1. INFORM
PROMOTE
CONNECT
STRENGTHEN
Minnesota Council of Nonprofits
2009 Annual Report

2. MCN’s mission is to inform, promote,
connect and strengthen individual
nonprofits and the nonprofit sector.
Pictured: Rinal Ray, MCN’s tax exemption education campaign organizer; Jeannie Fox, deputy public policy director; and Jon Pratt,
executive director, joined nonprofit colleagues from across the nation in Washington D.C. in July of 2009 for a meeting with
Michele Jolin, senior advisor to the President for Social Innovation and Civic Participation. While in D.C., the representatives from
MCN also met with several of the Minnesota Congressional Delegation to discuss the Serve America Act.

3. From the executive director
and board chair
Minnesota has one of the largest and most active nonprofit sectors in the
U.S., but the recession year of 2009 demanded special care and attention
from every organization, including MCN. Economic pressure brought simulta-
neous increase in demand for services while most revenue sources were
down, government payment were delayed and the state and local govern-
ment budgets were huge question marks.
Some observers predicted both mass dissolutions and a merger wave among nonprofits – neither of which
occurred. Still, we have to acknowledge that the year was extremely difficult, with dramatic increases in
demand for food and housing assistance, emergency counseling, and a tough climate for arts and culture.
Among the nonprofits we saw close their doors in 2009 were three longtime MCN members: Centro Legal,
the Minnesota Senior Federation and East Metro OIC, with many (but not all) of their duties carried on by
other organizations.
During the year MCN joined with other support organizations to provide special information and resources:
• MCN and the Nonprofits Assistance Fund conducted seven trainings throughout the state on Recession
Year Financial Leadership.
• MCN issued three Nonprofit Current Conditions reports to track the effects of the recession on nonprofits,
expanding on the annual Nonprofit Economy Report to provide a detailed, more timely, look at effects on
organizations and the people they serve, and how nonprofits were responding, such as applying stimulus
funds.
• Knowing that managers and boards of nonprofits were under immediate pressure to perform, the
Leadership Conference held with the Humphrey Institute's Center for Nonprofit and Public Leadership
focused on “A Balanced Approach.”
• MCN and the Minnesota Council on Foundations combined our annual conferences, acknowledging the
fiscal stress, yet looking forward through the theme “Transforming Our Work.” In a sign of the times,
MCN members voted to recognize the Carl and Eloise Pohlad Family Foundation with the 2009
Minnesota Nonprofit Mission Award for Responsive Philanthropy, for establishing a $20 million Economic
Crisis Initiative, presented at the Joint Conference.
2009 was also a year for MCN to look ahead, and to somehow not be have our vision for the future so col-
ored by the recession that we lost sight of the nonprofit sector's true potential. The strategic plan for the next
five years that the MCN board adopted strikes a balance – concluding that the world economy (as well as
the Minnesota economy) will take years to reorganize, and also charting some important new directions for
MCN to deepen its work.
Moving our goals forward will necessarily involve broad sections of the sector's leadership, and strong part-
nerships with all parts of Minnesota's economy. We are humbled that despite a horrendous recession
Minnesota's nonprofit organizations have continued their participation and membership – MCN continues to
be the largest state association of nonprofits in the U.S. MCN's board and staff will be working hard to
build on this base, strengthening nonprofit organizations to accomplish their missions for a healthy, coopera-
tive and just society.
Craig Luedemann Jon Pratt
Chair Executive Director
Board of Directors
3

4. “MCN keeps me informed about important policy developments regarding the sector
in Minnesota and at the national level. Thanks for all the great support you offer us all!”
Brigid Riley, Minnesota Organization on Adolescent Pregnancy, Prevention and Parenting
Member of MCN since 1995
Pictured (clockwise from top): Nonprofit staff and supporters joined Marcia Avner, MCN’s public policy director, at Nonprofit Day
on the Hill in 2009; Representative Collin Peterson and MCN’s federal policy director Steve Francisco at Farmfest 2009; and
MCN’s deputy public policy director Jeannie Fox prepares for the 2010 Census with Census volunteers.

