Alder Branch Foundation Inc.

## Approach Strategy

Alder Branch Foundation Inc. is a young private independent foundation based in Rochester, Minnesota, incorporated in 2022 and granted 501(c)(3) tax-exempt status in January 2025. The foundation is family-operated — led by President Susan L. Ahlquist and officers Aaron Z. Ahlquist (Vice President), Daniel B. Ahlquist (Treasurer), and Brooke A. Carlson (Secretary) — all of whom serve without compensation.

Strategic positioning: This is a relationship-driven, invitation-first foundation. With no publicly listed grant application portal or open RFP, prospective grantees should pursue a warm introduction strategy. The Ahlquist family name is prominent in the Rochester, MN civic and business community, making local connections through community foundations, the Rochester Area Foundation, or civic networks the most viable entry point.

Timing: The foundation's fiscal year ends December 31. The single 990-PF filing (FY2024) shows $109,497 in charitable disbursements — indicating the foundation was actively grantmaking in its first full operating year. Approaches are best made in the Q3 (July–September) window to align with year-end giving decisions.

Ideal applicant profile: Local and regional nonprofits serving Southeast Minnesota, particularly in education, community development, or family-aligned causes. Given the family foundation structure and Rochester base, organizations with demonstrated community ties and strong local leadership will be most competitive.

## Funding Patterns

Financial Overview (FY2024 — first full operating year):

Key observations: - The foundation received a large founding contribution of ~$1.04M in its first full year, suggesting a deliberate capitalization strategy by the Ahlquist family. - At $109,497 in disbursements against $2.03M in assets, the foundation's payout rate is approximately 5.4% — just above the IRS-required 5% minimum distribution for private foundations. This is consistent with a foundation in early accumulation mode. - No officer compensation and zero liabilities indicate lean operations and a fully donor-directed model. - Estimated average grant size: With $109,497 disbursed, and typical family foundation grant counts of 5–15 per year, individual grants likely range from $5,000 to $30,000, with a midpoint estimate around $10,000–$15,000. - The foundation's asset base and revenue trajectory suggest grantmaking capacity will grow as contributions continue and the investment portfolio matures.

## Peer Comparison

The following table compares Alder Branch Foundation Inc. to similar small-to-mid-sized private family foundations in Minnesota and the Upper Midwest:

Findings: - Alder Branch Foundation is comparable in scale to other newly-formed family foundations in the Rochester metro area during their first 1–3 years of operation. - Its 5.4% payout ratio is at the legal minimum, typical for foundations in asset-accumulation phase. - The absence of a named grantmaking program or published guidelines puts it in the "invitation-only" tier, similar to most family foundations under $5M in assets. - Rochester hosts several larger community foundations that often co-fund with smaller family foundations — Alder Branch may participate in donor-advised or co-funding arrangements as it matures.

## Application Tips

Given Alder Branch Foundation's early-stage, family-operated, invitation-only structure, applicants should approach strategically:

1. Pursue a warm introduction first. This foundation has no public application portal. The most effective path is a personal introduction to a member of the Ahlquist family through Rochester civic networks, the Rochester Area Chamber of Commerce, or the Rochester Area Foundation.

2. Target local Rochester/SE Minnesota organizations. Given the family's local roots in Rochester, MN (Olmsted County), grants almost certainly favor organizations with direct community impact in Southeast Minnesota.

3. Lead with education or family-aligned programs. The NTEE code T22 (Private Independent Foundations) and early disbursement patterns suggest a broad mandate — but family foundations typically prioritize causes personal to the founding family, such as education, youth development, healthcare, or faith-based community service.

4. Keep the ask modest in the first approach. First-time grants from newly-formed family foundations typically range from $2,500 to $15,000. A request in the $5,000–$10,000 range reduces friction and builds the relationship.

5. Contact via phone as a starting point. The foundation's phone number — (507) 273-4004 — is on file with the IRS. A professional, brief introductory call is appropriate given the absence of a formal application channel.

6. Do not use alderbranch.org as a contact channel. That website belongs to an unrelated company. There is currently no confirmed public web presence for the Alder Branch Foundation Inc. itself.

7. Submit a letter of inquiry (LOI) if contact is established. A 1–2 page LOI describing your organization's mission, the specific project, the requested amount, and how it aligns with community needs in Rochester/SE Minnesota is the standard format for family foundation introductions.