Highlights from the 2004-05 Board of Directors meetings
June 2005 Board meeting
The fourth and final meeting of the 2004-05 RI Board of Directors was held 10-14 June 2005 in Evanston, Illinois, USA.
Club and district matters
Some districts define their boundaries by obsolete club territorial limits. The Board requests that the governors of these districts develop new district boundary descriptions, using fixed reference points such as political borders or natural landscape features, for submission to RI by 31 December 2005.
The Board made changes to the district governor’s allocation process as follows:
- RI may disburse less than 70 percent of a district’s total allocation in July each year if the general secretary considers this necessary for the stewardship of a large allocation.
- A requirement for submission of the district’s financial statement from the previous year may be waived upon receipt of a petition from the current governor demonstrating due diligence in attempting to obtain the financial statement.
The Board amended the provisions of the RI type 4B license for selling merchandise bearing the Rotary Marks. A club, district, or other Rotary entity that is a type 4B licensee will now be eligible to pay RI reduced royalties (5 percent on gross sales to Rotarians and 2 percent on sales to other RI licensees), provided that all proceeds from the sale of applicable merchandise are donated to The Rotary Foundation or its associate foundations.
Regional RI membership coordinators and zone coordinators shall now be appointed for three-year terms, subject to an annual performance review.
In June 2001, the Board created a Rotary E-Club pilot project to test the viability of clubs that conduct their activities through electronic communications. The project was due to conclude in 2007. The Board agreed to extend project's duration until 2009-10 to allow sufficient time for testing the e-club concept.
RI administration and finances
The Board reelected Edwin H. Futa as RI general secretary for an additional five-year term beginning on 1 July 2006.
Noting with sadness the death of 2004-06 RI Director Rodger W. Wagner, the Board elected Past District Governor David J. Hossler to serve the remainder of his term.
As part of its efforts to enhance RI corporate governance and transparency, the Board adopted a code of ethics for RI directors. It also added three nondirector members to the Board Audit Committee.
The Board requested that the RI president appoint a representative and diverse committee of past RI presidents to study the issue of Rotary zones, including possible additional criteria for drawing new zone boundaries.
The Board designated the conveners, dates, and meeting places for RI director-nominating committees that will meet in September 2005 to select directors-nominee for election at the 2006 Malmö-Copenhagen convention. Directors-nominee will be selected from zones 2, 5, 13, 20, 22, 24, 28, and 30.
The Board adopted the 2005-06 RI budget, with revenues of US$79.6 million and expenses of $79.3 million.
RI Awards, programs, and communications
The Board approved granting the RI Award of Honor to the following people: President Arnold Ruutel, of Estonia; Dr. Genshitu Sen, retired grand tea master, of Japan; King Mohamed VI, of Morocco; and First Lady Laura Bush, of the United States.
The Rotary Fellowships program had allowed any group of Rotarians who came together to pursue a specific worthwhile activity that advanced the Object of Rotary to seek recognition as a Rotary Fellowship. Noting that Rotary recreational and vocational fellowships and service-oriented groups of Rotarians are fundamentally different in nature, the Board established separate policy provisions for each. Rotary recreational and vocational fellowships will now be known as Rotary Fellowships, whereas service-oriented groups will be called Rotarian Action Groups. Recognizing that neither Rotary Fellowships nor Rotarian Action Groups fall within the RI structured programs definition, the Board agreed that they should be placed in a new RI programs category: Global Networking Groups. Existing groups should contact the Programs Division at the Secretariat for more details of program changes.
The Board recognized the Automobile and Motorsport Fellowship of Rotarians.
International meetings
The Board made numerous recommendations to improve the functioning of the 2007 Council on Legislation, including the preparation of résumés of proposed legislation, the advance distribution of the recommended rules of procedure to members of the Council, and the advance training of Council representatives during 2006 Rotary zone institutes and at the time of the Council meeting.
The Board accepted District 5280's proposal to host the 2008 convention at the Los Angeles Convention Center 15-18 June 2008.
Rotary districts in Brazil, Europe, Hong Kong, and South Africa that have cities with the facilities and services needed to hold a convention are invited to submit proposals for hosting the 2013 RI Convention.
March 2005 Board meeting
The third meeting of the 2004-05 RI Board of Directors was held at One Rotary Center in Evanston, Illinois, USA, from 28 February to 3 March 2005. At this meeting, the Board reviewed reports from 16 committees and recorded 92 decisions.
Administration
Districts may now seek the Board’s approval to incorporate, as long as they have the support of at least two-thirds of their clubs. RI procedures for district incorporation require that
- All clubs in the district are members of the incorporated district
- The district governor is the highest officer of the district corporation
- The corporate documents of the district are consistent with the RI Constitution, Bylaws, and policies to the extent permitted by the laws of the local jurisdiction
The Board recommends three topics for discussion at the 2005-06 Rotary zone institutes: the 2005-06 president’s emphases, PolioPlus, and the Council on Legislation.
