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

description

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

Page 1: 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

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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

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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

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Securing Our Foundation’s Future 4The Rotary Foundation

WHY DO WE NEED A NEW FUNDING MODEL? ?

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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

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Securing Our Foundation’s Future 6The Rotary Foundation

WHAT IS THE NEW FUNDING MODEL? ?

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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

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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.

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Securing Our Foundation’s Future 9The Rotary Foundation

5% CASH CONTRIBUTIONS FOR GLOBAL GRANTS

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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

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Securing Our Foundation’s Future 11The Rotary Foundation

WHAT’S IN IT FOR US? ?

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Securing Our Foundation’s Future 12The Rotary Foundation

DOING GOOD IN THE WORLD

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Securing Our Foundation’s Future 13The Rotary Foundation

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