Annual Fund (AF) – SHARE
Each year Rotarians are encouraged to contribute to our Annual Fund which is used to fund projects, scholarships and grants. Individual donations to the Annual Fund (AF) are collected by The Rotary Foundation (TRF) and totaled for each Rotary Year. The accumulated funds from all Rotary Clubs are invested for 3 years – with the revenue used to offset TRF administration costs. In the fourth year, 50% of D7710’s AF contributions, known as District Designated Funds (DDF), are available to our district. The other 50% is held in a World Fund which is used to match commitments made by Rotary Clubs to fund Global Grants (GG), which can range from $30,000 to $200,000
For the 2014-15 Rotary year D7710 has $152,000 available DDF which has been allocated as follows: $25,000 to the Rotary Peace Center program, $ 66,000 for District Grants (DGs) and $ 61,000 for Global Grants.
Donations and “Points”
Gifts to the Annual Fund, PolioPlus or an approved Global Grant generate Foundation Recognition Points at a rate of one point per dollar. Points can be transferred to a second person’s record one time. Many times point transfers are used to honor someone by making them a Paul Harris Fellow, or to incentivize giving through matching programs
Rotary recognizes the generosity and support for its humanitarian programs in a number of ways
- Sustaining member ($ 100/yr)
- Paul Harris Fellows ($1,000)
- Paul Harris Society (a commitment to give $1,000 annually)
- Major Donors (starting at $10,000)
- Arch Klumph Society (starting at $ 250,000)
Endowment Fund (EF)
The Endowment Fund (EF) is equivalent to TRF’s savings account with revenue from its investments used to support programs, but with the capital only used strategically and rarely.
Individuals can support the Endowment Fund (EF) in the following Win-Win-Win ways:
- Benefactors donate at least $1,000 to the Endowment Fund or leave minimum $1,000 in their will to the Rotary Foundation.
- Bequest Society members leave a minimum of $10,000 in their will to the Rotary Foundation
- Charitable Remainder Unit Trust (CRUT). A tax efficient way on which the donated sum is irrevocably committed to Rotary at the donor’s death but during his/her lifetime earns revenue based on the value of the donation at the end of each calendar year. The donor decides on the percentage to be paid to them. The trust document can be drawn up to cover both a husband and wife. A portion of the donation can be offset against tax liabilities in the year it is donated.
- Charitable Remainder Annuity Trust. CRAT). Another tax efficient donation process but in this case the payment to the donor is set at the date of donation and is based on actuarial tables based on thr donor’s age,
- Charitable Gift Annuity (CGA). Another Tax efficient estate planning instrument. The minimum age is 50 and the minimum gift size is $10,000 (for which he donor gets Major Donor recognition) At present rates for TRF CGAs are running from around 3% for a 50 year old to more than 7% for a person of advanced years.
- Donor Advised Fund (DAF). Yet another tax efficient way to donate. The donor makes an irrevocable, tax-deductable contribution – minimum $10,000. The donor chooses from four professionally managed portfolios chosen by TRF. The donor chooses from a range of IRS approved charities where he/she wants the revenue from the DAF to be distributed annually. TRF charges $250 a year and handles the paperwork for the donor. Note : A $25,000 DAF can support a PHF annually (based on a 4% return on investment)
Paul Harris Society
Named after Rotary’s founder, the Paul Harris Society recognizes Rotary members and friends of The Rotary Foundation who contribute $1,000 or more each year to the Annual Fund, PolioPlus, or approved global grants. The purpose of the Paul Harris Society is to honor and thank individuals for their generosity of annual support to The Rotary Foundation. Many PHS members contribute $85 monthly through Rotary Direct electronically. Contact District PHS Chair Bart Cleary at 919-693-6171 or bart@OxfordDDS.com. Learn more at www.rotary.org/paulharrissociety