5. Legislative action
Clarity on nonprofit property tax exemption sought
Securing the charitable property tax exemption was MCN's top legislative agenda item for 2009. Especially
in the difficult economic climate, where organizations were seeing overall decreases in nonprofit revenue
and increased demand for programs and services, tax exempt status is critical to Minnesota nonprofits.
In late 2007, hundreds of MCN members and other nonprofits across the state learned they could be subject
to revocation of their charitable property tax exemptions. In a case denying the tax exemption for a small
child care center in Red Wing, Under the Rainbow, the Minnesota Supreme Court dramatically narrowed the
criteria for “organizations of purely public charity” set out in the Minnesota Constitution. The ruling made
Minnesota's definition of charitable activity for property tax exemption one of the most restrictive in the
nation. In 2008, MCN succeeded in persuading the state legislature to pass a temporary moratorium, pro-
hibiting any change in assessment practices until a bill could be addressed by the 2009 Legislature.
A new bill introduced to the 2009 Legislature and championed by MCN would allow donations to continue
to support nonprofits' missions, not to pay taxes.
MCN's charitable property tax exemption campaign spearheaded support for a bill that would not expand
nor contract the pool of currently exempt organizations. A core goal for the bill was that it must provide clari-
ty and consistency for county assessors and nonprofit organizations. Nonprofits across the state were encour-
aged to speak with their representatives about the new bill introduced by Senator Tarry Clark and
Representative Paul Marquart. MCN circulated key messages and talking points to guide individual nonprofit
staff and concerned citizens in conversations about the importance of their organization's tax exemptions.
MCN's Web site became the state's leading source of information on the issue.
During the legislative session MCN worked with nonprofit leaders, attorneys, county assessors, the
Department of Revenue, legislative staff and legislators from all parts of the state. A partnership between
MCN and LegalCORPS offered brief advice by pro bono attorneys to nonprofits needing information about
their property and/or sales tax exemption.
Governor Pawlenty signed HF1298 into law on May 16, 2009. It included all of the language sought by
MCN. The new tax policy bill includes provisions to preserve charitable tax exemptions, including modifica-
tions to the assessor deciding factors (called the North Star Test) to more accurately represent Minnesota's
nonprofit sector. Organizations that qualify for tax exempt status as an institution of public charity must now
satisfy six factors, unless the organization can provide adequate reason for not meeting all factors. The bill
also provides that once an exemption is granted, it will remain in effect unless the organization’s circum-
stances change.
This new legislation allows Minnesota's nonprofits to better predict whether they can reallocate funds as a
property tax exempt organization to programs and services that serve our communities. In a year where
MCN reported increased need and decreased revenue, an exemption from property taxes allowed nonprof-
its to focus their donations and funding programs and serve more members of our communities. More infor-
mation about MCN's role in the charitable property tax exemption bill can be found at www.mncn.org.
5

6. “My favorite thing about MCN is the opportunities to learn
and share ideas with nonprofits across the state.”
Jenny Ebert, Habitat for Humanity of Minnesota
Member of MCN since 1990
Pictured (clockwise from top): Over 1,800 nonprofit staff, board members and volunteers attended the 2009 Joint Annual
Conference, Transforming Our Work, co-hosted by MCN and the Minnesota Council on Foundations; an attendee refers to the pro-
gram; and speakers shared their expertise.

7. Successes in 2009
• MCN continued to serve nonprofits statewide and expanded its regional focus with three chapters in
Greater Minnesota. In 2009, the Twin Ports Area Nonprofit Coalition and Itasca Area Nonprofit
Council merged to form the Northeast Chapter. The South Central Chapter expanded to the west and is
now the South Central/Southwest Chapter. MCN also added a Central Chapter. Events, meetings with
MCN's chapter coordinators and informal skill-building lunches gave nonprofits in Greater Minnesota bet-
ter access to MCN's tools and resources in 2009.
• MCN partnered with the Minnesota Council of Foundations to host its largest annual
conference to date. More than 1,800 nonprofit leaders met in St. Paul to address current challenges
in all aspects of nonprofit management, governance, leadership, fundraising, marketing and communica-
tions.
• MCN joined several other state nonprofits to promote GiveMN, an online resource to match Minnesota
nonprofits with individual donors. GiveMN's Give to the Max Day on November 17, 2009 raised $14
million for nonprofits in Minnesota.
• The Minnesota Budget Project, an initiative of the Minnesota Council of Nonprofits, expanded its pres-
ence as an active voice for tax fairness and a balanced approach to state and federal
budgets. The Minnesota Budget Project team met with members of Congress, testified on behalf of the
nonprofit sector and authored hundreds of blog posts and op-ed pieces about the changes to Minnesota's
budget over the course of the year.
• MCN advocated to raise the audit threshold to $750,000. These actions allowed nonprofits to
allocate more revenue to programs and services.
• MCN responded to the changing economic climate by publishing timely research about the nonprofit sec-
tor. MCN released two Current Conditions reports throughout the year that included data collect-
ed from hundreds of members about the effects of the recession on the state's sector. A partnership with
the Nonprofits Assistance Fund offered workshops that specifically addressed the recession.
• MCN’s own budget, relying on member dues, participant fees and philanthropic support, recorded a
solid financial year despite the economic downturn in 2009 that challenged nonprofits and the com-
munities they serve.
• MCN adopted a strategic plan for 2010 – 2014 with the understanding that MCN would play a
central role during the economic recession to help nonprofits move into a new operating environment.
While several elements of the strategic plan address immediate economic conditions, the overall plan is
designed to ensure that Minnesota’s nonprofits are well prepared for what comes next.
From the Minnesota Independent, Minnesota's nonprofits say
health reform must include them, October 28, 2009
“The Minnesota Council of Nonprofits announced today that the organization will support the health
care reform package moving through Congress, but only if it includes provisions for nonprofit agencies.
The group noted that one in ten employees in Minnesota work for a nonprofit and that Minnesota's
charitable organizations provide health insurance coverage for 98 percent of their employees.”
7

8. “MCN is one of the leading authorities in providing guidance to Minnesota nonprofits, as well as
influencing public policy at a local, state and federal level. I have utilized their expertise to
improve my leadership skills and guide my nonprofit to a higher level of effectiveness.”
Deters Spader, No Barriers USA
Pictured (from top to bottom): Nonprofit staff worked together on a learning activity during an MCN event; and 28 nonprofit leaders
were accepted into MCN's Nonprofit Leadership Institute where they developed skills to make them better leaders in their organiza-
tions, the nonprofit sector and their communities.

