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ROTARY INTERNATIONAL AND THE ROTARY FOUNDATION

ANNUAL REPORT 2012-13

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ANNUAL REPORT 2012-13

ROTARY INTERNATIONAL AND THE ROTARY FOUNDATION

In the battle to eradicate polio worldwide, Rotarians are working to ensure that Côte d’Ivoire, which hasn’t recorded a case since 2011, remains free of the disease.

MESSAGE FROM OUR PRESIDENT AND TRUSTEE CHAIR

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A YEAR OF ACHIEVEMENTS AND MOMENTUM In Japanese, there is a saying: 継続は力なり. Literally, this means, “In continuing, there is strength.” Throughout the 2012-13 Rotary year, we experienced the truth of this as we saw the rewards of our careful planning, forward thinking, and steadfast commitment.

We prepared for the full rollout of Future Vision, a simpler and more effective grant model that will challenge Rotarians to aim higher in their service. We came closer than ever to our goal of Every Rotarian, Every Year, with record Annual Fund contributions of more than US$115.1 million. And we saw a wonderful return on decades of investment with historic progress toward the eradication of polio.

In 2012, India was removed from the list of polio-endemic countries, and we ended the year with only 223 cases in the three remaining endemic countries. This tremendous achievement could not have been possible without the generosity of Rotarians, who have supported this effort so strongly for so long.

Even though we have more partners in the polio eradication effort and more reasons for optimism than ever before, we still do not have the funding necessary to reach every last child. To help fill this gap, we have committed to contribute $35 million per year for the next five years, which will be matched two-to-one by the Bill & Melinda Gates Foundation. We are truly “this close” to ending polio, and on track to eradicate it completely by 2018.

There are as many ways to build Peace Through Service as there are Rotarians. In the three Rotary Global Peace Forums we held this year — in Berlin, Honolulu, and Hiroshima — we were inspired to see the larger good that we can do simply by being Rotarians. As we laid wreaths at the Hiroshima Memorial Park (left), we were reminded again of the importance of peace, and of everything we do in Rotary to work toward it.

All Rotarians choose their own paths in Rotary and find their own ways to serve. You will meet just a few of them in the pages of this annual report. Together, all of us are building healthier, happier, and stronger communities — and a more peaceful world.

Sakuji Tanaka 2012-13 President Rotary International

Wilfrid J. Wilkinson 2012-13 Trustee Chair The Rotary Foundation

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ERADICATING POLIOWhen it comes to ridding Pakistan of polio, Aziz Memon sees even broader benefits to humanity.

As head of the Pakistan PolioPlus Committee, Memon has led Rotarians to help establish seven polio resource centers, 13 permanent immunization sites, and seven immunization posts in high-risk areas. The facilities are helping reach children who would otherwise be missed and change the minds of parents who initially refused to let their children be vaccinated.

Some of the facilities, along with Rotarian-sponsored health camps, provide additional free health services, including immunization against measles and other diseases; screening for hepatitis, tuberculosis, and diabetes; and medicines and eyeglasses.

In 2012, Memon and other Rotarians helped secure the signatures of 150 members of Pakistan’s parliament in support of polio eradication. In addition, he and Rotary’s International PolioPlus Committee Chair Robert S. Scott met with President Asif Ali Zardari to discuss Rotary’s support for the country’s polio emergency action plan.

Memon has also led Rotary’s work with the Pakistan Ulema PolioPlus Committee, which comprises leading Islamic scholars and has strongly endorsed efforts to rid the country of polio.

Thanks to the work of Memon and his committee, Coca-Cola Beverages Pakistan has promoted National Immunization Days on billboards, and will be printing messages about polio on more than 70 million bottles and incorporating End Polio Now ringtones at its call stations around the country. It also sponsored establishment of a water purification plant at one of the immunization sites.

Memon has also enlisted celebrities like international cricketing superstar Shahid Afridi as a Rotary polio eradication ambassador.

By mobilizing and sustaining a broad range of support, Memon says, Pakistan — and the world — will soon be polio-free.

Rotary’s battle against polio depends heavily on Rotarians’ advocacy of government, corporate, and public support. Aziz Memon believes that kind of effort will help Pakistan eradicate polio and score other health gains at the same time.

AFGHANISTAN

NIGERIA PAKISTAN

ONLY THREE COUNTRIES ARE POLIO-ENDEMIC:

1%of polio cases are the most difficult to prevent because the virus persists in the hardest-to-reach areas.

THE REMAINING

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“Working for humanity is universal. It holds no boundaries, no cultures, and no religion; it brings me closer to people who are also involved in the same field and gives me great pleasure to work with them.”

— Aziz Memon

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OUT FRONT ON ADVOCACY(Above) Representatives of Rotary, including India PolioPlus Committee Chair Deepak Kapur (second from left), governments, and nongovernmental organizations, along with other donors, attended the Global Vaccine Summit in Abu Dhabi, United Arab Emirates, in April. The summit yielded US$4 billion in funding commitments for the polio endgame plan. Rotary played an important role in advocating for these commitments.

Rotary has contributed more than $1.2 billion and helped secure over $9 billion from donor governments for the Global Polio Eradication Initiative (GPEI) since it began in 1988. Here are more advocacy highlights from the past year:

June 2013 — Rotary and the Bill & Melinda Gates Foundation extend their partnership for polio eradication (see facing page).

