Community foundation capitalizes on compounding interest
In 1975, a group of committed community leaders from Central Massachusetts concluded that a pooled endowment would provide a considerable, long-term resource for caring for the community's needs. For 40 years, the Greater Worcester Community Foundation has given local philanthropists the opportunity to do just that – give locally to organizations and causes that matter to them.
That endowment would not only survive, but grow. Using the power of compounding interest where you not only receive earnings on your initial investment but also on the prior interest added to your investment, the total return grows exponentially over time. The longer the money is invested, the more compound interest works in the investor's favor, making long-term financial goals easier to attain.
In our case, Greater Worcester Community Foundation has reached an asset level of $140 million while having also granted $100 million to the local community in the form of small grants to make an impact on thousands of lives.
Having $140 million in the bank and giving $100 million to the community, that is the staying power of the community foundation and the result of local philanthropists choosing to give where they live. While there are endless international causes in need of our help, nothing compares to the satisfaction of improving our local community. Whether it be in the booming arts culture, robust educational opportunities, beautifully preserved green spaces, a caring system of health and social services, and residents and organizations committed to active betterment of the world we live in – the opportunities abound.
A simple method of investing has made a huge impact on the local community and enabled the GWCF to grow and give at the same time.
Ann T. Lisi is president of the Greater Wocester Community Foundation. You can reach her at atlisi@greaterworcester.org.
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