9. MCN by the numbers
• 2,000 nonprofit organizations were members of Membership Summary by Region
MCN in 2009, along with 50 associate members
(consultants and businesses serving nonprofits). Southeast
South Central/ MN
Southwest MN
• 222 nonprofits joined the MCN network in 2009. 5%
Central MN 4.5%
4.5%
• 16 cost-saving partnerships with businesses were Northwest MN
available for MCN members to access discounted 5%
products and services for nonprofits, including Northeast MN
8%
office supplies, banking and insurance.
Twin Cities Metro
• Three chapters in greater Minnesota served non- 73%
profits in Southwest/South Central, Central, and
Northeast Minnesota.
• 62 trainings throughout the state provided timely
information
to advance nonprofits' missions.
Percentage of Membership by Budget Size
• 4,801 people participated in these trainings, many were
$5 – 9.9
recipients of an unprecedented number of scholarships More than
million
$3 – 4.9 10 million
awarded to maintain access during the recession year. million
$2 – 2.9 3% 4%
4%
• 12 network lunch series facilitated discussions between million
4% Under
nonprofit staff and supporters. $100,000
26%
$1 – 1.9 million
• 134 blog posts were authored by Minnesota Budget Project 10%
staff to keep readers up-to-date on key state tax and budget $700,000 – 999,999
$100,00 –
issues, the latest economic trends and the impact of federal 7%
199,999
budget decisions on Minnesota. $400,000 – 13%
699,999 $200,000 –
11% 399,000
• 700 people became a friend of MCN on Facebook and 2,625 18%
people followed MCN’s Twitter account, @SmartNonprofits, both
continue to steadily grow.
• Each month, MCN’s Web site received 250,000 visitors looking for policy updates, management
resources and job postings.
From the Minneapolis St. Paul Business Journal, Study: MN nonprofits
getting less money, more demand, June 16, 2009
“Minnesota's nonprofits are hurting for funding while demand for their services is on the rise, accord-
ing to a study released this week by the Minnesota Council of Nonprofits. The report, called the
Nonprofit Current Conditions Survey, is intended to show the impact of the economic recession on the
Minnesota nonprofit community. It surveyed 571 organizations across Minnesota.”
9

