This fund supports initiatives that address and build on the concept of family values within the community, especially in the area of seniors, children and youth.
James Lewis Gibson Fund has been established with a purpose to assist in the payment of medical and health care expenses, including expenses related to nursing, respite care and health care received at home for sick children in the Town of Flamborough who are acutely ill or medically fragile or who are receiving in-patient or out-patient hospital care whose families would not otherwise be able to afford such expenses.
T. H. L. “Shiner” Gallagher was born in 1900 in Ottawa and grew up on Montreal and Toronto, where he attended Lower Canada College, Montreal and St. Andrew’s in Toronto. He spent his working life with Dominion Securities Limited, opening its Hamilton office in 1921 where he was a managing partner.
Mr. Gallagher was Alderman in 1933-34 and was active in the community. He served as Director of Chedoke Hospital. During the Great Depression, Mr. Gallagher was the driving force, along with G. Vert Rayner and Jean McTaggart, in answering a community need by founding Amity Goodwill Industries in 1935. In 1984, to celebrate his 50th year of volunteer to service to Amity, “Shiner” established the Amity Goodwill Fund to encourage and stimulate people with disabilities in their efforts to recreate their lives and achieve their career and personal goals. Mr. Gallagher was a valued ambassador for this agency in our community for many years.
Mr. Gallagher served during the last World War as Commanding Officer of the Sea Cadets Corps of Hamilton.
Mr. Gallagher passed away on August 28, 1999. He was predeceased by his beloved wife Frances (nee Innes), daughter Willemene Agro and son Harold. His contributions will be long remembered and he has left the world a better place than he found it.
The Russell I. Elman Fund was established with the Foundation in 1985 as a donor advised fund. Arising from Mr. Elman’s interest in the written word, the purpose of the Fund is to support initiatives related to reading and literacy.
Income from the Fund has provided a scholarship to a Canadian student studying at the Columbia Graduate School of Journalism in New York City. This Fund has also supported the Day Care Link initiative, a pilot project of Hamilton and District Literacy Council being undertaken at the MacNab Street YWCA Day Care Centre. The project is designed to stimulate the interest of preschoolers in books and reading.
The Cygnus Fund supports Long Point Bird Observatory (LPBO), a program of Bird Studies Canada, located in Port Rowan, Ontario. The purpose of the Fund is to strengthen and perpetuate LPBO’s ornithological research, population monitoring, and training. Donations are welcome. For more information, please contact the Hamilton Community Foundation.
Mary Lauder Cassidy, the only daughter of Edwin Cassidy, a longtime manager of the Hamilton branch of National Trust, graduated from Trinity College in 1931 with a degree in modern languages. She also studied business and became a secretary to the Dean of Medicine and worked at the Faculty of Medicine at the University of Toronto. She traveled extensively throughout Europe, Great Britain, Japan and the high Arctic, and took a great interest in matters of culture, civic affairs and education.
Her bequests confirmed these interests, whereby she supported scholarships, health and human service organizations and arts groups.
Miss Cassidy became sick with cancer. While in the hospital she developed an interest in the workings of the complicated equipment which surrounded her. Two of her bequests memorialized her late parents; perhaps it was her observation of their aging process that induced her gift to the community foundation “for charitable purposes in connection with aged people”.
Grants have been made from this Fund: to support footcare clinics in homes for the aged and nursing homes; to develop programs protecting older persons from abuse and self-neglect; to start up a stroke survivors’ group; to conduct hearing testing programs; to publish a directory of services for seniors; to investigate the service needs of rural seniors; to support seniors centres and residences, and for several other projects of benefit to the elderly.
This fund supports services which provide care and assistance to seniors who are mentally and/or physically disabled and those services which help alleviate the stress on the caregiver.
The fact that Ralph William Cooper received one of the first Cornerstone awards bestowed by the Foundation of Chedoke-McMaster Hospitals speaks volumes about the man. Born into a successful family (his father founded Cooper Construction), he was instilled with a profound sense of duty and pride in his community. His community leadership touched such organizations as the Tiger-Cat Football Club, McMaster University, the United Church, the YMCA and the Hamilton Civic Hospitals. Moreover, these activities were fit into the demanding life of raising three children with his wife Evelyn and helping to run a family business responsible for the construction of dozens of city landmarks – the Hamilton Board of Education building, the Union Gas building, the train station at Hunter and James streets, to name a few. A man of courage and determination, Mr. Cooper dismissed life’s obstacles with the response “These little things are sent to try us” – a philosophy which he drew upon throughout his life.
