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Timeline update: Due to the high number of EOIs received, we expect to advise applicants of decisions by May 1, 2024
Application is closed.
Participatory granting is a trust-based, community-engaged approach to granting that shifts decision-making power to those most impacted by the funding.
Hamilton Community Foundation’s Participatory Granting Pilot invites applications from organizations who serve and are led by equity-deserving communities (EDCs) to join a granting circle to determine community needs and allocate funds. The focus and purpose of funds is capacity building for equity-deserving community-led (EDC-led) organizations. These organizations are uniquely positioned to respond to pressing local needs and have the knowledge and expertise to make the most positive impact on the lives and health of EDCs.
The funding available for the Participatory Granting Pilot in 2024 is $500,000. Organizations participating in the Granting Circle will receive a minimum grant of $10,000. The remaining funding allocations will be determined by the Granting Circle.
HCF’s Participatory Granting Pilot EOI process is open to Equity Deserving Community-led (EDC-led) organizations operating and delivering services in Hamilton.
To be eligible, the organization must represent at least one of the six priority EDC communities listed below for the project and have an annual operating budget of less than $1,000,000.
Who are the priority EDC communities for HCF’s Participatory Granting Pilot?
What is an EDC-led organization?
To be eligible for this expression of interest, EDC-led organizations must have each of these aspects:
In addition, eligible organizations will demonstrate the following:
There are two decision-making groups in HCF’s Participatory Granting Project: 1) the Community Panel and 2) the Granting Circle. The Community Panel has designed the Call for expressions of interest (EOIs) and will review all eligible EOIs received by the deadline. The Granting Circle will be made up of the organizations that are selected by the Community Panel through the EOI process. The following are key steps in the process:
This funding aims to support capacity-building for Equity-deserving community-led (EDC-led) organizations.
The Community Panel has defined capacity building as whatever is needed to bring an organization to the next level of operational, programmatic, financial, or organizational maturity. The following are examples of capacity building activities:
Nurturing people:
Nurturing systems and structures:
Nurturing program and service capacity:
Acquiring the skills and knowledge and or resources to support program and service growth, for example evaluation and redesign, communications and public relations skills including grant writing.
Organizations can apply by completing an Expression of Interest in HCF’s portal. Sections 1 and 2 must be completed in writing, through the portal. Section 3 may be completed in in writing in the portal, or can be submitted by video or interview. Instructions for completing Section 3 are provided in the portal.
Organizations selecting an oral interview for Section 3 of the EOI must advise HCF of their intention by Thursday, March 14, 2024, in order to arrange an interview before the application deadline. Interviews will be held from March 21 to March 26, 2024. Contact Elizabeth Webb, Grants Co-ordinator, by email at e.webb@hamiltoncommunityfoundation.ca, to arrange an interview or if you have questions about applying.
For planning purposes, the application questions can be found here; submissions must be made to the portal, which can be accessed through the link below:
Apply online here.
Application deadline is Tuesday, March 26, 2024 at 5:00 p.m. EST
Information sessions will be held on Thursday, March 7th at 10:00 a.m. and Monday, March 18th at 3:30 p.m.
Before you apply, please read the following carefully:
Expressions of Interest from eligible organizations will be reviewed by the Community Panel, and assessed on the following criteria:
The Community Panel is made up of local community leaders with deep experience in social and community services, and lived experience across diverse EDCs. Panel members are:
Kojo Damptey, McMaster University Sessional Instructor & Musician
Sophie Geffros, Community Organizer
NaWalka Geeshy Meegwun – lyndon george
Pauline Kajiura, Co-Director, Intersecting Anti-Racism & Anti-Oppression Consultant
Kim Martin, Executive Director, Social Planning and Research Council Hamilton
Medora Uppal, CEO, YWCA Hamilton
Thursday, March 7th at 10:00 a.m.
Monday, March 18th at 3:30 p.m.
For the purpose of this EOI, the following are defined as:
Expression of Interest (EOI): An organization’s statement of interest in participating in the project’s Granting Circle. EOIs will answer specific questions generated by the Community Panel, and must be submitted through HCF’s grants portal.
EDC-Led: Organizations that demonstrate the following three characteristics: (1) the majority of leadership, board and staff reflect the EDC population(s) served; (2) a specific mandate to serve the EDC population(s); and (3) a mission and activities that are informed by the EDC’s experience and knowledge.
Capacity-building: whatever is needed to bring an organization to the next level of operational, programmatic, financial, or organizational maturity. See full description and examples in the “Funding purpose and priorities” section, below.
Participatory Granting: A range of practices through which a funder shifts decision-making about distribution of funds to those most impacted.
Priority EDC: The equity-deserving communities identified as priority for this participatory granting project, communities that have experienced chronic under-funding by philanthropic institutions.
Please check the Frequently Asked Questions – here
The FAQ will be updated every Monday up to and including March 25, 2024 with common questions and answered received up to the close of the EOI submission period.
Questions can be submitted by email to e.webb@hamiltoncommunityfoundation.ca
Elizabeth Webb, Grants Co-ordinator
e.webb@hamiltoncommunityfoundation.ca
905.523.5600 x 249
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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