May — The Australian government commits AU$80 million from 2015 to 2018 in support of the polio endgame plan, following a $50 million commitment from 2011 to 2014. Government officials applaud the leadership shown by Rotary and its GPEI partners.

March — Bill Gates joins Rotarians for a rally on the steps of the U.S. Capitol in Washington, D.C., before a briefing for congressional staff members on the importance of continued U.S. support for polio eradication.

September 2012 — At a high-level side event on polio eradication during the United Nations General Assembly, Rotary makes a new funding commitment to the GPEI of $75 million over three years.

August — Led by Rotary Foundation Trustee Chair Wilfrid J. Wilkinson and International PolioPlus Committee Chair Robert S. Scott, Rotarians in Canada launch a letter-writing campaign to persuade members of Parliament to support polio eradication.

HELPING FUND THE FIGHTAmong the highlights:

Rotarians in Canada, the Canadian International Development Agency (CIDA), and the Gates Foundation raised more than C$6.8 million through Pennies and More for Polio. The Rotarians raised over $2.2 million of the total, which was matched dollar-for-dollar each by CIDA and the Gates Foundation.

Sir Emeka Offor, a member of the Rotary Club of Awka G.R.A., Anambra State, Nigeria, announced at the 2013 Rotary International Convention that he is making a new gift of US$1 million to PolioPlus. Executive vice chair of the oil and gas conglomerate Chrome Group, Offor also contributed $250,000 to PolioPlus in October 2012.

Rotarians and friends raised nearly $420,000 through El Tour de Tucson in Arizona, USA, in November. Ninety Rotary cyclists took part, including RI General Secretary John Hewko and his wife, Marga.

Purple fabric crocuses sold by Rotarians and friends in the United Kingdom, United States, Canada, Nigeria, and Australia raised US$250,000.

A birthday celebration for Rotary’s International PolioPlus Chair Robert S. Scott in Cobourg, Ontario, Canada, raised more than US$200,000 in May.

Thirty Rotarians in District 7680 (North Carolina, USA) raised $100,000 by climbing the 19,300-foot Mount Kilimanjaro in Tanzania.

The 2013 Global Swimarathon raised more than US$95,000. Over 6,100 swimmers and 186 Rotary clubs in 36 countries participated in the event, which was sponsored by the Rotary Club of Grantham, Lincolnshire, England.

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YOUR DONATION

US$25BILL & MELINDA GATES FOUNDATION

US$50TOTAL CONTRIBUTION

US$75

Your donation can triple your impact! Make your contribution at rotary.org/give.

150 VESTS FOR VOLUNTEERSBright yellow vests help those seeking vaccination to recognize health workers and volunteers easily.

75 VACCINE CARRIERSOral polio vaccine must be kept cool to remain effective.

600 PURPLE FINGER MARKERSChildren’s pinkies are marked with purple ink to show they’ve been immunized.

FINISHING THE JOBRotary International and the Bill & Melinda Gates Foundation launched a bold new chapter in their partnership for polio eradication in June.

Rotary, along with the World Health Organization, UNICEF, U.S. Centers for Disease Control and Prevention, and the Gates Foundation, are leading partners in the Global Polio Eradication Initiative (GPEI).

From 2013 to 2018, every $1 Rotary commits to direct support for polio immunization will be matched 2 to 1 (up to $35 million per year) by the Gates Foundation. If fully realized, the joint effort — called End Polio Now – Make History Today — will result in $525 million for polio eradication.

The initiative comes during a critical phase of the GPEI. The estimated cost of the 2013-18 Polio Eradication and Endgame Strategic Plan is $5.5 billion. Funding commitments, announced at the Global Vaccine Summit in April, total $4 billion.

The $1.5 billion funding shortfall must be met to maintain immunization levels in polio-affected countries. If polio rebounds, more than 200,000 children worldwide could be paralyzed every year within a decade.

The unwavering commitment of Rotary members has been vital to the GPEI’s incredible progress. But Rotary and its partners can’t finish the job of eradicating polio alone. Support is needed from governments, nongovernmental organizations, corporations, and the public to fully fund the polio endgame plan. Learn how you can help at endpolionow.org.

SAFEGUARDING A GENERATION Côte d’Ivoire’s last case of polio occurred in 2011. But no child in the world is safe from polio until every child is immunized. That’s why Rotarians joined thousands of health workers and volunteers during the country’s National Immunization Days (NIDs) in April, to mobilize public support, ensure safe delivery of the oral polio vaccine, and administer the lifesaving drops to more than 3 million children. The NIDs also provided vitamin A supplements and deworming tablets to children to expand public health benefits, another objective of the polio endgame strategic plan.

(Right) A Rotarian volunteer marks the door of a house in Azuretti, Côte d’Ivoire, signifying that the family’s children have been immunized against polio. PH

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“We started with water, because everything starts with water. If there is no water, there is no peace. If you don’t have basic needs fulfilled, it’s a source of conflict.”

— Jorge Aufranc

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From 2010 to 2013, 100 Rotary districts tested the Future Vision Plan, The Rotary Foundation’s new grant model. Of the 705 global grants approved for projects, 81 were carried out by District 4250. The district is led by Jorge Aufranc, who, with his club, Guatemala Sur, was directly involved in five of the grants.

IMPLEMENTING ROTARY’S GRANT MODEL If you want your project to have great results, find good partners, says Jorge Aufranc, who clearly practices what he preaches when it comes to collaboration.

