The Chemical Health Initiative of Goodhue County was created in 2004 pursuant to a resolution passed by the Goodhue County Family Services Collaborative. Start up funding for the CHI was provided in 2004 by the following organizations:
1) The Goodhue County Family Services Collaborative______$15,000
2) The Goodhue County Welfare Department_________________$10,000
3) The Red Wing Area Fund________________________________$ 3,000
4) The Red Wing United Way_______________________________$10,000
5) The Boots n Tie Red Wing Shoe Foundation Fund Raiser__$11,000

Important in-kind contributions were provided by Fairview-Red Wing Clinic and Hospital. The Red Wing Elks Club made contributions during the first year of operations (and continues to do so each year) to support Red Ribbon Week and other special chemical health school events.

On September 27, 2005, the CHI was notified that it was awarded a Federal Drug Free Community Grant for FY 2006 in the sum of $100,000.

The Drug Free Community Grant Program allows each grantee to re-apply every year for 5 years to receive a $100,000 Continuation Grant. The CHI has filed an application for the Continuation Grant in 2006 and 2007. Because the CHI has complied with all reporting requirements as well as met all progress reviews by the federal agencies that administer the DFC Grant program, it has received $100,000 in each of the following fiscal years: FY 2006, FY 2007 and FY 2008.

The CHI has also received financial contributions from various civic organizations and non-profits in the Goodhue County community including the Lions, Kiwanis and Rotary. Wenden Recovery Services, a local treatment provider has also provided financial support for the CHI.

The CHI is an unincorporated not-for-profit organization, however it does not have IRS 501(c)3 status. Therefore, the CHI does not engage in private solicitations or fundraising from individual citizens as such private contributions would not be deductible from individual income tax as a charitable contribution under Section 170 of the IRS Code. The CHI qualifies for charitable grant awards based on its status as a governmental entity. The CHI is not eligible to apply for grants that require 501(c)3 status as a condition for grant applicants.

Financial sustainability is an important goal of the CHI. A strategic plan for sustainability is a requirement of all Drug Free Community grantees during the organization's third year of federal funding. Work has been initiated by the CHI Steering Committee to have a Sustainability strategic plan in place by July 1, 2008. The CHI is working to identify sustainable revenue-generating strategies as it moves forward in its operations in FY 2008, FY 2009 and FY 2010.