A Legacy of Leadership: Penny Retires from SMIF

Southern Minnesota Initiative Foundation (SMIF) President and CEO Tim Penny was celebrated by more than 500 community members, colleagues, and admirers on Thursday evening at Mineral Springs Brewery in Owatonna. After 18 years at the helm of SMIF and a lifetime of public service, Penny announced his retirement, marking the end of an era for the foundation and the region he has championed for decades.

Guests gathered to toast his legacy with libations from MSB and fare from Hy-Vee and Pleasant Grove Pizza Farm, a local business widely recognized as a success story of SMIF support. Among those in attendance were family, friends, former colleagues, entrepreneurs, and many who had been directly impacted by Penny’s work. But the truth was, nearly everyone there would call themselves a fan of Tim.

Penny, who served as a U.S. Congressman from Minnesota’s 1st District from 1983 to 1995 before leading SMIF, is widely credited for strengthening economic opportunity and community vitality in the region. Under his leadership, SMIF invested over $170 million into southern Minnesota, with initiatives spanning from early childhood development to rural entrepreneurship.

U.S. Senator Amy Klobuchar, reflected on Penny’s career: “He was like a boy-wonder when he came into Congress, he was willing to be different. Tim Penny is the guardian angel of Southern Minnesota.”

Representative Brad Finstad also recognized Penny’s retirement on the floor of the House, honoring his dedication to local economies and the people he served: “His departure leaves behind enormous shoes to fill, but also a legacy of service that will long be remembered.”

Penny, always humble and known for his deep emotional connection to the communities he served, struggled to hold back tears during his brief address to the crowd. “I don’t want to make this any longer than it needs to be, so… um, thank you,” he said through a cracked smile, earning a heartfelt ovation from the audience.

The evening also featured touching tributes from Penny’s children. His daughter Molly shared, “Throughout my life, I never tire of people coming up to me and telling me what an amazing, honest and good man my dad is. I know how lucky I am, and I'm grateful to have been able to share him with Southern Minnesota.”

His son Marcus added, “I know it's hard for my dad to step down from this work. I think he would have stayed with SMIF forever if that were possible. His love for this region really got to shine. But that's what makes this fund so special, his legacy in Southern Minnesota will continue forever.”

That fund is the Tim Penny Small Towns Fund, a giving option through SMIF created in honor of Penny’s retirement; “giving to it is common cents.” The fund ensures ongoing support for initiatives that matter most to the rural communities Penny has devoted his life to, economic development, community vitality, and investing in the next generation.

Tim Penny’s retirement is not just the closing of a chapter, it is a call to continue the work he so passionately advanced. As Penny himself has often said, “Leadership isn’t about titles, it’s about making a difference.” And in southern Minnesota, his difference will be felt for generations.