I am pleased to kickoff this segment of the Institute by giving you a big picture perspective of The Rotary Foundation’s future. You might call this “the view from 30,000 feet.” We all refer to it as the Future Vision Plan, but it is bigger than just The Rotary Foundation’s plan. It is part of a major strategic shift in Rotary—for both Rotary International and The Rotary Foundation. Through Rotary’s strategic priorities, we are taking a hard look at how we can build on our strong history while addressing current and future needs of Rotarians, potential donors, and the communities and beneficiaries whom we serve. Rotary’s leaders and the Future Vision Committee are strongly committed to seeing the Future Vision Plan meet its intended outcomes.
This idea of an integrated Rotary effort and philosophy has many desired outcomes. With stronger, more innovative, and more flexible clubs, come better brand awareness and public image With better service projects that are more focused and have a greater long-term impact, comes more interest in joining the efforts of our clubs—through membership, contributions, and collaboration in our service efforts Ultimately, all these outcomes are a result of the efforts of our clubs and districts to do things a bit differently and keep up with the demands of the communities we serve both locally and globally.
But, first, let’s take a brief look back at how this all started… In the early part of the last decade, the Foundation experienced an explosion of Matching Grants. Rotarians had realized the value of our humanitarian programs. The staff was drowning in grant paperwork. We had become the victims of our own success. Under the leadership of Trustee Chairman Carlo Ravizza, the Foundation commissioned the worldwide accounting and consulting firm KPMG to conduct an assessment of our humanitarian programs. The results of this report were enlightening, although somewhat troubling, as the Trustees recognized that the existing business model would not be successful in the long term. It was the impetus for the creation of the Future Vision Planning process. The KPMG assessment reported several important findings. I want to highlight two of them: The Foundation was processing smaller matching grants at an approximate cost of US$1,500 per approved grant—basically the average cost exceeded the size of many grants at that point in time. The Trustees recognized the cost of doing business had to be re-evaluated. The assessment also revealed the need to have a more targeted strategy on the areas of charitable focus the organization desired most. The Trustees recognized a need to satisfy our Rotarian donors but in a way that improved the use of donor funds for greater impact in the communities we serve. The Foundation could no longer be all things to all people. Based on the KPMG assessment of our humanitarian programs, the Trustees agreed to undertake a holistic review of our grant making model and the future of our Foundation. In February 2005, during my first year as a Trustee, the Trustees agreed to undertake a strategic analysis of the Foundation’s programs. Thereafter, the Trustees and Future Vision Committee evaluated all of our programs and service projects to see what areas of focus were of most interest to Rotarians. Using program evaluations, surveys of Rotarians, and other assessment tools, the Foundation created the Future Vision Plan’s priorities and its six areas of focus which are the premise of the plan going forward. These concepts have been approved and endorsed both by the Board of Directors of Rotary International and by the Council on Legislation.
Rotary’s charitable efforts are like an iceberg. Remember that ninety percent of an iceberg floats beneath the surface of the sea. So, too, are the substantial majority of Rotary projects conducted by clubs and districts without financial support from The Rotary Foundation. Based on a 2005 survey of Rotary clubs worldwide, this graphic depicts the scale of projects undertaken by Rotary, at all levels, and the support The Rotary Foundation provides clubs and districts. The Foundation only funds about US$100 million to support these activities annually—just the tip of the iceberg. Thousands of local and international projects are implemented without support from the Foundation. The value of all projects has been estimated to be between US$500 million and US$1 billion annually—and is likely underestimated. The Trustees recognized the Foundation’s limited resources should be used to fund those projects with the greatest impact in the communities being served and with long-lasting and measurable results.
Again, early in the planning process, the Foundation engaged in survey work, research, and analysis. One of the first concepts emerging in 2007 was this 80/20 concept. In the traditional programs, twenty percent of the Foundation’s annual program budget outside of polio was being spent on grant activities that had a long-term impact, while the other eighty percent was spent on shorter-term activities with unknown or uncertain humanitarian impact to our beneficiaries. The goal was to flip this ratio so that eighty percent of funds would be spent on longer term, higher impact projects. And this was the basis for the Global Grant/District Grant funding model adopted in the Future Vision Plan.
Early in the Foundation’s planning process, the Trustees asked Rotarians, “What should our “new” Foundation look like at the time of the Foundation’s centennial in 2017?” Here are just a few of the answers that were key drivers in building the plan. A world and a Rotary without polio. (But, you know, this cuts both ways. On the one hand, the elimination of polio will bring Rotary the success and prestige of eradication. On the other hand, this will also result in declining efficiency statistics because there will be no more large, administratively simple PolioPlus grants.) Focused, significant service efforts including work with strategic partners. Increased giving from a larger donor base. Easier access with fewer transactions and quicker response times.
