District Rotary Foundation Seminar District Assembly Future Vision Plan Changes in Rotary Foundation Policies 16 Mar 2013

District Rotary Foundation Seminar

District Assembly

Future Vision PlanChanges in Rotary Foundation Policies

16 Mar 2013


Rotary Foundation

Why is it IMPORTANT to Rotary?


Rotary InternationalA living organism

Members – the body of Rotary

- the life of Rotary

Administration – Nervous System

Rotary Foundation – Circulatory System

What is the state of health for your club

and your district?


Our Rotary Foundation Is Unique

• Provides the platform for Service

• World reach greater than the United Nations

• We can go where politicians and religious groups cannot


Rotary International and Rotary Foundation

Rotary International started 1905

Rotary Foundation started 1917

First 100 years - doing exceedingly well

Second 100 years – better, same or worse?

What is the Future for Rotary?


The Rotary Foundation’sFuture Vision Plan: Purpose and Benefits

Integrated Rotary effort and philosophy


Future Vision Plan

• Strategic shift in Rotary International and Rotary Foundation – an integrated plan

• Addressing current and future needs of Rotarians, potential donors, and the communities and beneficiaries that we serve


Reasons leading to Change• In early 2000, Foundation experienced explosion

of Matching Grants • Rotarians realized value of humanitarian

programs • RI staff was drowning in grant paperwork • Cost for processing smaller matching grants was

US$1,500 per approved grant — average cost exceeded the size of many grants


Fundamental principles of the Future Vision Plan

• The Foundation funds anually about US$100 million — just tip of the iceberg

• Thousands of local and international projects are implemented without support from Foundation: between US$500 million and US$1 billion

• Foundation’s limited resources should be used to fund projects with greatest impact in communities that produce long-lasting and measurable results


In traditional programs, 20% of annual program budget was spent on grant activities that had long-term impact, while 80 % was spent on

shorter-term activities with uncertain impact to our beneficiaries


Needs for Change

• Need for more targeted strategy on the areas of charitable focus

• Need to use donor funds for greater impact in communities




Rotary Foundation

Long range plan for second century of service

The new model designed to achieve five priorities:

1. Simplify programs and processes

2. Focus service efforts in 6 areas

3. Support global and local service efforts

4. Transfer more decisions to districts

5. Enhance Rotary’s public image


Future Vision Plan

• Pilot program carried out

• over 3 years - 2000-01 to 2012-13

• 100 Rotary Districts


Evaluating Future Vision Plan through Pilot program

1. Overall satisfaction of Rotarians - greater participation, level of giving, club and district engagement,

2. Better quality of projects - getting the results intended and the projects are sustainable

3. Shorter business cycle times - speeded up through streamlined processes

4. Improved operational efficiency - indicators monitored by nonprofit evaluators and agencies sending positive messages to our donors, partners, and members

5. Better stewardship - safeguard the Foundation’s assets.


Future Vision’s focus

sustainable projects and greater impact

• Sustainability is defined as a project’s capacity to maintain long-term outcomes that continue to serve a community’s ongoing needs after grant funds have been expended

• “Sustainability” means benefits continue to flow after the grant money is spent


Future Vision’s focus

importance of sustainable projects

• Offer greater value and return on Rotary’s investment of money and volunteer hours

• Mechanisms in place for training and exchanging information so the community can maintain results and address problems after the Rotary club’s involvement has ended

• Improve public Image


Report Card Success of new grant model will be measured over time

• increased Rotarian participation• increased giving to the Foundation• Greater engagement of clubs• more media coverage of Foundation-sponsored projects• providing data on the number of people who benefit from

Foundation grants and the sustainability of projects


District Rotary Foundation


Fundraising Subcommittee


No Change from Before

Foundation Funding


Foundation Funding

Contributions

SHARE System

Contributions

Spendable Earnings

Annual Fund

PermanentFund

PolioPlus Fund


SHARE System

• Divides Annual Fund contributions between– District Designated Fund (DDF)– World Fund

• Transforms contributions into grants, etc.

• Allows clubs to determine how district contributions are spent


Annual Fund Contributions

At the end of Rotary year, Annual Fund contributions split:

• 50% to the World Fund

• 50% credited to district’s DDF


Permanent Fund Earnings

The Trustees determine the spendable earnings. The spendable earnings are split:

