In the business of complex, long-term change, it’s not often the community foundation hears definitive evidence that its granting has transformed a life. But siblings Anita and Christopher Counter have each reached
out recently to thank the Foundation for life-changing support they received more than 20 years ago.
These two extraordinarily accomplished adults – Anita Counter is senior vice-president in sales and marketing of a leading financial institution, and Dr. Chris Counter is a cancer researcher and professor at Duke University – were at risk in their teens. Estranged from their family and living on their own by 17 and 16 respectively, – with no resources and no support system, their futures were in serious doubt.
“Our growing up was pretty difficult”, reflects Anita, “but the importance of education was drilled into us, at least. We attended Delta Secondary and applied to McMaster. I got accepted first (I’m a year older than Chris) and I was thrilled. But then it hit me that I had absolutely no idea how I would ever pay for it. The cost might as well have been $3 million dollars, and I was making maybe $7 an hour then, renting a room downtown, helping my brother, both of us just trying to get by. We were pretty desperate.”
A caring financial aid officer at the university made all the difference by suggesting HCF’s Chaney-Ensign bursary. “I didn’t know what a bursary was,” says Anita, “but he walked me through the process.” The bursary was $700 per year – enough at that time to make the dream of higher education a reality.
Both Chris and Anita are clear that they would not have attended university without the bursary. It would have been impossible financially. Anita also credits the intangible boost of receiving the award: “Where we came from, just having someone who was interested in us was incredible. People don’t realize how much that can make a difference.”
With successful careers and personal lives in full flight now, both Chris and Anita want others to know what an impact this kind of support can have. “That bursary levelled the playing field for a disadvantaged kid like me,” says Chris. “It allowed me to pursue education – the pathway out of poverty for me and many others. I can never thank Hamilton Community Foundation enough.”
I enrolled at Westmount Secondary School in grade 11 and immediately joined an improv team called
“The Sketch Comedy Team”, where I was able to contribute both as a performer and as a writer. In addition, I performed in the school musical “Fiddler on the Roof”. There were also many opportunities throughout my three years there in talent shows, school assemblies, and other extra-curricular gatherings (i.e., fundraising “Coffee Houses/Java Nights”). The nurturing and supportive environment of Westmount lent itself well to the large number of artistic students the school housed. I felt as though my talents were appreciated and respected there in a way that I had not previously experienced, and it was wonderful to have so many friends in the same place that had the same passions as me.
From this positive feedback, I was able to explore other outlets for my creativity. I wrote, produced, cast, directed and filmed my first short film. It was a parody of sorts mocking “adolescent” life and all of its “ups and downs”. These experiences led me to pursue a career in the arts, and so I decided to audition for musicals in the community and began researching possible programs in the arts for my post-secondary education. I began formal vocal training, dance training, and piano lessons to become a more well-rounded performer.
It was during my years of training that I decided to focus on my classical voice. I competed in numerous music festivals, receiving several first place standings and scholarships. I auditioned for post-secondary programs in voice at the University of Toronto and The University of Western Ontario. I was fortunate enough to have been accepted to both programs, but decided to accept the offer given to me by the University of Toronto. My voice professor is Jean Macphail, a reputed world-class voice instructor and performer. She has nurtured my voice and I feel that I have grown exponentially under her tutelage.
I was also blessed to have been selected as a student of the opera undergraduate program at the university. This opportunity allows me to collaborate and work with the students in the Master’s program and with the faculty of the Opera Division. As an opera undergrad, I am also involved in all of their main stage performances and am given extra acting instruction.
I am now entering my fourth year in the program and am looking forward to being a part of this year’s main stage productions as well as preparing for my graduating recital. My plans for the future include participating in summer intensive training programs and preparing for auditions for post-graduate studies. It is my dream to become a world-renowned opera performer and to grace the stages of The Metropolitan Opera in New York, La Scala in Italy and Covent Garden in England!
The bursaries that I have received have helped me to fund my post-secondary education. There are many extra costs involved in an arts program, particularly in classical voice training. I would not have been able to pursue my passion for performance without the assistance that the HCF scholarship/bursaries offered. They have relieved some financial burdens and worries for my family and me. This has allowed me to focus more on my training and studies.