Aufranc’s Rotary club worked with more than 20 clubs in partner District 6440 (Illinois, USA) to make their global grant project happen. Together, club members visited communities, listened to their concerns and ideas, and involved community leaders in the planning and implementation process.

Involving the community from the beginning gives it ownership of the project, which helps guarantee sustainability, says Aufranc. So the sponsor Rotarians need to think of the project not as their own but the community’s.

The water, sanitation, and hygiene project provided new washing stations and latrines to nine schools in the rural area of Sumpango, Guatemala. Members of the local communities contributed labor and learned new skills, such as soap-making.

A past district governor, Aufranc is a firm believer in Rotary’s new grant system, and with good reason: His district sponsored the second-largest amount of global grants of any Future Vision pilot participant, totaling US$5.5 million.

20 PACKAGED GRANTS US$1.7M

286 DISTRICT GRANTS US$17.0M

705 GLOBAL GRANTS US$40.4M

STRENGTHENING A NATION’S EDUCATION Children in Guatemala proudly display textbooks funded by a Rotary global grant. The effort is part of the Guatemala Literacy Project, a partnership between North American and Guatemalan Rotary clubs and the nonprofit organization Cooperative for Education. The project serves 10 percent of the country’s neediest secondary schools, providing textbooks, literacy materials, and computers to underprivileged children. Learn more about Rotary grants at rotary.org. PH

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US$14.0M215WATER AND SANITATION

US$9.7M168DISEASE PREVENTION AND TREATMENT

US$5.9M117ECONOMIC AND COMMUNITY DEVELOPMENT

US$6.0M107BASIC EDUCATION AND LITERACY

US$3.4M59MATERNAL AND CHILD HEALTH

US$1.4M39

PEACE AND CONFLICT PREVENTION/RESOLUTION(excluding Rotary Peace Centers)

100 DISTRICTS IN 73 COUNTRIES

BUILDING ON A SUCCESSFUL PILOT, 2010-13

Note: Totals represent global grants only.

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FIGHTING DISEASEMore than 275,000 people in Nigeria, South Africa, and Uganda received free health care services at 350 sites in May. Rotarians for Family Health and AIDS Prevention, a Rotarian Action Group, initiated the massive public health event together with 5,500 Rotarians in 362 Rotary clubs and other partners, including Coca-Cola, the U.S. Centers for Disease Control and Prevention, USAID, Delta Airlines, and each country’s ministry of health.

Behind this powerful action group is one woman — Marion Bunch. A member of the Rotary Club of Dunwoody, Georgia, USA, Bunch started the group in 2004 as a way to maintain a connection with her son, Jerry, who had died from AIDS 10 years earlier.

A sales strategist who is comfortable pitching her ideas, Bunch secured some powerful partners early on, including Coca-Cola and the U.S. government. She believes that forging partnerships is the most effective way to meet the health needs of children and their families.

Bunch’s work to raise awareness about HIV/AIDS among high-risk youth eventually took her to Africa. The Rotary Family Health Days marked an expansion of her work beyond HIV testing and counseling to include polio and measles vaccinations, malaria and TB testing, and diabetes, hypertension, and cervical cancer screenings, along with other health care services.

ROTARIAN ACTION GROUPS MAKE A SUSTAINABLE DIFFERENCERotarian Action Groups comprise leaders who use their expertise to help other Rotarians develop long-term solutions in areas of human need. More than 26,000 Rotarians, Rotaractors, and friends are active in 19 action groups in dozens of countries worldwide.

(Left) Rotary has helped provide clean water and sanitation to more than 25 orphanages in Myanmar through support from the Water and Sanitation Rotarian Action Group and Rotary grants. Learn more about this and other action groups at rotary.org.

NUMBER OF FAMILY HEALTH DAY SITES

Nigeria 70Uganda 120

South Africa 160

After her son died of AIDS in 1994, Marion Bunch started the Rotarians Fighting AIDS Action Group, which is now called Rotarians for Family Health and AIDS Prevention and has branched out to treat and prevent many other diseases.

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“I remember all the challenges that my son faced when he was alive. That drives me, as it would most moms . . . and great results have been achieved because of the commitment of Rotarians to Service Above Self and the power of Rotary’s brand and the respect it receives everywhere.”

— Marion Bunch

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“People who thought Buruli ulcer is caused by spirits will now come to understand that they need to go to hospital for identification.”

— Samuel Obour

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Rotarians are working worldwide to ensure that communities have sustainable access to safe water, improved sanitation, and hygiene. Samuel Obour has headed several water projects, including drilling boreholes and installing wells, aimed at supplying clean water throughout Ghana.

PROVIDING CLEAN WATERProviding clean water and preventing disease drive Samuel Obour’s quest to make life better for people in Ghana. Assistant governor of District 9102 and a member of the Rotary Club of Sunyani Central, Obour and his club recently worked with Canadian Rotarians on a global grant project to install latrines at a primary school in Sunyani and a washing station and toilets at a busy rural market. Efforts like these help prevent the spread of dysentery and other bacterial diseases.

Obour has also helped tackle Buruli ulcer, a flesh-eating bacterial disease that often necessitates amputation of the affected limb. Although the transmission source of the bacteria isn’t certain, lesions detected early can usually be treated with antibiotics before they cause extensive tissue damage. Obour and his fellow Rotarians worked with the Ghanaian health service to educate villagers about the importance of early detection and to supply hospitals with necessary treatment tools.

