NOTES Speak slowly Be sensitive and understand that the approach to fundraising that you are using in your geographical region might not be best suited for a different region of the world.
The Annual Fund is made possible by the generous Rotarians and friends who contribute to The Rotary Foundation. Funds collected from the Annual Fund are used to support Rotarian initiated humanitarian and educational programs. There are four general tenants of any Annual Fund effort. This involves developing strategies to acquire new donors, retain those already giving and invite those with the capacity and commitment to consider increasing their annual support over time and continually thank and appreciate the contributions that are given to support our Foundation. Organizations have to work on ways to do all four steps. Innovative ideas to acquire new donors and navigate them to choosing TRF as their charity of choice. Once these donors have been acquired it is necessary to retain these donors, keeping them involved and up to date on what the organization is doing, how their contributions are being used and keeping the organization relevant to their needs. Once the donor has fully committed and is engaged with the organization it is time to upgrade their giving. Educating them on opportunities that will enhance their level of giving within the organization and progressing their gifts to higher levels. Organizations also work hard to steward the gifts that are received and thank donors frequently is various formats, methods and throughout the years. Showing the gratitude that is given for supporting TRF.
The highest priority for Annual Fund support is the SHARE designation which goes through the 3-yr investment cycle of which 50% goes to the World Fund to support Foundation Programs and the remaining 50% goes back to the District’s DDF for allocation to their preferred foundation projects.
In order to acquire more donors the Foundation added the ability to contribute directly to the areas of focus through the Annual Fund in September 2011. This was done in to attract non-Rotarians and non-Giving Rotarians to the Rotary Foundation . Industry research has shown that donors want more and more specificity on where and how their funds are being spent. The decision helps unite the fundraising arm of the Foundation with its grant-making model. Studies have shown that once a donor contributes to an organization they are likely to donate again. The aim of this new opportunity is to acquire donors and offer avenues for people that have a passion for an Area of Focus to support TRF. Annual Fund contributions directed to any of the six areas of focus are: Included toward a club's annual giving goal and per capita calculations; Eligible for all Annual Programs Fund recognition opportunities ; including Every Rotarian, Every Year; Rotary Foundation Sustaining Member; Club Recognition Opportunities; Paul Harris Fellow; Paul Harris Society; Major Donor; and Arch C. Klumph Society. Not included in a district’s SHARE calculation. Therefore, they do not generate any district designated funds (DDF).
In addition to expanding the Annual Fund giving opportunities under Future Vision, the Foundation is simplifying the contribution process. Rotarians and Friends of Rotary can now make one-time or recurring contributions to TRF online and in 12 currencies: Australia AUD, Canada CAD, DKK Denmark, EURO, Japan JPY, New Zealand NZD, Norway NOK, South Africa ZAR, Sweden SEK, Switzerland CHF, Great Britain GBP, United States USD. Online contributions preserve existing tax benefits where applicable. For example, a Canadian Rotarian can donate via www.rotary.org, in Canadian dollars and receive a tax receipt from the Canadian Associate Foundation. A recurring contribution is an arrangement made through the Foundation to charge a preferred credit card at an amount and frequency most convenient to you. This can be done monthly, quarterly or even annually.... And enrollment can be done online. Although not a completely new strategy, the Paul Harris Society is growing in importance. Less than 3% of Foundation supporters give at the PHS level ($1,000 per year), but they represent more than 30% of total Annual Fund contributions each year! Having an active Paul Harris Society in your club and district can have a great impact in our annual giving.
IN SUMMARY: There are a number of different strategies to build the ongoing support from Rotarians and friends. We must find the cause that is most compelling to each individual donor, and give them the opportunity to act. Your personal giving, pride in wearing the pin, knowledge and enthusiasm are contagious! You are a leader that is highly respected by Rotarians. They will follow your lead in giving and excitement. And remember, fundraising for our Rotary Foundation is not a solitary system where you are out on your own. Utilize Foundation resources, staff, local experts and fundraisers to build a powerful fundraising team.
Welcome to the second part of other giving options in Future Vision. (Introduce yourself) This presentation is designed to give a brief overview of other giving opportunities. Some of these are familiar to Rotarians and others will be new. I’d encourage you to attend Monday’s Convention session on Global Philanthropy (14:30 in Sapphire 205), which will give you even more information on these and other giving opportunities to The Rotary Foundation.
The main ways of giving are provided here. As was just highlighted, the Annual Fund is the cornerstone of the Foundation’s programs. And as demonstrated by the very successful Rotary’s US$200 Million Challenge, PolioPlus continues to be understood and supported by Rotarians. There will continue to be a pressing need for financial resources until polio is completely eradicated, so this will continue to be a way of giving under the new grant structure. Giving opportunities to the Permanent Fund and term gifts are less well understood, so I will use the majority of my time to provide a basic overview of these two ways of giving. Please note that giving and naming opportunities exist within the Permanent Fund and term gifts for the Rotary Peace Centers. I won’t have time to provide details on these today, but please know that these exist and information providing more information on them is available at the Foundation booth.