If given the chance, I would give the donors who made the funds possible the biggest and most heartfelt thank you. I would tell them that their generosity has allowed me to stay in school and earn my degree, without which I likely would not have the same opportunities to advance in a career in the arts. And, I would tell them that with their help, this small-town Hamilton girl might become someone famous one day!
These awards helped reinforce my belief in the importance of helping those who are in need. Once I become financially successful, it is my intention to give back to others in the form of scholarships/bursaries, master classes, etc. and I have people like the members of the HCF committee to thank for impressing upon me how valuable financial aid can be and the difference it can make to the lives of those receiving it. They have given me a new respect for the saying “generosity begins at home”. I am a Hamilton hometown girl and my community helped me when I needed it most.
I attended Bishop Ryan High School in Hamilton between 1980-85 then on to McMaster University from 1985-89, where I graduated with a B.Sc. degree in biology. I then pursued a professional career as a Doctor of Chiropractic and graduated from the Canadian Memorial Chiropractic College in 1993. While in the chiropractic college, another recipient from Hamilton made me aware of the bursary.
I have celebrated my 20th year in practice as a Doctor of Chiropractic.
I currently have two chiropractic practices in Hamilton and have helped new chiropractors in their future plans. I am also a member of the Chaney-Ensign review committee.
Coming from a working-class family in Hamilton, post-secondary education and professional schooling are in many cases restrictive because of the financial burden put on the students and their families. The bursary was an avenue of funding that allowed hard-working students to continue with their studies.
This may seem odd but, aside from the obvious financial help during the time that I received the bursary, it seemed as though the entire Hamilton Community Foundation was pulling for me. When I was back in Hamilton during my schooling, I would often stop in to the office to say hello. The staff all knew me and I felt that part of my success was in not disappointing the Foundation. Today I am a volunteer with HCF and I try to create that same feeling of community with my practice and career.
From the first time I was made aware of the Chaney-Ensign Fund, I was taken aback at the selflessness and generosity of these two women. The fund has not only created a legacy for them, but also for all those who have benefitted from their kindness and generosity. They have promoted education and allowed many to succeed and be a positive influence in not only Hamilton but all over the world.
I have been able to see the value of this bursary from both sides of the fence. As a recipient, it helped to push me forward to enable me to be where I am today. I also have seen the success of many other recipients firsthand over the last 19 years as a committee member for this fund. When a community can care for one another, those who move on bring that with them and it will spread to others. One small act can have far-reaching impact like ripples in a pond and that, I believe, was the hope of the Chaney-Ensign sisters.
I went to Westmount Secondary School in Hamilton, and following graduation I went to Mohawk College and completed a three-year Applied Music Diploma. After Mohawk, I attended the University of Toronto earning a Bachelor degree in Jazz Performance, followed by OISE where I completed my Bachelor of Education.
My grandfather was a member of the Geritol Follies at the time and he informed me that there may be a bursary opportunity through Hamilton Community Foundation. At a time when I wasn’t eligible for many financial assistance options, the bursary was critical in my ability to attend the University of Toronto.
I currently teach music to middle school and high school students at Hillfield Strathallan College in Hamilton. I also direct the Rising Stars Jazz Band, which is a member of the Hamilton All Star Jazz Bands.
I would thank the Geritol Follies Committee for giving me the opportunity to attend such a prestigious and exclusive program as the one offered at the University of Toronto. Being a part of that program opened up many professional doors to me, both educational and performance based. Without assistance from HCF, it may not have been possible for me to attend that program.
Terry Cooke joined HCF as President & CEO in 2010. In this 60th anniversary video, he reflects on HCF’s unique role in Hamilton, and the importance of “leaving the place stronger than we found it.”
[youtube=https://www.youtube.com/watch?v=WOoLjAviYHU]
Judith McCulloch was HCF’s first full-time leader. In this 60th anniversary video she reflects on the growth of the Foundation and its impact.
[youtube=https://www.youtube.com/watch?v=WgM3Aq5E_9k]
John and Sandra Black’s philanthropy is directed to meeting Hamilton’s greatest needs. They particularly like HCF’s research-based approached to understanding community needs and the best way to meet them, as they discussed in this 2014 video.
[youtube=https://www.youtube.com/watch?v=wyqueK-pvs4]
Dr. Leila Ryan was Chair of the Foundation when the Foundation decided to direct the majority of its unrestricted granting to poverty reduction – the first community foundation in Canada to do so. Leila reflects on the importance of that decision in this 2014 video.
