It turns out putting a price tag on nature can be a good thing.
Supported by an HCF grant, communities that intersect the greenbelt are getting the tools and training they need to think of their natural assets as essential infrastructure. As a result, they will be able to value nature’s contributions to clean water, breathable air, healthy soil, sustainable food, flood reduction and climate stability, and include this accounting in provincially mandated municipal plans.
Hamilton is one of 10 municipalities with near-urban nature — defined as the natural areas and farmlands that surround and intersect our cities — that will complete natural asset inventories as part of the program. These inventories will list the community’s natural assets, assign a value to the services these assets provide, and model the costs and benefits of natural solutions compared to alternatives.
The ultimate goal is to protect and restore the greenbelt’s natural integrity.
Excerpt from 2021 Fall Legacy newsletter
Thanks to the Social Planning and Research Council’s free 2020 tax clinics, clients received an average refund and tax benefit of $3,359. It’s an income boost of more than 10 percent for those living on $30,000 a year that would have gone unclaimed without the program.
In total, since 2018, $9 million in refunds and tax benefits have come back to Hamilton residents living on low incomes. A grant from HCF’s Pandemic Response Fund helped keep the program running in 2021.
Program volunteers have assisted seniors, people with disabilities, single parents, working couples and others. The benefits go beyond financial. Clients report less stress and better food security. Some have been able to retain their immigration status as a result of the program.
“Many clients are terrified to do their own taxes,” one service provider said. In the words of another, “This program is a life-saver.”
Excerpt from 2021 Fall Legacy newsletter
Local students will benefit from The Hamilton Community Research Partnership (CRP) — a coalition whose groundbreaking work will provide insights into their pathways to, and through, secondary and post-secondary education.
CRP’s members are Hamilton’s two school boards, McMaster University and Mohawk College. Hamilton Community Foundation and the Higher Education Quality Council of Ontario brought the group together in 2018, and are providing funding and organizational support.
The group’s purpose is to connect data housed by individual educational institutions, to provide a fuller understanding of students’ trajectories and how they could be affected by spending and other decisions. Within a secure infrastructure, CRP provides the means to share de-identified data and fill critical information gaps. This will lead to knowledge such as the characteristics and predictors of students’ likelihood to attend post-secondary and their success once there. It can provide information about the programming and assistance that may increase this likelihood, and how colleges and universities can support incoming students, particularly those who need it most.
“CRP is a good example of HCF’s systems-change work in education,” says Lorraine Valmadrid, HCF’s Learning and Evaluation Lead. “Deepening our understanding of student pathways also helps to ensure HCF’s roles as funder, convener and policy influencer are based on the best evidence.”
Like the Foundation, all CRP members will gain an improved, evidence- based understanding of how educational systems can support student success across the learning journey.
“Our interest in students doesn’t end when they leave us in Grade 12,” says Dave Hansen, director of the Hamilton-Wentworth Catholic District School Board. “CRP highlights what we can do at an early stage to increase the likelihood of success later, and defines the partnership’s shared purpose: to serve the students of Hamilton.”
Excerpt from 2021 Fall Legacy newsletter
Ham
ilton Community Foundation will have a new home in 2023. This fall, TAS, an impact development company, announced it had acquired the historic Coppley Building in downtown Hamilton. HCF is both a founding investor in the project and a future anchor tenant.
TAS plans to restore the Coppley Building’s original character and footprint, transforming it into a community-serving hub that will include a lively mix of commercial uses and tenants. Restoration and renovation is expected to begin in mid-2022, and TAS plans to start welcoming new tenants — including the Foundation — in mid-2023. HCF’s investment is part of its impact investing commitment that targets both social and financial returns.
“For over 165 years, this landmark has meant so much to the vibrancy of the core and the lives of many Hamiltonians who worked here,” says Terry Cooke, HCF’s President & CEO, pictured above with Mazyar Mortazavi, TAS President & CEO. “We look forward to partnering with TAS to deliver a new hub for commercial and social activity downtown.”
Excerpt from 2021 Fall Legacy newsletter
Learning about history is crucial to how we engage in the present and frame the future. We’re proud to support a series of programs led by, and geared to, BIPOC (Black, Indigenous, people of colour) communities that enhance historical literacy to tackle pressing issues like colonialism and racism.
Retracing Colonial Histories in Hamilton
Hamilton, like Canada as a whole, is steeped in a history of colonialism. This is the focus of a new program from Righting Relations, a women-led, pan-Canadian network of adult educators working towards a more just Canada through political and economic literacy. The program consists of a series of workshops with historical topics like the Water Walkers, Hamilton’s Black Community, Six Nations land struggles, 1492 Land Back and the Red Hill Valley Parkway. Workshops will feature storytelling with panel discussions, witness testimonials, community leaders and activists.
ka/SAYSAY/an
This program from Filipinas of HamOnt takes its meaning from the Filipino words saysay (sense) and kasaysayan (history). Drawing on experts from the local Filipina-Canadian community, the focus is on the “hyphenated” histories and contexts of Philippine, Southeast Asian, and Canadian heritage. The program combines workshops, a networking event, and a collaborative video production in time for the Philippine Independence Day on June 12.
LittérAfro
History can function to build character, generate pride and provide role models. A program from RAFIKI, an organization that supports Congolese and other Francophone Africans in Canada, seeks to help Black children of the French-speaking community discover their history and learn about the contribution of Black Canadians to Canada’s development.
Educating through video
TRAD started as a club at McMaster University in 2013 and has evolved into an online magazine that explores African cultures, ideas, philosophies and traditions, and serves Black youth in Ontario. An HCF grant will support TRAD in developing informative and interactive videos designed to connect local Black youth to Hamilton’s African diaspora and to one another.
