Highlights from the 2003-04 Rotary Foundation Trustees meetings

May 2004

The Trustees of The Rotary Foundation of Rotary International met on 27 May 2004 in Osaka, Japan. The following are highlights of actions taken by the Trustees.

Administration

Considering their important role in promoting the programs of The Rotary Foundation in districts worldwide, the Trustees agreed, effective 1 July 2004, to increase the number of Regional Rotary Foundation Coordinators from 40 to 42.

Fund Development and Recognition

Funds remaining from Children's Opportunity Grants that Rotary clubs were unable to use for approved grants were transferred to the Children's Fund of the Permanent Fund.

The Trustees also transferred US$1,150,000 to the PolioPlus fund as a result of savings in the administrative budget of the International Polio Eradication Fundraising Campaign Committe.

Programs

The Trustees approved PolioPlus Grants for Pakistan and the polio laboratory network in Africa.

The Trustees also agreed to participate in a Smithsonian Institution exhibit titled "Whatever Happened to Polio?" scheduled to run in Washington, D.C., USA from April 2005 through April 2006.

Finance

The Trustees approved US$2,339,000 in 2004-05 for Rotary communications and public image enhancement and agreed to support the 2004-05 presidential celebrations in an amount of up to US$50,000.

Foundation Facts

Paul Harris Fellows: 899,050
Foundation Benefactors: 63,989
Major Donors: 5,540
31 May 2004

April 2004

The Trustees of The Rotary Foundation of Rotary International met from 16-21 April 2004 in Evanston, Illinois, U.S.A. The following are highlights of actions taken.

Administration

The Trustees adopted revisions to their "Conflicts of Interest Policy" and agreed to review this policy annually.

Trustee Theodore D. Griley II was elected to be a non-voting member of the 2004 Council on Legislation as the Trustees' official representative, as provided in RI bylaws section 8.010.6.

The term of Regional Rotary Foundation Coordinators (RRFCs) was extended to three years. A phased approach will be implemented to these appointments so that one-third of RRFCs will change each year after full implementation.

Programs

As a result of extensive targeted audits and a comprehensive evaluation of the misuse of Paul Harris Fellow and Major Donor recognition, inappropriate use of grant funds, and irregularities in Rotary club operations, the Trustees

• Suspended participation of RI Districts 3040 and 3090 and their member clubs from participating in the programs (except for PolioPlus Partners and a current Group Study Exchange in District 3090) of The Rotary Foundation until they have adequately addressed the concerns leading to their suspension.
• Recognized that complete and accurate grant reports are required by the government of India and are essential both to meet the Trustees' obligation to report to their donors and for the successful operation of Rotary in India, and therefore require all districts and their member clubs in India to be 100% current and compliant with RI, TRF, and government of India reporting requirements no later than 1 July 2004.
• Authorized their Chairman to suspend a district and any or all of its member clubs from participating in the programs of the Foundation whenever a district or its members clubs are not in compliance with the policies and guidelines of The Rotary Foundation.
• Recognized the need for comprehensive training and education on the Humanitarian Grants program of The Rotary Foundation and require all Rotary districts and clubs in India that wish to continue to participate in Rotary Foundation grant programs to attend Rotary Foundation-sponsored training in 2004-05.
• Requested the general secretary to conduct risk assessments of all districts in India and, based upon the findings, to conduct audits as necessary to address concerns related to the appropriate use of grant funds and donor recognition.
• Requested the general secretary to take appropriate action and inform the RI Board when an allegation is received or an audit uncovers information regarding the proper functioning of a Rotary club or district.
• Requested their 2004-05 Chairman to appoint an Oversight Committee to ensure that compliance is achieved by all districts in India.

Following the 2003-04 annual evaluation of the Rotary Centers partner universities, the Trustees

• Agreed that the applied field experience of Rotary World Peace Scholars is to be conducted in a country other than the Rotary World Peace Scholars country of citizenship.
• Beginning with 1 July 2005 for the 2006-08 program year, the deadline for receipt of Rotary World Peace Scholarship applications shall be 1 July.
• Agreed in principle that the Rotary Center partner universities able to offer to Rotary World Peace Scholars a master's degree-level program of a duration shorter than two academic years plus the applied field experience between the two years be permitted and encouraged to do so.
• Agreed that TRF may accept cash contributions of US$10,000 or more effective 1 July 2004 from individuals, clubs or districts to provide funding for Rotary World Peace Scholarships. These restricted contributions will not be subject to the three-year SHARE cycle.

The Trustees:

• Approved changes to the Humanitarian Grants Criteria effective 1 July 2004 that may be accessed on the Foundation Web site and in sections 9.020., 9.030., and 9.040. of  [ FPO link to code of poilicies] The Rotary Foundation Code of Policies, also available on the RI Web site.
• Approved 19 Matching Grants involving Rotary clubs and districts in Australia, Bolivia, Botswana, Brazil, Ecuador, El Salvador, Ethiopia, Fiji, France, Germany, Haiti, Honduras, India, Italy, Japan, Kenya, Mozambique, Nepal, People's Republic of China, South Africa, Sri Lanka, Swaziland, Switzerland, United Kingdom, and the United States.
• Approved PolioPlus Grants for Afghanistan, India, Nigeria, Niger, Pakistan, and West Africa.
• Agreed, effective 1 July 2004, to cease processing low-cost shelter grant applications, due to the declining interest on the part of Rotary clubs and districts, but noted that any applications for low-cost shelters received prior to 1 April 2004 will be reviewed at the Trustees' October 2004 meeting.

Programs

The Trustees approved a budget for total program award expenditures of US$93,231,959 in 2004-05.

