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ROTARY FINANCES – 101

ROTARY FINANCES – 101. Rotary Club of East Hartford Program Presentation April 4, 2012. Frequently Asked Questions:. What’s the difference between Rotary International and the Rotary Foundation? Why do we need a separate charitable fund? Where do our scholarship monies come from?

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ROTARY FINANCES – 101

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  1. ROTARY FINANCES – 101 Rotary Club of East Hartford Program Presentation April 4, 2012

  2. Frequently Asked Questions: • What’s the difference between Rotary International and the Rotary Foundation? • Why do we need a separate charitable fund? • Where do our scholarship monies come from? • What types of payments/donations are tax-deductible? • How are my dues used? • How the heck do I make out this check? • How did our Treasurer afford such a nice car?

  3. First Type – 501(c)(4) 501(c)(4): an American tax-exempt, nonprofit corporation or association. Examples are civic leagues, social welfare organizations (i.e., clubs) and local associations of employees.

  4. First Type – 501(c)(4) • Rotary examples (corporate): • The Rotary Club of East Hartford • Rotary District 7890 • Rotary International (US) • Monies given to these orgs are NOT tax-deductible as they are used for operational purposes.

  5. Rotary Club of East Hartford – 501(c)(4) Income: • Club Dues –July and January • Club-Only Fund Raisers • Direct Contributions to Club (i.e., new microphone system) • CHECKS MADE PAYABLE TO “The Rotary Club of East Hartford”

  6. Rotary Club of East Hartford – 501(c)(4) Expenses: • Rotary International and District Dues • Club Administration – i.e., High Gear, Website, Supplies, badges, Conference & RLI fees, PETS • Committee budgets • Interact Club costs • Program speaker meals

  7. Rotary Club of East Hartford – 501(c)(4) Flow-through funds (fellowship): • Parties and social events • Weekly Lunches • Sergeant-at-Arms Party (from weekly raffle split)

  8. Name the Rotarian

  9. District 7890 – 501(c)(4) Income: District Dues • Billed annually at beginning of Rotary year • Per person billing based on current club numbers • Paid out of club dues • Checks made payable to “Rotary District 7890” Expenses: • District Newsletter & Website • Committee budgets • Administrative expenses • Training for Presidents-Elect

  10. Rotary International – 501(c)(4) Income: • Bill clubs semi-annually in July and January (SAR) • Per person billing based on current club numbers • Paid out of club dues • Checks made payable to “Rotary International” Expenses: • Staff and Physical Plant • Administrative expenses • Training • Website & supporting materials • Magazine, insurance, etc. RI Headquarters, Evanston, IL

  11. 501(C)(4) Structure of RI District 7890 Rotary International DUES DUES SERVICES SERVICES Rotary Club of East Hartford

  12. Name the Rotarian

  13. Second Type – 501(c)(3) 501(c)(3): an American tax-exempt, nonprofit corporation or association. Examples are religious, educational, charitable, scientific, literary, or prevention of cruelty organizations.

  14. Second Type – 501(c)(3) • Rotary examples: • The Rotary Club of East Hartford Charitable Fund • The Rotary Foundation(US) • Monies given to these orgs ARE tax-deductible as they are used for charitable purposes.

  15. Name the Rotarian

  16. Rotary Club of East Hartford Charitable Fund 501(c)(3) Income: • Club Fundraisers • Individual donations Sergeant-At-Arms Fines/Extortion

  17. Rotary Club of East Hartford Charitable Fund 501(c)(3) Checks made payable to: • “EHRC Charitable Fund” or • “East Hartford Rotary Club Charitable Fund” or • “Rotary Club of East Hartford Charitable Fund” • W-9’s available for sponsors • Contributions are tax-deductible

  18. Name the Rotarian

  19. Rotary Club of East Hartford Charitable Fund 501(c)(3) Expenses: • Donations to community and international organizations or efforts • Administrative costs

  20. Name the Rotarian

  21. The Rotary Foundation501(c)(3) Income: • Member donations Trivia: top two Rotary Clubs in the world with the highest per capita donations to the Annual Fund: The Peak, Hong Kong -- US$4,685; Peoria North, Arizona -- $4,043 2011-2012 EREY goal is US$104million • Outside donations & matching grants • Corporate Partners • Investment proceeds from fund investments

  22. The Rotary Foundation501(c)(3) How do I donate to The Foundation? • Make check payable to “The Rotary Foundation” • Put your Rotary ID # on the memo line (on your site profile or Rotary International) • Complete a Foundation Contribution Form (found under Club Documents on our website) • Mail to: The Rotary Foundation 14280 Collections Center Drive Chicago, IL 60693 USA

  23. The Rotary Foundation501(c)(3)

  24. 501(C)(3) Structure of RI (District 7890) The Rotary Foundation DONATIONS GRANTS GRANTS Rotary Club of East Hartford Charitable Fund and Member Donations

  25. Name the Rotarian

  26. EHRC Annual Scholarships Funds come from two sources of funding: • Rotary Club of East Hartford Charitable Fund: • Sergeant-At-Arms Fines from lunch meeting • Direct Donations from members and others • Proceeds from club fund raisers

  27. EHRC Annual Scholarships Funds come from two sources of funding: • Rotary Club of East Hartford Scholarship Trust • Established June 5, 1952; Philip Wadhams, President • Unincorporated association (not tax-exempt) • Amended December 28th, 1988 to name William Leone, Trustee (Doug Willett, President) • Amended December 19th, 2011 to name William Leone, Robert (Mike) Derr and Sheryl O’Connor Trustees • Annual income from investments of trusts is given to club for scholarship awards; donations are invested in principal

  28. Name the Rotarian

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