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Holistic Stewardship for Rotary Clubs: Financial Best Practices and Legal Compliance

Learn how to manage club, trust, and TRF finances responsibly. Ensure transparency, legality, and ethical practices.

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Holistic Stewardship for Rotary Clubs: Financial Best Practices and Legal Compliance

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  1. STEWARDSHIP---all the way ! DTA 2016-17 TRIDENT HOTEL 27th March 2016 By Harjit Singh Talwar Training Facilitator Designate

  2. STEWARDSHIP “The careful and responsible management of something entrusted in one’s care”

  3. STEWARDSHIP in ROTARY ? • 1. CLUB accounts • 2. TRUST accounts • 3. TRF grant accounts • To be VIGILANT and handle money with great CAUTION, RESPONSIBILITY, INTEGRITY, HONESTY and TOTAL TRANSPARENCY

  4. Stewardship-ROTARY CLUB • BUDGET v/s EXPENSES • Contribute ourselves and then spend • All activities “FOR, BY and OF” Members

  5. Stewardship-Rotary Club • ACCOUNTS • Maintain separate account • Route all donations/sponsorships through the account- Debit & Credit • Regularly Inform memb on money spent • Audited Balance Sheet at end of RY

  6. Stewardship- Rotary Club • Timely Handing over books of account to incoming team • Smooth transfer and change of Signatories • Income Tax liability ? • ( “mutuality concept” - NO individual is directly benefitted ) • Filing of Income Tax Return ?

  7. Stewardship-ROTARY TRUST • Registered with the CHARITY COMMISSIONER • TRUST DEED – aims and objects and mode of management (min 2 trustees) • 80-G certification entitles donors to Tax Exemption

  8. Stewardship-ROTARY TRUST • INCOME -All money received from Public in form of Donations , Sponsorships, Advertisements fund raising etc • Expense- All money spent towards Service Projects • Expenses Directly from Trust account • Exempted from Income Tax subject to fulfillment of certain conditions

  9. TRUST – LEGAL OBGLIGATIONS • Maintain separate books of account • Conduct elections of Board of Trustees, Regular Board Meetings & AGM once a year • Trust accounts to be audited every year • Submit audited accounts with Change Reports to Charity Commissioner • Submit Income Tax return every year

  10. Stewardship - Healthy Practice • Take part Membership Dues DIRECTLY in the name of Trust( portion earmarked for service projects ) • AVOID INTER TRANSFER OF FUNDS FROM CLUB ACCOUNT TO TRUST ACCOUNT AND VICE VERSA

  11. Stewardship in TRF ??? • Treating TRF funds as a sacred trust • Competent and thorough supervision of project • Standard business practice • Reporting irregularity to TRF • Implementing projects as approved • Timely and complete reporting • 4 – Way Test

  12. Stewardship-TRF • ACCOUNTS • Separate accounts should be established for each grant • Payment should be made to a bank account opened specifically for the project • All payments should be made only by CHEQUE- NO CASH payments

  13. REPORTING • Interim report every 6 months till Project Completion • Final report is due within two months of the project’s completion • IN PRESCRIBED FORMAT • (Accomplishment, Rotarian Involvement, Income/Exp/Bank Statements, Beneficiaries)

  14. REPORTING • Celebrates success • Provides transparency • Offers lessons learned • Improves DONOR relations • Improves Rotary’s charitable status ranking

  15. Bank Funds • Security / Collateral / Mortgage • Personal guarantee • Reporting Monthly / Quarterly / Annual • Interest Cost • Pay back

  16. Concerns • Charging beneficiaries for project support • Individual charging fees to Club for help with project – no Rotarian should personally gain • Lack of Effective Communication

  17. Good News CHARITY NAVIGATOR – The premier charity evaluation service in the United States has awarded its highest rating of 4 STARS ( * * * *) to our ROTARY FOUNDATION for sound fiscal management.

  18. Your CHARITY NAVIGATOR ?

  19. . THANK YOU !

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