• 50% to the World Fund

• 50% credited to district’s DDF


Two Funds

• District Designated Fund– District directed – Used by Rotarians in the

district– Spent on TRF grants

and programs

• World Fund– Trustee directed– Used by Rotarians

worldwide– Spent on TRF

grants and programs


SHARE Cycle

$200,000 Annual Fund

2010-11 2011-12 2012-13 2013-14

Funds raised and invested

Funds usedFunds invested

Funds invested

$100,000 DDF &

$100,000 World Fund

Permanent Fund spendable earnings NOT in 3-year

investment cycle

Permanent Fund spendable earnings NOT in 3-year

investment cycle


For Nonpilot Districts in 2012-13

US$100,000District Designated Fund

Up to 20%

$20,000 or less to District Simplified

Grant

Any amount to Matching Grants,

PolioPlus, or Rotary Peace Centers

Remaining Balance

Carry forward & transfers


US$100,000District Designated Fund

$50,000 or less to the

district grant

Any amount to global grants, PolioPlus, or Rotary Peace

Centers

Up to 50% Remaining Balance

Carry forward & transfers

For Pilot Districts in 2012-13 and All Districts in 2013-14


For Pilot Districts in 2012-13 and All Districts in 2013-14

DDF

District Grants

Global Grants

PolioPlus Donations

Rotary Peace Centers

Donations

50% of contributions 3 years prior

Rollover andTransfers

Transfer toanother district

Unused DDFrolls over to

next year

Up to 50%


Grants subcommittee


New Foundation Grants


District Grants

• Single “block” grant awarded annually for club and district projects

• Local or international activities

• Local decision making with broader guidelines

• Smaller activities and projects


• District governor

• District governor-elect

• District Rotary Foundation committee chair

• District Rotary Foundation subcommittee chairs

Who is involved in planning?


Examples

• US$750 to support after-school program for at-risk youth

• $9,000 to bring medical professionals from Argentina to U.S. for training


Examples

• $4,500 to send a team of professionals on a cultural exchange

• $2,000 to provide short-term scholarships to children to further their studies


Scholarships

• Scholarships can be funded by– Global grants– District grants


District Grant Scholarships• More flexible

– Secondary, university, graduate studies or certificate programs

– Local or international– Length– Area of study– Cost

• Managed by district


Global Grant Scholarships

• Graduate-level

• Study period 1-4 years

• Alignment with the areas of focus

• Sustainable and measurable

• Host and international sponsors

• $30,000 minimum budget


Global Grants

• Area of focus

• Community need

• Community participation

• Strengthen knowledge, skills, resources

• Long-term benefit

• Measurable results

• US$30,000 minimum budget


Areas of Focus

• Peace and conflict prevention/resolution

• Disease prevention and treatment

• Water and sanitation

• Maternal and child health

• Basic education and literacy

• Economic and community development


Example

Vocational training team travels from U.S. to Uganda to provide pediatric heart surgeries and train local health professionals.


Villages in Guatemala receive clean water, latrines, and vegetable gardens.

Vocational training team from Japan educates villagers about disease transmission, improved waste disposal, sustainable gardening, and nutrition.

Example


Peace and conflict prevention/resolution



Disease preventionand treatment


Water and sanitation



Maternal and child health



Basic education and literacy



Economic and community development



Sustainable Projects

• Fit Community Needs

• Supply and Maintain Materials/Technology

• Local Long term Funding

• Knowledge

• Motivation

• Evaluation


Measurable Outcomes

• Put a plan in place before implementation

• Establish baseline data

• Determine quantitative and qualitative measures


Application Process

1. Club qualifies

2. Club completes first step of application

3. Club submits second step of application

4. District approves application online

5. Rotary Foundation reviews for approval


Member Access


Global Grant Reporting

• Progress report 12 months after funds received

• Every 12 months until project is complete

• Final report submitted within 2 months of project completion


Packaged Grants

Project fully funded by World Fund and RotaryFoundation Strategic Partner

Project fully funded by World Fund and RotaryFoundation Strategic Partner

District Rotary Foundation SeminarDistrict Rotary Foundation Seminar

Strategic Partners

• Global scope of work

• NGOs, universities, corporations

• Expertise in an area of focus


Packaged Grants

• For clubs and districts

• Predesigned projects

• Funded by World Fund and strategic partner


Oikocredit

• Provides funds to microfinance institutions

• Economic and community development


• Connect Rotary clubs and microfinance institutions

• Training activities – humanitarian projects

• Available in India, Philippines, Uruguay

Developing Local Entrepreneurs


Aga Khan University

• 11 campuses in eight countries

• Curriculum reflects local community needs



Training Health Educators

• Vocational training teams to train nurse educators

• Available in Kenya, Uganda, Tanzania



Nursing Scholarships

• Campuses in Kenya, Uganda, Tanzania



• Operates hospital ship Africa Mercy

• In port in one country for about one year


Mercy Ships


• Support the Africa Mercy

• Upcoming ports: Togo and Guinea

• Vocational training teams


Medical Service and Training


• Postgraduate water education institution

• Global student body

• Campus in the Netherlands

• Water and sanitation

UNESCO-IHE


Training Health Educators

• Vocational training teams to train nurse educators

• Available in Kenya, Uganda, Tanzania



Stewardship subcommittee


StewardshipStewardship is the responsible management and oversight of grant funds, which ensures that funds are used properly and benefit populations in need.


