowered to solicit additional gifts.
Eric Zimmer, representing the foundation, described an end-to-end grants process in which the foundation would administer applications, serve as staff to the board, handle reporting and process disbursements when the board votes to grant. BHACF said its investment manager, Hillard Financial (RBC), manages assets under an investment policy designed to emphasize downside protection; the foundation reported historical net-of-fee returns near 7.5–8%.
City Attorney Joel Landeen said preliminary discussions included the potential for major contributing organizations to hold seats on the governance board and for representatives from the mayor’s office and the city council to participate. BHACF said fund fees would be paid from the endowment itself; the city would not pay ongoing administrative fees from the general fund but could contribute additional dollars in the future.
Councilman Bill Evans asked who would decide grant awards; Huber responded that the community board would make those decisions and the foundation would provide administrative and fiduciary support. Councilmembers asked about investment safety and governance; BHACF said it runs a five-year investment RFP process and has an established investment policy that limits asset allocations and emphasizes protection of charitable dollars.
A motion by Pat Roseland, seconded by Bill Evans, to approve the administration agreement carried. The committee approved the agreement and asked staff and BHACF to return with final governance details and an implementation timeline as fundraising progresses.
