An Introduction To & Overview Of The Rotary Foundation

Posted on Feb 09, 2023
 
As Rotary’s one and only charity, The Rotary Foundation (TRF) taps into a global network of Rotarians who invest their time, money and expertise into priorities that align with our seven areas of focus and Foundation grants empower Rotarians to approach problems such as disease, poverty, illiteracy, and malnutrition with sustainable solutions that leave a lasting impact.

The Rotary Foundation is known throughout the world for its exceptional financial management and for the efficient use of its donations. Every year since 2008, TRF has received the top four-star rating from Charity Navigator, the world’s largest and most trusted charity evaluator. This rating is a standard achieved by only one percent of charities for judicious care of donors’ money.

WHAT IS THE ROTARY FOUNDATION?

The Foundation was created in 1917 by Rotary International’s sixth president, Arch Klumph. It was established as an endowment fund to provide an ongoing and sustainable income for Rotary to allow us to ‘do good in the world’. It has grown from an initial contribution of US$26.50 from the Rotary Club of Kansas City to more than US$1 billion. It provides grants of over $1 million per day to support projects led by Rotarians. Today, TRF has one of the largest and most prestigious international fellowship programmes in the world.
 
Since it was founded, it has spent more than US$4 billion on life-changing, sustainable projects. TRF’s mission is to enable Rotarians ‘to advance world understanding, goodwill, and peace through the improvement of health, the support of education, and the alleviation of poverty’.
 
Our Foundation has special qualities because it is an enabling Foundation. It is a not-for-profit organisation that is supported solely by donations from its members and friends. TRF asks us to donate, just like other charities, but it also asks us to get involved and utilise the funds. Our Foundation is able to achieve its mission through the generous contributions and the active participation of its members.
 
A major recipient of donations to TRF is the Annual Fund. When we donate, half our contributions are directed to the District Fund and the other half to the World Fund. Both help support and enable Rotary projects to become a reality through global and district grants.
 

LEADERSHIP

The Board of Trustees manages the business of the Foundation, led by the Trustee Chair, who is currently (2022-2023)  Past RI President, Ian Riseley, from Australia. The Rotary International President Elect nominates the Trustees, who are elected by the Rotary International Board of Directors. The Trustee Chair serves for one year and the Trustees serve for four years.
 

FOUNDATION ACHIEVEMENTS

The Foundation leads the way on worldwide Rotary campaigns such as eradicating polio and promoting peace.

In 1930, the Foundation made its first grant of US$500 to the International Society for Crippled Children. In 1947, following the death of Rotary’s founder Paul Harris, scholarships were the first large programme to be set up. These scholarships were established predominately as a tribute to Paul. To date, more than 350,000 scholarships have been awarded, allowing recipients to study overseas. 

Polio eradication is Rotary’s top philanthropic priority. Rotary launched the PolioPlus programme in 1985. In 1988, when Rotary began working with its partners in the Global Polio Eradication Initiative, there were more than 350,000 polio cases in over 125 countries. Since then, nearly 3 billion children have been immunised against polio, and the incidence of polio has decreased by 99.9 percent. As of 2021, Rotary’s contributions to the global polio eradication effort, including matching funds from the Bill & Melinda Gates Foundation, exceeded US$2 billion.

In 2002, TRF established the Peace Fellow Programme. Since then, the Rotary Peace Centres have trained more than 1400 Fellows who now work in more than 115 countries. Many serve as leaders in governments, NGOs, the military, education, law enforcement, and international organisations like the United Nations and the World Bank.
 
Hundreds of thousands of people  now enjoy access to clean water, health care and education, thanks to TRF’s humanitarian projects.
 

ROTARY FOUNDATION FAQs

WHAT IS THE ROTARY FOUNDATION?

