Trustees approve new Foundation funding model
The Rotary Foundation Trustees have approved a new model for funding the Foundation's operating costs. Effective 1 July 2015, the Foundation will direct 5 percent of Annual Fund donations to help pay administrative and fund development expenses and to build a strong operating reserve. The Foundation will also draw on other funding sources, including 5 percent of cash contributions for global grants and up to 10 percent of select corporate gifts.
Our current method of using investment earnings to fund these costs is no longer financially sustainable in today's unpredictable markets. Recognizing that financial markets will continue to be volatile, the Trustees developed a new model to achieve long-term financial sustainability.
Most nonprofit organizations allocate a percentage of their contributions to support future fundraising efforts. Looking ahead, the Foundation will continue its strong record of financial accountability and transparency.