Business founder, philanthropist T. Denny Sanford dies

T. Denny Sanford, the founder and chairman of First PREMIER Bank/PREMIER Bankcard and the most significant philanthropist in South Dakota history, has died at age 90.

A self-made banking entrepreneur, Sanford’s multibillion-dollar philanthropy reshaped health care, scientific research, education and civic life in South Dakota while placing his name on institutions and projects across the country.

Sanford, who served as chairman and CEO of PREMIER’s holding company United National at the time of his death, purchased the company that later became First PREMIER Bank in 1986 and subsequently created PREMIER Bankcard, which began issuing credit cards in 1989. Sanford’s giving is unmatched in South Dakota history, totaling well over $1 billion.

“Denny always said he wanted to live a life of significance and gave generously,” the organizations said in a statement confirming his death. “His philanthropy impacted millions of lives and transformed the landscape of South Dakota and beyond.”

Born in Minnesota in 1935, Sanford’s mother – an immigrant from Sweden – died from breast cancer when he was four years old, an experience that later drove elements of his philanthropy from health care to children’s causes. His father, who grew up on an Illinois farm, died when Sanford was 20.

Soon after high school graduation, Sanford was arrested for fighting and released with the condition that he attend the University of Minnesota, where he graduated in 1958 with a degree in psychology after originally planning to become a doctor.

“He might have been raised in St. Paul, but he loved Sioux Falls,” said Miles Beacom, CEO of PREMIER Bankcard, who grew the business with Sanford since its inception.

“He said, ‘Sioux Falls has given me so many opportunities, I need to give back.’”

Sanford pledged to give away most of his fortune, often noting he planned to “die broke” and encouraging others to “inspire before you expire.”

“When you look at the giving … it’s amazing,” Beacom said.”Look in Sioux Falls at everything that’s been done and the people who stepped up their giving because of it.”

Entrepreneurial success

Throughout his years of leading the PREMIER organization, Sanford “believed in surrounding himself with a great team,” Beacom said. “This organization makes decisions for long-term success, not short-term success.”

In pioneering credit cards for those who needed to rebuild their credit, Sanford saw the business as a way to help people who were struggling, Beacom said.

“He had a tough childhood and he had seen people struggling,” Beacom said. “He saw this as a way to get out and help people who hadn’t been given a second chance.”

Even after transitioning to chairman, Sanford made regular appearances at the PREMIER organization, said Dana Dykhouse, CEO of First Premier Bank.

“He truly understood the chairman’s role, and he was there to see we were executing the plan,” Dykhouse said. “He truly understood how to put a management team in place and allow them to do their job and hold them accountable.”

The PREMIER organization has more than 1,500 employees. The majority work on the Bankcard side of the business, with about 700 in Sioux Falls and the rest split among Dakota Dunes, Huron and Watertown. There are 13 bank branches.

As a leader, Sanford took “great pride in the employees,” Beacom said. “Everywhere he goes, he sees PREMIER wear and the impact the employees have on the community. And they’re always amazed when they first meet him: ‘This is a billionaire?’”

Legacy of giving 

In a 2007 interview with Forbes, Sanford talked about his philanthropic approach centering around children.

“They don’t have voices,” he said. “Give them the right values. Give them the love they need. And give them the health that they so desperately need.”

In 2007, he announced a $400 million gift to then Sioux Valley Hospital, which renamed the system Sanford Health. His total donations to Sanford exceed $1 billion and include more recent gifts to help fund the Sanford Virtual Care Center and graduate medical education as well as a new hospital to serve the Black Hills region.

“We are forever blessed that Denny chose us and our communities to make the transformational gifts that will change lives for generations,” Sanford CEO Bill Gassen said in a statement.

“He was a driving force in modern medicine, empowering researchers and clinicians to think big and pursue bold, innovative endeavors at a pace not otherwise possible. We are able to provide care for more patients in their time of need because of his generosity.”

For a full timeline of giving to Sanford Health, visit here.

In recent years, Sanford Health disclosed that it would be the primary beneficiary of Denny Sanford’s estate. As part of the agreement, Sanford committed to remaining based in Sioux Falls, including its CEO, and incorporating “Sanford” as the singular primary name and brand of the health system.

His philanthropy focused especially on:

• Health care and medical research
• Children and families
• Education and scholarships
• Economic development
• Scientific research
• Athletics and community facilities

Smaller donations still had historic impact in South Dakota, including $70 million to help launch the Sanford Underground Research Facility, $55 million to create the largest gift in the history of Children’s Home Society, and a $3.5 million gift to help reopen the State Theatre.

His $25 million gift to the Sioux Falls Zoo & Aquarium followed by another $10 million is helping kickstart a major expansion on the zoo campus including an aquarium.

As a philanthropist, Sanford regularly called on others to join him, Dykhouse said.

“A lot of his gifts are matching,” he said. “He wanted it to be a community effort, where everyone works together for success.”

Outside of Sioux Falls, Sanford was a prolific donor to education-related causes. California-based National University oversaw multiple programs on his behalf, including an institute of philanthropy designed to address nonprofit management, and Sanford Harmony, a social emotional learning program for children. Sanford Inspire created resources for K12 teachers designed to inspire effective classrooms. All the National University programming had South Dakota ties and reached more than 500,000 students annually nationwide.

Sanford’s most recent high-profile donation of $50 million allowed for the creation of The Sanford District through the purchase of the Smithfield Foods property adjacent to Falls Park.

“He lived a full life. If you look at anyone who lived a life well lived, it’s Denny,” said Paul TenHaken, whose eight years as mayor concluded hours before Sanford’s death. “I can’t think of anyone who had a more significant impact on the city of Sioux Falls than Denny, or on the state of South Dakota.”

His legacy will be the “fire” of philanthropy he lit in the community, TenHaken said.

“He’s inspired so many people who want to be part of something bigger than themselves,” he said. “I think that fire will continue to burn.”

Sanford regularly would evaluate giving opportunities through a business-focused lens, TenHaken said.

“He’d say, ‘What’s the ROI?’ And the ROI might be children or scholarships to keep students in South Dakota, but he approached it with an ROI perspective,” he said.

In his last years as mayor, people outside of Sioux Falls often would ask TenHaken about the success of Sioux Falls, he said.

“People will say, ‘It seems like Sioux Falls has got it going on, and what do you attribute that to? Is it the economy or tax climate?’ And I can say I can point to a lot of little things, but if you make me choose one thing it’s we have a philanthropist named Denny Sanford,” TenHaken said.

“He made historic investments in our community that put us on a rocket ship. If you make me nail it to one thing, it’s Denny Sanford that put us on the trajectory we’re on. He has been primary catalyst to the Sioux Falls we love today.”

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