Recognizing that the substantial quantity of legislation proposed to the 2001 and 2004 Councils on Legislation reduced the efficiency and effectiveness of those meetings, the Board encourages each district to propose no more than five items to the 2007 Council.
Membership and extension
The Board strengthened its policy regarding the submission of inaccurate club membership lists:
- When a club’s membership increases by 25 percent between semiannual report periods and inaccuracies are subsequently found in the new membership data, the Board will consider disciplining the club, up to and including termination for cause.
- When a new club seeking a charter submits an inaccurate membership list, the charter will not be released until all names on the membership list have been verified.
- Governors who endorse chartering a new club that submits an inaccurate membership list will be ineligible for any RI assignment for three years after their term has ended.
The Board adopted the RI Recognition of Membership Development Initiatives program, which allows governors to recognize up to three clubs in the district annually for developing a creative, long-term strategy for growing or retaining membership.
The Board agreed that the provisional Rotary Club of Dushanbe, Tajikistan, and all future Rotary clubs in Tajikistan, Turkmenistan, and Uzbekistan shall be grouped in District 2430. The Board also opened Equatorial Guinea to extension and agreed that all future clubs in that country shall be grouped in District 9150. Unless the majority of clubs in the present districts 2430 and 9150 object, these changes to district boundaries will go into effect on 15 May 2005.
Effective 1 July 2008, districts 3200 (India) and 3290 (India and Nepal) will each be grouped into two new districts.
Noting its authority to change the boundaries of any district with less than 30 clubs or with fewer than 1,000 Rotarians, the Board asked the general secretary to notify 39 districts of the Board’s concern and to ask for their plans either to increase membership or to consolidate with another district.
Programs and communications
The Board encourages Rotary Fellowships to give RI advance notice of funding applications to large governmental or nongovernmental organizations in excess of US$25,000. The Board also encourages fellowships to give RI advance notice of plans to establish cooperative relationships with large governmental or nongovernmental organizations.
The Board clarified that Rotary Fellowships and multidistrict entities must secure prior Board approval to solicit financial assistance or participation in a commercial venture from any Rotary club, or from Rotarians other than their own members.
The Board eliminated indemnification requirements for Rotary Fellowships, which were to become effective on 1 July 2005.
The Board recognized new Rotary Fellowships for tennis enthusiasts and Rotarians interested in expanding access to computers and the Internet.
RI committees, resource groups, and their chairs and members are not authorized to approach other organizations to seek cooperative relationships with RI or funding, nor are they permitted to organize regional or international meetings on behalf of RI without the written consent of the RI president.
The Board encourages closer cooperation between Rotaract and Rotary clubs to facilitate the eventual transition of Rotaractors into Rotary club membership. To stimulate the development of Rotaract at the district level, the Board encourages governors to appoint a district Rotaract committee, or at least a district Rotaract chair.
The triennial international Rotaract conference, Interota, will be held 11-16 September 2005 in Munich, Germany.
The Board encourages Rotary clubs and districts to link their Web sites to their Interact club sites, and to organize district- and multidistrict-level Interact meetings with a focus on international fellowship.
At its June 2004 meeting, the Board recommended certain insurance coverage for Rotary Youth Exchange students. The Board now requires the purchase of such insurance.
International meetings
The Board reviewed arrangements for the 2006 Malmö-Copenhagen and 2009 Seoul conventions. The Board also agreed to consider Bangkok, Thailand; Kuala Lumpur, Malaysia; and Sydney, Australia, as possible locations for the 2012 RI Convention.
The 2010 Council on Legislation is scheduled to take place from 25 April to 1 May 2010 in Chicago.
November 2004 Board meeting
The second meeting of the RI Board of Directors in 2004-05 was held at Rotary World Headquarters in Evanston, Illinois, USA, from 30 October to 5 November 2004. At this meeting, the Board reviewed reports from 17 committees and recorded 138 decisions.
Administration
Taking the District Leadership Plan concept to the club level, the Board approved the Club Leadership Plan as the administrative framework of an effective Rotary club. The plan identifies the following essential elements of an effective club:
- Sustaining or increasing membership base
- Implementing successful projects that address the needs of the community and communities in other countries
- Supporting The Rotary Foundation through both financial contributions and program participation
- Developing leaders capable of serving Rotary beyond the club level
Assisting clubs in developing their own plan is now a required component of the District Leadership Plan.
