How the Community Foundation of Herkimer and Oneida Counties Uses Endowed Funds to Unite Generosity and Growth

For nearly 75 years, the Community Foundation of Herkimer & Oneida Counties has stood as a beacon of local philanthropy. But what exactly is a community foundation—and how does it differ from other grantmaking and philanthropic organizations? 

“Community foundations are community investors that are geographically focused. Donors come together and say, ‘I want to invest my money in a charitable fund so that there’s resources for the future of our community,” explains Alicia Dicks, president/CEO of the Community Foundation.

The Community Foundation serves as a central hub for giving—welcoming everyone from first-time donors and financial advisors to local businesses and community-minded residents.

The Distinct Edge of Community Foundations

Community foundations offer three core advantages:

1. Local expertise and insight: The organization is present in the community and constantly has a pulse on challenges and opportunities in the Mohawk Valley through its deep connections with nonprofit partners, local leaders, and residents. 
2. Breadth of philanthropic options: Donors can establish new charitable funds, contribute to existing funds, create scholarships, support various organizations, causes, and community needs, and even take advantage of the Community Foundation’s complimentary planned giving and estate planning services.
3. Permanence through pooled investment: Community foundations also establish endowments that are strategically invested in prudent, diversified investment portfolios. A portion of the endowed assets are granted each year, and the rest remains invested to preserve and grow the funds’ value and provide a consistent, sustainable source of funding.

Understanding Endowments: The Engine of Longevity

An endowment is designed to be a permanent charitable fund. When a donor establishes an endowed fund, their principal contribution is preserved and stewarded in perpetuity. The Community Foundation distributes a percentage of the fund’s average value annually, enabling steady, reliable community impact while preserving and growing the corpus of the gift. Investment growth, driven by a thoughtful, diversified portfolio managed by a team of experts in partnership with the Community Foundation’s Investment Advisory Group, helps the principal grow, preserves grantmaking impact, and, ideally, outpaces inflation over time.

Here’s a simplified example:

• Year 1: $25,000 donation
• Year 2: Investment returns of +8.0% ($2,000) = $27,000
• Year 3: Annual grant distribution of 5.0% ($1,350) = $25,650
• The principal keeps growing, slowly building the fund’s long-term potential.

“Endowed funds are so impactful for the simple fact that the initial gift will never be spent,” says Erika Eastman, chief financial officer at the Community Foundation. “It continues to grow, so we can keep investing back into the community for generations.”

What makes the Community Foundation’s model so powerful is its ability to turn endowed dollars into real, everyday impact. From scholarships that help students pursue higher education to grants that strengthen local organizations and initiatives, every donor’s contribution becomes a catalyst for lasting change.

Growth You Can See

As of December 31, 2024, the Community Foundation stewarded approximately $210 million in total charitable assets, supported 550 active funds, and awarded $15.7 million in community investments during the year—while welcoming $16 million in new contributions. 
In the first quarter of 2025 alone, the organization awarded more than $2.7 million in grants, supporting nonprofit work focused on arts, culture, human services, animal welfare, education, and more. This surge, driven by the ongoing growth of funds and robust investment performance, illustrates the magic of perpetual giving.

Be a Part of the Progress

The world is changing faster than ever. Economic uncertainty, evolving demographics and shifting community needs demand flexible yet resilient philanthropy. Endowed funds offer both.

Whether you're an experienced philanthropist, a local supporter, or simply exploring planned giving, the Community Foundation guides every type of donor. You can:

• Establish a named charitable fund or scholarship
• Direct gifts to causes you care about
• Maximize your personal finances through tax-efficient giving
• Leave a legacy through planned giving

By bringing together generous donors, making strategic investments, and awarding impactful grants, the Community Foundation transforms lasting resources into enduring change. Every gift—whether given today or planned for tomorrow—creates ripples that strengthen the Mohawk Valley for generations to come.

For those who believe in the power of local giving to drive meaningful, sustainable change, the Community Foundation stands ready—with expertise, strong infrastructure and a deep commitment to turn generosity into opportunity—now and forever.

For more information on the Community Foundation of Herkimer & Oneida Counties, visit www.foundationhoc.org.

Article originally published in the Daily Sentinel on July 25, 2025.