Highlights from the 2009-10 Rotary Foundation Trustees meetings

June 2010

June 2010, Trustee minutes

April 2010

April 2010, Trustee minutes

The Trustees of The Rotary Foundation of Rotary International met from 19-22 April 2010 in Evanston, Illinois, USA. The following are highlights of actions taken.

Fund Development

The Trustees agreed to name three levels within the Arch C. Klumph Society as follows:

• Arch C. Klumph Society Foundation Circle (US$1 million and above)
• Arch C. Klumph Society Chair’s Circle (US$500,000 to US$999,999)
• Arch C. Klumph Society Trustees Circle (US$250,000 to US$499,999)

These levels will be implemented beginning 1 January 2011.

It was also agreed that Bequest Society levels should be consistent with the new major donor and Arch C. Klumph Society levels. Bequest Society levels were revised as follows:

• Level 1: US $10,000 - $24,999.99
• Level 2: US $25,000 - $49,999.99
• Level 3: US $50,000 - $99,999.99
• Level 4: US $100,000 - $249,999.99
• Level 5: US $250,000 - $499,999.99
• Level 6: US $500,000 - $999,999.99
• Level 7: US $1 million and above

A chevron-style Paul Harris Society stand-alone pin has been adopted by the Trustees as the “official” PHS wearable recognition item. The Trustees also amended the Paul Harris Fellow recognition policy. Details can be found in The Rotary Foundation Code of Policies section 16.030.

The Trustees lowered the minimum amount required to open a TRF Donor Advised Fund account from US$20,000 to US$10,000, effective 1 July 2010.

The Trustees received a report from the Rotary Centers Major Gifts Initiative Committee and were pleased to acknowledge the generosity of donors who have provided approximately US$45.8 million toward the final goal of US$95 million to endow this program.

Programs

The Trustees agreed to allow Matching Grant funds to be used for international travel expenses of Rotarian volunteers who provide direct humanitarian service as part of a Matching Grant. This will take effect 1 July 2010 with the 2010-11 program year grants. However, Rotarian volunteers will not be permitted to use the Rotary International Travel Service for booking travel as part of a Matching Grant.

A partial World Fund subsidy was conditionally approved for all non-pilot districts to send one GSE team during 2012-13, and a reduced SHARE option District Designated Fund cost of US$5,000 (US$2,500 for a neighboring country GSE) to send a GSE team in 2012-13, which will then be supplemented by the aforementioned World Fund subsidy.

Additionally, the Trustees approved a PolioPlus grant of up to US$1,036,934 to the India National PolioPlus Committee for operational support in the 107 highest risk areas for polio eradication in Uttar Pradesh and Bihar, India.

Strategic partnerships have been established with Oikocredit, an international organization that delivers microcredit and other financing services to disadvantaged people around the world, and with Aga Khan University, which focuses on increasing the number and skills of professional in the developing world with eleven campuses in eight countries. These partnerships will continue throughout the Future Vision pilot period.

The Trustees agreed that individuals funded by Rotary Foundation global grants will have the status of Rotary Foundation alumni. Future Vision pilot districts are also invited to submit to the general secretary names of individuals who receive funding through a district grant, for consideration by TRF to be given status as Foundation alumni.

A temporary restricted account has been established for long-term earthquake recovery efforts in Chile. The Trustees agreed that contributions which are received by 30 June 2010 may be used as the equivalent of the World Fund portion of a Matching Grant that will match DDF and/or restricted cash contributions in which a Chilean club and/or district is the host sponsor. All contributions to this temporary restricted account are to be expended by 30 June 2011.

Stewardship

The Trustees commended districts for achieving the highest ever rate of world reporting compliances. However, 15 districts were suspended for failure to meet reporting compliance of 70% for two or more consecutive semi-annual reports and for having more than one grant overdue in both of the analyses. After receiving information provided by Pure Water for the World, the Trustees lifted its suspension from participation in TRF’s Humanitarian Grants program.

Finance

The Trustees approved a budget for total program award expenditures of US$93,157,000 in 2010-11. They also adopted a budget of US$63,550,000 for program operations, fund development, general administration, and PolioPlus program operations of The Rotary Foundation during 2010-11, for a total budget of US$159,623,000.

The Trustees approved revised asset allocation targets and ranges for the Permanent Fund and requested the general secretary to implement these as soon as feasible.

Significant changes were made to the Operating Reserve policy of the Foundation. Details can be found in The Rotary Foundation Code of Policies, article 19.

Foundation Facts (as at 31 March 2010)

Paul Harris Fellows: 1,219,617

Foundation Benefactors: 82,610

Major Donors: 12,293

January 2010

January 2010, Trustee minutes

The Trustees of The Rotary Foundation of Rotary International met on 16 January 2010 in San Diego, California, USA. The following are highlights of actions taken.

Fund Development and Recognition

Rotary’s US$200 Million Challenge has received cash and commitments of US$105 million toward the challenge, US$12.5 million of which have been major gifts. This does not include US$3.5 million from Google.

Thirty-two Rotarians were selected to receive the Distinguished Service Award in 2009-10 for their outstanding service to The Rotary Foundation. The Trustees also chose a winner of The Rotary Foundation Global Alumni Service to Humanity Award, which will be presented at the 2010 (Montréal) Convention.

