NORTH AMERICAN ROTARY EMERGENCY DISASTER INITIATIVE DECEMBER 14 – 15, 2007 FRANK BRADSHAW, PDG, D6200

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What resources will be available to a Rotary District/Club when a disaster occurs?

Disaster Recovery Program Initiative sponsored by RI & TRF Financial contributions for a specific disaster Funds used to rebuild communities

How Does it Work? Disaster occurs Rotarians contact RI programs General Secretary uses the RI website to inform the Rotary World about a particular disaster and what is being done by a club and/or district

More information ~ Disaster Recovery Terms and Conditions TRF and RI staff

TRF Donor Advised Fund Initiative coordinated with TRF Financial contributions accepted for a specific disaster Funds used to fund relief and recovery projects

How Does it Work? Disaster occurs Rotarians working with TRF establish a Donor Advised Fund for a specific disaster Oversight committee is appointed by TRF to review funding request Recovery efforts implemented

Rotary District Foundation Puts in place a mechanism for accepting contributions Develops the criteria for awarding funds for relief/recovery efforts Provides the clubs with guides, criteria, procedures and responsibilities Provides forms necessary to request funding & report on completed projects

Advantages to creating a District Foundation Having a separate tax-exempt organization facilitates receipt of charitable contributions. A district foundation permits decisions to be made locally on a timelier basis, thereby providing more efficient relief. District managers would be better informed as to the needs of the district than would managers of an organization outside of the district.

Advantages (cont’d) Because the district foundation is a separate legal entity, if operated and managed properly, its assets would be protected from claims against the district itself. A district foundation provides an avenue to involve more Rotarians at the district level.

Disadvantages to creating a District Foundation Some costs are involved in creating the foundation and obtaining an income tax exemption from the IRS. Some additional ongoing costs are involved. For example, a separate Federal informational return using Form 990 may have to be filed annually, as well as a separate reporting form in many states.

Disadvantages (cont’d) Foundation funds should not, under any circumstances, be commingled with the funds of any other organization, specifically including the district itself. Increase responsibility to educate so there exist an good understanding as to the respective purposes of the District Foundation and The Rotary Foundation.

How Does it Work? Disaster occurs Rotarians, through their club, contact the District Foundation Funds distributed to local Rotary clubs Relief & recovery efforts implemented Rotary Clubs report to District Foundation on completed projects District Foundation updates contributors

3 Phases of Disaster Relief I MMEDIATE N EEDS I NTERMEDIATE N EEDS L ONG T ERM R E - I NVESTMENT

Phase One Immediate Need Duration ~ up to 3 months 75% of contributions will be received Address immediate humanitarian needs Be aware of the efforts of other relief organizations, non-profits, and businesses ~ attempt to avoid duplication Trustees will be meeting weekly Remember ~ there are two more phases yet to come!

Phase Two Intermediate Need Duration ~ From 3 to 9 months 15% of contributions will be received Address issues such as: –Temporary living arrangements –Replacement of furniture and appliances –Clothing –Etc. Trustees will meet once a month – with weekly communications via .

Phase Three Long Term Re-investment Duration ~ From 9 months until! Last 10% of contributions will be received Address issues such as: –Community Based Projects ~ Example – parks and playgrounds –Business Assistance –Partnerships with agencies assisting the needy and “at-risk” populations

Expectations of the District Foundation Support the clubs in their relief efforts. Good & Responsible Stewards –As a qualified subsidiary, receive all monetary donations. –Coordinate the disbursement of funds. –Facilitate donations to Donor Advised Fund. –Monitoring projects through closeout. Coordinate publicity for District relief efforts.

Expectations of the Individual Rotary Club Cooperate with the District and the District Foundation in providing relief to communities. Club use approved methods to request and account for monetary donations received from the District Foundation. Keep the District and the District Foundation informed of the needs in its community.

Request for funds Key Points to include Unique name project and project number Identify scope of project Estimate number of people to benefit Amount of funding needed - budget Date funds will be required Contact information on Rotarian with oversight of project Signature of Club President

Accounting for funds Key Points to include Club needs to establish special relief fund or sub-account to handle relief funds With distribution of relief funds, note payee, memo as to what check covered, and copies of all receipts Update reports every six months till project is closed out

Accounting for funds con’t District needs to: –Assure accountability of all funds received –Issue letters of thanks with tax information for donation purposes to all donors –Establish tracing system for distribution of funds, progress reports and final distribution reports from clubs. –File with the IRS all reporting documents required (Form 990)

Questions?