Learn more about Rotary grants or contribute to the water and sanitation fund at rotary.org.

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JOINING WITH PARTNERS To maximize resources, Rotary has joined with other organizations to improve water and sanitation conditions worldwide.

The Rotary International-USAID International H2O Collaboration has implemented sustainable water, sanitation, and hygiene projects, beginning with Ghana, the Philippines, and the Dominican Republic.

“Meeting the UN Millennium Development Goals is something that no organization can achieve on its own — not even Rotary, with its 34,000 clubs and over 1.2 million members,” says Ron Denham, a member of the USAID Steering Committee. “To be successful, we need leverage — the leverage that comes from collaboration with others who share our goals.”

Through its strategic partnership with the UNESCO-IHE Institute for Water Education, Rotary is sponsoring 16 students annually for any of three master of science programs at the institute in Delft, the Netherlands. UNESCO-IHE is the only graduate school in the world dedicated to international water management.

(Below) A woman in a village near Bonao, Dominican Republic, pours filtered water into a pan for cooking. Rotarians have installed filters as one of many projects under the RI-USAID International H2O Collaboration.

ERADICATING A DISEASE Led by three Rotary clubs in Ghana — Sunyani Central; Tamale, Northern Region; and Bolgatanga Goodwill — more than 80 clubs from the United States, Canada, and Switzerland joined in drilling boreholes, repairing wells, and installing water systems in Ghanaian villages. As a result, Rotarians have played a significant role in eradicating Guinea worm disease in the country.

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“When you mediate an international conflict, you have to take on many different roles. You become an advocate, a motivator. It’s not just mediation . . . . You must reach out and get the right people to the table.”

— Brigitta von Messling

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Three Rotary Global Peace Forums, held in Berlin, Honolulu, and Hiroshima, energized over 6,300 people to work for peace in their communities. Brigitta von Messling, a trainer in peace operations and Rotary Peace Fellow alumna, participated as a panelist at the Berlin forum.

PROMOTING PEACEHow do you monitor hate speech on Facebook and YouTube? Who do you report a crime to in a conflict zone?

Rotary Peace Fellow alumna Brigitta von Messling addresses these questions regularly as a trainer for the Center for International Peace Operations in Berlin, which is funded by the German government. She helps prepare those charged with keeping and building peace in conflict zones carry out one- to three-year missions with the United Nations, European Union, or Organization for Security and Cooperation in Europe.

Specialized in mediation and inter-ethnic dialog, von Messling has taught everything from mentoring skills to crime scene management and continues to develop new curricula, especially on the use of social media.

Von Messling studied at the Rotary Peace Center at the University of Bradford in England 2004-06, during which she also did field work in Guatemala focused on the democratization process. One of the great things about her fellowship, she says, was that it gave her the chance to meet people who were working toward peace at many different levels and to make connections.

Von Messling continues her connection with Rotary as a sought-after speaker. She addressed the 2012 Rotary Global Peace Forum in Berlin and 2007 Rotary International Convention in Salt Lake City, Utah, USA, and regularly speaks to clubs and districts in Germany. She encourages clubs to tap peace fellow alumni’s expertise as an on-the-ground resource for Rotary’s work in building a more peaceful world.

‘PEACE BEGINS WITH YOU’Participants at each of Rotary’s three Global Peace Forums made peace personal by adopting a declaration of peace. These declarations were combined into a single document that was adopted at the 2013 Rotary International Convention in Lisbon, Portugal. Taking “peace begins with you” as a call to action, the declaration asks all people to become peacemakers in their own lives and, through their words and actions, demonstrate that peace is possible.

“Every Rotary project, every act of service, is an act of love and kindness,” said RI President Sakuji Tanaka, a member of the Rotary Club of Yashio, Saitama, Japan. “Peace is not something that can only be achieved through treaties, by governments, or through heroic struggles. It is something that we can find, and that we can achieve — every day, and in many simple ways.”

PERSEVERING FOR PEACE (Below) Nobel Peace Laureate Aung San Suu Kyi receives the Hawaii Peace Award from RI President Sakuji Tanaka at the Rotary Global Peace Forum in Honolulu, Hawaii, USA, in January. Suu Kyi was honored for her longstanding pursuit of democracy through nonviolent, peaceful means. After 20 years of house arrest in Myanmar, she was released in 2010, and in 2012 was elected to the country’s parliament as a member of the pro-democracy opposition party.

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YOUR SUPPORT HELPS MAKE PEACE POSSIBLERotary Peace Centers enable future world and community leaders to pursue a master’s degree or professional development certificate in peace studies, conflict prevention and resolution, or a related field. Naming opportunities in support of Rotary Peace Center activities are available. Learn more or contribute to the Rotary Peace Centers at rotary.org.

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“Learning about the needs of African communities, especially in health, touched me. I wanted to serve them, and as soon as I got the opportunity, I felt that it should not be wasted. I thank Rotary for giving it to me.”

— Dr. Arun Chaudhari

WHO WE WORK WITHRotary works with many local and international organizations and educational institutions in carrying out its worldwide humanitarian efforts. Learn more about our partners at rotary.org.

Polio eradication partners

Rotary International is a leading partner in the Global Polio Eradication Initiative along with:

• World Health Organization • UNICEF• U.S. Centers for Disease Control and Prevention• Bill & Melinda Gates Foundation• Donor governments

United Nations

Rotary International appoints representatives to work with several United Nations agencies and global organizations.

