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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

Page 2: Securing Our Rotary Foundation's Future: The Rotary Foundation's Funding Model

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

Page 3: Securing Our Rotary Foundation's Future: The Rotary Foundation's Funding Model

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

Page 4: Securing Our Rotary Foundation's Future: The Rotary Foundation's Funding Model

Securing Our Foundation’s Future 4The Rotary Foundation

WHY DO WE NEED A NEW FUNDING MODEL? ?

Page 5: Securing Our Rotary Foundation's Future: The Rotary Foundation's 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

Page 6: Securing Our Rotary Foundation's Future: The Rotary Foundation's Funding Model

Securing Our Foundation’s Future 6The Rotary Foundation

WHAT IS THE NEW FUNDING MODEL? ?

Page 7: Securing Our Rotary Foundation's Future: The Rotary Foundation's 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

Page 8: Securing Our Rotary Foundation's Future: The Rotary Foundation's 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.

Page 9: Securing Our Rotary Foundation's Future: The Rotary Foundation's Funding Model

Securing Our Foundation’s Future 9The Rotary Foundation

5% CASH CONTRIBUTIONS FOR GLOBAL GRANTS

Page 10: Securing Our Rotary Foundation's Future: The Rotary Foundation's Funding Model

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

Page 11: Securing Our Rotary Foundation's Future: The Rotary Foundation's Funding Model

Securing Our Foundation’s Future 11The Rotary Foundation

WHAT’S IN IT FOR US? ?

Page 12: Securing Our Rotary Foundation's Future: The Rotary Foundation's Funding Model

Securing Our Foundation’s Future 12The Rotary Foundation

DOING GOOD IN THE WORLD

Page 13: Securing Our Rotary Foundation's Future: The Rotary Foundation's Funding Model

Securing Our Foundation’s Future 13The Rotary Foundation

[email protected]