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The Rotary Foundation The Rotary Foundation in the 21in the 21stst Century Century
Good News
ProgramGood News, 2006-07
Program Achievements• PolioPlus $633/23.7million• 3H Grants 18/$4.2 million• Matching Grants 2008/$34.3 million• DSGs 379/$5.1 million• Volunteer Service 202/$1 million
ProgramGood News, 2006-07
Program Achievements• Peace Fellowships 50/27/$4.3• Ambassadorial 822/50/$13.9• Teachers 29/9/$.4• GSE 558/$4.3
Financial ResultsGood News, 2006-07
Investment Earnings$105.4
Contributions$125.3
Program Awards$98.0
Program Ops $18.6
Fund Dev $12.6
$135.5Expenses
$230.7 Revenues
G&A $6.3
Net Increase
$95.2
The Rotary Foundation Revenue Trends
US$(millions)
154
119 118
180161 167
231
60
138
41
-40.0
10.0
60.0
110.0
160.0
210.0
260.0
98 99 00 01 02 03 04 05 06 07
Contributions Investment Income (Loss)
Record Year!
The Rotary Foundation Contribution Trends
US$(millions)
AP
F R
ec
ord
0.0
18.0
36.0
54.0
72.0
90.0
108.0
126.0
144.0
98 99 00 01 02 03 04 05 06 07
Annual Programs Fund PolioPlus Permanent Fund
Unrestricted Other Temp Restricted Flow Through
____PEFC____
The Rotary Foundation Total Awards & Expenses
US$(millions)
113
138
114 116 112 110103
128 128136
0
30
60
90
120
150
98 99 00 01 02 03 04 05 06 07
Program Awards Program OperationsFund Development General Administration
86%
The Rotary Foundation Net Assets
US$(millions)
607 587 593537
466 494
571603
637
738
0
200
400
600
800
98 99 00 01 02 03 04 05 06 07
Net Assets at 30 June 2007US$738 million
Annual Programs
Fund 65%
Permanent Fund30%
PolioPlus Fund5%
Other<1%
$475$37
$220
Good News, 2006-07
• Arch Klumpf Society 26
• Major Donors 1,251
• Bequest Society Committed 592
• Benefactors 3,473
• New PHFs 57,190
Good News, 2007-08
TRF Annual Goals• Polio Eradication is realistic• Every Rotarian, Every Year• Rotary Centers For International
Studies in peace and conflict resolution
• Reconnecting with Foundation alumni
Good News, 2007-08
Future Visions1. Simplify all programs/operations2. Align program outcomes3. Increase participation/ownership4. Provide sufficient resources5. Develop a business model
Keeping the Trust--Keeping the Trust--Stewardship MattersStewardship Matters
Stewardship
What is Stewardship? Why is Stewardship important? Who has responsibility? Have there been problems? How are problems resolved? What’s being done for the future? What can we do?
What is Stewardship?
StewardshipStewardship is defined as financial management and program management.
AA Steward Steward is a person or entity that manages another's property (The Rotary Foundation) or financial affairs (grant funds); one who administers anything as the agent of another or others.
Why is Stewardship important?
• Increased giving
• Financial Accountability
• Organization Reputation
Increased Giving
The Development Relationship Cycle
Prospective Donors
Identify Qualify Cultivate Solicit “No”
“Yes”
STEWARDSHIP
Reporting on gift impact -
Accountability
Financial Accountability Necessary to keep charitable tax status
Organizational Accountability Important for maintaining partnerships
with other organizations Affect rankings when for non-profit
organization reports (Guide Star)
Who is responsible?
Everyone from individual Rotarians to the RI President
Corporate responsibility Districts are accountable for the member
clubs Clubs are responsible for their members
Have there been problems?
Over 100 allegations of misuse or mismanagement in the last 5 years
Problems range from lack of understanding of grant guidelines to intentional embezzlement of funds
In the last year allegations reduced from 100 to 25
What types of Problems?
Diversion of Funds False Documentation Conflict of Interest Irresponsible Management Ineligible Contributions Individual Monopolizing Grants Falsified Membership Records
How are allegations addressed?
Requesting additional information from the sponsors
Requiring problem remediation for the beneficiaries
Assistance from district or zonal leadership Sending Cadre members Contracting audit firms
Resolving Allegations Substantiated
Clubs/Districts required to return funds Termination of Clubs Sanctioning of Officers Litigation
What’s being done for the future?
2006-2008 Stewardship Plan Conflict of Interest Policy
Stewardship Plan 2006-2008
Goal #1
Expand Zonal coverage in providing stewardship training tools to district leaders
Goal #1Stewardship Seminars
2006-2008 District 3280 (Bangladesh)* District 4450 (Peru) * Zone 9 (Korea)** Zone 14 (Germany) ** Los Angeles Convention**
*grant management focus AND **best practices focus
Goal #2Increase the technical capacity of thecadre, particularly in the auditing area.
Meeting of the Cadre Chairman and Technical Coordinators
Specialized Auditor initiative
Stewardship Plan 2006-2008
Goal #2Humanitarian Grants Cadre
Over 250 Rotarians serve as Cadre members
Rotarians help each other strengthen projects
Specialized Auditors are a subset of the Financial and Auditing Sector
Goal #3
Leveraging Rotary/zonal leaders to work with districts that are found to be struggling to maintain compliance with reporting. World Reporting
Stewardship Plan 2006-2008
Goal #3World Reporting
To increase the percentage of current andcompliant reporting for all RI Districts A world reporting analysis will be compiled
twice a year tracking each district’s % of reporting on open grants.
Districts with reporting below 70% after 2 consecutive analyses may be suspended from participating in the grants program.
Goal # 4
Addressing all allegations quickly and fairly Address allegations Random audits
Stewardship Plan 2006-2008
Goal #4Allegations Focus
Mismanagement irresponsible execution of a grant
Misuse intent to wrongfully benefit from a grant
Goal #4Investigations
Issues regarding conflicting political and personal agendas are sent to Club and District Support (CDS)
Misuse or mismanagement issues with ample “evidence” sent to general secretary to review options for resolution.
Additions to the Code of Policy
NEW Conflict of Interest NEW October 2006 Trustee decision
Supports transparency in business transactions to avoid any actual or perceived conflict of interest by requesting disclosure of Rotarian involvement
What can we do?
Facilitate and encourage Rotarians to fulfill:
Legal obligations to TRF Stewardship responsibilities Reporting responsibilities Partnership obligations
What can we do?
Assist the Foundation in evaluating project sites facing challenges
Be aware of the projects in your districts Report misuse and suspected misuse of funds to
TRF Lead by example Educate about appropriate fundraising and
contributions
“Where large sums of money are concerned, it is advisable to trust nobody.”
Agatha Christie
“Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.”
Albert Einstein