Strategic partners

Rotary has formed strategic partnerships with the following organizations to offer service opportunities for Rotarians through packaged grants:

• Aga Khan University • Mercy Ships • UNESCO-IHE Institute for Water Education

Project partner

ShelterBox is a Rotary club- and district-affiliated organization that provides service opportunities to Rotarians worldwide.

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PARTNERING FOR A BETTER WORLDOne of his greatest rewards as an ophthalmologist, Dr. Arun Chaudhari says, is performing eye surgery free of charge to disadvantaged patients in Mumbai, Maharashtra, India. Another is teaching others in his profession how to expand their skills. Both ways of giving back are motivated by an indebtedness to his community, country, and humanity at large.

A member of the Rotary Club of Mumbai West Coast, Chaudhari had the opportunity to give back outside his country when he led a vocational training team (VTT) from India to Conakry, Guinea, in West Africa in early 2013. The VTT was part of a Rotary packaged grant project in partnership with Mercy Ships. During their 12-day stay, the four doctors saw more than 500 patients and performed 65 surgeries. In over two-thirds of the surgical cases, team members trained and supervised local doctors to perform the operation.

Sharing new surgical techniques with doctors in Guinea, Chaudhari says, will reduce the frequency of morbidity associated with some eye conditions and help patients recover more quickly.

Collaborating with other leading organizations enables Rotary to multiply its impact. Working with Mercy Ships, Dr. Arun Chaudhari of India led a vocational training team of eye surgeons to share their skills with doctors in Guinea, resulting in a higher, sustainable level of patient care.

“One of the main purposes of the partnership between Rotary and Mercy Ships is to enhance the skills of local health care professionals to improve delivery of vital health services to West African communities.”

— Wilfrid J. Wilkinson Chair, The Rotary Foundation Trustees

“The scope of Rotary’s service to humanity is truly monumental, and it is my belief that the synergy of our organizations working together will be an even greater force to improve health care delivery systems in Africa.”

— Donald K. Stephens President and founder, Mercy Ships

Service partners

These organizations support club activities and offer opportunities for collaboration on local Rotary projects:

• Dolly Parton’s Imagination Library • Global FoodBanking Network • Goodwill Industries International • International Reading Association• YSA (Youth Service America)

Government partners The RI-USAID International H2O Collaboration is an alliance between Rotary International and the U.S. Agency for International Development to support and facilitate water and sanitation projects.

Rotary Peace Centers

The Rotary Foundation partners with the following universities to offer fellowships leading to degrees or certificates in areas of study related to peace and conflict prevention and resolution:

• Chulalongkorn University, Bangkok, Thailand (professional development center)

• Duke University and University of North Carolina at Chapel Hill, USA

• International Christian University, Tokyo, Japan • University of Bradford, West Yorkshire, England • University of Queensland, Brisbane, Australia• Uppsala University, Uppsala, Sweden

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“I hope to play a lead role in the reinvigoration of the Rotary movement, and help to improve its relevancy and engagement of the younger generations.”

— Holly Ransom

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Younger members add energy and a host of skills to Rotary clubs. Holly Ransom became president of her club at age 22, with a focus on membership diversity and creating more volunteer opportunities.

TRANSFORMING ROTARY CLUBSRotarian Holly Ransom has more than 10,000 followers on Twitter. Her Facebook profile picture shows her with Hillary Clinton. She’s spoken to audiences all over Australia and in several other countries about intergenerational engagement and social innovation, and was recently named one of 100 “women of influence” by the Australian Financial Review.

What makes this dizzying list of accomplishments even more impressive is that Ransom is just 23 years old. In fact, she’s still finishing up her last year as a double major in law and economics at the University of Western Australia while also working as a business analyst for mining and metals multinational Rio Tinto.

Ransom became one of Rotary’s youngest club presidents when she took the helm of the Rotary Club of Crawley, Western Australia, in 2012. She’d joined in 2011, a year after the club was chartered with 20 members. Today, it has more than 100 members, who embrace “a different Rotary” — in that the club has dropped some of the usual formalities, recruits across generations, and focuses on volunteer opportunities.

Ransom believes that Rotary’s leadership development, mentorship, and intergenerational attitude are all unique selling points for attracting young leaders. She says that young professionals need to feel comfortable in the club environment, which often means scaling back formality and tradition to emphasize inclusiveness.

MEETING TO SERVE Members of the Rotary Club of Duluth Superior Eco, Minnesota, USA, turn out regularly to help clean up local rivers, roadsides, and wilderness areas and tackle other projects. Engaging Rotary members in service activities increases both their personal fulfillment and commitment to their club.

Learn more about how Rotary clubs are innovating to increase membership and better serve their communities at rotary.org.

WHO AND WHERE WE ARE

ROTARIANS BY REGION

North America and the Caribbean

369,270

Central and South America

98,550

North Asia (including Japan and Korea)

147,998

Australia, Philippines, and Pacific Realm

62,191

South and Southeast Asia (including India)

176,474

Europe

318,416

Africa and Southwest Asia

35,761PH

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1,208,660 ROTARIANS

7,589 ROTARY COMMUNITY CORPS

532 ROTARY DISTRICTS

34,644 ROTARY CLUBS

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EMPOWERING YOUNG PEOPLEPankaj Jethwani was introduced to the Rotaract Club of the Caduceus, Mumbai, Maharashtra, India, by his medical school classmates, who, along with doctors, make up most of the club’s membership. He joined the club because of its strong commitment to giving back to the community, seeing Rotaract as his first opportunity to use his medical knowledge to help those in need.

