NAF Helps Minnesota Waters Advocate for Lakes and Rivers throughout the State

With funding and financial management training from Nonprofits Assistance Fund, Minnesota Waters is able to continue helping citizens conserve the state’s lakes and rivers.

With approximately 14,000 lakes and more than 92,000 miles of rivers to look after, it's no wonder Bruce Johnson, executive director of Minnesota Waters, woke up in a panic one night. While the programs of the organization were growing at a fast rate, the financial growth of the recently merged nonprofit could not keep up. Fortunately, Johnson discovered Nonprofits Assistance Fund and was able to access management tools and working capital to help balance Minnesota Waters' mission and money.

In January 2006, the River Council of Minnesota and the Minnesota Lakes Association joined forces and became Minnesota Waters. With just eight employees, Minnesota Waters runs a state-wide program to promote responsible stewardship of the state's waters by engaging citizens, state and local policy makers, and other allies in the protection and restoration of Minnesota's lakes and rivers.

Under a mantra of locally led conservation, Minnesota Waters focuses its efforts on three core programs:

• Citizen Monitoring - A program that trains citizens how to measure the health of the lakes and streams in their backyards and helps ensure the data they collect is turned into useful information
• Watershed Stewardship - This program encourages citizen stewardship for healthy waters through individual education and by building and supporting lake associations and rivers groups with educational services, training and resources
• Public Policy - This initiative focuses on influencing public policies at the local, regional and state levels to protect and improve Minnesota's lakes and rivers

Swimming Upstream

After the merger, Minnesota Waters experienced a period of difficult restructuring that left it in a financial hole. Because the organization had been focused primarily on the merger and sustaining delivery of programs and services, it had little time to dedicate to fundraising and development. At the same time, new programs were being created and existing programs were growing. Without the funding to support these opportunities, Minnesota Waters found its debt climbing.

Beginning in November 2006, Minnesota Waters board and staff leaders took difficult, but important, steps to eliminate the debt and stabilize its financial footing. Necessary budget cuts included laying off staff.  Johnson turned to NAF where he worked with loan officer Phil Hatlie. Hatlie helped Minnesota Waters' staff review debt management options and assisted with revamping the financial management system.  Hatlie also provided the board with training on financial management systems and interpreting financial statements as well as assisting them find the right firm to handle the first audit as a merged organization.

In addition, Minnesota Waters received two loans from NAF. In January 2007, the organization received a bridge loan to help leverage future assets and reduce its current debt and in April 2007 it obtained a commercial line of credit to manage government contracts paid on a reimbursement basis instead of tying up much needed general operating funds.

Financial Clarity Brings Peace of Mind

Since working with NAF, Minnesota Waters has made a number of changes to their financial management practices.  An entirely new financial management system using a contract bookkeeper and new software improved efficiency and reliability.  Debt reduction and an improved financial system have freed up staff to focus on what they’re passionate about – conserving Minnesota’s lakes and rivers.

The Minnesota Waters finance team is busy incorporating better budgeting and planning cycles that include looking out two years instead of just one.  “Working with Nonprofits Assistance Fund gave us peace-of-mind and helped us see clearly through the merger dust,” said Johnson.  “Now I can go back to waking up in a panic wondering how we’re going to serve our members in improving and protecting our precious water assets.