  • The Rotary Foundation is Rotary’s own charity. It exists to support Rotarians and their clubs in the charitable activities that clubs choose and undertake themselves.
  • The mission of The Rotary Foundation of Rotary International is to enable Rotarians to advance world understanding, goodwill, and peace through the improvement of health, the support of education, and the alleviation of poverty.
  • The Rotary Foundation is governed by a Board of Trustees.
  • The headquarters of The Rotary Foundation is in Evanston, Illinois, USA, but it also has associate foundations in other countries, including Rotary Foundations in the United Kingdom, Canada, India and Brazil.
  • All contributions to either The Rotary Foundation directly or any of its associate foundations are essential to securing and growing Rotary programmes throughout the world.
  • Since it was founded over 100 years ago, The Rotary Foundation has spent $4 billion on life-changing, sustainable projects around the world. It currently awards grants averaging about $1 million per day.

WHERE CAN I GET CURRENT INFORMATION ON MY FOUNDATION GIVING?

  • Log in to My Rotary and open “My Account” by clicking on your name in the top corner OR create an account if you do not have one. The drop down box has a tab for “My Donations”.

HOW DIFFICULT IS IT FOR A CLUB TO WITHDRAW FUNDS FROM THE FOUNDATION?

  • Clubs do not “withdraw funds” as such, but apply for grants.
  • Funds are made available to districts on an annual basis for the purpose of supporting club projects. These are known as District Grants. The process is managed by individual districts.
  • Global Grants can be applied for projects in excess of $30,000. An international partner is required. Districts have access to The Rotary Foundation funds DDF (District Designated Funds) which are available to support projects. This also can attract matched funding from the World Fund of The Rotary Foundation.

HOW DO I GIVE TO THE ROTARY FOUNDATION?

HOW DO THE INVESTMENT PERFORMANCE AND INVESTMENT COSTS AND CHARGES OF THE FOUNDATION COMPARE WITH OTHER SIMILAR SIZED FUNDS?

  • Programme awards and operations amount to 92% of expenditure of The Rotary Foundation (leaving 8% for administration and fund development).
  • Most international charities have administration expenses ranging between 20% and 40%

WHAT IS THE DIFFERENCE BETWEEN A PHF AND A PHS?

  • PHF (Paul Harris Fellow) recognises a gift, or accumulation of a gift, of US $1,000 (or the donor can award a PHF to a third party in recognition of service, having given US $1,000 to The Rotary Foundation themselves).
  • PHS (Paul Harris Society) recognises an individual’s commitment to contribute US $1,000 (annually) to The Rotary Foundation (any of the programmes) every year that they are able to.

WHY DO DISTRICTS GET ONLY 50% BACK FROM THE FOUNDATION, OF THE DONATIONS THEY MAKE ?

  • A small amount helps cover costs but the majority is held in the World Fund which clubs and districts can access for additional financial support for Global Grant projects.

WHERE CAN I GET MORE INFORMATION?

There’s a wealth of information on the Rotary website. Start with this page
 

A GUIDE TO GLOBAL GRANTS

 
Global Grants support large international activities with sustainable, measurable outcomes in Rotary’s areas of focus. By working together to respond to real community needs, clubs and districts strengthen their global partnerships.

WHAT CAN GLOBAL GRANTS SUPPORT?

Global Grants can fund:
  • Humanitarian projects
  • Scholarships for graduate-level academic studies
  • Vocational training teams, which are groups of professionals who travel abroad either to teach local professionals about their field or to learn more about it themselves

DO THESE HAVE TO BE BIG PROJECTS?

Projects supported with a Global Grant must have a minimum budget of US$30,000. This is to ensure that we are working on larger projects with more impact, meeting the needs of the community. It is important to include sufficient funds to ensure the sustainability of the project including such matters as training.

WHERE DOES THE MONEYCOME FROM?

The funds can come from cash that you and your club raise; from your district’s “DDF” (District Designated Fund) – a block grant of money your district has each year to support The Rotary Foundation’s work with clubs in your district; and The Rotary Foundation World Fund – which itself matches 80% of the DDF contributions included in the funding plans.

