Building a Legacy: The Power of Endowments
Creating a Lasting Legacy
An endowment fund is a gift that keeps giving, allowing your charitable contributions to make an impact today and for generations to come. When you establish an endowment with the Community Foundation, your gift is invested and grows over time, while a portion of the earnings is distributed annually to support the causes you care about. This ensures long-term, sustainable funding for community needs.
The Power of an Endowment
An endowment fund is designed to provide consistent and lasting support. While donors can set specific preferences for how funds are distributed, a typical endowment follows this general structure:
- 7.5% average annual growth rate (historically, though real-world returns fluctuate)
- 4-5% grant distribution rate to provide steady support to charitable causes
- 1% fee to sustain the work of the Hamilton Community Foundation
- Grant distributions are often based on a rolling average balance to keep giving levels consistent year over year.

A Real-Life Example: The Georgia Lukes Fund
In 1973, Mrs. Georgia Lukes, a custodian at First Financial Bank, left a $15,092 bequest to the Hamilton Community Foundation to support her community. Over fifty years later, that gift has grown to more than $48,000 while providing over $75,000 in grants to community initiatives. Just last year, the Georgia Lukes Fund provided nearly $2,000 in support, continuing to make an impact long after her passing. This is the power of an endowment—your generosity lives on.
Why Choose an Endowment?
Endowments are an ideal way to ensure your charitable vision continues beyond your lifetime. Whether you want to support a specific nonprofit, a field of interest, or leave unrestricted funds to address evolving community needs, an endowment fund provides:
- Sustainable, long-term giving
- Flexibility in structuring distributions
- Tax advantages for donors
- A legacy that grows and gives back forever