TRF is piloting and evaluating the new model designed to achieve five priorities: Simplify programs and process Focus Rotarian service efforts Support global and local service efforts Transfer more decisions to districts Enhance Rotary’s public image, particularly in the six new areas of focus This initiative addresses the growing needs and expectations of Rotarians. This has been truly a collaborative project—many have been engaged since its inception in preparing for this significant point in the history of our Foundation. And, as we complete the second year of the three-year pilot, as Rotary leaders you are critical parts of moving this forward in the years to come!
The Foundation Trustees are closely monitoring the pilot implementation of the Future Vision Plan. First and foremost, we are evaluating the overall satisfaction of Rotarians. We are looking at various aspects, including Rotarian participation in the Foundation’s activities, level of giving, club and district engagement, and satisfaction levels of our Rotarians, donors, grant recipients, and beneficiaries. Second, we are evaluating the quality of projects and the fit within the six areas of focus. We must ensure our focused parameters are getting the results intended in the communities we serve and that our projects are sustainable. Third, our business cycle times are being monitored closely to ensure we are timely serving grant applicants’ requests. Be it through streamlined processes or advancements in grant management software applications, we keep a close eye on how quickly the Foundation supports these requests. Fourth, we are carefully watching operational efficiency indicators monitored by non-profit evaluators and benchmarking agencies. The Foundation wants to be known for being a highly-rated charitable organization to send positive messages to our donors, partners, and members. Finally, none of this is done without keeping a strong commitment to the Foundation’s fiduciary responsibilities. We all understand the need for stewardship practices to safeguard the Foundation’s assets. Your Foundation leaders will continue to balance our goals with appropriate stewardship practices in our grant management.
Many of you may know this author and professor. In Good to Great , Jim Collins stresses the importance of discipline in decision-making by charitable organization leaders. This is not easy to do, but it can have significant results. Your leaders have shown tremendous courage and discipline in focusing the organization on the Future Vision Plan. Polio eradication is just one example of a focused, strategic initiative where our success is amazing but yet still to be fulfilled. The Rotary Foundation can achieve even greater success because of our collective commitment in implementing the Future Vision Plan. Rotary needs the continued collaboration of individual leaders like yourself acting together to help our organization and clubs all over the world realize their capabilities, reach, and impact by focusing on the most critical needs in the world.
FVC Report to Trustees, September 2011 So how does the Future Vision Plan simplify the grant model? Current model At one time there were some 12 different grant types offered by the foundation each with their own set of program criteria and goals, eligibility guidelines, business cycles, application forms, and funding mechanisms. This was confusing for Rotarians to navigate in trying to access foundation funds for their activities. Additionally, separating programs between educational and humanitarian activities resulted in high operational costs and artificial barriers to appropriate project implementation. Future model In the future vision model there are only three grant types: district grants, global grants, and packaged grants, all of which fund activities for both educational and humanitarian activities. District grants provide the flexibility to fund a broad range of local and international projects of clubs and districts related to TRF’s mission, but which do not necessarily tie to the six areas of focus. The district applies annually for one District Grant – a “block grant” so to speak – for up to 50% of its available District Designated Funds for that Rotary Year. The Foundation only needs a simple spending plan from the district after the district has reviewed requests and selected projects to fund proposed by the clubs in the district. Global grants provide a world fund match on contributions for club and district developed humanitarian and educational activities aligned with the six areas of focus. Packaged grants provide opportunities for Rotary clubs and districts to work with The Rotary Foundation’s strategic partners on pre-designed activities funded entirely with World Fund. These projects and activities support the areas of focus and can include scholarships, humanitarian projects, and vocational training. For the duration of the pilot, both non-pilot and pilot clubs and districts will be able to support Rotary Centers and PolioPlus. These activities are funded for each grant type using simplified eligibility guidelines; one business cycle that virtually eliminates application deadlines and allows for a rolling submission of applications throughout the year; and online application processing, which speeds the process.
FVC Report to Trustees, September 2011 Process District grants are block grants that are administered by the district. Clubs submit funding requests to the district for specific projects and activities including local or international service projects, volunteer service travel, disaster recovery, scholarships, and/or vocational training. The district governor, district Rotary Foundation committee chair, and district grants subcommittee chair work together to create the district grant spending plan, which is submitted online and must be authorized by all three officers. Rotary Foundation staff review the application to ensure that all proposed activities align with TRF’s mission. Once the spending plan is approved, funds are issued. Districts are encouraged to apply before the start of the Rotary year, so that payment can be made immediately at the beginning of the year. Districts receive one block payment for the approved amount of the district grant and then distribute money to their clubs. Funding Districts may request up to 50 percent of their District Designated Fund (DDF) for use in district grant activities. This percentage is calculated based on the amount of DDF generated from a district’s Annual Programs Fund giving three years prior, including Permanent Fund SHARE earnings.