Nuestra Historia
Asocacion Fraternidad Hispana (AFH) is a local organization committed to the inclusion and progress of Hamilton’s Hispanic community. A new program from AFH looks to help Hamilton’s Latin American community learn and engage with its roots. In collaboration with McMaster students, expert-led workshops (including Black and Indigenous Latin community members) will delve into topics such as race, identity and colonialism in Latin American history.
Our Future Intended blog is an ongoing series that spotlights some of our most recent granting in areas such as physical activity, Indigenous communities, literacy, food, community theatre, seniors, our pandemic response and more.
If you were assigned male at birth but identify as a woman, you may consider yourself trans-feminine. While some safe spaces exist where Two-Spirit and LGBTQ+ Hamiltonians can spend time with peers, a program run by Compass Community Health (CCH) is helping to address a gap in support for trans- feminine people in the city.
An Edith H. Turner Foundation Fund grant is helping CCH, along with key partners Kyle’s Place and speqtrum, to create three trans-feminine peer support groups: one for youth, one for adults, and one to encourage intergenerational sharing.
The idea came from members of the trans-feminine community. The groups will be run by two peer facilitators who will receive training and ongoing support from several organizations, including the AIDS Network and YWCA. Along with CCH staff, these agencies will also support both the development and the health of peer facilitators whose work makes them susceptible to vicarious trauma and burnout. In turn, the agencies will benefit from hearing trans-feminine perspectives. Ongoing feedback will shape program delivery and ultimately help address gaps in trans-feminine research.
Excerpt from 2021 Spring Legacy newsletter
Hamilton’s high-school graduation rates have improved over the past decade, but there are still pockets of the city where students struggle. With HCF support, Munar Learning Center will expand its already successful after- school programming for Somali-Canadian students using the award-winning Pathways to Education model.
Some 80 students aged 10 to 17 at Hess Street Public School, Dr. Davey Elementary School and Bernie Custis Secondary School will receive one-on-one and group literacy and numeracy support, including six hours of tutoring a week. Building on already successful relationships with families, program volunteers — which include parents — will attend parent-teacher interviews, connect with teachers regarding student progress, track student attendance, encourage parent participation and help students set academic and social goals. Students with learning disabilities will receive individualized action plans.
The program is promoted by downtown mosques and local youth-serving organization Empowerment Squared, which helps recruit volunteers.
Excerpt from 2021 Spring Legacy newsletter
Maintaining mental health is a challenge for many people and COVID-19 has made it worse. Fifty percent of Canadians say their mental health has deteriorated, according to the Centre for Addiction and Mental Health. In Hamilton, Shalem Mental Health Network has seen demand for its services increase 25 percent. Still, many can’t afford to get help.
With support from HCF, Shalem’s Counselling Assistance Program will allow 150 children, youth, couples, families and seniors on the margins and struggling with poverty and housing, to access psychotherapy sessions at a reduced cost.
Sessions are offered by video call unless there are safety, privacy or technology concerns that warrant in-person, socially-distanced meetings. Treatment plans identify sources of ongoing support once sessions are completed. Clients are asked to contribute a small sum to increase their own engagement in the process.
The short-term interventions used by Shalem staff have been shown to result in strong outcomes, balancing quality of care and cost.
Lori Dessau Tauber and Lewis Tauber first envisioned an HCF fund as part of the couple’s Our Millennium project. They established the Hundred Waters Fund to support artists who are making innovative connections with their community, naming it in tribute to the ideas and work of Austrian artist Friedensreich Hundertwasser, whose belief in the power of art and architecture to improve everyday life was a guiding principle for the couple.
“It is the partnership idea Lew and I thought was vital and interesting — the creative ways artists can support and engage community to improve quality of life,” says Lori.
Since Lew’s passing in August 2019, Lori looks back and finds even more meaning in the way they established and grew the fund together.
“Lew’s imagination was sparked by Hundertwasser,” she says, reflecting on his art, book, coin and stamp collecting, curation of an international mail art show, and his book about the artist. “This fund is a very personal legacy.” She remembers Lew on birthdays and anniversaries by encouraging friends and family to donate to the fund, which also supports the Community Fund.
“Our grants are small so far,” says Lori, “but even a small grant can be very powerful if it’s just what someone needs at the right moment.”
Excerpt from 2021 Spring Legacy newsletter
Jane Capell has been connected with Hamilton Community Foundation for more than 20 years, including monthly giving and participation in the Women 4 Change giving circle. She is thrilled by the latest step in that relationship: she and her husband’s Dream Weaver Fund is about to begin granting. The potential to change people’s lives is exciting. “Stewart’s passion is hunger and food security,” Jane says. “Mine is more abstract. I think everyone needs to be able to dream. Some just need a leg up. I hope to help turn someone’s nugget of a dream into reality.”
The Capells have chosen to work through Hamilton Community Foundation because of its expertise and its permanence. “The Foundation has the boots on the ground to know where the needs in the community are. We think it’s important to be flexible so that our giving – today and long after we’re gone – can continue to meet changing community needs.”
As a financial planner, Jane encourages others to consider philanthropy in their overall financial plan, too. She stresses both the joys of giving and its potential tax benefits. “I show people the math and then let them think about their options,” she says, options which include both current giving and estate planning.
Hamilton Community Foundation worked through those options with the Capells and Jane sings HCF’s praises about that relationship.
“The care and consideration they give every donor is outstanding. Even as huge as the Foundation has grown, it’s as if you’re the only person they’re dealing with. They know you.”
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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