The Board amended the Recommended Rotary Club Bylaws. The amended bylaws establish the four Avenues of Service as "the philosophical and practical framework" for the work of a club and suggest a new club committee structure based on the Club Leadership Plan, with standing committees for membership, public relations, administration, service projects, and The Rotary Foundation.
The 2004 Council on Legislation referred numerous resolutions to the Board for study. In response, the Board
- Agreed that a club must have at least 20 members (down from 25) to sponsor a new Rotary club
- Encouraged clubs, in their vocational service activities, to offer professional support to young people who start their own businesses
- Reaffirmed the importance of a president’s representative at all district conferences
- Reaffirmed its support of local public relations initiatives
- Encouraged, where culturally appropriate, Rotarians to arrange visits to heads of state on Rotary’s 100th birthday – 23 February 2005 – or at some time during February 2005 to carry messages of peace in honor of the Rotary Centennial
- Established a committee to review all aspects of the Council on Legislation
Responses to all resolutions will be provided in a timely manner.
Membership and extension
The Board agreed in principle to extend Rotary to Libya and Qatar and will seek governmental approval for Rotary to operate in these countries.
The Cyber Rotary Club pilot project will now be known as the Rotary E-Club pilot project. From now on, RI membership coordinators will be called regional Rotary International membership coordinators.
Programs and communications
The Board adopted sexual abuse and harassment prevention guidelines designed to protect young people participating in Rotary club and district programs. The Board also agreed to develop and implement a club and district certification program for Rotary Youth Exchange over the next 18 months. To be certified for participation in Youth Exchange, RI districts will need to comply with the new abuse and harassment prevention guidelines and to adopt more stringent screening, selection, counseling, orientation, and reporting procedures.
The Board selected 125 recipients of the 2004-05 RI Service Above Self Award, which recognizes exemplary humanitarian service provided on a continuing basis by Rotarians who might otherwise go unrecognized. The names of the recipients will be announced at the end of the Rotary year.
The Board discontinued the Rotary Award for World Understanding and Peace, effective immediately.
The Board recognized new Rotary Fellowships for convention goers, dental volunteers, doll lovers, football (soccer) fans, gourmets, literacy providers, and Rotarians concerned with drug-abuse prevention.
International meetings
The Board tentatively selected Salt Lake City, Utah, USA, as the site for the 2011 RI Convention and confirmed that the International Assembly in 2006 through 2011 will be held at the Manchester Grand Hyatt Hotel in San Diego, California, USA.
Due to high meeting costs and a resulting high registration fee, the Board canceled the 2006 International Institute that was scheduled to take place in Copenhagen, Denmark.
Finance
RI policy had required maintaining an operating reserve equal to 100 percent of the highest level of total annual expenses during the most recent three-year period. The Board agreed it was unnecessary for RI’s operating-reserve goal to account for international convention and Council on Legislation expenses, since such expenses are budgeted to be covered by associated revenues.
All requests for reimbursement of expenses incurred by Rotarians on Rotary business must be submitted to RI within 60 days. Requests for reimbursement received after 60 days will not be reimbursed unless authorized by the general secretary in exceptional circumstances.
July 2004 Board meeting
The first meeting of the 2004-05 RI Board was held on 27 May 2004 in Osaka, Japan, and 19 June 2004 in Chicago.
Administration
The Board welcomed the appointment of Vice President John F. Germ (USA) and Treasurer David D. Morgan (Wales), and elected Director Constant A.G.M. Tempelaars (The Netherlands) as the chair of its Executive Committee.
The Board formally ratified the 2004-05 RI president's appointment of Rudolf Hörndler, Mark Daniel Maloney, Bhichai Rattakul, and Robert S. Scott as Rotary Foundation trustees. By action of the 2004 Council on Legislation, the number of Foundation trustees was increased from 13 to 15. Accordingly, the Board approved the president's appointment of Michael W. Abdalla and Gary C.K. Huang as two additional trustees.
On the recommendation of RI President Glenn E. Estess Sr., the Board established the 2004-05 RI committees and task forces and approved their terms of reference.
The Board agreed that zones 2, 5, 13, 17, 20, 22, 24, 28, and 30 shall select committees in 2004-05 to nominate RI directors for election at the 2006 RI Convention.
Finance
The Board approved the Rotary Foundation's 2004-05 budget of US$61.8 million for all Foundation programs, with expenditures coming from unrestricted Annual Programs Fund contributions.
In response to the 2004 Council on Legislation's approval of a $4 annual increase in RI per capita dues over the next three years, the Board restored funding for several important items originally excluded from the 2004-05 RI budget, including a public image campaign during Rotary's centennial year. The adjusted 2004-05 RI budget shows revenues of $74.8 million, including the use of up to $4.6 million in operating reserves, and expenses of $74.6 million.