The Rotary Foundation of Rotary International was founded in 1917 as a donation fund. The Congress in 1928 named it the Rotary Foundation. In 1931, the Foundation became a corporation, acting as a trustee and investment adviser, and in 1983 it was transformed into a non-profit corporation under the laws of Illinois, USA.
The Rotary Foundation is funded solely by voluntary donations from Rotarians and Rotary friends. It is managed by its trustees solely for charitable and educational purposes, in accordance with its registration and statutes. The Rotary Foundation has two main areas of activity: programs and fundraising. Monetary funds directly finance program activities. The Rotary Foundation’s programs are divided into three main groups:
educational, which finance the ambassadorial scholarship holders and cultural exchange;
humanitarian, which funds a number of programs to help people in developing countries;
Polio Plus - Rotary’s global program to eradicate polio worldwide.
What makes the foundation unique is its three-year funding cycle and the program participation mechanism known as SHARE. Through this three-year cycle, funds donated in a given year are invested for three years before being used. Thus, each donated dollar is invested directly in the programs, and only the return on investment is used to cover administrative costs. During the years when the investments brought good returns, the foundation managed to direct the additional funds for financing programs.
SHARE is a system used by the foundation to allocate funds for its programs. Rotarians are members of Rotary clubs. Rotary clubs are organized into administrative units - districts. Donations to the foundation are categorized by the district. At the end of the fiscal year, donations from each district are distributed, with 50% going to the Rotary Foundation (known as the World Fund) and 50% to the district fund after 3 years. Districts can choose how to spend their funds. The Foundation uses the Global Fund to subsidize certain programs available to all districts.
The system allows districts and the foundation to share when deciding how best to use Rotary donations. The Rotary Foundation receives donations totaling more than $70 million a year and donates about $65 million each year to aid humanitarian and educational programs run by clubs and districts. Donations can be made to three funds:
The Annual Program Fund receives contributions for the annual programs and the amounts are used to finance the grants and awards of the Foundation. The funds are spent within approximately three years of their payment. The investment income from these contributions during the period in question is used to finance activities related to the programs, for the development of the fund, for the general administrative expenses of the Rotary Foundation.
The Permanent Fund is a donation fund and only the proceeds from it are used to support the Foundation’s programs. Its aim is to ensure a minimum level of program activity and to facilitate new programs as well as the expansion of old ones in the future. RI encourages Rotarians to consider making a special donation to the Permanent Fund to honor Rotary’s approaching centenary and to express its commitment to Rotary as a movement for centuries and a world leader in international public endeavors.
The Polio Plus Fund pays for all aid granted in support of the Polio Plus program and its goal - the elimination of polio from the world with confirmation by 2005, when Rotary will be 100 years old. Donors can make special donations to this fund.
Every dollar donated by Rotarians supports humanitarian and educational programs that enable them to expand their ministry internationally. Clubs and districts apply for and receive grants from the Foundation to implement many valuable projects around the world.
The purpose of the Rotary Foundation is to promote understanding and friendship between people of different nations by developing practical and effective programs of a humanitarian, supportive, educational, or other charitable nature. The mission of the Rotary Foundation is to support Rotary International’s efforts to achieve the Rotary Goal, the Rotary Mission, and achieve global understanding and peace through humanitarian, educational, and cultural programs locally, nationally, and internationally. The President of RI appoints 13 trustees with the approval of the RI Board of Directors. The statutes of the Foundation provide for the trustees to determine their commissions and individual responsibilities. The chairman of the trustees shall appoint the members and the chairmen.