The Permanent Fund is the Foundation’s endowment. It helps to ensure a strong future for the Foundation by providing a continuing stream of spendable earnings to meet the increasing demand by Rotary clubs and districts for Foundation programs. The growth of the Permanent Fund is instrumental to building financial resources for Rotary’s areas of focus. In Rotary Year 2010-11 US$5.7 million was used from Permanent Fund earnings to support Foundation programs.
The spendable earnings for any size of contribution to the Permanent Fund can be directed to a specific area of focus and the spendable earnings of these gifts will provide general support for that area via global grants. Special naming opportunities exist for Permanent Fund gifts of US$100,000 or more. Although these funds are comingled for investment purposes with the Permanent Fund, these named endowed funds are tracked separately and donors receive a yearly, customized report and reported on separately to donors. $100,000 Area of Focus Endows a fund that provides general support to one of six areas of focus via the Global Grant structure. $250,000 Area of Focus & District Participation Endows a fund that provides support to a particular Area of Focus and specifies a district to participate. The donor may also designate a specific project to support, such as a Scholarship, Vocational Training Team or Humanitarian project. This option is very similar to the option for endowing an Ambassadorial scholarship under the old grant structure. $500,000 Area of Focus and Geographic Location Endows a fund as described above and allows the donor to specify a specific geographic location which may be more narrowly or widely defined where the resulting global grants are to be used. $1,000,000 Customized Tailored to meet the philanthropic goals of the donor through TRF programs.
Term Gifts They do not go through a three-year investment cycle and are not part of the Permanent Fund, so t he full amount of the gift is expended over a relatively short period of time – typically within the next Rotary year or two. Like gifts to the Permanent Fund, the larger the contribution, the more specificity the donor has with how it will be used. The resulting grants can carry the donor’s name.
These gifts fund large international humanitarian projects, vocational training teams, and scholarships that have sustainable, measurable outcomes in the one of the six areas of focus. Gifts of $15,000 or more can be designated a specific area of focus; the contribution is available for use on a worldwide basis and is not tied to a particular Rotary district or type of project (e.g. scholarship). Gifts of $30,000 allow the donor to designate a specific area of focus and Rotary district to participate; clubs and districts can add additional district designated funds or flow-through contributions if the grant is larger than $30,000. The usual World Fund match for flow-through contributions and district designated funds applies for the portion over $30,000.
If you want additional information, I encourage you to work with your Regional Rotary Foundation Coordinator, district leadership and/or Rotary staff to address any questions you might have. Also, fund development staff can help to prepare proposals and can assist you with solicitations when requested. And with that, I would like to return the floor to the moderator.
1. Fundraising in Future Vision Saturday, 5 May – 11:00-12:00 IMPACT, Jupiter 5 1
2. The Annual Fund• Building block of an organization’s fundraising strategy• Primary source of support for The Rotary Foundation activities• Funds Rotarian driven projects• Every Rotarian, Every Year 2
3. Traditional Annual Fund Giving Options SHARE World Fund District District Designated and Global Fund Grant (DDF) Funding Rotarian AnnualContributions SHARE Fund Global and World Packaged Fund Grant Funding 3
4. Additional Annual Fund Giving OptionsSHAREWorld FundPeace & Conflict Resolution/PreventionDisease Prevention & TreatmentWater & SanitationBasic Education & LiteracyChild & Maternal HealthEconomic & Community Development 4
5. Annual Fund Strategies• Online Giving – www.rotary.org • Available in 12 currencies• Rotary Direct • Monthly, quarterly or annually• Paul Harris Society • US$85/month or €200/quarter 5
6. YOU are the Key to Success• Lead by example• Educate• Ask• Thank Thank Retain Acquire Upgrade 6
7. Fundraising In Future Vision Other Giving Opportunities 7
8. Ways of GivingAnnual FundPolioPlusPermanent Fund•Global Grants•Rotary Peace Centers Term Gifts•Global Grants•Rotary Peace Centers 8
9. Permanent Fund• Rotary’s endowment• Gifts can be made today, or in the future• Spendable earnings directed to programs• Can establish special fund in donor’s name• The larger the gift, the more specificity afforded 9
10. Permanent Fund – Global Grants• Any contribution: area of focus• US$100,000+: area of focus• US$250,000+: area of focus & district• US$500,000+: area of focus & geographic region• US$1,000,000+: Tailored to match donor interest 10
11. Term Gifts• Spent in short time frame• Spent entirely on the program• The larger the gift, the more specificity• Grants can carry the donor’s name 11
12. Term Gifts – Global GrantsUS$15,000: choose area of focus•Gift used worldwide•Essentially replaces World Fund•Donors receive report on grantUS$30,000: choose area of focus & district•Provides ‘free’ grant to district•District can leverage & build larger grant 12
13. FOR ADDITIONAL INFORMATION• Contact your Regional RotaryFoundation Coordinator and districtleadership• Talk to your zone’s major gifts officer• Contact your international office 13