[youtube=https://www.youtube.com/watch?v=eoM12NnkNZI]
Murray Hogarth is the founder of Pioneer Energy LP, sponsors of HCF’s 60th anniversary. In this 2014 video he discusses why he chose Hamilton Community Foundation as an efficient vehicle for his company’s and his family’s philanthropy.
[youtube=https://www.youtube.com/watch?v=Hh-UDMIcL5s]
As President & CEO from 1995 to 2009 Carolyn Milne was the driving force behind the Foundation’s strategic approach to addressing Hamilton’s complex needs. In this 60th anniversary video, she reflects on HCF’s ability to bring people together to improve the lives of their fellow Hamiltonians.
[youtube=https://www.youtube.com/watch?v=bUCRVvUpTD8]
Donations to the Foundation are invested for the long term in public markets and in alternative investments. Investment income is then allocated annually to support granting, community leadership and operations. The summary and charts presented here provide both a financial snapshot and a history of recent activity that underlies the grants and community leadership activities represented in this annual report, made possible by remarkable donors.
Donations to the Foundation are from individuals, corporations and other charities. Donors may contribute to named endowment or flowthrough funds, to the Board-directed Community Fund, or to HCF’s community leadership projects.
The $35.1 million in donations this year is the second highest total in HCF’s history. Annual donations are influenced by the timing of the realization of donations in wills and significant one-time donations like the $27.7 million in donations of property and private equity. As illustrated in Chart 1, annual donations have ranged between $3.2 and $35.1 million over the past eight years. The five-year rolling average of donations ranges from $5.0 million to $13.3 million over the past eight years.
The five-year rolling average number of donations is 1,787 with 2019-20 at 1,853. The number of donations fluctuates based on “in memoriam” donations and the number and nature of events sponsored by donors to raise money for their funds.
Chart 1
Grants are made annually from both endowed and flowthrough funds. Because flowthrough fund balances are distributed in a shorter time period, granting from these funds can materially influence HCF’s total annual amount granted.
As illustrated in Chart 2, grants and community leadership project spending over the past eight years has ranged from $4.7 million to this year’s historic high of $11.5 million. Granting from endowment funds was reduced in 2013 as a result of the decline in investment returns in 2012 which a) lowered the asset base used for the granting calculation (currently four percent of the fund balances), and b) resulted in less income available to grant. Flowthrough granting and expenditures on community leadership projects has ranged from 22 to 56 percent of total granting in any given year and is dependent on the timing and nature of flowthrough and project activity. At 893, the number of grants for this year is 37 percent higher than the eight-year average.
Chart 2
Investments traded in active markets are reported at fair market value. Investments not actively traded are recorded at their cost less any impairment of their value.
To support our strategy of aligning our assets with our mission and to provide a more diverse and robust portfolio, HCF has committed to investing in alternative asset classes including loans to charities and not-for-profits, private debt, real estate, infrastructure and private equity. These alternatives are consistent with the Foundation’s long-term investment horizon and liquidity requirements. Since these investments are not actively traded, they are valued at cost in the investments. These alternatives total $25.8 million.
HCF invests according to policy guidelines established by the Board of Directors. Two committees of the Board oversee investments to ensure compliance with the policy:
As an endowment builder, HCF’s policy focuses on long-term investing and is supported by reserve accounts that are currently at their policy maximum.
The investment policy sets out a total portfolio target asset mix, as well as a range around these targets. The public market investment managers have mandates within this targeted asset mix and use their discretion to invest the portfolios within this range. Chart 3 reflects the current and target asset mix. Note: $25 million of private equity relates to a fund established by a donor and is not part of the asset mix or the consolidated portfolio results.
Chart 3
Two long-term portfolios are invested in the public markets with Jarislowsky Fraser, and Connor, Clark & Lunn. Chart 4 compares those portfolios against benchmarks as follows:
Benchmarks reflect the performance of each market index based on HCF’s specific target asset mix. Comparing actual results to the benchmark measures the value added by investment managers compared to the average market performance. HCF’s investment policy target is a long-term investment return in the 6.5 to 7.5 percent range.