Jethwani, who is now president of the club, says it focuses on providing low-cost, high-impact medical services for the poor. The club has created sustainable programs such as school health camps, where members learned that 15 out of 100 local children have undiagnosed eye problems.

In Mumbai alone, 75,000 children have vision problems, and their families aren’t aware that they can be treated. Jethwani says that these children quickly develop an aversion to school just because they can’t see clearly.

The need for low-cost eye care led to the creation of Vision Six by Six, which was honored as the international winner of the 2013 Rotaract Outstanding Project Award. After raising US$15,500, the club bought supplies and worked with three nonprofit hospitals to provide vision screenings and eye surgeries for over 10,000 children.

Learn more about Rotary’s programs for students and young adults at rotary.org.

More than a half-million students and young adults help improve their communities through Rotary programs. Pankaj Jethwani of India led his Rotaract club in providing vision screenings and comprehensive eye care to thousands of schoolchildren in poor neighborhoods.

ROTARACT5,820 clubs

133,860 Rotaractors (ages 18-30)

INTERACT15,875 clubs

365,125 Interactors (ages 12-18)

ROTARY YOUTH EXCHANGEMore than 8,000 students

from 67 countries (ages 14-19)

ROTARY YOUTH LEADERSHIP AWARDSMore than 25,000 students and young adults

CONNECTING TO DO GOODMembers of the Interact Club of Holy Spirit National High School in Quezon City, Philippines, clean medical and dental instruments used in a community health care project. Rotarians and Rotaractors also supported doctors, dentists, and nurses in the outreach, which benefited 400 patients from poor families.

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“Access to quality education is every child’s right. Vision Six by Six gives every child an equal opportunity to excel in the same classroom.”

— Pankaj Jethwani

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“A parent or a child just hugs me, and they don’t want to let me go because I’ve been able to help. That’s what keeps me going back . . . I look at these situations and know I can do something to better their lives.”

— Cecil “Pancho” Padilla

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“A parent or a child just hugs me, and they don’t want to let me go because I’ve been able to help. That’s what keeps me going back . . . I look at these situations and know I can do something to better their lives.”

— Cecil “Pancho” Padilla

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In 2012-13, 55 Rotarians and friends of Rotary were inducted into the Arch C. Klumph Society, honored for their contributions of US$250,000 or more to The Rotary Foundation. In addition to providing generous support, donors like Cecil “Pancho” Padilla are taking a leading role in carrying out Rotary grant projects.

SUPPORTING ROTARY’S WORKCecil “Pancho” Padilla’s passion for helping others has propelled him to more than 70 countries. A member of the Rotary Club of Winters, California, USA, he has served on medical missions, helped build bridges and roads, renovated orphanages and houses, immunized children in Africa against polio, and worked to rebuild towns in Louisiana, USA, devastated by Hurricane Katrina.

A consultant with Pacific Gas and Electric, Padilla is also skilled in a range of trades and fluent in Spanish. His first international Rotary service project, helping establish a dental clinic in Baja California, Mexico, proved life-changing. By experiencing Rotary’s ability to help people, he says, he truly became a Rotarian.

Though he has reached out to people all over the world, Padilla still has room for helping his community — through Rotary, as a first responder for the American Red Cross, and volunteer for Habitat for Humanity and a local crisis center. In addition, he has sponsored 23 people for Rotary club membership.

Padilla is also committed to supporting the work of The Rotary Foundation and was inducted into the Arch C. Klumph Society in October 2012.

DONORS INDUCTED INTO THE ARCH C. KLUMPH SOCIETY IN 2012-13FOUNDATION CIRCLE (contributions of US$1 million or more)Yale and Barbara Jones

TRUSTEES CIRCLE (contributions of $250,000-$499,999)Shoji AkutsuBadrinarayan BarwaleHenry Shun-Li Chang and Cathy Hsiang-Yueh Lin ChangTony Hung-Ming Chang and Julia Tai-Hua Chen ChangWayne and Bernice ChesleySweetme Shui-May Chou and Chu-Chen LinLaverna Dollimore† Toyoaki and Naomi FujibayashiEd Futa Rafael M. Garcia III and Minda A. GarciaJon B. and Linda GrantShuhei and Tamaki HottaJames F. and Susan M. HuntJennifer E. Jones and Nicholas C. KrayacichHarley and Mary† JordanSeiji and Nobuko KitaFloyd A. and Betty Lou LanciaJudy Huang and Nellie LinJohn and Jane MacKayPenny and Chris OfferKazuhiko OzawaCecil “Pancho” PadillaJim and Donna PhilipsCyrus S. PoonawallaJohn E. StewartBryn and Randy StylesOswaldo and Hisame TakataKenju and Kyoko† TakekoshiGlen A. and Sharon A. ThometEng-Rung “E.R.” Tsai and Sharon Mei-Shui Tsai Tseng

† DECEASED

YOUR SUPPORT CAN MAKE A LIFE-CHANGING DIFFERENCEContributions help Rotarians carry out a broad range of local and international projects that do good in the world. Your support can expand Rotary’s reach. Make your gift today.

