The Rotary Club of Hamilton carries out a literacy program at north-end schools, where club members provide reading assistance to students throughout the school year.
The Rotary Club of Hamilton carries out a literacy program at north-end schools, where club members provide reading assistance to students throughout the school year.
Hamilton’s first and largest Rotary Club, with almost a century of putting the Rotary motto of “Service above Self” in practice, has created a way for the club’s good work to be supported in perpetuity.
Of the 12 local clubs, the Downtown Rotary Club has become the first to launch an endowment fund with Hamilton Community Foundation. There are two options for making a gift to the Rotary Forever Fund: as an immediate donation from a living donor, or as a bequest identified in a person’s will. All gifts are pooled and invested. The capital is left untouched and only the investment income is disbursed to support Rotary projects and initiatives, as decided by the club’s Board of Directors.
“With the creation of this fund at HCF, we’re giving people a unique opportunity to leave a legacy that supports the work of Rotary,” says Robert Beres, Club President for 2006-2007. “In our club alone we have members with decades of service to Rotary; we can now offer them a way to benefit the club’s projects forever.” In addition, the fund is “open”, meaning that Rotarians and non-Rotarians alike can contribute.
The Downtown Rotary Club still undertakes annual fundraising campaigns and events such as its Hallowe’en Haunted House, or Spring Uncorked, a food and wine tasting event. Monies raised from those and other initiatives help to fund literacy programs and other supports aimed at underprivileged youth.
“Our club has given out an average of $72,000 annually in charitable donations over the past five years, and our members provide hands-on service too, such as helping children at north-end schools learn to read and do math,” explains past president Keith McIntyre. “The endowment fund at HCF is a different vehicle for giving – it allows us to take the long view and build something permanent.”
Excerpt from 2006-2007 Annual Report
Hamilton’s lawyers have come together as a community to launch a permanent endowment fund to benefit local children. Long known for their support of a myriad of causes with their resources and time, Hamilton’s lawyers have chosen to work collectively to build a fund that will have an impact in perpetuity.
“We want this fund to be here to help Hamilton’s children forever,” says Justice Ray Harris, who was the driving force behind efforts to create the fund. “An endowed fund at Hamilton Community Foundation is the perfect way to ensure that.”
The Lawyers’ Legacy for Children the Ray Harris Fund is intended to collectively inspire and enable children and young people to nourish and develop their knowledge, talents and values in the spirit of community, generosity and responsibility that has characterized the contributions of Hamilton’s lawyers.
The Hamilton Lawyers’ Club agreed to collaborate with HCF to establish the fund and developed the process by which regular grants will be recommended in the future.
The fund’s founding contribution came from the proceeds of the 2006 stage production, ‘Inherit the Wind’, which Justice Harris co-directed with former Theatre Aquarius artistic director Max Reimer. Local lawyers and judges played all the roles to the delight of Hamilton audiences.
This unique theatre genre – the Lawyers’ Show – originated in Hamilton in 1983 when the Lawyers’ Club produced ‘12 Angry Men’ (also directed by Justice Harris). It has since been widely emulated in support of many worthy causes in communities across Canada and the U.S.
Hamilton’s lawyers and judges have made substantial contributions to augment the fund and are planning another Lawyers’ Show and other fundraising initiatives to build the endowment.
“Thanks to the generosity of Hamilton’s lawyers, this fund will endure for centuries,” says Justice Harris. “It will have a lasting impact that reflects our legal community’s commitment to the community at large and will always be there to help the children.”
Excerpt from 2008-2009 Annual Report
A legacy that continues
Since 2008, 20 grants totaling $136,901 have been awarded from the Lawyers Legacy for Children the Ray Harris Fund supporting important initiatives throughout the community, including:
The fund continues to grow, with the fund capital reaching over $500,000 – truly a legacy that will have an impact forever.
The Riverdale Salad Bowl is a community solution to provide access to fresh produce and improve food security. We were proud to support the community garden in this great east Hamilton neighbourhood.
A grant from HCF is helping to put more girls on the playing field by providing sport hijabs to 20 local schools. For Muslim girls, taking part in athletics can be challenging when wearing a traditional hijab due to the fear that it could fall off, or that the fastening pin could injure a player. It’s a particular risk in sports like basketball and soccer. Sport hijabs eliminate these risks with a design that accommodates physical activity. The program, also supported by the Hamilton Muslim Association, will make the hijabs available on loan, just like other sports equipment, helping the girls to enjoy and reap the benefits of more athletic participation both in gym class and on school teams.
Excerpt from Legacy newsletter, Fall 2015
New “one-stop” kiosks are bridging the digital divide and making information more accessible to older adults. Responding to a community need, The Dundas InfoSpot for 55+ is a web-based computer application, curating information about programs and services in an age-friendly format. 
Led by the Hamilton Council on Aging, and supported by HCF, InfoSpot draws listings from Information Hamilton’s directory of community services. The kiosks use large touch-screen computers to ensure content readability, and wheelchair/scooter accessibility. Users can also print their search results in an age-friendly font size. The kiosks are installed at the Dundas Public Library and the Dundas Lions Memorial Community Centre where volunteers of the Dundas Active 55+ Steering Committee can assist InfoSpot users. In addition, InfoSpot is also accessible online from any computer.