Chart 4
The effect of the global pandemic has materially affected investment returns, resulting in a -8.4 percent public market return for the year. The seven-year annualized return at 6.8 percent is within the targeted investment policy range and is 1.2 percent higher than the 5.6 percent benchmark. As noted in the financial highlights, the current 10-year annualized return of 7.0 percent is in the target range and is higher than the benchmark by 1.2 percent.
Impact investments enable donations to endowed funds to drive positive change beyond granting, because they represent investments of capital that deliver financial returns coupled with positive social and/or environmental outcomes. In addition, these investments provide a pool uncorrelated to the public markets which, in turn, buffers the portfolio from the volatility currently experienced.
More than 15 percent of our long-term assets are in impact investments. Chart 5 illustrates HCF’s impact investing progress over the past five years, with $25 million currently placed or outstanding and another $15 million committed. This brings the total commitment to $40 million, up from $34 million last year. Impact investments cover areas including affordable housing, arts, environment and sustainable development.
Chart 5
Local loans since inception total $9.7 million with $7.1 million outstanding at year end. Chart 6 shows the impact areas our loans have supported. Since the loan program’s 2012 inception, $2.6 million in loan principal has been repaid and recycled as new loans. In addition, the interest from these loans supports HCF granting.
Chart 6
IRP is a Government of Canada program being delivered nationally by partners including Community Foundations of Canada. As the first phase in the government’s long-term investment in social finance, the IRP’s goal is to make social-purpose organizations “investment ready” so they can make a difference in new and innovative ways through their participation in the social finance market. HCF has partnered with community foundations in London and Niagara, and the McMaster Innovation Park to manage the program regionally on behalf of Community Foundations of Canada. The first request for proposals for funding in January created enormous interest nationally and garnered 65 submissions to our regional partnership. Approved funding is expected to be released in June 2020. As an additional benefit, the IRP brought a growing number of potential opportunities for local loans to HCF’s attention.
These investments include private equity, private debt and real estate investments. Many of these investments are long term in nature, are maintained at cost and do not have a regular income stream. As these investments are maintained at cost, their results include interest income and realized gains, but not unrealized gains. Results for these investments are closely monitored and are reported when realized. Chart 7 identifies the investment areas, with $18.0 million placed and a total commitment of $33 million across 21 investments.
Chart 7
Operating expenses for the fiscal year ended March 31, 2020 total $2.5 million and were 2.5 percent higher than last year. Staffing costs related to the Foundation’s 22 employees represent 70 percent of HCF operating costs.
In addition to breaking out cost by type, operating costs are allocated to each of the Foundation’s operating areas: grants administration, community and philanthropic leadership, community relations and knowledge dissemination, development activities, and administration and governance. Examples of community and philanthropic leadership include convening around the city’s critical issues and fostering the growth of philanthropy by sharing staff time and knowledge to support other charities. Charts 8 and 9 illustrate these costs by operating area and by expense type.
Charts 8 and 9
The Foundation’s annual development expenses are not necessarily attributable to the donations received in that year. The nature of donations to the Foundation can result in costs preceding the receipt of the donation by several years (for example, donations through wills). As a result, consistent with the community foundation sector, operating costs are evaluated by a ratio of total operating expenses to average total assets. Ratios fall within a range depending on the size and stage of the community foundation’s development.
Management considers the ratio of 1.26 percent (1.25 percent in 2019), as illustrated in Chart 10, to be within an acceptable range for a foundation of HCF’s size, stage and level of community leadership, compared against benchmarks established in the community foundation sector. We continue to monitor both the actual results and the benchmarks on an ongoing basis.
Chart 10
Hamilton Community Foundation’s total assets of $201 million at March 31, 2020 include balances of HCF funds and funds held on behalf of others at $1.7 million.
Hamilton Community Foundation’s fund balances, illustrated in Chart 11, represent accumulated donations plus the net investment earnings on these donations, minus granting and operating costs. Funds include both endowed and flowthrough funds. Endowed funds are held permanently and grant from investment earnings. Flowthrough funds are fully distributed as grants over a pre-determined term.
Chart 11
The fund balances have grown 55 percent to $198 million at the year ended March 31, 2020 from $128 million in 2013. Donations of $35.1 million included $4.4 million in flowthrough donations that were largely distributed as grants in the year and, as a result, do not remain in the fund balances at year end. This results in a modest total funds balance growth of 4.8 per cent for the year. The number of funds has grown 19 percent to 377 from 318 in 2013.
Donate Today