10. Financial position
This is an excerpt from MCN’s independent financial audit. For a full copy, visit www.mncn.org/aboutmncn.htm. Revenue Sources
INDEPENDENT AUDITOR’S REPORT
We have audited the accompanying statement of financial position of Minnesota Council of Nonprofits (the Organization) as of
December 31, 2009, and the related statements of activities and changes in net assets, functional expenses and cash flows for Workshops
the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is
to express an opinion on these financial statements based on our audit. The prior year summarized comparative information Membership and Education
has been derived from the Organization's 2008 financial statements, and in our report dated May 11, 2009, we expressed an Dues 14%
unqualified opinion on those financial statements. 22% Annual
Conference
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those stan-
13%
dards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for design-
Publications 1%
ing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effec-
tiveness of the Organization's internal control over financial reporting. Accordingly, we do not express such an opinion. An Contributions Honoraria/Consulting 2%
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assess- and Grants
ing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial Sponsorships/Marketing 7%
41%
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
Investments and Other <1%
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of
Minnesota Council of Nonprofits, as of December 31, 2009, and the results of its operations and its cash flows for the year
then ended in conformity with accounting principles generally accepted in the United States of America.
Eide Bailly, LLP
May 18, 2010
Expenses
Fundraising
STATEMENT OF FINANCIAL POSITION
December 31, 2009 and 2008 4%
Management
2009 2008 and General
ASSETS 9%
Cash and cash equivalents $1,451,998 $1,567,416 Advocacy Educational
Investments 11,628 9,217 7% Programming
Accounts receivable 33,003 27,250 27%
Unconditional promises to give 303,750 695,225 Research
Inventory 7,242 9,617 8%
Prepaid expenses and other assets 33,862 64,865
Furniture, equipment and software, Member
net of accumulated depreciation 238,440 243,894 Services Public Policy and
Other assets – 48,125
11% Civic Engagement
TOTAL ASSETS $ 2,079,923 $ 2,665,609
34%
LIABILITIES
Accounts payable $118,426 $ 99,001
Accrued expenses 39,275 32,692
Deferred revenue 49,142 66,366
TOTAL LIABILITIES $ 206,843 $ 198,059
NET ASSETS
Unrestricted 858,080 629,867 STATEMENT OF ACTIVITIES
Temporarily restricted 1,015,000 1,837,683 For the Years Ended December 31, 2009 and 2008
TOTAL NET ASSETS $ 1,873,080 $ 2,467,550
2009 2008
TOTAL LIABILITIES AND NET ASSETS $ 2,079,923 $ 2,665,609
Temporarily
Unrestricted Restricted Total Total
PUBLIC SUPPORT AND REVENUE
STATEMENT OF FUNCTIONAL EXPENSES
Year Ended December 31, 2009
PUBLIC SUPPORT
Program Management Contributions and grants $ 75,674 $ 953,500 $ 1,029,174 2,174,774
Services and General Fundraising Total Net assets released from restrictions 1,776,183 (1,776,183) – –
Salaries, taxes and benefits $ 1,343,339 $ 200,907 $ 85,170 $ 1,629,416 Total public support 1,851,857 (822,683) 1,029,174 2,174,774
Consulting fees 304,788 28,735 27,481 361,004
Office rent 109,755 16,415 6,959 133,129 REVENUE
Office supplies 14,113 1,616 674 16,403 Membership dues 556,624 – 556,624 556,085
Workshops and education 360,500 – 360,500 374,891
Telephone 11,722 1,067 749 13,538 Annual conference 316,450 – 316,450 245,866
Postage 44,391 1,800 1,991 48,182 Publications 18,099 – 18,099 41,547
Printing and publishing 82,378 1,846 1,284 85,508 Honoraria and consulting income 43,623 – 43,623 57,676
Dues and subscriptions 19,012 568 719 20,299 Sponsorships and other marketing 184,527 – 184,527 160,741
Investment income 9,043 – 9,043 29,171
Advertising 13,935 – – 13,935 Miscellaneous income 1,481 – 1,481 2,139
Bank/merchant fees 15,200 – 1,689 16,889 Total revenue 1,490,347 – 1,490,347 1,468,116
Equipment 13,938 1,733 735 16,406
Software 41,710 6,930 2,573 51,213 TOTAL PUBLIC SUPPORT AND REVENUE 3,342,204 (822,683) 2,519,521 3,642,890
Insurance – 3,383 – 3,383 EXPENSES
Staff training 7,940 385 163 8,488
Board retreat – 3,619 – 3,619 PROGRAM SERVICES
Workshop expenses 167,440 – – 167,440 Education 848,610 – 848,610 801,454
Public policy and civic engagement 1,065,066 – 1,065,066 1,428,700
Leadership Institute expense 38,959 – – 38,959 Member services 341,221 – 341,221 366,855
Travel 83,336 2,499 7,239 93,074 Research 237,279 – 237,279 293,940
Meeting expenses 22,871 3,565 606 27,042 Advocacy 202,742 – 202,742 132,264
Event translation 8,516 – – 8,516 Total program services 2,694,918 – 2,694,918 3,023,213
Annual conference 128,053 – – 128,053 SUPPORTING SERVICES
Miscellaneous 5,681 571 155 6,407 Management and general 279,324 – 279,324 251,010
Grants and allocations 193,200 – – 193,200 Fundraising 139,749 – 139,749 183,605
Total expenses Total supporting services 419,073 – 419,073 434,615
before depreciation 2,670,277 275,639 138,187 3,084,103
Depreciation 24,641 3,685 1,562 29,888 TOTAL EXPENSES 3,113,991 – 3,113,991 3,457,828
TOTAL EXPENSES $ 2,694,918 $ 279,324 $ 139,749 $ 3,113,991
CHANGE IN NET ASSETS 228,213 (822,683) (594,470) 185,062
NET ASSETS AT BEGINNING OF YEAR 629,867 1,837,683 2,467,550 2,282,488
NET ASSETS AT END OF YEAR $ 858,080 $ 1,015,000 $ 1,873,080 2,467,550

