THE ROTARY FOUNDATION

D5000 District Assemblies

2013-2014

WHAT IS YOUR CLUB’S VIEW OF THE ROTARY FOUNDATION?

Wide Difference within D5000 Some clubs … $500+ per capita Other clubs … < $40 per capita

Some Views …“The money goes somewhere else!”“ Polio - aren’t we done yet?”“ The Foundation is overwhelming!”

Some Positive• Our club supports and gives generously• Giving to TRF is a big part of our culture

Some Negative• We HATE asking for money!• Don’t see the real benefit• Would rather support other charities

MANY VIEWS …

Some Positive• Our club supports and gives generously• Giving to TRF is a big part of our culture

Some Negative• We HATE asking for money!• Don’t see the real benefit• Would rather support other charities

OUR GOAL …

Move tohere

Rotary Foundation Is Unique

• Unlike Any Other Charity• Run by the volunteers who donate• Addresses greatest needs• Non-religious, political, governmental• People-to-people contacts

Without the Foundation, Rotary is a “Breakfast/Lunch/Dinner” Club

Rotary Foundation Is Unique

Typical Charitable Organization

$1,000Donor

Fundraising Management

$840to

Projects

$60$100

Source: Forbes.com

• ~ 16% lost to “Friction”• Givers have no direct input on projects undertaken

The Rotary Foundation

$1,000Donor

Fundraising Management

$1,000 to

Projects

$ 0$ 0

• No “Friction” loss• Givers have direct input on many projects undertaken

Rotary Foundation Is Unique

The Foundation Is …

District Grants• Formerly “District Simplified Grants”• Primarily for local projects

Global Grants• Formerly “Matching Grants”• Requires Rotarians (Clubs or Districts) in two different

countries• Includes Humanitarian Projects, Vocational Training Team (VTT),

and Scholarships

PolioPlus• Only three countries left!

… Local projects to help those in need

The Foundation Is …

The Foundation Is …

1985

2012

… Near-eradication of an endemic crippling disease

From this …

…to this

WHAT DO I NEED TO DO?

Create a Culture

of Involvement

Not Hard to Be A “Giving” Club

• Without TRF, what are we?• Members give for a variety of reasons

• Personal Experience• To give back to community• Image Enhancement – view of being charitable• Tax deductions

• In Reality …• Reason Number One … YOU ASK THEM!!!• Reason Number Two … It makes a difference

Two Key Ways to Increased Giving

• Ask Them!– Ask every member every year– No pre-conceived amounts– Match or exceed last year’s amount?

• Show that giving makes a difference– Connect the dots!!

• Project Feedback - At meetings & Newsletter• Global Grants & Local projects w/ District Grants• Vocational Training Teams• Global Scholars

WHAT DO I NEED TO DO?

• President / Foundation Chair• Develop a Plan with Goals

– Must involve talking to members 1-on-1– Track and discuss at each Board meeting

• Build Club Awareness– Foundation Minute Each Week– Emphasize projects where $$s are spent– Provide for Meaningful Recognition

What Happens to the Money?

• Annual Programs Fund (APF) … Supported by annual giving

• Permanent Fund … Endowment Fund - principal not touched

• PolioPlus Fund … Funds for Polio eradication … nothing else

Foundation made of Three Funds

Rotary Foundation

Annual Fund

PermanentFund

PolioPlusFund

~$400mm ~$242mm ~$141mm

Each Fund uses separate investment guidelines & objectives

Annual Programs Fund (APF)

• Primary Fund for the Foundation’s work• Relies totally on annual giving• Works on a three-year cycle to cover admin costs

Rotary Foundation

Annual Fund

PermanentFund

PolioPlusFund

~$400mm ~$242mm ~$141mm

Annual Programs Fund (APF)

• Primary Fund for the Foundation’s work• Relies totally on annual giving• Works on a three-year cycle to cover admin costs

Rotary Foundation

Annual Fund

PermanentFund

PolioPlusFund

~$400mm ~$242mm ~$141mm

~$114.8mm

~$114.2mm

2007-08

2010-11

Permanent Fund

• The Foundation’s Endowment Fund• Principal untouched … spending = earnings only• Key to Foundation’s future

Rotary Foundation

Annual Fund

PermanentFund

PolioPlusFund

~$400mm ~$242mm ~$141mm

Permanent Fund

• The Foundation’s Endowment Fund• Principal untouched … spending = earnings only• Key to Foundation’s future• Critical to mark “Share” on contribution!!