(Right) Rotary grants help fund Heart to Heart, founded by Rotarians in India and Korea, which provides lifesaving surgery for children in India and Pakistan with congenital heart disease. Sustainable efforts like this one are made possible by supporters of The Rotary Foundation. PH

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OUR FINANCIALSRotary’s consolidated financial activities include those of Rotary International (RI), The Rotary Foundation (TRF), and their wholly owned subsidiaries.

Rotary International is principally supported by volunteer dues that support its mission to provide service to others, promote integrity, and advance world understanding, goodwill, and peace by connecting leaders, exchanging ideas, and taking action.

The Rotary Foundation, Rotary’s charitable entity, is funded solely by voluntary contributions from members and friends of Rotary who support its mission.

GIVING: TOP 10 COUNTRIES AND GEOGRAPHICAL AREAS2012-13 total funds raised (includes flow-through)* (in thousands of U.S. dollars)

ANNUAL GIVING PER ROTARY MEMBER IN TOP 10 GIVING COUNTRIES AND GEOGRAPHICAL AREAS(during 2012-13, in U.S. dollars)

* Excludes a $70 million grant for polio eradication received from the Bill & Melinda Gates Foundation

CANADA

KOREA

JAPAN

AUSTRALIATAIWAN

$205 $170 $168$137 $122

UNITED STATES

BRAZILGERMANY

INDIAITALY

$7,046TAIWAN

$5,507AUSTRALIA

$15,815JAPAN

$11,970KOREA

$4,638ITALY

$6,090GERMANY

$11,602INDIA

$5,110BRAZIL

$70,601*UNITED STATES

$8,229CANADA

CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONAs of 30 June (in thousands of U.S. dollars)

ASSETS 2012-13 2011-12

Assets Cash and cash equivalents $ 50,512 $ 54,891Receivable, net 44,301 8,811Investments 919,581 846,541Property and equipment, net 39,741 36,094Other assets 37,942 35,609

TOTAL ASSETS $ 1,092,077 $ 981,946

LIABILITIES AND NET ASSETS

Liabilities Accrued program awards $ 65,831 $ 57,187Accounts payable, accrued expenses, and other 52,740 45,364

Deferred revenues 1,843 3,664Pension obligation 10,672 16,970

Total liabilities $ 131,086 $ 123,185

Net assets Unrestricted $ 654,563 $ 610,229Temporarily restricted 71,715 34,404Permanently restricted 234,713 214,128

Total net assets $ 960,991 $ 858,761

TOTAL LIABILITIES AND NET ASSETS $ 1,092,077 $ 981,946

$116$79 $76 $74 $70

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HOW DOES ROTARY SPEND MY DUES?

CONTRIBUTIONS TO POLIOPLUS FUND

STEADY GROWTH IN ENDOWMENT FUND

$17.82PROGRAMS AND MEMBER SERVICES

$9.75IT, OPERATIONS, AND ADMINISTRATION

$9.58MESSAGING AND COMMUNICATIONS

$4.83INTERNATIONAL OPERATIONS

$4.40GOVERNANCE AND EXECUTIVE

$3.36FINANCE

$2.26HR, LEGAL, AND AUDIT

ANNUAL DUES 2012-13US$52.00

$7,046TAIWAN

HIGHLIGHTSThe 2012-13 fiscal year was a very good one for Rotary, leaving it financially strong to do good in the world. Contributions to the Annual Fund set a new record, surpassing $115.1 million. Donors also gave a record $20.4 million to the Endowment Fund.

PolioPlus received $23.6 million from Rotarians and friends of Rotary, along with $69.6 million from the Bill & Melinda Gates Foundation.

Rotary also geared up for the global launch of its new grant model. During the final year of the Future Vision pilot, 100 districts participated in projects supported by district grants and global grants totaling $26.4 million.

Note: RI’s operating expenses are funded principally by dues and supplemented by net investment returns. Details of Rotary’s fiscal 2012-13 financial information, including the president’s, directors’, and Trustees’ expenses and audited financial statements, are available at www.rotary.org/en/financials.

CONSOLIDATED STATEMENTS OF ACTIVITIES Years ended 30 June (in thousands of U.S. dollars)

REVENUES 2012-13 2011-12

Contributions $ 234,196 $ 180,683Dues 62,503 61,387Net investment return 67,713 (21,353)Other activities 27,658 27,887

TOTAL REVENUES $ 392,070 $ 248,604

EXPENSES

TRF program expendituresEducational programs $ 21,956 $ 22,169Humanitarian programs 50,901 55,187PolioPlus programs 76,059 105,001Rotary grants 26,439 19,490Other programs 1,154 2,192

Total TRF program expenditures $ 176,509 $ 204,039

TRF development expenses $ 17,684 $ 18,254TRF general administration 4,651 5,143RI operating expenses 71,634 70,066RI service and other activities 25,660 25,827

TOTAL EXPENSES $ 296,138 $ 323,329

Changes in net assets before pension-related changes $ 95,932 $ (74,725)

Pension-related changes 6,298 (10,460)

CHANGES IN NET ASSETS $ 102,230 $ (85,185)

A record of $20M

from Rotarians and friends of Rotary

from the Bill & Melinda Gates Foundation

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115Surpassing

$115M

US$24M US$70M

2010-11 $16M

2012-13

2011-12 $18M

LARGEST ANNUAL FUND EVERUS$ (millions)

2012- 13

2011- 12

2010- 11

2009- 10

2008- 09

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INVESTMENTS Financial markets were largely positive in fiscal year 2012-13, generating strong returns for each of Rotary’s funds. The Rotary Foundation’s net investment return was $56.0 million, while Rotary International’s net investment return was $11.7 million.