The Trustees:

• Concurred with the Board recommendation that a Rotarian who has outstanding financial obligations in excess of US$100 for more than 180 days be removed from any current appointment or assignment by the Trustee Chairman.
• Agreed to resume Permanent Fund spending in 2004-05 in the amounts of US$3.68 million to program awards, US$0.25 million to program operations, and US$0.49 million to general administration and fund development expenses.
• Expressed appreciation to the Board for the contribution of Rotary affinity care royalty revenues of US$350,000 to the Polio Eradication Fundraising Campaign and US$300,000 to the Permanent Fund.

Foundation Facts

Paul Harris Fellows: 886,632
Foundation Benefactors: 63,191
Major Donors: 5,438 31
March 2004

February 2004

The Trustees of The Rotary Foundation of Rotary International met on 13-14 and 21 February 2004 in Anaheim, California, U.S.A. The following are highlights of actions taken.

Administration

The Trustees approved an implementation plan for the Global Alumni Service to Humanity Award, effective with the 2005-06 Rotary year. Zone winners will be announced at Rotary Zone Institutes and the global award winner will be selected from the regional winners. Details will be available on the Foundation section of the RI website.

Fund Development and Recognition

The Trustees established a new Children's Fund as a pooled sub-account of the Foundation's Permanent Fund. The following guidelines apply for this new option for designating gifts to the Foundation:

• the spending portion of the Children's Fund will be available to the World Fund for humanitarian projects that address the needs of children;
• clubs and districts can apply for support from the Children's Fund only through the current TRF program structure, such as Individual Grants and Matching Grants;
• approved projects can be diverse in nature and scope as long as they meet established TRF program policies and assist children;
• outright major gifts of US$10,000 and Bequest Society commitments are primarily sought;
• the spending rate of the Children's Fund will be determined by the spending rate of the Permanent Fund.

The Trustees looked with favor on funding activities and events for the RI Centennial and the 2005 Convention that highlight the work of The Rotary Foundation. They agreed to identify and solicit sponsors of centennial activities and events related to the Foundation under the following guidelines:

• centennial projects related to the Foundation must have the approval of the Trustees;
• funding proposals to corporate sponsors, cooperating organizations, Rotary clubs and districts must be approved by the general secretary prior to submission;
• sponsor contributions may be in the form of cash, materials, supplies and pro bono services;
• in soliciting and accepting gifts, policies contained in The Rotary Foundation Code of Policies related to such gifts must be followed;
• corporate sponsors and cooperating organizations will receive a special centennial recognition and letter of appreciation from the RI President and the Trustee Chairman.

Programs

Following a series of targeted audits of Matching Grants projects that showed various irregularities, the Trustees requested the general secretary to recommend additional criteria for ensuring the highest levels of stewardship, for review by the Trustees at their April 2004 meeting.

Foundation Facts

Paul Harris Fellows: 878,875
Foundation Benefactors: 62,633
Major Donors: 5,325
31 January 2004

October 2003

The Trustees of The Rotary Foundation of Rotary International met from 23-28 October 2003 in Evanston, Illinois, U.S.A. The following are highlights of actions taken.

Administration

The Trustees elected Trustee Vice-Chairman Carlo Ravizza as chairman and Trustee Frank J. Devlyn as vice-chairman during 2004-05. The annual Trustees meeting will be held 22-28 April 2005 in Evanston. The chairman will decide the dates of all other meetings in 2004-05.
The Trustees supported the creation of an associate foundation in Japan as a tax-exempt organization, subject to the fulfillment of all necessary legal and TRF requirements.

Fund Development and Recognition

The Trustees deleted references to the years 2003-2006 in the Every Rotarian, Every Year Annual Programs Marketing Plan.

To honor the founder of The Rotary Foundation, the Trustees agreed to name The Rotary Foundation section of the Rotary International Hall of Honor for Past RI President Arch C. Klumph.

Programs

The prompt processing of Matching Grant applications depends upon the timely receipt of complete submissions. Sponsors must now provide all the information necessary for the Trustees to make a grant award within 15 months of the date the application is received by TRF; otherwise, the application will be withdrawn. The general secretary will notify sponsors 90 days in advance of the application being withdrawn.

The Trustees:

• Approved eight Matching Grants involving Rotary clubs and districts in Australia, Brazil, Czech Republic, Denmark, Germany, Guatemala, Haiti, India, Kenya, Mexico, and the United States.
• Approved PolioPlus Grants for Afghanistan, Angola, Central Africa, Côte d'Ivoire, Egypt, India, Niger, Nigeria, Pakistan, West Africa and the U.S. Centers for Disease Control and Prevention.

Finance

The Trustees received the Foundation's 2002-03 audited financial results as submitted by Deloitte & Touche. The results will be published in the Foundation's annual report.

The Trustees also:

• Appointed Deloitte & Touche to audit the books of The Rotary Foundation for the fiscal year 2003-04.
• Amended the exchange rate for contributions so that when the value of a currency fluctuates 3 percent or more from the prior month in relation to the US dollar, the general secretary, acting for the Trustees, may adjust the exchange rates as he deems appropriate.
• Decreased the spending rate for The Rotary Foundation Permanent Fund from 6.5 percent to 4.5 percent of the fund's average market value over the previous 12-quarter period, with 3.75 percent allocated for program awards, .25 percent for program operations expenses, and .50 percent for fund development and general administration costs. The amended spending rate goes into effect on 1 July 2004.

Foundation Facts

Paul Harris Fellows: 868,562
Foundation Benefactors: 61,644
Major Donors: 5,105 31
October 2003