Frequently asked questions

 Operating reserves/funds

Q. What is the purpose of RI’s General Surplus Fund?

A. The purpose of the General Surplus Fund is to provide for the long-term financial security of RI and is intended to be used in the event of emergencies and unforeseen circumstances. The fund includes RI’s unrestricted cash, plus marketable securities, plus (or minus) any receivable (or payable) from (or to) The Rotary Foundation.

Q. What is the purpose of RI’s Operating Reserve?

A. The operating reserve consists of the General Surplus Fund less any Board-designated funds (such as the convention expense reserve, the investment earnings reserve, and the strategic initiatives reserve). The purpose of the Operating Reserve is to provide for Rotary International’s long-term financial security by requiring the retention of funds at a level to support the annual expenses of RI, less those associated with the convention and the Council on Legislation . 

Q. What is the purpose of the Endowment Fund?

A. The purpose of the Endowment Fund is to assist Rotarians in fulfilling their local and global philanthropic goals, to support the programs of The Rotary Foundation, and to ensure a strong future for The Rotary Foundation by providing a continuing stream of income to meet the increasing demand for Foundation programs . A portion of the fund's investment earnings will be used to finance the Foundation's programs. The amount spent is based on the spending policy of the fund. The spending policy is predicated on the principles of preservation of capital, intergenerational equity (needs of today versus the needs of tomorrow), and stability. Read more .