11. NOTES TO FINANCIAL STATEMENTS Equipment Subsequent Events
December 31, 2009 Equipment is carried at cost or, if donated, at the approximate fair value at the The Organization has evaluated subsequent events through May 18, 2010, the
date of donation. Equipment acquisitions in excess of $1,000 are capitalized and date which the financial statements were available to be issued.
1) Nature of organization and summary of significant accounting recorded at cost. Depreciation of equipment is provided using the straight-line
policies method over its estimated useful life. 2) Investments
Nature of Organization Investments consist of an equity fund recorded at market value of $11,628 at
Minnesota Council of Nonprofits (the Organization or MCN) is incorporated under Support Recognition December 31, 2009. An unrealized gain of $2,411 was recognized during the
the Minnesota Nonprofit Corporation Act. MCN offers educational, public policy, Contributions received are recorded as unrestricted, temporarily restricted, or per- year ended December 31, 2009.
research and advocacy activities to help nonprofit organizations be more efficient manently restricted support depending on the existence and/or nature of any donor
and effective and to increase public understanding of the role and contributions of restrictions. 3) Unconditional Promises to Give
Minnesota's nonprofit organizations. Unconditional promises to give at December 31, 2009, are primarily restricted for
Support that is restricted by the donor is reported as an increase in unrestricted net use in future years for specific programs.
MCN's program services are as follows: assets if the restriction expires in the reporting period in which the support is recog-
Education – Convenes workshops, conferences and meetings for nonprofit organi- nized. All other donor-restricted support is reported as an increase in temporarily or 4) Property and Equipment
zations on topics related to managing nonprofit organizations. Publishes directories permanently restricted net assets, depending on the nature of the restriction. When The following is a summary of property and equipment at December 31, 2009:
and maintains a website (www.mncn.org) to provide additional information on a restriction expires, that is, when a stipulated time restriction ends or purpose
issues faced by nonprofit organizations and their staff and board members. restriction is accomplished, temporarily restricted net assets are reported in the Capital equipment $ 439,018
statement of activities as net assets released from restrictions. Less accumulated depreciation 200,578
Public Policy and Civic Engagement – Sponsors briefings on public policies which 238,440
affect nonprofit organizations and the communities they serve; conducts skill-build- Donated Services and Supplies 5) Line of Credit
ing workshops for nonprofit staff, board members and volunteers to strengthen their Non-cash donations are reflected as unrestricted support in the financial statements As of December 31, 2009, the Organization had a $75,000 line of credit with a
public policy work; undertakes nonpartisan voter participation efforts on behalf of at their estimated values on the date of donation. bank available as needed, with an interest rate of 5.50 percent. The credit line is
nonprofit clients and community members in Minnesota through Minnesota secured by all inventory, chattel paper, accounts, equipment, and general intangi-
Participation Project and over five other states through the Nonprofit Voter Donated services are recognized as contributions in accordance with FASB ASC bles and expires on June 1, 2010. As of December 31, 2009, there was no out-
Engagement Network; and provides up-to-date information during the legislative 958, Not-for-Profit Entities (includes previous SFAS No. 116, Accounting for standing balance on the line of credit.
session via newsletters and the Internet. Contributions Received and Contributions Made), if the services (a) create or
enhance nonfinancial assets, or (b) require specialized skills and are performed by 6) Leases
Member Services – Sponsors services to member nonprofit organizations to people with those skills and (c) would otherwise be purchased by the Organization. The Organization leases office space under an operating lease, which expires
strengthen the stability and effectiveness of these nonprofit organizations. Services Volunteers also provided services throughout the year that are not recognized as September 30, 2010. The agreement calls for monthly payments of $10,035 for
include group purchasing and discounts on products like insurance and supplies as contributions in the financial statements since the criteria for ASC 958 is not met. the first year, $10,360 for the second year, and $10,770 for the third year and
well as events and newsletters planned and organized for members. includes utilities, real estate taxes and insurance. Rent expense was $133,128 for
Functional Allocation of Expenses the year ended December 31, 2009.
Research – Conducts nonpartisan research and prepares reports on the nonprofit The costs of providing the various programs and activities have been summarized
economy and public role of nonprofit organizations. Analyzes public policies affect- on a functional basis. Accordingly, certain costs have been allocated among the The Organization also has several noncancelable operating equipment leases that
ing the nonprofit sector, including the impact of budget and tax policies on low- programs and supporting services benefited. expire various dates through 2012.
income people.
Use of Estimates In 2007, the Organization began a noncancelable three-year lease for capitalized
Advocacy – Undertakes direct and grassroots lobbying campaigns that address The preparation of financial statements in conformity with accounting principles internet software.
specific legislative proposals affecting nonprofit organizations and the communities generally accepted in the United States of America requires management to make
they serve. MCN has elected to report its expenditures for lobbying in accordance estimates and assumptions that affect the reported amounts of assets and liabilities, Future minimum lease payments are as follows:
with Section 501(h) of the Internal Revenue Code. and disclosure of contingent assets and liabilities, at the date of the financial state- Years ending in December 31,
ments and reported amounts of revenues and expenses during the reporting period. 2010 $ 166,525
Basis of Accounting Actual results could differ from those estimates. 2011 4,195
The financial statements of the Organization have been prepared on the accrual 2012 1,748
basis of accounting and, accordingly, reflect all significant receivables, payables Tax-exempt Status $ 172,468
and other liabilities. The Organization has been recognized by the Internal Revenue Service as a tax- 7) Grants
exempt nonprofit organization under Section 501(c)(3) of the Internal Revenue In 2009, grants expense included $190,360 to 501(c)(3) nonprofit organizations
Basis of Presentation Code. Accordingly, no provision for taxes is required. In addition, the Organization in Colorado, Louisiana, Massachusetts, Michigan, Minnesota, Ohio and
The financial statement presentation follows the recommendations of the Financial qualifies for the charitable contribution deduction under Section 170(c) and as an Pennsylvania for the planning and implementation of statewide efforts to help other
Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958, organization other than a private foundation under Section 509(a)(1) and nonprofits engage their communities in the 2010 census; $1,840 to nonprofits in
