The Power of an Endowment

What is an Endowment?

An endowment is a permanent fund held by the Hillsboro Community Foundation (HCF). Donations to the fund are invested, and a portion of the earnings are used to support charitable causes in our community. The endowed gift, also called the principal, remains untouched, ensuring a lasting legacy for generations to come.

Here’s how it works. A donor or nonprofit organization makes a gift to HCF for a specific purpose. The principal is carefully invested but never spent. Graystone Consulting manages HCF’s investments with oversight by our Investment Advisory Committee. Then, the Foundation gives away a portion of the fund’s investment returns annually through grants, scholarships, or awards, depending on the fund’s purpose. As you can see in the graph below, a $100,000 endowment can distribute over $128,000 in grants over 25 years, and grow to over $167,000 in the process. As the endowment grows, so does your impact on the community. Now that’s pretty powerful!

Endowment Growth Chart Example
Note: This example uses a 6% annual net investment return and a 4% annual grant distribution.

How Does an Endowment Benefit Hillsboro?

  • Sustainable Funding: Provides a reliable source of income for community projects and programs, year after year.
  • Growth Over Time: The fund’s principal grows through investment, increasing its impact over time.
  • Meeting Evolving Needs: Endowments can adapt to address changing community needs, ensuring ongoing relevance.
  • Community Legacy: Creates a lasting legacy for donors, making a positive impact on Hillsboro forever.

How Can I Contribute?

Every gift, large or small, makes a difference. You can contribute to the Hillsboro Community Foundation’s endowment through:

  • Cash Gifts
  • Bequests in your Will
  • Gifts of Stock or Securities
  • Real Estate
  • Other Assets

Contact us today to learn more about how you can help build a brighter future for Hillsboro through the power of an endowment.

A Story of Impact

Thanks to the generosity of our donors, the Hillsboro Community Foundation endowment has supported:

  • The legacy of the local Mennonite heritage
  • Scholarships for local students
  • Vital services for seniors
  • And much more!