Skip to main content

Top 10 things you should know about the new Rotary Foundation funding model




Source: fundingmodel@rotary.org .
Posted on June 16, 2014
By Ian Riseley, Rotary Foundation Trustee, Foundation Finance Committee chair

I’ve been very involved in the development of our Foundation’s new funding model and have closely followed the questions being raised about it in social media and elsewhere. The new funding model for The Rotary Foundation was developed because our ability to continue “doing good in the world” depends heavily on the Foundation having long-term financial stability. In the interests of improved communication and understanding of the changes, here are 10 important things to know about the new model, which becomes effective on 1 July 2015.

1. Rotarians and clubs will benefit
Rotary’s strength lies in the talents and dedication of its members and clubs. The recent recession showed that we must have adequate reserves in our Rotary Foundation to ensure that we don’t have to cut programs and services in times of poor investment returns, and the increased volatility in financial markets emphasized the need for an adequate level of reserves. The new funding model is necessary to ensure resources are available to support the work of Rotarians now and in the future. The Foundation’s current policy is to maintain an operating reserve equal to three years’ worth of operating expenses.

2. PolioPlus Fund contributions are not affected in any way
3. Endowment Fund Contributions are not affected in any way
4. District Designated Funds are not affected
in any way

5. 5% of Annual Fund contributions are set aside from the World Fund
After Annual Fund contributions are invested, 50% will continue to go to District Designated Funds (DDF) and 50% to the World Fund. The 5% being set aside to help pay for the Foundation’s operating expenses will come from the World Fund, but will only be used if needed to pay those expenses or to fully fund the operating reserve. If they are not needed for those purposes, they may remain in the World Fund for grants.

6. 5% of cash contributions for global grants set aside
Under the current system, cash contributed in support of a grant by clubs and districts requires administration, but provides no investment income to meet the cost of that administration, because the funds are not retained by the Foundation for any length of time and therefore do not generate investment income. The 5% set aside from cash contributions for global grants will help pay the costs of processing, etc. It is not uncommon for many clubs to support a single global grant, and some clubs include payments from many members, thus requiring donor recognition to be processed for each contribution. Cash may also need to be converted into one of the 28 official Rotary currencies and then transferred to an international bank account for the project to be implemented.

7. Up to 10% of corporate gifts set aside
Using up to 10% of large corporate contributions for operating expenses is a well-accepted practice among donors to charities. By obtaining such gifts, the Foundation can increase support for the projects in our areas of focus. Our polio eradication efforts, for example, have benefitted greatly from the Bill & Melinda Gates Foundation’s support. Up to 10% of these gifts will contribute to our administration costs, thus leaving more funds to support the grants for clubs and districts.

8. A communication plan is in place
The Trustees recognize that open, clear communication fosters Rotarians’ continued support of, and active involvement in, Foundation programs. The first step in the funding model communication plan was an announcement on Rotary.org. You can now download a slideshow presentation with notes or without .

9. Training and resources are being developed
Training manuals for officers and committees at the district and club levels are being updated, and webinars and e-learning modules are being developed. For details, contact
fundingmodel@rotary.org .

10. The Foundation has a record of financial stewardship and transparency
Our Foundation has consistently earned high ratings for sound fiscal management from Charity Navigator and other agencies. Find more on Foundation finances and ratings.
Questions or comments? Please, contact
fundingmodel@rotary.org .
I hope you will continue to make our Foundation one of your preferred charities. Every contribution is important and deeply appreciated. The projects and work we accomplish together as Rotarians are life changing.

Comments

Post a Comment

Popular posts from this blog

Rotaract Club of KNUST conducts Free Health Screening Exeercise

Rotaract Club of KNUST sponsored by Rotary Club of Kumasi organized a health screening exercise for the students of the KNUST  for free. According to the president of the Rotaract Club, the project was focused on one of the six focus areas of Rotary which was sanitation and disease prevention. The project was meant to provide the students with services that would help promote their health by letting them their medical status. Students were screened for Hepatitis B, HIV as well as eye screening. The project was in partnership with Asokwa Children's hospital, College of Humanities and Social Sciences from KNUST and Micro Medical.
Post a Comment
Read more

Rotaract Ghana Zone D undertakes Tree Planting Exercise

Rotaract clubs in Zone D as part of the fulfillment for the challenge thrown by the Rotary International President Ian Risely to   members of the Rotary family to plant at least one tree each to change the environment for the better by Earth Day on 22 nd April, 2018 , planted 50 seedlings in Sunyani Senior High ( Sunyani) on the 6 th March, 2018. The project begun exactly at 8am and finish by 2pm. The Zone coordinator Rtr. Enoch Darko explained that , environmental degradation had been identified as pressing issue lately hence, prompting the Current RI President to look outside the six (6) areas of focus to tackle the problem of environmental degradation through tree planting. He further explained that the initiate was from the national office of which same project took place through out the country at various zones.    The project was in collaboration with the NSS personnel at the Forestry Commission. 1. Rotaract Club of Kumasi spons...
Post a Comment
Read more

Rotaract club of KNUST meets Rotarians From Banff, Scotland

 Members of the Rotaract Club of KNUST sponsored by Rotary Club of Kumasi had an interactive session with members from Rotary Club of Banff , Scotland on the 18th March, 2018. The president and the members of Rotaract Club of KNUST  expressed their gratitude for the support and expressed their willingness to collaborate in the future for more projects which would make a difference in the world.
Post a Comment
Read more