Not-for-Profit Entities (includes previous Statement of Financial Accounting 170(b)(1)(A)(vi). northeast Minnesota to continue the efforts of the Social Leader Action Networks;
Standards, (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations). and $1,000 to the recipients of the 2009 Nonprofit Mission Awards.
Under ASC 958, the Organization is required to report information regarding its The Organization has adopted the provisions of FASB Accounting Standards
financial position and activities according to three classes of net assets: unrestricted Codification Topic ASC 740-10 (previously Financial Interpretation No. 48, 8) Retirement Plan
net assets, which represents the expendable resources that are available for opera- Accounting for Uncertainty in Income Taxes). The implementation of this standard The Organization has a defined contribution retirement plan covering all eligible
tions at management's discretion; temporarily restricted net assets, which represents had no impact on the consolidated financial statements. As of both the date of employees. The contribution is at the discretion of the board of directors. Employees
resources restricted by donors as to purpose or by the passage of time; and perma- adoption, and as of December 31, 2009, the unrecognized tax benefit accrual are eligible to participate in the plan after one month of service. Contributions to
nently restricted net assets, which represents resources whose use by the was zero. the plan were $63,417 for the year ended December 31, 2009.
Organization is limited by donor-imposed stipulations that neither expire by pas-
sage of time nor can be fulfilled or otherwise removed by actions of the The Organization will recognize future accrued interest and penalties related to 9) Restrictions on Net Assets
Organization. The Organization has no permanently restricted net assets. unrecognized tax benefits in income tax expense if incurred. The Organization is Net assets were released by incurring expenses satisfying the restricted purposes
no longer subject to Federal tax examinations by tax authorities for years before specified by donors for the year ending December 31, 2009, as follows:
Cash and Cash Equivalents 2006 and state examinations for years before 2006.
For purposes of the statement of cash flows, the Organization considers all highly Leadership Program $35,000
liquid investments with a maturity of three months or less to be cash equivalents. At Comparative Financial Information Minnesota Budget Project 424,833
times, cash and cash equivalents may be in excess of FDIC limits. The financial statements include certain prior year summarized comparative infor- Minnesota Participation Project 148,500
mation in total but not by net asset class. Such information does not include suffi- National Voter Engagement Network 587,350
Investments cient detail to constitute a presentation in conformity with accounting principles gen- Public Policy 360,000
The Organization classifies its securities as available-for-sale and the available-for- erally accepted in the United States of America. Accordingly, such information Regional Policy Networks 50,000
sale securities are recorded at fair value. Fair value is determined at a specific should be read in conjunction with the Organization's financial statements for the Form 990 Workshops 58,500
point in time, based on quoted market prices. Realized and unrealized investment year ended December 31, 2008, from which the summarized information was Charitable Tax Exemption Campaign 25,000
gains or losses are determined by comparison of specific costs of acquisition to net derived. Leadership Institute Scholarships 19,750
proceeds received at the time of disposal or changes in the difference between fair Itasca Area Workshops 3,000
value and cost respectively. Fair Value Measurements Legal Handbook 22,500
The Organization has determined the fair value of certain assets and liabilities in Census Education 15,000
A decline in the market value of any available for sale security below cost that is accordance with the provisions of FASB ASC 820-10-35, Fair Value Measurements Current Conditions Report 5,000
deemed other than temporary results in a charge to earnings and the establishment and Disclosure (previously SFAS No. 157, Fair Value Measurements), which pro- Financial Leadership Workshop 1,750
of a new cost basis for the security. Premiums and discounts are amortized or vides a framework for measuring fair value under generally accepted accounting General Operations 20,000
accreted over the life of the related security as an adjustment to the yield using the principles. $ 1,776,183
effective interest method and prepayment assumptions. Dividend and interest
income are recognized when earned. ASC 820-10-35 defines fair value as the exchange price that would be received Temporarily restricted net assets consisted of the following at December 31, 2009:
for an asset or paid to transfer a liability (an exit price) in the principal or most
Gains and losses on sales of investment securities are recognized on the settlement advantageous market for the asset or liability in an orderly transaction between Minnesota Budget Project $230,500
date, based on the amortized cost of the specific security. The financial statement market participants on the measurement date. ASC 820-10-35 requires that valua- Minnesota Participation Project 35,000
impact of settlement date accounting versus trade date is immaterial. tion techniques maximize the use of observable inputs and minimize the use of National Voter Engagement Network 430,500
unobservable inputs. ASC 820-10-35 also establishes a fair value hierarchy, which Public Policy 240,000
Receivables prioritizes the valuation inputs into three broad levels. Regional Policy Networks 25,000
Receivables are stated at net realizable value. Unconditional promises to give are Leadership Institute Scholarships 24,000
recognized as revenues or gains in the period received and as assets, decreases of Level 1 inputs consist of quoted prices in active markets for identical assets or liabil- Web Site Relaunch 20,000
liabilities, or expenses depending on the form of the benefits received. Conditional ities that the reporting entity has the ability to access at the measurement date. General Operations: Future Years 10,000
promises to give are recognized only when the conditions on which they depend Level 2 inputs are inputs other than quoted prices included within Level 1 that are $ 1,015,000
are substantially met and the promises become unconditional. observable for the related asset or liability. Level 3 inputs are unobservable inputs
related to the asset or liability. 10) Contingencies
The Organization uses the allowance method to account for uncollectible receiv- Certain grants from donors are subject to audit by the donor. Such audits could
ables. This method provides allowances for doubtful receivables based on historical The investments held by the Organization as of December 31, 2009, consisted result in claims against the Organization for disallowed costs or noncompliance
experience and management's evaluation of estimated losses that will be incurred entirely of Level 1 inputs: with grantor restrictions. No provision has been made for any liabilities that may
in the collection of receivables. No allowance was deemed necessary for the year arise from such audits since the amounts, if any, cannot be determined at this time.
ended December 31, 2009. Quoted prices in active markets (Level 1)
Mutual Fund $ 11,628
Inventory
Inventory is stated at the lower of cost (first-in, first-out) or market. Account Reclassifications
Certain prior year balances have been reclassified for comparative purposes.