Stewardship Practices

• Have Rotarians supervise project

• Implement projects as approved

• Follow standard business practice

• Submit reports


Stewardship Activities

• Report tracking

• Routine monitoring

• Random and targeted audits

• Investigating allegations

• Stewardship seminars

• Qualification


Qualification


Qualification

• Qualification is the process that clubs establish to ensure compliance with Foundation policies, avoid misuse and mismanagement of grant funds, and ensure that their members have the appropriate training and resources.

• Clubs that fail to comply risk losing the ability to participate in the Foundation grants program.


Qualification

• Qualification provides clubs with financial and stewardship controls for meeting Foundation requirements and managing grant-funded activities.

• Clubs need to qualify before applying for global and packaged grants.


Qualification Requirements

• At least one member of club attends a grant management seminar

• Read, sign, and submit club MOU to the district by President and President-Elect

• Other district requirements

- payment of RI and District dues


Authorization and Agreement

The club MOU is a legal document between the club and the district. By signing this agreement, the club president and president-elect are authorizing it for one Rotary year; the club enters Into a legal agreement with The Rotary Foundation to abide by all TRF and RI policies.

How will you ensure that all members of the club understand their responsibility as outlined in this agreement?


Club QualificationMemorandum of Understanding

• The club will be qualified for one Rotary year.• The club is responsible for the use of funds for club-

sponsored grants, regardless of who controls the funds

• Qualification may be suspended or revoked for misuse or mismanagement of grant

• The club must cooperate with any financial, grant, or operational audits


Club QualificationExamples of Misuse or Mismanagement

• fraud; forgery; membership falsification; • gross negligence; • endangerment of health, welfare, or safety of

beneficiaries;• use of funds for personal gain; • undisclosed conflicts of interest; • monopolization of grant funds by individuals; • report falsification; overpricing; illegal activities; • acceptance of payments from beneficiaries;


Financial Management Plan

1. A written financial management plan that include procedures to:

a.Maintain a standard set of accounts

b.Disburse grant funds, as appropriate

c. Maintain segregation of duties for handling funds

d.Establish an inventory system for equipment and other assets purchased with grant funds

e.Ensure that all grant activities comply with local law


Bank Account Requirements

The club must have a dedicated bank account that is used solely for receiving and disbursing TRF grant funds.

A. The club bank account must

1. Have a minimum of two Rotarian signatories from the club for disbursements

2. Be a low- or noninterest-bearing account

B. Any interest earned must be documented and used for eligible, approved grant activities, or returned to TRF.

C. A separate account should be opened for each club-sponsored grant

D. Grant funds may not be deposited in investment accounts

E. Bank statements to support receipt and use of TRF grant funds.

F. The club must maintain a written plan for transferring custody of the bank accounts in the event of a change in signatories.


Document Retention

The club must establish and maintain appropriate record keeping systems to preserve important documents related to qualification and TRF grants.

Retaining these documents supports transparency in grant management and assists in the preparation for audits or financial assessments.


Document Retention

A. Documents that must be maintained include:

1. Bank information and past statements

2. Club qualification documents and signed club MOU

3. Documented plans and procedures, including:

a. Financial management plan

b. Procedure for storing documents and archives

c. Succession plan for bank account signatories

4. Information related to grants: receipts and invoices for all purchases

B. Club records must be accessible and available to Rotarians in the club and at the request of the district.

C. Documents must be maintained for a minimum of five years, or longer if required by local law.


Future Vision and Club Qualificationsummary

• Rotarians have more control on use of funds from money donated

• Rotarians have to exercise stewardship• Rotary Foundation’s role is to help Rotarians use

funds more efficiently• Rotarians are to be what they claim to be

- responsible, compassionate, with integrity


Training of Rotariansfor District 3310

1. PETS, District Assembly

2. Training of Assistant Governors

3. District Foundation Seminars

4. Foundation page in District website


Role for District Foundation Committee

• Transparent – publish all activities

• Accountable – publish all transactions

• Help clubs with funding for projects

• Set guidelines for award of grants


Foundation page District 3310 website

1. Future Vision Plan

2. Grant Management Manual

3. Grant award guidelines

4. Club Qualification list

5. Grant Award list

6. District Financial Management Plan

7. Report on Use of Grant Funds


Future Vision Plan(New Grant Model)

2 main changes

1.Club Qualification – M.O.U

2.Grant Application – Contact Grant

Award Chair


District Assembly

Future Vision Plan

Changes in Rotary Foundation Policies

Thank You

16 Mar 2013