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
A quest to raise funds and awareness about the needs of Hamilton kids led local adventurers and philanthropists on a 30-day hike on the Bruce Trail.
photo: The Hamilton Spectator
Starting at Queenston on the Niagara River and ending at Tobermory on the shores of Georgian Bay, the adventure seekers completed their trek, the Bruce Trail Expedition for Kids, last fall, hiking 885 km and raising over $700,000 for community-based and in-school nutrition programs.
Along the route, the trekkers took opportunities to engage students and donors about healthy living, and enjoying and maintaining the Bruce Trail, which is in their own backyard. The four-member team was made up of Mark MacLennan, Teemu Lakkasuo, Fred Losani and Peter Turkstra.
Fred and Peter participated in two previous fundraising adventures. This time, they chose to work with the Hamilton Community Foundation to establish and administer the Bruce Trail Expedition for Kids Fund with the money they raised.
Although the foursome’s mission was to raise awareness and financial aid for Hamilton youth, they were able to accomplish much more. As the team expressed, “From our experiences, we were able to share the physical challenges of hiking over rugged terrain, the trail’s natural beauty and the rewards of teamwork and getting involved.”
Peter says that the goal of the expedition was a good fit with HCF. In addition to local charities that provide nutrition for children, funds raised will also be directed to many other Hamilton charities.
Excerpt from Legacy newsletter, Spring 2013
A thriving community hub is strengthened, thanks to an anonymous HCF donor. This generous donor has established an endowment fund aimed at supporting ongoing operations at the Eva Rothwell Centre.
A great day, as Terry Cooke, left, delivers the surprise news to Don MacVicar
A community-driven labour of love in the Keith neighbourhood, the Eva Rothwell Centre was born a decade ago when a group of local residents led by Don and Carole MacVicar turned the decommissioned Robert Land School into a multi-service community centre.
There is no shortage of volunteers, eager service providers, imaginative programming for all ages, local leadership and creative use of space; the challenge is operational funding to keep the old building heated, clean and in good repair.
The fund’s founding donor hopes the gift will encourage more contributions. So does Don MacVicar. “This gift has given so much to so many to provide hope for a better tomorrow. We are certain it may also inspire others to grow this endowment towards the Eva Rothwell Centre’s secure future. We are doubly blessed.”
Excerpt from Legacy newsletter, Fall 2014
“If people need our service, they will need it for life,” says Cindy Kinnon, Chief Executive Officer of AbleLiving, a housing and support organization for people with disabilities. “We support people with disabilities to live independently throughout all stages of their life. So our services need to be stable and reliable over time. An agency endowment fund makes total sense for our organization. It fits our model of sustainability and independence and permanence.” 
The AbleLiving Mary Traini Legacy Fund at Hamilton Community Foundation, is a permanent fund honouring the late Mary Traini, a founding board member of AbleLiving (then Participation House) in 1975 and a trailblazing advocate for people living with disabilities in the 1960s through the 1990s. The fund will help to cover equipment or services not included in the agency’s government funding.
As an agency endowment fund, it is housed and managed at Hamilton Community Foundation but belongs to AbleLiving. (HCF holds similar funds for a growing number of other local agencies.) The relationship is one that AbleLiving prizes because of HCF’s reputation and investment expertise.
“I have a deep sense of confidence about the community foundation’s role in managing this fund for us,” says Cindy Kinnon. “We’ve seen growth in the fund, the cost to us is modest, we receive regular information about the fund, and supporters who value AbleLiving’s long-term stability, like the Traini family has, can contribute to it at any time.”
Excerpt from 2011-2012 Annual Report
Lifelong Hamiltonian and philanthropist Frank Miller has a history of wanting to see his financial contributions at work. 
Mr. Miller originally intended to create bursaries for health care students through a gift in his will. Recently, he decided he would like to launch them in his lifetime.