In accordance with prudent investment management practices, both organizations maintain diversified investment portfolios, which include U.S. and non-U.S. stocks, global fixed-income securities, and hedge funds. The Foundation also invests in alternative assets such as real estate and private equity. Rotary’s investment programs are overseen by the Foundation’s Investment Committee, which is composed of three trustees and six Rotarian investment professionals, and the RI Finance Committee. Rotary also retains an independent investment consultant to counsel both organizations on investment matters and to monitor Rotary’s investments. All of Rotary’s funds are managed by experienced, professional investment managers.

Additional information on Rotary’s investments, including investment policy statements and performance, is available at www.rotary.org by searching the key word “investments.”

PROGRAM EXPENDITURES BY REGIONRotary awards grants for a range of activities (see Consolidated Statements of Activities, page 25, top) in every geographic region of the world. The infographic (right) shows total expenditures for these activities by region, including original grants and those awarded under The Rotary Foundation’s new grant model.

NORTH AMERICA

$5,970

CENTRAL AMERICA AND THE CARIBBEAN

$9,344

SOUTH AMERICA

$19,299

ANNUALIZED INVESTMENT RETURNS

TOTAL PROGRAM EXPENDITURES BY REGION (in thousands of U.S. dollars)

0

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2

4

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6

6

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12%

20 years

18 years

20 years

20 years

10 years

10 years

10 years

10 years

5 years

5 years

5 years

5 years

3 years

3 years

3 years

3 years

1 year

1 year

1 year

1 year

ANNUAL FUND

POLIOPLUS FUND

ENDOWMENT FUND

RI GENERAL FUND

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ROTARY’S RATING In 2013, The Rotary Foundation earned a grade of A+ from the American Institute of Philanthropy, a top rating of four stars from Charity Navigator, and full accreditation from the Wise Giving Alliance of the Better Business Bureau, based on the previous year’s results. In fiscal year 2012-13, only 2 percent of Foundation expenditures went to administrative expenses and 9 percent to fundraising. The Foundation directed 89 percent of its spending to programs, far exceeding the benchmarks that independent charity-rating services view as a measure of high efficiency.

$21,115

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RUSSIA, GEORGIA, AND

COMMONWEALTH OF INDEPENDENT

STATES

$699$9,687

EUROPE

$1,981

MIDDLE EAST AND NORTH

AFRICA

$50,340

SOUTH ASIASUB-SAHARAN AFRICA

$58,074

THE ROTARY FOUNDATION’S EXPENDITURES GO TO . . .

A+from the American Institute of Philanthropy

Full accreditation from the Wise Giving Allianceof the Better Business Bureau

from Charity Navigator««««

Administrative expenses 2%

Fundraising 9%

Programs

89%

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PresidentSakuji Tanaka, Japan

President-electRon D. Burton, USA

Vice PresidentKenneth M. Schuppert Jr., USA

ROTARY INTERNATIONAL 2012-13 BOARD OF DIRECTORS

The mission of The Rotary Foundation of Rotary International is to enable Rotarians to advance world understanding, goodwill, and peace through the improvement of health, the support of education, and the alleviation of poverty.

The mission of Rotary International is to provide service to others, promote integrity, and advance world understanding, goodwill, and peace through its fellowship of business, professional, and community leaders.

TreasurerKenneth R. Boyd, USAElizabeth S. Demaray†, USA†Deceased (25 January 2013)

DirectorsJosé Antonio F. Antiório, BrazilAnn-Britt Åsebol, Sweden

John K. Best, USAJohn B. Boag, AustraliaYash Pal Das, IndiaJacques di Costanzo, FranceAllan O. Jagger, EnglandPaul Knyff, The NetherlandsTakeshi Matsumiya, JapanAnne L. Matthews, USA

Shekhar Mehta, IndiaJuin Park, KoreaGideon Peiper, IsraelAndy Smallwood, USABryn Styles, Canada

General SecretaryJohn Hewko, USA

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THE ROTARY FOUNDATION 2012-13 BOARD OF TRUSTEES

ChairWilfrid J. Wilkinson, Canada

Chair-electDong Kurn (D.K.) Lee, Korea

Vice ChairStephen R. Brown, USA

TrusteesAntonio Hallage, BrazilLynn A. Hammond, USAJackson San-Lien Hsieh, TaiwanJohn Kenny, ScotlandRay Klinginsmith, USAAshok M. Mahajan, India

Michael K. McGovern, USASamuel F. Owori, UgandaKazuhiko Ozawa, JapanIan H.S. Riseley, AustraliaJulio Sorjús, SpainStephanie A. Urchick, USA

General SecretaryJohn Hewko, USA

Rotarians are helping improve the lives of more than 10,000 children at schools in Mayan villages in Guatemala, through implementation of clean water and sanitation systems funded by a Rotary global grant.

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One Rotary Center 1560 Sherman Avenue Evanston, IL 60201-3698 USA www.rotary.org

rotary international ®

the rotary foundation

On the cover Rotary First Harvest, a program of Rotary District 5030 (Washington, USA), connects farmers, truckers, food banks, and volunteers to provide hunger relief to people in need.PHOTO BY ALYCE HENSON