The first district grant was awarded to District 3330 here in Thailand. The district plans to use the funds to support a variety of projects, including buying books, computers, and sports equipment for schools; providing clean water for students; and adding patient beds at a hospital. Here are some additional examples of ways in which districts have used their district grant funds: Organize an exchange of mixed profession vocational training teams with another district District 6200 (Louisiana, USA) partnered with district 9600 (Australia) to exchange vocational training teams with professionals from various backgrounds focused on the environmental impact from oil spills. The teams traveled to disaster sites to evaluate the impact, effects and recovery efforts. Support international travel for local doctor to volunteer at a clinic District 1600 (The Netherlands) funded a urologist to travel to District 9100 (Ghana) to train local doctors Provide a scholarship for student to attend local or international university District 1430 (Finland) granted four scholarships for students to study at a university located in the district Donate art supplies to assist youth after-school program District 7690 (North Carolina, USA) provided art supplies, music books for Art Discovery Camps & Continued Studies Student Support Day Camp Program for at-risk students during the school year.
FVC Report to Trustees, September 2011 Process Global grant applications are accepted on a rolling basis throughout the year. These grants fund larger projects and activities with sustainable, high-impact outcomes in the areas of focus corresponding to the Foundation’s mission. Clubs and districts should take time to create a project that includes a community assessment, strong partnership, and a detailed implementation plan with measurable, achievable goals. After a specific community issue or need has been chosen, the next step is to establish a sustainable project plan. This planning phase includes determining which area of focus and activity type the project corresponds with. Global grants can fund humanitarian projects, scholarships, and/or vocational training teams. Once the planning phase is complete, project sponsors will complete an application readiness check in the online system. This step will provide information and resources and will allow the sponsors to determine if they have completed all of the necessary steps to move on to the application. Upon receipt of the application, the Foundation will review the application for eligibility and completeness. Once all requirements have been met for the global grant, payment will be issued. Once grant funds are received, it is important for clubs and districts to follow their implementation plan and periodically review the plan to facilitate modifications and revisions throughout the life of the grant. Clubs and districts will also need to evaluate their project during implementation and after completion. Funding Global grants offer a minimum World Fund award of US$15,000 for a minimum project budget of $30,000. The World Fund award is based on a 100 percent match of District Designated Fund allocations or a 50 percent match of cash contributions. The contributions provided by the clubs and districts in addition to the Rotary Foundation’s match make up the total project funding for a global grant.
FVC Report to Trustees, September 2011 The Rotary Foundation has identified six areas of focus for those projects and activities requesting funding via global grants. These areas reflect critical humanitarian issues and needs that Rotarians are already addressing worldwide. They align Rotary with other international development efforts and will strategically focus the Foundation's mission. Each of the areas has specific goals associated with the area. The Trustees have committed to these areas of focus for at least nine years. In fact, the Trustees are encouraging nonpilot clubs and districts to focus their current Foundation program activity in these six areas even before the Future Vision Plan is rolled out to the entire Rotary world. The RI board has also endorsed these areas as part of Rotary International’s strategic plan.
The first global grant was approved to support a dengue fever eradication project in Indonesia. The Rotary Clubs of Solo Kartini, Indonesia (D3400) and Westport, Connecticut, USA (D7980) worked together to install white ceramic tile on water storage tubs and train community members on how to interrupt the life cycle of mosquitoes, thereby reducing the rate of dengue infection. Safe drinking water, sanitation, and hygiene education project RC Bartram Trail-Jacksonville (District 6970) and RC La Antigua, Sacatepéquez (District 4250) funded a Global Grant to provide hand washing and sanitation facilities as well as maintenance training and hygiene education to students, teachers, and parents in Guatemala. Malaria project to distribute bed nets and malaria treatments The Rotary Clubs of Moshi Kilema Kati (District 9200) and Northampton (District 1070) are funding a comprehensive malaria prevention campaign in Tanzania including distribution of mosquito nets, planting of mosquito repellent trees, as well as educating the community on proper ways to avoid malaria. Vocational training team to participate in workshop and learn teaching methods to address illiteracy The Rotary Club of Middelburg (District 9400, South Africa) and District 7980 (USA) are funding two vocational training teams that will receive intensive training in early childhood education and literacy. This is the first step in developing early childhood education and literacy centers in South Africa.
