Securing Our Rotary Foundation's Future: The Rotary Foundation's Funding Model
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Securing Our Foundation’s Future 1 The Rotary Foundation SECURING OUR FOUNDATION’S FUTURE May 2014
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Rotary International supports our Rotary members, clubs and districts in continuing with all of their good work throughout the world. To do that, we need to secure our Foundation’s future by taking some steps to ensure we have the necessary resources to continue our mission.
Transcript of Securing Our Rotary Foundation's Future: The Rotary Foundation's Funding Model
Securing Our Foundation’s Future 1The Rotary Foundation
SECURING OURFOUNDATION’SFUTURE
May 2014
Securing Our Foundation’s Future 2The Rotary Foundation
CURRENT MODEL TO FUND OPERATIONS
Operating Expenses = Fund Development & General Administration
Annual Fund Investment Earnings Endowment Fund Spendable Earnings
Securing Our Foundation’s Future 3The Rotary Foundation
INVESTMENT RETURNS ARE UNPREDICTABLE
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E
-120
-100
-80
-60
-40
-20
0
20
40
60
80
Operating Expenses Annual Fund Investment ReturnFiscal Year End
US$
milli
ons
Securing Our Foundation’s Future 4The Rotary Foundation
WHY DO WE NEED A NEW FUNDING MODEL? ?
Securing Our Foundation’s Future 5The Rotary Foundation
RESERVES WERE DEPLETED SLOW TO REBUILD
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E
-60
-40
-20
0
20
40
60
80
100
120
Reserves TargetFiscal Year End
US$
milli
ons
Securing Our Foundation’s Future 6The Rotary Foundation
WHAT IS THE NEW FUNDING MODEL? ?
Securing Our Foundation’s Future 7The Rotary Foundation
OUR NEW FUNDING MODEL EFFECTIVE 1 JULY 2015
Annual Fund Investment Earnings Endowment Fund Spendable Earnings
5% of Annual Fund Contributions 5% of Cash Contributions for Global Grants
New Funding Model Current Funding Model
Securing Our Foundation’s Future 8The Rotary Foundation
NEW SHARE SYSTEM EFFECTIVE 1 JULY 2015
$1,000
$500District Designated Fund
$500 WorldFund
$50 or 5% earmarked for operating expenses.
Securing Our Foundation’s Future 9The Rotary Foundation
5% CASH CONTRIBUTIONS FOR GLOBAL GRANTS
Securing Our Foundation’s Future 10The Rotary Foundation
OUR LONG-TERM STRATEGY
Ensure we have sufficient funds to operate our Foundation
Build an operating reserve
Distribute surplus funds to Endowment Fund
Securing Our Foundation’s Future 11The Rotary Foundation
WHAT’S IN IT FOR US? ?
Securing Our Foundation’s Future 12The Rotary Foundation
DOING GOOD IN THE WORLD