Rotary Foundation

Annual Fund

PermanentFund

PolioPlusFund

~$400mm ~$242mm ~$141mm

~$50mm

~$16mm

PolioPlus Fund

• Dedicated solely to polio eradication• Big Boost from Bill & Melinda Gates Foundation• Safe, short-term investment focus

Rotary Foundation

Annual Fund

PermanentFund

PolioPlusFund

~$400mm ~$242mm ~$141mm

PolioPlus Fund

• Dedicated solely to polio eradication• Big Boost from Bill & Melinda Gates Foundation• Safe, short-term investment focus

Rotary Foundation

Annual Fund

PermanentFund

PolioPlusFund

~$400mm ~$242mm ~$141mm

~$80mm

~$80mm

Where the Money Goes

Rotary Foundation

Annual Fund

PermanentFund

PolioPlusFund

~$114.2mm ~$16mm ~$78mm

Humanitarian & Education Grants• Global Grants• District Grants• Vocational Training Teams• Scholarships

Polio Eradication

Where the Money Goes

Rotary Foundation

Annual Fund

PermanentFund

PolioPlusFund

~$114.2mm ~$16mm ~$78mm

Humanitarian & Education Grants• Global Grants• District Grants• Vocational Training Teams• Scholarships

Polio Eradication

Key Takeaway … now 12% of total and growing

• Global Grants

• Scholarships

• VTTs

50% – World Fund

Year 2: Funds invested

three years

Year 3: After 3rd year, split

between DDF and World Fund

• Global Grants

• District Grants

• Scholarships

• VTTs

50% – DDF

Your Contribution at Work

Year 1: Contributions to APF

• Global Grants

• Scholarships

• VTTs

50% – World Fund

Year 2: Funds invested

three years

Year 3: After 3rd year, split

between DDF and World Fund

• Global Grants

• District Grants

• Scholarships

• VTTs

50% – DDF

Your Contribution at Work

Year 1: Contributions to APF

~$400,000

~$200,000 ~$200,000

• Your giving makes these happen …– Vocational Training Teams– Scholarships– District Grants– Global Grants

• No giving … these don’t happen!

Other “Common” Programs …

HOW DO I GIVE?

Simple Ways to Give …

• Give to your Foundation Director– Ensures appropriate recognition and SHARE– Probably the easiest method

• Give directly to Rotary Foundation– Online or mail-in

• Lump sum • Monthly contributions – automatic payment

• Remember … tax-deductible– 40% overall rate … $1,000 donation costs only $600

“Direct” Giving

• “Preferred” method– Proper recognition– SHARE funds (DDF)

• 5 minutes to complete– Download online– Obtain from Foundation

Director

• Can use Check, Credit Card, or Wire Transfer

• Recommend sending via Club Foundation Director

“Direct” Giving

• “Preferred” method– Proper recognition– SHARE funds (DDF)

• 5 minutes to complete– Download online– Obtain from Foundation

Director

• Can use Check, Credit Card, or Wire Transfer

• Recommend sending via Club Foundation Director

Works for ANY fund

Online Giving

“Contribute” page on Rotary.com …

… leads you to “Member Access”

Online Giving

“Contribute” page on Rotary.com …

… leads you to “Member Access”

The three Funds we’ve discussed

Online Giving

“Contribute” page on Rotary.com …

… leads you to “Member Access”

… or give directly to a specific project …

Online Giving … APF Choices

Only “SHARE” will generate DDF to D5000

Online Giving … Permanent Fund Choices

Only “SHARE” will generate DDF to D5000

Give to Paul Harris or The Foundation?

• Paul Harris… RECOGNITION for Giving– Paul Harris Fellow

$1,000 cumulative to APF– Multiple Paul Harris

Each additional $1,000

• Other APF Recognitions– Major Donor

> $10,000– White Hat Society

$5,000 in a year– Sustaining Member

$100+ in a year

• Permanent Fund Recognition– Bequest Society

$10,000 +– Benefactor

$1,000 +

Simple Ways to Boost Giving

• Develop a plan to talk to each member– One-on-one discussion– Participate at least at last year’s level– “Gentle” pressure … focus on education

• “Matching Points” program– Use points from club or other members– In conjunction with Foundation Month?

• Weekly “Foundation Minute”

Consider Making TRF Your First Choice

• First choice for your charitable giving?• All the reasons you know …

– The use matches our ideals as Rotarians– You have a big say in where the money goes– Lean organization – 100% goes to projects

• Easy to explain to others – “Thank you for asking, but I give my charitable

contributions to Rotary”

• Your Club’s Giving last year …– Can you improve?

WHAT DOES THE ROTARY FOUNDATION MEAN TO

ME?

It’s the Heart of Rotary