Redefining the Value of Rural Investments in North Dakota

In recent years, North Dakota has become a symbol of the challenges and opportunities that lie within rural America. While its vast agricultural lands produce enough food to feed millions, many of its small towns are slowly disappearing. These are the towns that support both agriculture and energy within our state. Rural communities work diligently and, often, desperately to try to meet the needs of farmers and ranchers, as well as the energy sector, with basic services including housing, food, and healthcare. The town of Sheyenne, for instance, once boasted a bustling Main Street. But, over the past few decades, this town—like many others—has faced the loss of essential services like schools, banks, and grocery stores. The story of Sheyenne is a reflection of the broader rural narrative in America, and it brings to the forefront the necessity for meaningful investment in these areas. Yet, to truly make an impact, we must redefine the concept of Return on Investment (ROI) when it comes to rural places like North Dakota.

The Importance of Investing in Rural North Dakota

Rural communities are the backbone of North Dakota’s economy. Agriculture plays an enormous role, with nearly 90% of the state’s land being used for farming and ranching. These lands produce vast quantities of wheat, canola, and soybeans, contributing not only to North Dakota’s economy but also to the national food supply chain. Beyond agriculture, rural North Dakota holds vital cultural and historical significance, particularly for Tribal Nations that have resided here for centuries.

However, despite its critical importance, rural North Dakota—and rural America as a whole—remains dramatically underfunded. Nationally, rural areas make up about 20% of the population but receive only 7% of philanthropic investment from major foundations. The consequences of this disinvestment are stark: shrinking populations; disappearing schools, grocery stores, and hospitals; and a weakening social fabric. It is essential that philanthropic organizations and state and federal grantmakers recognize the importance of these communities and increase their investments, not just as a moral imperative, but as a strategic opportunity for societal growth.

Redefining Return on Investment (ROI) for Rural Areas

When we think about ROI in traditional terms, it’s easy to overlook rural areas. Investments in urban regions might result in larger numbers of people served or higher monetary returns. But in rural areas, the impact of investments is felt differently. Instead of focusing solely on numbers, funders must consider the ripple effects of their investments. For example, creating just 10 jobs in a small town like Minnewaukan, where the high school graduating class may only be 10-15 students, could mean a dramatic boost to the local economy​.

Rural ROI should also account for community sustainability and quality of life improvements. A mural in a small town can instill pride in its residents. Rehabilitating a downtown building into a multi-use space, as was done in Maddock at the Maddock Opera House, not only adds vibrancy but also creates a lasting infrastructure for community engagement​. These kinds of investments go beyond mere dollars; they help strengthen the social fabric that binds rural communities together. They provide a quality of life that is increasingly important in today’s world; a quality of life that more and more families are seeking to find.

Philanthropy must adopt a holistic approach to rural investments by considering non-traditional forms of ROI: social cohesion, long-term community viability, increased residents, and cultural preservation. Supporting a local business, funding an educational initiative, or investing in rural placemaking may not yield immediate large-scale returns but can have profound and lasting impacts on the overall health and sustainability of rural North Dakota, which is imperative to both the energy and agriculture economies of the state.

Grantmaking Recommendations for Rural North Dakota

To maximize the impact of grantmaking in rural areas, foundations and grantmakers must consider several factors that are often overlooked when addressing rural projects. The following recommendations offer a framework for more effective rural philanthropy:

1. Capacity Building and Flexibility: Rural organizations often lack the resources and infrastructure of their urban counterparts. Grantmakers should invest in capacity-building initiatives that strengthen local leadership, help organizations navigate complex funding applications, and enhance their ability to scale up efforts​. For example, eliminating overly complicated grant application processes and allowing longer project periods, such as those tested in Strengthen ND’s Creative Community Solutions Grantmaking Program, can provide rural communities the time and space they need to succeed.
2. Co-Creation and Community-Led Projects: Effective rural philanthropy is about working with, not for, rural communities. Funders should prioritize community-led initiatives that are rooted in local expertise and context. In Sheyenne, a multi-year, community-owned financing tool was established, giving local residents control over how to use the funds to benefit their town. This model trusts the people within the community to determine their priorities and build on their strengths. This has been successful beyond our expectations.
3. Regional Approaches and Collaboration: Instead of viewing rural towns as isolated entities, grantmakers should adopt a regional perspective that connects rural areas to neighboring communities. Building strong regional networks can amplify the impact of investments, create shared resources, and foster collaboration across towns​. This is particularly true working at the county level.
4. Commitment to Rural: Oftentimes, grantmakers and foundations can come into a community quickly and leave just as, if not more, quickly. Rural communities deserve grantmakers to be committed to them for the long haul, not just around for certain election cycles or short time horizons where investing in “rural” is trending. Rural communities deserve time and space to make change and move projects forward, often more than 1, 2, or 3 years. Moreover, obtaining trust in rural communities by outside agencies takes years, if not decades. If you are a current grantmaking or foundation seeking to work in rural spaces, truly commit to that strategy.

Conclusion: Investing in a Different Kind of Return

The future of North Dakota’s rural communities depends on a shift in how we view ROI. It’s time for grantmakers to look beyond numbers and immediate returns, focusing instead on the long-term, sustainable impacts of their investments. By redefining ROI to include community well-being, social cohesion, and cultural preservation, we can ensure that places like Sheyenne not only survive but thrive. Rural North Dakota, with its rich history, resilient population, and boundless potential, deserves nothing less.

As we move forward, let’s think about what we value most: the strength of our communities, the bonds between neighbors, and the places we call home. Investing in rural North Dakota means investing in the heart of America. Let’s make it count.