12. MCN’s goals
MCN adopted its 2010 – 2014 Strategic Plan with the following goals. The entire Strategic Plan is available
for public view at www.mncn.org/aboutmcn.htm.
1. Strengthen the economic sustainability of individual nonprofits and the nonprofit sector.
2. Deepen relationships among member organizations to increase knowledge, effectiveness and capacity for collective action.
3. Build bridges between nonprofits and key institutions (business, local government, philanthropy, etc.) to increase partnership and
cooperation.
4. Increase opportunities for cost saving programs, shard services and shared spaces.
5. Strengthen nonprofit community engagement.
Pictured (clockwise from top): Nonprofit staff network during the 2009 Joint Annual Conference; Jon Pratt, executive director, and
Tim Delaney, executive director of the National Council of Nonprofits, at the 2009 Joint Annual Conference; nonprofit staff share
information from sessions at the 2009 Technology and Communications Conference; Technology and Communications Conference
attendees listen to the opening plenary.

13. Who we are
MCN Staff
Marcia Avner, Public Policy Director AmyJo Lennartson, South Central Chapter Regional
Jodi Benenson, Research Intern * Coordinator
Katherine Blauvelt, Policy Analyst * Staci Lieffring, Minnesota Participation Project Organizing
Shelly Chamberlain, Manager of Operations and Human Intern
Resources Nan Madden, Minnesota Budget Project Director
Michaela Charleston, Nonprofit Services Assistant Shannon McCarville, Program Coordinator
Colin Cureton, Public Policy Intern + Jeff Narabrook, Public Policy Assistant
Robynne Curlee, Nonprofit Voter Engagement Network Leslie Nitabach, Development Manager
Coordinator Ann Potthoff, Office Assistant *
Ayantu Daka, Administrative Associate * Jon Pratt, Executive Director
Ruth Duran Deffley, Membership and Chapters Manager Rinal Ray, Project Coordinator
Heather Dodgers, Communication Intern * Sondra Reis, Associate Director
Christine Durand, Communications and Marketing Director Bridgette Rongitsch, Nonprofit Voter Engagement Network
Jeannie Fox, Deputy Public Policy Director Director
Steve Francisco, Federal Policy Director Scott Russell, Policy Analyst
Leah Gardner, Minnesota Budget Project Outreach Sean Skibbie, Legislative Intern *
Coordinator Jenna Strank, Communications Intern
Nicole Garst, Program Coordinator * Mary Streufert, Northeast Chapter Regional Coordinator
Stephanie Haddad, Program Director Christina Wessel, Minnesota Budget Project Deputy Director
Alexa Horwart, Communications Intern * Bao Vang, Leadership Program Coordinator
Julia Jackson, Minnesota Budget Project Intern + Cindy Yang, Operations Assistant
Steve Jenkins, Information and Database Specialist
Becky Johnson, Accountant * Work completed in 2009
Jamie Joslin, Minnesota Grants Directory Intern * + Work completed in 2010
2009 MCN Board of Directors
Steve Boland, Greater Frogtown Community Corporation Stephen Nagle, West Central Minnesota Communities Action,
Susie Brown, Vice Chair, Child Care WORKS Inc.
Nancy Cross, Brainerd Community Action Pham Thi Hoa, CAPI
Pete Dross, Treasurer, Center for Victims of Torture Charles Oakes, West Central Industries
Saeed Fahia, Confederation of Somali Community in Keith Parker, Twin Cities Public Television
Minnesota Karri Plowman, Vice Chair, Central Corridor Partnership and
Candice Harshner, Program for the Aid to Victims of Sexual East Metro Partnership
Assault Leonard Price, Minnesota Conservation Corps
Qamar Ibrahim Ethan Roberts, Jewish Community Relations Council of
Laura Johansson, Joyce Bilingual Preschool Minnesota and the Dakotas
Nancy Kleeman, Jewish Community Action Marsha Shotley, Blue Cross and Blue Shield of Minnesota
Craig Luedemann, Chair, YouthCARE Foundation
Jim McCorkell, Admission Possible Michael Thorsteinson, Secretary, Three Rivers Community
David Marty, Reif Arts Council Action
2010 MCN Board of Directors
Susie Brown, Vice Chair, Child Care WORKS Keith Parker, Vice Chair, Twin Cities Public Television
Pete Dross, Treasurer, Center for Victims of Torture Karri Plowman, Central Corridor Partnership and East Metro
Candice Harshner, Program for the Aid to Victims of Sexual Partnership
Assault Kathy Potter, Access of the Red River Valley
Qamar Ibrahim Leonard Price, Minnesota Conservation Corps
Laura Johansson, Joyce Bilingual Preschool Ethan Roberts, Jewish Community Relations Council of
Nancy Kleeman, Jewish Community Action Minnesota and the Dakotas
Jeanne Edevold Larson, Northern Dental Access Center Shannon Robinson, Twin Rivers Center for the Arts
Craig Luedemann, Chair, YouthCARE Alvine Siaka, African Health Action Corporation
Joan Macik, Heartland Community Action Agency Marsha Shotley, Blue Cross and Blue Shield of Minnesota
David Marty, Reif Arts Council Foundation
Stephen Nagle, West Central Minnesota Communities Action, Susan Strandberg, Three Rivers Community Action
Inc. Mihailo Temali, Neighborhood Development Center
Pham Thi Hoa, Secretary, CAPI Joshua Winters, Minnesota Public Interest Research Group
13