Excerpt from Legacy newsletter, Fall 2015
Community starts early in the McQuesten neighbourhood, and that includes cultivating its young urban farmers through Sprouts Camp. Throughout the summer, kids from this east Hamilton community attended the camp, focused around the neighbourhood’s urban farm. 
Camp days always included a long visit to the garden, a bounty harvest and a lesson or two about gardening and nature. An HCF grant contributed to the camp’s programming, allowing about 150 neighbourhood children to participate.
The Urban Farm has started with a community garden and a learning space. The farm will be fully operational in spring 2016. Nestled behind the St. Helen Centre on Britannia Avenue, the farm is managed by a group of volunteers and yields a wide range of produce, from tomatoes to potatoes and cantaloupes to ground cherries.
The farm doubled up as a hub of activity for the kids at camp. Aside from harvesting the produce, they learned gardening tips, whether it is recognizing when a cantaloupe is ripe or being aware of harmful bugs. Kids were encouraged to learn and grow by combining recreational activities with hands-on opportunities.
See more Sprouts camp photos in the McQuesten Urban Farm album on Facebook: HamCommFdn, and read more at hamiltoncommunityfoundation.ca/urbanfarm
Excerpt from Legacy newsletter, Fall 2015
Putting more foundation assets to work in the community is the goal of HCF’s Hamilton Community Investment Fund (HCIF). The fund’s latest loan is a great example.
Early in 2015, HCIF provided mortgage financing to Indwell to build 47 supportive housing units on Main Street East just east of Kenilworth – on a former used car lot. Indwell has a stellar track record in Ontario and enthusiastic support in the local neighbourhood. Its Perkins Centre, across the street, provides 46 affordable bachelor apartments.
The 47 new units are much needed: the City of Hamilton counts 5600 households on its waiting list for affordable social housing.
“Financially,” says Indwell’s executive director, Jeff Neven, “with all levels of government, private donations, and Hamilton Community Foundation’s loan, this is a model that works for building affordable housing. And it’s an important example of the Hamilton community taking care of its most marginalized citizens.”
As a condition of government capital funding, Indwell guarantees that the apartments will remain affordable for 40 years for tenants receiving Ontario Disability Support Program.
HCF’s Executive Vice-President of Finance and Operations, Annette Aquin, is passionate about the HCIF role: “Lending is another tool in the foundation’s tool-chest. The Indwell loan illustrates the power of investing a portion of our assets differently: it’s low risk, high impact recycling of capital to address urgent community needs.”
Excerpt from Legacy newsletter, Spring 2015
The Martin Foundation Fund at HCF will continue the charitable legacy established by law partners and siblings Argue Martin (left) and Hubert Martin (right) in 1968.
“Hamilton Community Foundation is the perfect home for the Martin Foundation as we transition to a new phase,” says family member Rosalind Johnston. “The legacy of the Martin family, and the Martin & Martin law firm, continues in Hamilton with this step.”
Argue Martin and Hubert Martin (Rosalind’s uncle and father respectively) were partners of the venerable Hamilton law firm and established the Martin Foundation in 1968 to support charitable causes. Rosalind was a director of the foundation for more than 30 years, along with Argue’s son-in-law, the late Peter Richardson, and Martin & Martin law partner (now retired) Mary Lou Dingle.
“My father and uncle often favoured organizations that were just starting out, “ Rosalind says “and we concentrated on this area because of our roots in Hamilton. They felt an obligation to give back to the community in many ways.” Over the years, the Martin Foundation has supported hundreds of local organizations in the social services and the arts.
Hamilton Community Foundation was a natural choice as the Martin Foundation considered succession planning. Argue Martin was a founder and first president of HCF and Hubert was also a strong supporter.
“Dad would have loved this arrangement,” Rosalind says of the move to HCF in 2012. “He was a very forward-thinking man.”
Rosalind now sits on the advisory committee for the fund at Hamilton Community Foundation and has input into the grantmaking decisions. But the administrative work is handled by HCF. “This is a perfect solution for the future,” she says. “We used to spend hours poring over requests. Now, Hamilton Community Foundation handles all the applications and paperwork, but we continue to have input into how the money is spent. I’m thrilled.”
Excerpt from 2012-2013 Annual Report
Over the past year a number of long-standing organizations, now in transition, have turned to HCF to create a legacy by establishing new fund.
The Mount Hamilton United Church Legacy Fund recognizes the church’s 100 years serving Hamilton until May of this year. It will continue to give back to the city as part of HCF’s community fund.
Excerpt from Legacy newsletter, Fall 2012
Over the past year a number of long-standing organizations, now in transition, have turned to HCF to create a legacy by establishing new funds.
The School Sisters of Notre Dame Legacy Fund at HCF will support the education and societal needs of underprivileged women and children, a tradition the Sisters established in 1833.
Excerpt from Legacy newsletter, Fall 2012
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.
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