The Dunn County Board of Commissioners approved a $1,100,000 one‑time payment to the Dunn County Historical Society after the society’s leaders told the board that updated financial filings show the organization may fail the IRS public‑support test and be reclassified as a private foundation. The society’s bookkeeper, Linda Kittleson, and legal counsel explained that a recent form 990 calculation indicated the organization could fall below the IRS two‑year public‑support threshold and that, without action, the society faces taxes and loss of 501(c)(3) status for up to five years.
Society representatives described a phased master‑plan for the site north of the existing museum that would add a climate‑controlled archival building, meeting and exhibit spaces, memorial gardens, and pedestrian connections; Short Elliott Hendrickson presented the preliminary concept and explained subsequent phases would develop detailed site engineering, cost estimates and architectural design. “If approved today, we’ll move right into phase 2, October and November, and be able to work on that this winter,” a society representative said. The board majority voted in favor; roll call vote recorded three commissioners voting yes and two voting no, and the motion carried.
Commissioners and staff discussed the society’s revenue history: a large one‑time mineral gift had helped build reserves but recent drops in oil income reduced annual receipts. The society said it currently holds roughly $2.5 million from mineral income but that income is variable; the requested county payment would be used to meet the IRS public‑support calculation through Sept. 30 so the organization can keep nonprofit status and continue fundraising and grant applications. The society said future phases of the site buildout would require additional fundraising and grant support. The board asked the society to return with progress updates and to proceed with the master plan work if the funding is provided.