He has established the Frank Charles Miller Fund at HCF to provide eight bursaries, which will be presented annually to four McMaster University medical students and four Mohawk College nursing students. His generous gift was inspired by the excellent medical attention he received from a nurse who had trained at the college.
“Mr. Miller’s gift supports young people who couldn’t otherwise pursue these careers,” says Sheree Meredith VP of Philanthropic Services. “By lessening the costs, he is setting them up for a promising future,”
Always an entrepreneur, Mr. Miller brought the city its first coin-operated laundromat. He expanded the business, then sold it, choosing to make a difference through many philanthropic endeavours. These include a number of health care and social services organizations, including a program that provides teddy bears to children coming into the care of the Children’s Aid Society.
“Mr. Miller has had a long-time desire to give to his community in appreciation for what he has been able to achieve,” says Sheree. “He is an example of the growing number of Hamiltonians who want to create a legacy now and have an impact forever.”
Excerpt from Legacy newsletter, Spring 2011
Few institutions have played a more central role in Hamilton’s life than Chedoke Hospitals – in all its incarnations, beginning with its creation in 1906 to fight tuberculosis. 
The Cross of Lorraine on Chedoke’s original west Mountain brow site remains a city landmark of a facility that was the largest of its kind in the British Empire.
The newly-created Chedoke-McMaster Hospitals took over hospital operations in the 1970s while, Chedoke Hospitals, later renamed Chedoke Health Foundation (CHF), retained the land and buildings. Since then the sale and transfers of land have provided health-related grants worth more than $72 million. This year, CHF’s board will donate its remaining assets to Hamilton Community Foundation, perpetuating and preserving Chedoke’s historic legacy. The new fund will provide health care bursaries for students who may not otherwise seek post-secondary education, and projects that support health and wellbeing in Hamilton.
Excerpt from 2015 Annual Report
Local arts and culture lover Gail Robinson-Gow is the first donor to HCF’s Arts Endowment Fund.
Gail has been interested in Hamilton’s cultural scene since moving here in 1980. “Hamilton’s arts scene is vibrant and it’s an important local asset,” she says. I’ve known about HCF’s tremendous support for community needs for many years, so when I learned about the Arts Endowment, it just seemed to fit with what I wanted to support.”
The Arts Endowment Fund focuses on keeping Hamilton’s cultural sector strong and sustainable. To encourage giving to this sector, HCF is matching the first $1 million of donations to the fund. We do the same for contributions to the Environmental Endowment Fund, so you can double your impact to either of these critical sectors of our city.
Both funds are part of our larger Community Fund which is focused on tackling Hamilton’s most pressing issues now and into the future. You can support these three funds in many ways.
Excerpt from Legacy newsletter, Spring 2015
Malloch Foundation board members, from left, Jay Rosenblatt, George Simpson, Anne Bermingham, Diane Arrell, Colin Lazier, Libby Hammond
One of Hamilton’s longstanding private foundations, The Malloch Foundation, has turned to HCF to continue its legacy.
Established in 1964 by Francis and Kate Malloch as a memorial to their son David, the Malloch Foundation has been supporting local charities for five decades.
Hamilton-area organizations — like a sanctuary that rescues injured owls and an arts group that takes Shakespeare into local schools – have benefited from grants over the years. The Malloch Foundation has also helped some of Hamilton’s iconic institutions through good times and bad.
That legacy will continue as the Malloch Foundation becomes the Malloch Foundation Fund at Hamilton Community Foundation and four dedicated Malloch Foundation board members become part of the fund’s advisory committee.
George Simpson, a founding member of the Malloch Foundation and long time friend of David, who is stepping down after 50 years of service, feels that transferring the fund to HCF is the right decision. “Hamilton Community Foundation has the expertise to maintain the Malloch Foundation legacy. Its future is assured, and the excellent advisory committee will continue to make meaningful grants in David’s memory.”
Excerpt from Legacy newsletter, Spring 2015
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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