Rotary Club of East Hartford Program Presentation April 4, 2012

Frequently Asked Questions: What’s the difference between Rotary International and the Rotary Foundation? Why do we need a separate charitable fund? Where do our scholarship monies come from? What types of payments/donations are tax- deductible? How are my dues used? How the heck do I make out this check? How did our Treasurer afford such a nice car?

First Type – 501(c)(4) 501(c)(4): an American tax-exempt, nonprofit corporation or association. Examples are civic leagues, social welfare organizations (i.e., clubs) and local associations of employees.

First Type – 501(c)(4) Rotary examples (corporate): The Rotary Club of East Hartford Rotary District 7890 Rotary International (US) Monies given to these orgs are NOT tax- deductible as they are used for operational purposes.

Rotary Club of East Hartford – 501(c)(4) Income: Club Dues –July and January Club-Only Fund Raisers Direct Contributions to Club (i.e., new microphone system) CHECKS MADE PAYABLE TO “The Rotary Club of East Hartford”

Rotary Club of East Hartford – 501(c)(4) Expenses : Rotary International and District Dues Club Administration – i.e., High Gear, Website, Supplies, badges, Conference & RLI fees, PETS Committee budgets Interact Club costs Program speaker meals

Rotary Club of East Hartford – 501(c)(4) Flow-through funds (fellowship): Parties and social events Weekly Lunches Sergeant-at-Arms Party (from weekly raffle split)

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District 7890 – 501(c)(4) Income: District Dues Billed annually at beginning of Rotary year Per person billing based on current club numbers Paid out of club dues Checks made payable to “Rotary District 7890” Expenses: District Newsletter & Website Committee budgets Administrative expenses Training for Presidents-Elect

Rotary International – 501(c)(4) Income: Bill clubs semi-annually in July and January (SAR) Per person billing based on current club numbers Paid out of club dues Checks made payable to “Rotary International” Expenses: Staff and Physical Plant Administrative expenses Training Website & supporting materials Magazine, insurance, etc. RI Headquarters, Evanston, IL

501(C)(4) Structure of RI Rotary International District 7890 Rotary Club of East Hartford DUES SERVICES

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Second Type – 501(c)(3) 501(c)(3): an American tax-exempt, nonprofit corporation or association. Examples are religious, educational, charitable, scientific, literary, or prevention of cruelty organizations.

Second Type – 501(c)(3) Rotary examples: The Rotary Club of East Hartford Charitable Fund The Rotary Foundation(US) Monies given to these orgs ARE tax-deductible as they are used for charitable purposes.

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Rotary Club of East Hartford Charitable Fund 501(c)(3) Income: Club Fundraisers Individual donations Sergeant-At-Arms Fines/Extortion

Rotary Club of East Hartford Charitable Fund 501(c)(3) Checks made payable to: “EHRC Charitable Fund” or “East Hartford Rotary Club Charitable Fund” or “Rotary Club of East Hartford Charitable Fund” W-9’s available for sponsors Contributions are tax-deductible

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Rotary Club of East Hartford Charitable Fund 501(c)(3) Expenses: Donations to community and international organizations or efforts Administrative costs

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The Rotary Foundation 501(c)(3) Income: Member donations Trivia: top two Rotary Clubs in the world with the highest per capita donations to the Annual Fund: The Peak, Hong Kong -- US$4,685; Peoria North, Arizona -- $4, EREY goal is US$104million Outside donations & matching grants Corporate Partners Investment proceeds from fund investments

The Rotary Foundation 501(c)(3) How do I donate to The Foundation? 1. Make check payable to “The Rotary Foundation” 2. Put your Rotary ID # on the memo line (on your site profile or Rotary International) 3. Complete a Foundation Contribution Form (found under Club Documents on our website) 4. Mail to: The Rotary Foundation Collections Center Drive Chicago, IL USA

The Rotary Foundation 501(c)(3)

501(C)(3) Structure of RI The Rotary Foundation (District 7890) Rotary Club of East Hartford Charitable Fund and Member Donations DONATIONS GRANTS

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EHRC Annual Scholarships Funds come from two sources of funding: 1. Rotary Club of East Hartford Charitable Fund: Sergeant-At-Arms Fines from lunch meeting Direct Donations from members and others Proceeds from club fund raisers

EHRC Annual Scholarships Funds come from two sources of funding: 2. Rotary Club of East Hartford Scholarship Trust Established June 5, 1952; Philip Wadhams, President Unincorporated association (not tax-exempt) Amended December 28 th, 1988 to name William Leone, Trustee (Doug Willett, President) Amended December 19 th, 2011 to name William Leone, Robert (Mike) Derr and Sheryl O’Connor Trustees Annual income from investments of trusts is given to club for scholarship awards; donations are invested in principal

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