1. FUNDING AND THE SHARE SYSTEM
FOUNDATION
FUNDING AND THE SHARE SYSTEM
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2. LEARNING OBJECTIVES Understand the SHARE system
Understand the recent change to the funding model
Identify ways in which clubs can work with district leaders to use District Designated Fund (DDF) for projects
Review learning objectives.

3. FOUNDATION FUNDING Spendable Earnings What is the SHARE system?
Rotary Foundation grants and programs are funded by contributions from Rotarians and friends of Rotary. Donors may designate support for:
The Annual Fund. There are many possible designations within the Annual Fund. For those who choose Annual Fund-SHARE, we want to explain how this can assist in district funding and how the process works.
The Endowment Fund supports programs like the Rotary Peace Centers.
The PolioPlus Fund
Foundation Trustees determine how to direct the spendable earnings from the Endowment Fund.
ASK: What are the benefits of making donations to the Annual Fund?
ASK: How can you use Foundation grants to motivate Rotarians to donate to the Annual Fund?

4. SHARE SYSTEM Annual Fund contributions divided:
50% District Designated Fund (DDF)
50% World Fund with 5% earmarked for administrative support
3-year investment cycle
Transforms contributions into grants
Allows local control of how DDF is allocated
Contributions to the Annual Fund and earnings from the Endowment Fund are placed into the SHARE system. The SHARE system divides the funds among the districts.
Starting 1 July 2015, 50 percent of Annual Fund contributions will go to the district’s DDF, 50 percent will go to the World Fund, and from the World Fund, 5 percent will be earmarked for administrative support.
The three-year cycle allows for funds to be invested, which reduces the Foundation’s overhead and expenses and allows more funds to go directly to projects.
The SHARE system transforms contributions into scholarships, vocational training, humanitarian projects, disaster recovery, and district and global grants. «provide local examples»
Allows clubs and districts to determine together how their DDF is allocated. This enables them to participate in activities of particular interest to them.

5. SHARE SYSTEM EFFECTIVE 1 JULY 2015
Let’s look at an example at how DDF is generated:
Three years ago, your district donated $1,000 to SHARE.
You will be eligible to receive the DDF portion of this donation. The DDF portion is 50 percent of the donation you made three years ago, or $500.
Of the remaining donation, $500 goes to the World Fund and $50 goes earmarked for to operating expenses.
Any unused DDF can be used next year.
ASK: How can you increase the amount of DDF available for future use?

6. OUR NEW FUNDING MODEL EFFECTIVE 1 JULY 2015
Beginning 1 July 2015, we will be setting aside additional sources of funds to pay for the Foundation’s operating expenses if they are needed.
Annual Fund investment earnings (shown in dark blue) will continue to be the primary source of funds, but they will be supplemented by some additional sources.
5% of contributions to the Annual Fund will be set aside to pay for operating expenses and/or to build the operating reserve. This includes contributions designated to SHARE and to Areas of Focus. Contributions to Areas of Focus would result in 95% of the contribution supporting the Area of Focus program and 5% would be allocated to Operating Expenses. 5% of Annual Fund Contributions will provide about 20% of the funding sources and is shown in pink.
5% of cash contributions to fund global grants will also be set aside. This amount is shown in the lighter blue. Given cash contributions are not invested for three years, they do not generate any earnings to help pay for the costs associated with processing those contributions.
Shown in yellow are the Endowment Fund spendable earnings, which currently provide some funding for operating expenses.
Why did we make a change to our funding model?
Thanks to the generosity and hard work of Rotarians, our Foundation has been Doing Good in the World for almost a century.
Through the years, our practice was to fund operating expenses with returns from investments. While this worked well during good years, it did not safeguard the Foundation’s future viability.
To ensure that we can continue this good work, a new funding model that will secure the Foundation’s future has been approved.

7. ALLOCATED FUNDING District Designated Fund World Fund
Allocated by districts
Allocated by Trustees
Used by Rotarians
Directed by district-level Rotarians
worldwide
Used locally or internationally
Can act as a match
Spent on Foundation grants and programs
Each district determines how its DDF is spent, and the Trustees determine how the World Fund is spent.
The Trustees use the World Fund to support global grants, PolioPlus, and Rotary Peace Centers.
ASK: How can you help fellow Rotarians understand the change in the funding model?

8. Unused DDF is calculated; districts notified in May
SHARE PROCESS
Funds Raised
Funds Spent
Looking at the timeline here, we see funds being spent on district activities in
Any unused DDF (that is, funds remaining after all approved grant applications and donations have been reported to the Foundation) from will be rolled over into
These rollover funds cannot, however, be used toward a district grant.
Unused DDF rolls forward to the next year; districts notified by October
Unused DDF is calculated; districts notified in May

9. WHO IS INVOLVED IN PLANNING?
District governor
District governor-elect
District Rotary Foundation committee chair
District Rotary Foundation subcommittee chairs
The district Rotary Foundation committee, which includes the district governor, determines how to use DDF by gathering information from clubs about which Foundation activities they wish to participate in.
ASK: Who in your club or district is an expert on SHARE and can answer questions?

10. DISTRICT PLANNING «Insert your district’s information, such as
district planning calendar
deadlines for clubs requesting DDF
process for determining who receives DDF»
Discuss your district’s planning and determination process.
ASK: What types of activities does your club support with DDF?
ASK: What can you do to ensure that all of your district’s DDF is used efficiently each year?

11. SESSION REVIEW Understand the SHARE system
Understand the recent change to the funding model
Identify ways in which clubs can work with district leaders to use District Designated Fund (DDF) for projects
Review the session’s learning objectives that were covered.

12. TAKE ACTION Take the Managing Grants course at learn.rotary.org
Plan a survey of members to help set DDF spending goals
Review and ask participants for other ideas.

13. Questions?
<<Insert district contact information>>
Add your district SHARE contact information.
Ask for questions from the participants.