Evelyn Joanna Cooper was a dedicated volunteer, avid traveler, Georgian Bay enthusiast and devoted wife – these are a few of the memories Bill Cooper has of his mother. Evelyn McArthur was born in 1908 and married Ralph William Cooper in 1932. She shared her husband’s commitment to civic duty and juggled numerous volunteer activities – Big Sisters, Art Gallery, Hamilton Civic Hospitals and YWCA while raising three children. Although a world traveler, her favourite place was a cottage on a small island off Honey Harbour in Georgian Bay. A fitness fanatic before it was a trend, she swam at dawn until age 75, skied and played soccer with her grandchildren. With characteristic strength, she supported her husband of 62 years through a long illness and convalescence.
Ralph and Evelyn Cooper were life-long supporters of the Foundation and took pride in its growth and made many gifts to the Foundation and these gifts will continue to provide support to succeeding generations in our community.
Excerpt from 1995-1996 and 1996-1997 Annual Reports
When Kent Newcomb, Hamilton Community Foundation’s former President (also immediate past Chairman of Community Foundations of Canada) presided over a national conference in Calgary, he heard young people from several Michigan foundations share their positive experiences of being involved with community foundations.
Their enthusiasm reinforced an idea that he and his wife Thérèse had been thinking about for some time. “Young people need a voice not only in the issues that face them now, but in the challenges and opportunities they will encounter in the future. They need to develop the attitudes, values and skills that will enable them to contribute effectively to their communities and their country. The best way to learn generosity and to value community service is by direct exposure and involvement.
Thérèse and Kent challenged Hamilton Community Foundation to develop a program that would involve youth and provide leadership opportunities for young people. They endowed $100,000 with the gift of 1,000 shares of McDonald’s Corporation. “We consider this as a millennium gift and a legacy for the future. Hamilton is a very giving community in my experience. Its finest resource is its people,” says Thérèse. “Our gift is our way of recognizing and thanking a great community.” The project is underway and a Youth In Philanthropy Advisory Committee has been formed involving young school leaders who look at the needs of young folk in our community and work to raise the funds to address those needs, stimulate volunteerism and make grants from income of the Youth Fund.
Thérèse and Kent emphasize that this is an open fund in the Hamilton Community Foundation and they hope that it will attract donations from others who are supportive of the Youth in Philanthropy concept. “We see this fund as growing and being directed by young people.”
Excerpt from 1998-1999 Annual Report
Marie and Kenneth Young’s bequest will support youth and Centenary United Church.
Kenneth Young first dropped in to Hamilton Community Foundation with a list of questions about HCF’s accounting methods and investment practices. Only after he was completely satisfied that the Foundation’s policies were solid did he continue discussion about setting up a fund. That careful diligence doesn’t surprise Colin Lazier, Mr. Young’s lawyer and friend of 30 years.
“Ken worked in industrial accounting throughout his career,” he says. “He was by nature a very deliberative person. He would have studied his options thoroughly before choosing the Foundation.”
Mr. Young first learned about HCF when Mrs. Joyce Young made her record-setting gift of $40 million in 2000. People asked him if they were related (they’re not). The news coverage piqued his interest and he researched the Foundation, ultimately leaving a bequest in his will.
Kenneth and his wife Marie moved to Hamilton from the Prairies, where they had both grown up. They met in Regina through speedskating – a sport they shared – and married in 1958. In 1961, Ken was transferred to Hamilton with International Harvester. They moved into a newly-built apartment on the Mountain brow, and never moved again. Ken was still living there independently (paying close attention to his nutrition and carefully reading food labels in his weekly shopping trips) in 2008 when he passed away in his ninety-third year. Marie pre-deceased him in 2002.
Both were very active in Centenary United Church. Marie was a strong supporter of the United Church Women. Ken was a long-serving Clerk of Session, and a trustee and treasurer of Centenary’s bursary program for theological students. He also served on the United Church’s Hamilton-wide council for many years.
Though they had no children of their own, Ken and Marie recognized the important influence of strong parents on their own lives and wanted to help make sure that other children had access to that kind of mentoring. The Kenneth Boothe Young and Marie Catherine Young Fund will support youth-focused grants recommended by the Foundation as well as the activities of Centenary United Church.
“Ken Young was one of the finest people I’ve ever known,” recalls Colin Lazier. “He was always thoughtful and considerate. He was a gentle man who never had a bad word to say about anybody – and he always got things done in his quiet, gracious way.”
Excerpt from 2008-2009 Annual Report
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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