DO WE HAVE TO WORK WITH ANY PARTNERS ON THE PROJECT?

Global Grants are designed for two or more clubs in different countries to work together, cementing the wider community within which Rotary works, and bringing a variety of knowledge and skills to our projects.

WHERE CAN I GET MORE INFORMATION?

There’s a wealth of information on the Rotary website. Start with my.rotary.org/en/take-action/apply-grants/global-grants For more details see the Resources and Reference documents on that page.
 
But first talk to your District Rotary Foundation Committee.

WHO SHOULD I CONTACT FOR HELP?

The first point of call, early in thinking about any project, should be to contact your own District Rotary Foundation team. They will evaluate ideas, ensuring the project meets the guidelines for a sustainable project of lasting community value. That help is available regardless of the current availability of funds for a grant. If there are funds in the District Grant or the DDF, the team would advise on how to apply for financial support from these funds.
 
Others able to help would be the regional team of Rotary Foundation Coordinators. Currently Sandra Hemsted leads that Zone 24 team and she will put you in touch with the most appropriate contact.
 
The Rotary Foundation in Evanston has a diverse team of grant officers willing to assist. The Rotary Foundation has a team called The Rotary Foundation Cadre of Technical Advisers, Rotarians who are professional specialists in various fields related to our areas of focus. They are ready to advise on project design and implementation anywhere in the world.
 

FUNDING THE ROTARY FOUNDATION

The amount of money The Rotary Foundation has awarded annually in Global Grants has more than doubled since the grants were introduced; from $47.3 million in 2013/14 to $130 million in 2021/22. Yet demand for Global Grants is so high that it has outpaced Annual Fund contributions, which means not all eligible Global Grant requests can receive funding.

To ensure that The Rotary Foundation can fund as many Global Grants as possible in the future, the Trustees of The Rotary Foundation approved policy changes effective July 2021. These 2021 changes and others thereafter improve the Foundation’s ability to support more large-scale, sustainable projects for years to come.

OUR FUNDS:

Annual Fund, sometimes known as SHARE, is the primary source of funding for a broad range of local and international Rotary Foundation activities. Every Rotarian, Every Year (EREY) is an initiative to encourage every Rotarian to invest in the Annual Fund every year, no matter how large or small may be the amount.

Contributions to the Annual Fund from Rotary members and other donors are directed into two sub-funds: the World Fund and District Designated Funds. Through the SHARE system, contributions are transformed into grants.

The World Fund provides funding for our highest-priority activities around the globe. 47.5% of Annual Fund-designated contributions are applied to the World Fund. The Foundation uses the World Fund to pay for grant and programme opportunities available to all Rotary districts including PolioPlus, Rotary Peace Centres, Programmes of Scale grants, Global Grants, and more.
 
District Designated Funds (DDF) can be used by districts to pay for Foundation, club, and district projects that a club and others in the district choose. Districts may use up to half their DDF to fund District Grants. The remainder may be used for Global Grants or donated to PolioPlus, the peace centres, or another district.
 
The Endowment Fund, financed by cash gifts and bequests left by Rotary members and their families, ensures the long-term viability of the Foundation and its grants and programmes. Spendable earnings from the Endowment enable the Foundation to expand existing activities and underwrite new ones. Contributions are invested in perpetuity. A percentage of the total value of the fund is directed annually to Foundation grants and programmes.

DISASTER RESPONSE FUND

The Rotary Foundation supports disaster relief and recovery efforts through grants from the Rotary Disaster Response Fund. Districts that have been affected by natural disasters can use Rotary Disaster Response Grants to launch their own projects or work with established relief organisations to help their communities recover. Grant funds can be used to provide basic items such as water, food, medicine, and clothing. Districts work closely with local officials and groups to ensure that the funding will meet a specific community need.