14. Thank you
Foundation and Corporate Donors to MCN
ADC Foundation Elmer L. & Eleanor J. Andersen Northwest Area Foundation
The Blandin Foundation Foundation The Jay & Rose Phillips Family
Blue Cross and Blue Shield of Minnesota F.R. Bigelow Foundation Foundation
Foundation The Ford Foundation Carl and Eloise Pohlad Family
Otto Bremer Foundation General Mills Foundation Foundation
Patrick and Aimee Butler Family Greater Twin Cities United Way The Saint Paul Foundation
Foundation Horace Hagedorn Foundation The Seattle Foundation
Cargill Foundation Initiative Foundation Southwest Initiative Foundation
Central Minnesota Community John S. and James L. Knight Foundation Stoneman Family Foundation
Foundation The Joyce Foundation Target Foundation
Duluth Superior Area Community The McKnight Foundation Travelers Foundation
Foundation The Minneapolis Foundation West Central Initiative Foundation
Ecolab Foundation Northland Foundation Xcel Energy Foundation
Organizational and Individual Donors to MCN
Admission Possible Pham Thi Hoa Keith Parker
Anne Barthel Laura Johansson Leonard Price
Susie Brown Nancy Kleeman Jennifer Reedy
Dan Burling Craig Luedemann Ethan Roberts
Nancy Cross David Marty Sally Stevens
Sue Davidson Jim McCorkell Michael Thorsteinson
Pete Dross Mutual of America Joan Wells
Morris Goodwin Stephen Nagle Twin Cities Media Alliance
Donors and Supporters of the Nonprofit Voter Engagement Network (NVEN)
Carnegie Corporation of New York Horace Hagedorn Foundation Surdna Foundation
Moira Cunningham and Lew Pepper Katie McGrath and J.J. Abrams Threshold Foundation
The Ford Foundation Rockefeller Brothers Fund Tides Foundation
Focus Project, Inc. The Rosenthal Family Foundation
The George Gund Foundation Solidago Foundation
Donors and Supporters of the Minnesota Budget Project
Anonymous (4) Herbert Davis Gretchen Halverson
Sue Abderholden Ruth Duran Deffley Hammer Residences, Inc.
AFSCME Council 5 Martha Delaney Candice Harshner
Amherst H. Wilder Foundation DeVaan Associates Vernae Hasbargen
Michael Anderson Joseph and Genie Dixon Anne Henry
Marcia Avner Joanne Dorsher Hunger Solutions Minnesota
John Berglund Christine Durand Shirley Hunt Alexander
The Blandin Foundation (match) Linda Engberg Kris Jacobs
Katherine Blauvelt Bonnie Esposito Jewish Community Relations Council of
Amy Brugh Judy Farmer Minnesota and the Dakotas
Rachel Callanan Jeannie Fox JOBS NOW Coalition
Office for Social Justice - Catholic Steve and Bonnie Francisco Matt Kane
Charities Iris Freeman Geri Katz
Mary Cecconi Jane Gilley Elaine Keefe
Yvonne Cheung Ho Goodwill/Easter Seals Minnesota Jay Kiedrowski
Michael Dahl Chip Halbach Joel and Laurie Kramer

15. Donors and Supporters of the Minnesota Budget Project (continued from previous page)
Steve Larson Minnesota Inter-County Association Anneliese Simons
Tina Liebling Bill Moore and Mary Wagner Ginger Sisco
Dwaine Lindberg Gwen Myers Robert Skillings
Diane Loeffler National Association of Social Workers Lonni Skrentner
Julian Loscalzo – Minnesota Chapter Dane Smith
Ed Lotterman and Victoria Tirrel Leslie Nitabach Sheri Smith
Lutheran Social Service of Minnesota Chris Noonan Wy Spano
Nan Madden Victoria Oshiro Mary Streufert
Michael and Linda Madden Dru Osterud Tom Triplett
Jeffry Magnuson Don Ostrom Sam Walseth
Gene Mammenga and Charlotte Ann Connie Perpich Jeanne Walz
Brooker Gloria Phillips Laura Wang
Steven Marchese Jon Pratt Monica Weber
Mark McAfee Charlie Quimby Jennifer Weddell
James McRae Sondra Reis Patricia Welter
Katherine Meerse Ethan Roberts Christina Wessel
Barbara Milon Leigh Rosenberg Michelle Woster
Minnesota AFL-CIO Scott Russell Ralph Yehle
Minnesota Association of Professional Jodi Sandfort
Employees Deborah Schlick
Minnesota Community Action Joan Schneider
Partnership Patricia Siebert
Thank you to the many volunteers who gave their ideas and energy to MCN’s mission in 2009
through their work in the following committees
Annual Conference Committee
Northeast Chapter Advisory Committee
Southwest/South Central Chapter Advisory Committee
Communicator’s Series Planning Committee
Public Policy Cabinet
Technology and Communications Conference Committee
Nonprofit Mission Awards Finalist Selection Committee
“MCN is amazing! It provides me, a newcomer to
the nonprofit world, with valuable insights, tools
and education to make me better at what I do.”
Helen Young, Minnesota Association for Volunteer Administration (MAVA)
Member of MCN since 2002
15

16. www.mncn.org