FVC Report to Trustees, September 2011 Process Each packaged grant opportunity involves a distinct application process and rules, as determined by the negotiated details of the strategic partnership. TRF establishes strategic partnerships with global organizations that share Rotary’s humanitarian goals. Projects are designed by TRF and the strategic partner; implementation is conducted by Rotary clubs and districts. Most packaged grant applications are accepted on a rolling basis throughout the year. These grants fund pre-designed projects and activities with sustainable, high-impact outcomes in the areas of focus corresponding to the Foundation’s mission. There are a limited number of packaged grants available each year. Certain packaged grants may be limited to particular geographic areas or expertise in a specific project activity. Some packaged grant opportunities are available to Rotary sponsors in the project location, while others are available to international sponsors. After a Rotary club or district identifies a packaged grant opportunity to pursue, the project sponsor will complete an application in the online system. Upon receipt of the application, the Foundation will review the application for eligibility and completeness. Many packaged grants will require review by the strategic partner. Funding Packaged grants do not require project sponsors to contribute financially to the project. Through negotiations with the strategic partner, packaged grants are funded 100% through a minimum World Fund award of US$20,000 and the in-kind contributions of the strategic partner.
This morning you have the opportunity to learn more about the details of the Future Vision Plan and to ask questions of Future Vision leaders. Four breakout sessions will be conducted after the break. These sessions will be moderated by members of the Future Vision Committee and presented by district Future Vision leaders. These four sessions will focus upon: Areas of Focus and Sustainability Vocational Training Teams and Scholarships Fundraising Transition to the Future Vision Plan Take advantage of this opportunity to learn more about the future of our Rotary Foundation. Then use this information to spread the good news of the Future Vision Plan to the Rotarians in your area. The Foundation Trustees ask for your commitment and support as the Future Vision Plan continues to be unveiled to the Rotary world. Thank you.
IC12 - International Institute - Future Vision Plenary
Stronger clubs Increased Better contributions projects Greater Enhanced impactpublic image Greater Increased global reach membership and donor base Slide 2
• Polio eradicated• A premier foundation—top 50 in the world• Focused and recognized as an authority on priority world needs• Significant strategic partnerships• Increased and diversified giving (APF > $150M and PF ~ $750M)• Simplified grant and business model Easier access to our Foundation Larger grants, fewer transactions Efficient and effective administration structure Slide 6
Simplify TRF programs & processes Enhance Focus service Rotary’s efforts Future Visionpublic image Plan Transfer more Support decisions to global & local districts service Slide 7
Rotarian PerspectiveStewardship / Quality & Fit Compliance Vision and Perspective Perspective Success Operational Cycle Time Efficiency Perspective Slide 8
“To do the most good requires saying “no” to pressures to stray, and the discipline to stop doing what does not fit.” Jim Collins – Good to Great Slide 9
Current Model Future Model Educational Humanitarian Programs GrantsAmbassadorial Ambassadorial MatchingScholarships: Scholarships: Grants District Global Packaged Multi-year Cultural District Grants Grants GrantsAmbassadorial Ambassadorial SimplifiedScholarships: Scholarships: GrantsAcademic year Low-income Health, Hunger,Group Study Rotary Grants and Humanity Exchange for University Grants Teachers Regional Volunteer Scholar Service Grants Seminars Disaster Recovery Rotary Centers and PolioPlus Slide 10
Districts Districtscommunicate District submits receive block with clubs proposed Activities align grant, and collect spending plan with TRF distribute toproject ideas for selected mission clubs and projects (review phase) report to TRF (planning (apply phase) (implement / report phase) phase) 50% of new Total available 50% of Perm. DDF from funds for Fund Share three years District Grant earnings previous Slide 11
• Exchange of mixed professional vocational training teams with another district• International travel for local doctor to volunteer at a clinic• Scholarship for student to attend local or international university• Art supplies to assist youth after-school program
Conduct Complete Community Grant review, Implement application Assessment decision, and report on readiness Determine payment grant check and activity and (decision/payment (implementation / apply phase) report phase) area of focus (apply phase)(planning/design) Club & Total project District TRF Funding funding for (Match 50% for cash Funding 100% for DDF) Global Grant (cash + DDF + partners) Min. US$15,000 Slide 13
Peace and Conflict Prevention / ResolutionDisease Prevention and TreatmentWater and SanitationMaternal and Child HealthBasic Education and LiteracyEconomic and Community Development Slide 14
• Safe drinking water, sanitation, and hygiene education project• Scholarship for student to study water engineering• Malaria project to distribute bed nets and malaria treatments• Vocational training team to participate in workshop and learn teaching methods to address illiteracy
TRF establishes Grant review, Implement Determine strategic decision, and report on partnership eligibility and apply payment grantand packaged (decision/payment (implementation / (apply phase) grant phase) report phase) opportunity Strategic Total project Partner In- TRF Funding funding for Kind or Real (100% World Fund) Packaged Contribution Grant Min. US$20,000 Slide 16
Areas of Focus and Sustainability VocationalTransition to Enter to Training the Future Learn Teams & Vision Plan Scholarships Fundraising Slide 17