HOW TO DONATE

Donating to The Rotary Foundation is making an investment in the future of our society. Doing so is simple, particularly by card and on-line. Rotarians are encourage to donate online via www.my.rotary/org/donate using either a one-time or recurring contribution schedule and select a fund:
 
 
This page also includes options facilitating donations direct to projects in any one of our seven areas of focus. Each of these options opens a screen allowing single or regular donations and of set amounts or an amount of the donor’s choice. The money is collected by a credit or debit card payment. Other means of paying to TRF are detailed in the same pages.

RECOGNITION

All TRF donors receive thanks and recognition for their donation from Rotary. Recognitions vary among individual and club donations, as well as, 3rd party donations.

HOW ARE THE FUNDS DISBURSED?

50% MATCH ON DDF CONTRIBUTIONS TO POLIOPLUS

DDF contributions to PolioPlus are matched by the World Fund at 50%. The Bill & Melinda Gates Foundation continues to match 2-to-1 every dollar that Rotary commits to polio eradication, up to $50 million per year. That underlines why it is vital we continue to make fundraising for polio eradication a top priority.
 
 
80% MATCH ON DDF APPLIED TO GLOBAL GRANTS

In past years, the World Fund has been depleted before the Rotary year ends. To ensure the Foundation can fund more of the eligible Global Grant requests received, DDF applied to Global Grants is matched at 80% (rather than 100% as in earlier years).
 
Note that there is there is no match from the World Fund on cash contributions to grants.
 

SHARED FUNDING OF OPERATING EXPENSES

5% of Annual Fund contributions are used to cover Rotary Foundation operating expenses. 95% of donations to the Annual Fund are split equally between DDF and the World Fund. Five per cent of Disaster Response Fund contributions are retained towards operating expenses.
 

FIVE-YEAR LIMIT ON DDF CARRY-OVER

Donors contribute to the Annual Fund with the expectation that these donations will be used to help communities in the near future. However, the amount of DDF carried over from year to year remains high. For example, in the year 2021-22 in Rotary Great Britain & Ireland alone over $1.2 million of DDF was unused. This was carried forward to the current year.

Starting on 1st July 2026, and at the end of each Rotary year thereafter, DDF amounts that have been held for five years or more must be used. DDF that is not used can be applied to the Disaster Response Fund, the Endowment Fund, PolioPlus, the Rotary Peace Centres, or the World Fund, at the district’s discretion. If no fund is selected by the district the carryover will be allocated to the World Fund.
 
 

SO...WHY GIVE TO THE ROTARY FOUNDATION?

 
When it comes to personal giving, there are three questions to ask:
  • Do you give personally to The Rotary Foundation?
  • Do you give via your club?
  • Do you not donate at all?
If you are in the first category, then on behalf of The Rotary Foundation thank you for helping us to continue to do good in the world.

If you are in the second, then ensure your treasurer submits information correctly so that TRF is able to append the donation against your Rotary record. It is really important to record an individual’s donations so that when certain levels are met you can be recognised. A perfect example of this is the $100 Sustaining Member level. There could be thousands of Rotarians across the world who have reached this level, but TRF does not know about it because of improper submissions.
 
If you are in the third category, then contact your Club Foundation Chair or District Foundation Chair – either would welcome a conversation to understand why you do not wish to support our foundation or see if there is something they can do to ease any concerns you may have and ensure that our Foundation should be every Rotarian's charity of choice and that everyone should appreciate that our Foundation is at the core of everything we do as Rotarians.

FURTHER INFORMATION

There is a wealth of information on the grants provided by The Rotary Foundation to support projects and programmes which Rotarians wish to support, and on the funding programmes. Just go to https://rotary.org and search for ‘Rotary Foundation Grants’ or 'Rotary financials' to find annual financial reports of The Rotary Foundation and of Rotary International.
 
Contact your District Foundation Chair for more information on and assistance with anything TRF related.