Programs

The Trustees:

• Approved PolioPlus grants for Afghanistan, Angola, Benin, Burkina Faso, Cote D’Ivoire, Ghana, Guinea, India, Liberia, Mali, Mauritania, Niger, Nigeria, Pakistan, Sierra Leone and Togo.
• Approved the allocation of an additional US$2 million from the PolioPlus fund, to be utilized in support of PolioPlus Partners projects during 2009-10.
• Agreed to increase the 2009-10 PolioPlus Program Awards budget from US$79,100,00 to US$109,100,000.
• Selected ten Rotarians to receive the International Service Award for a Polio-Free World.
• Approved one matching grant involving Rotary clubs and districts in Chile and Mexico.
• Agreed to increase the maximum award amount for Matching Grants from US$150,000 to US$200,000, effective with the 2010-11 program year awards.
• Approved one 3-H Grant request involving Rotary clubs in the Dominican Republic and United States.

Finance

The Trustees requested the general secretary to investigate strategic long-term options for reducing total administrative expense at the Secretariat and to review shared costs between RI and TRF administration and program operations expenses.

Foundation Facts (at 31 December 2009)

Paul Harris Fellows: 1,208,428

Foundation Benefactors: 81,963

Major Donors: 11,904

October 2009

October 2009, Trustee minutes

The Trustees of The Rotary Foundation of Rotary International met from 26-29 October 2009 in Evanston, Illinois, USA. The following are highlights of actions taken.

Administration

The Trustees elected Trustee Bill Boyd to serve as chairman-elect and Trustee John F. Germ as vice-chairman during 2010-11. The Trustees’ annual meeting will be held 25-29 October 2010 in Evanston. The chairman will decide the dates of all other 2010-11 meetings.

The Trustees voted John F. Germ to be a non-voting member of the 2010 Council on Legislation.

The Trustees adopted requirements and general criteria for packaged global grants, which are a new concept to the Foundation within the Future Vision plan. Details on these grants will be provided to Future Vision pilot districts during their training at the 2010 International Assembly.

Fund Development

The Trustees received a progress report on Rotary’s US$200 Million Challenge and were advised that as of 24 October, World Polio Day, US$99 million had been raised.

Subject to further refinements, the Trustees created three levels within the Arch C. Klumph Society effective 1 July 2010, and amended the criteria for Level 4 Major Donor recognition as follows:

• Level 4: US$100,000 - $249,999.99
• Arch C. Klumph Society: US$250,000 - $499,999.99
• Arch C. Klumph Society: US$500,000 - $999,999.99
• Arch C. Klumph Society: US$1 million and above

The Trustees agreed that the goal of the Permanent Fund is to:

• assist Rotarians in fulfilling their local and global philanthropic goals;
• support the programs of The Rotary Foundation;
• ensure a strong future for The Rotary Foundation by providing a continuing stream of income to meet the increasing demand for Foundation programs.

Programs

The Trustees:

• Approved 16 Matching Grants involving Rotary clubs and districts in Australia, Bahamas, Canada, Ecuador, Ethiopia, Fiji, Finland, India, Japan, Kenya, Korea, Mozambique, New Zealand, the Philippines, Sierra Leone, Sudan, Sweden, Switzerland, Tanzania, Uganda, and the United States.
• Approved PolioPlus Grants for Afghanistan, Benin, Burkina Faso, Chad, India, Mali, Niger, Nigeria, Pakistan, Somalia, and Sudan.
• Approved the list of candidates to be awarded 2010 Rotary Peace Fellowships. Agreed to allocate funds for 50 master’s degree and 50 certificate Rotary World Peace Fellowships in 2010-11.
• Agreed to use the shorter titles of Rotary Peace Centers and Rotary Peace Fellows for Rotary and public purposes.
• Thanked the Rotary Peace Centers Major Gift Initiative Committee for its success in raising approximately US$44,000,000 toward the goal of US$95,000,000
• Agreed to plan for a Rotary Peace Symposium to be held in conjunction with the 2012 RI Convention in Bangkok, Thailand.
• Agreed that a minimum of three years must pass between the completion date of a Rotary Peace Fellowship (certificate program) or Ambassadorial Scholarship, and the date of application for a Rotary Peace Fellowship (master’s degree), with the understanding that Ambassadorial Scholars and Peace Fellows (certificate program) are eligible to apply for the Peace Fellowship (master’s program).
• Looked with favor on the tentative draft program for the 2010 and 2011 Rotary Alumni celebrations in Montréal, Quebec, Canada, and New Orleans, Louisiana, USA.
• Approved 3-H Grants involving Rotary clubs in Australia, Ghana, the Philippines, and the United States.

Stewardship

Noting a decrease in world reporting for Humanitarian Grants in the October 2009 analysis, the Trustees expect that districts will improve their reporting percentages by the semi-annual analysis in April 2010.

A Humanitarian Grants Cadre of Technical Advisors recruitment and training event will be held in Kampala, Uganda, in conjunction with the 2010 Zone 20A Rotary Institute, and a regional training seminar for cadre will be scheduled prior to the 2010 (New Orleans) International Convention.

Finance

The Trustees received The Rotary Foundation’s 2008-09 audited financial results as submitted by Deloitte and Touche. The results will be published in the Foundation’s annual report.

New investment consultants were appointed for the five-year period beginning 1 December 2009.

The Trustees noted that as of 30 June 2009, the operating reserve balance does not meet the minimum required reserve ratio. A committee of trustees was appointed to carefully monitor the situation and review methods to reestablish the reserve.

Foundation Facts (as at 30 September 2009)

Paul Harris Fellows: 1,197,108

Foundation Benefactors: 81,101

Major Donors: 11,611

(30 September 2009)