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

2. Rotary Foundation
Why is it IMPORTANT to Rotary?

3. Rotary International A 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?

4. 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

5. 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?

6. The Rotary Foundation’s Future Vision Plan: Purpose and Benefits
Integrated Rotary effort and philosophy

7. 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

8. 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

9. 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

10. 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

11. Needs for Change
Need for more targeted strategy on the areas of charitable focus
Need to use donor funds for greater impact in communities

14. Rotary Foundation Long range plan for second century of service
The new model designed to achieve five priorities:
Simplify programs and processes
Focus service efforts in 6 areas
Support global and local service efforts
Transfer more decisions to districts
Enhance Rotary’s public image

15. Future Vision Plan Pilot program carried out
over 3 years to
100 Rotary Districts

16. Evaluating Future Vision Plan through Pilot program
Overall satisfaction of Rotarians - greater participation, level of giving, club and district engagement,
Better quality of projects - getting the results intended and the projects are sustainable
Shorter business cycle times - speeded up through streamlined processes
Improved operational efficiency - indicators monitored by nonprofit evaluators and agencies sending positive messages to our donors, partners, and members
Better stewardship - safeguard the Foundation’s assets.

17. 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

18. 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

19. 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

20. District Rotary Foundation

21. Fundraising Subcommittee

22. Foundation Funding
No Change from Before

23. Foundation Funding SHARE System Contributions Annual Fund Permanent
Spendable Earnings
PolioPlus Fund

24. 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

25. Annual Fund Contributions
At the end of Rotary year, Annual Fund contributions split:
50% to the World Fund
50% credited to district’s DDF

26. 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

27. Two Funds District Designated Fund World Fund Trustee directed
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

28. Funds raised and invested
SHARE Cycle
Funds raised and invested
Funds used
Funds
invested
Funds
invested
$100,000 DDF & $100,000 World Fund
$200,000 Annual Fund
Permanent Fund spendable earnings NOT in 3-year investment cycle

29. For Nonpilot Districts in 2012-13
US$100,000
District Designated Fund
Up to 20%
Remaining Balance
$20,000 or less to District
Simplified
Grant
Any amount to
Matching Grants,
PolioPlus, or
Rotary Peace Centers
Carry forward & transfers

30. District Designated Fund $50,000 or less to the district grant
For Pilot Districts in and All Districts in
US$100,000
District Designated Fund
Up to 50%
Remaining Balance
Any amount to
global grants,
PolioPlus, or
Rotary Peace Centers
$50,000 or less to the district grant
Carry forward & transfers

31. For Pilot Districts in 2012-13 and All Districts in 2013-14
50% of
contributions
3 years prior
Rollover and
Transfers
DDF
Up to 50%
Global
Grants
PolioPlus
Donations
District
Grants
Unused DDF
rolls over to
next year
Transfer to
another
district
Rotary Peace
Centers
Donations 31

32. Grants subcommittee

33. New Foundation Grants

34. 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

35. Who is involved in planning?
District governor
District governor-elect
District Rotary Foundation committee chair
District Rotary Foundation subcommittee chairs

36. 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

37. 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

38. Scholarships Scholarships can be funded by Global grants
District grants

39. District Grant Scholarships
More flexible
Secondary, university, graduate studies or certificate programs
Local or international
Length
Area of study
Cost
Managed by district

40. 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

41. Global Grants Area of focus Community need Community participation
Strengthen knowledge, skills, resources
Long-term benefit
Measurable results
US$30,000 minimum budget

42. 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

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

44. Example
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.

45. Peace and conflict prevention/resolution
News story:
District Rotary Foundation Seminar

46. Disease prevention and treatment
News story:

47. District Rotary Foundation Seminar
Water and sanitation
News story:
District Rotary Foundation Seminar

48. Maternal and child health
News story:
District Rotary Foundation Seminar

49. Basic education and literacy
News story:
District Rotary Foundation Seminar

50. Economic and community development
News story:
District Rotary Foundation Seminar

51. Sustainable Projects Fit Community Needs
Supply and Maintain Materials/Technology
Local Long term Funding
Knowledge
Motivation
Evaluation

52. Measurable Outcomes Put a plan in place before implementation
Establish baseline data
Determine quantitative and qualitative measures

53. Application Process Club qualifies
Club completes first step of application
Club submits second step of application
District approves application online
Rotary Foundation reviews for approval

54. Member Access

55. 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

56. Packaged Grants
Project fully funded by World Fund and RotaryFoundation Strategic Partner

57. Strategic Partners Global scope of work
NGOs, universities, corporations
Expertise in an area of focus

58. Packaged Grants For clubs and districts Predesigned projects
Funded by World Fund and strategic partner

59. Oikocredit Provides funds to microfinance institutions
Economic and community development

60. Developing Local Entrepreneurs
Connect Rotary clubs and microfinance institutions
Training activities – humanitarian projects
Available in India, Philippines, Uruguay 60

61. Aga Khan University 11 campuses in eight countries
Curriculum reflects local community needs
Maternal and child health

62. Training Health Educators
Vocational training teams to train nurse educators
Available in Kenya, Uganda, Tanzania
Maternal and child health

63. Nursing Scholarships Campuses in Kenya, Uganda, Tanzania
Maternal and child health

64. Mercy Ships Operates hospital ship Africa Mercy
In port in one country for about one year
Disease prevention and treatment

65. Medical Service and Training
Support the Africa Mercy
Upcoming ports: Togo and Guinea
Vocational training teams
Disease prevention and treatment

66. UNESCO-IHE Postgraduate water education institution
Global student body
Campus in the Netherlands
Water and sanitation

67. Training Health Educators
Vocational training teams to train nurse educators
Available in Kenya, Uganda, Tanzania
Maternal and child health

68. Stewardship subcommittee

69. Stewardship
Stewardship is the responsible management and oversight of grant funds, which ensures that funds are used properly and benefit populations in need.
KIM/KAREN: All Rotarians in slide photos 3 and 4 are white men. We need a woman in at least one, and preferably at least one non-Anglo photo as well.

70. Stewardship Practices
Have Rotarians supervise project
Implement projects as approved
Follow standard business practice
Submit reports

71. Stewardship Activities
Report tracking
Routine monitoring
Random and targeted audits
Investigating allegations
Stewardship seminars
Qualification

72. Qualification

73. 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.

74. 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.

75. 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

76. 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?

77. Club Qualification Memorandum 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

78. Club Qualification Examples 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;

79. Financial Management Plan
1. A written financial management plan that include procedures to:
Maintain a standard set of accounts
Disburse grant funds, as appropriate
c. Maintain segregation of duties for handling funds
Establish an inventory system for equipment and other assets purchased with grant funds
Ensure that all grant activities comply with local law

80. 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.

81. 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.

82. 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.

83. Future Vision and Club Qualification summary
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

84. Training of Rotarians for District 3310
PETS, District Assembly
Training of Assistant Governors
District Foundation Seminars
Foundation page in District website

85. 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

86. Foundation page District 3310 website
Future Vision Plan
Grant Management Manual
Grant award guidelines
Club Qualification list
Grant Award list
District Financial Management Plan
Report on Use of Grant Funds

87. Future Vision Plan (New Grant Model)
2 main changes
Club Qualification – M.O.U
Grant Application – Contact Grant
Award Chair

88. Changes in Rotary Foundation Policies
District Assembly
Future Vision Plan
Changes in Rotary Foundation Policies
Thank You
16 Mar 2013