The Rotary Foundation s Future Vision Plan

1. Future Vision Update, Nov. 2008 Slide 1 The Rotary Foundation�s Future Vision Plan It is my pleasure to present an update on the Future Vision Plan of The Rotary Foundation. The Trustees have taken significant steps in reviewing the current programs and operations of our Foundation and envisioning its potential in our second century of service. We will be celebrating our 100th anniversary of the Foundation in the next decade, and we continually strive to improve our Foundation�making it stronger, more prominent, and more accessible. The new grant structure of the new Future Vision Plan attempts to optimize contributions to our Foundation so that clubs and districts can maximize the use of funds for greater impact, greater flexibility, and greater sustainability in their work. The Foundation has listened to Rotarians� concerns and formulated this strategy based on this feedback. The new grant structure attempts to optimize contributions to our Foundation so that clubs and districts can maximize the use of funds for greater impact, flexibility, and sustainability in their work. It is my pleasure to present an update on the Future Vision Plan of The Rotary Foundation. The Trustees have taken significant steps in reviewing the current programs and operations of our Foundation and envisioning its potential in our second century of service. We will be celebrating our 100th anniversary of the Foundation in the next decade, and we continually strive to improve our Foundation�making it stronger, more prominent, and more accessible. The new grant structure of the new Future Vision Plan attempts to optimize contributions to our Foundation so that clubs and districts can maximize the use of funds for greater impact, greater flexibility, and greater sustainability in their work. The Foundation has listened to Rotarians� concerns and formulated this strategy based on this feedback. The new grant structure attempts to optimize contributions to our Foundation so that clubs and districts can maximize the use of funds for greater impact, flexibility, and sustainability in their work.

2. Future Vision Update, Nov. 2011 Slide 2 Peace and Conflict Prevention/Resolution Disease Prevention and Treatment Water and Sanitation Maternal and Child Health Basic Education and Literacy Economic and Community Development Areas of Focus The approved areas of focus, calling upon key points of The Rotary Foundation mission are: peace and conflict prevention and resolution� disease prevention and treatment� water and sanitation�. maternal and child health�.. basic education and literacy�.. and economic and community development. The Trustees have committed to these areas of focus for at least nine years. The Trustees and the Board of Directors of Rotary International are encouraging clubs and districts to focus their foundation efforts in these six areas even before the Future Vision Plan is implemented.The approved areas of focus, calling upon key points of The Rotary Foundation mission are: peace and conflict prevention and resolution� disease prevention and treatment� water and sanitation�. maternal and child health�.. basic education and literacy�.. and economic and community development. The Trustees have committed to these areas of focus for at least nine years. The Trustees and the Board of Directors of Rotary International are encouraging clubs and districts to focus their foundation efforts in these six areas even before the Future Vision Plan is implemented.

3. Slide 3 Grant Names All of the grants of the Rotary Foundation will be delivered through two grants, Rotary Foundation District Grants and Rotary Foundation Global Grants. All of the grants of the Rotary Foundation will be delivered through two grants, Rotary Foundation District Grants and Rotary Foundation Global Grants.

4. Future Vision Update, Nov. 2011 Slide 4 Rotary Foundation District Grants Simple, flexible, innovative Educational and humanitarian projects and activities consistent with mission Smaller activities and projects Local decision making with broader guidelines Rotary Foundation District Grants provide simplicity, flexibility, and opportunities for innovation. Clubs and their district will work together to fund smaller educational and humanitarian activities and these projects can be conducted either locally or internationally. The District Simplified Grants that we are familiar with already in the Rotary Foundation are a model of how �District Grants� will work in the future. These projects and activities should support the mission of the Rotary Foundation, allowing a broad range of choices for clubs and districts. The funding will come from the Rotary Foundation, but be administered at the district level providing a funding mechanism for the smaller projects that clubs and districts wish to undertake either in their local area or internationally. Rotary Foundation District Grants provide simplicity, flexibility, and opportunities for innovation. Clubs and their district will work together to fund smaller educational and humanitarian activities and these projects can be conducted either locally or internationally. The District Simplified Grants that we are familiar with already in the Rotary Foundation are a model of how �District Grants� will work in the future. These projects and activities should support the mission of the Rotary Foundation, allowing a broad range of choices for clubs and districts. The funding will come from the Rotary Foundation, but be administered at the district level providing a funding mechanism for the smaller projects that clubs and districts wish to undertake either in their local area or internationally.

5. Future Vision Update, Nov. 2011 Slide 5 Rotary Foundation District Grants Let�s look at Rotary Foundation District Grants in more detail. As I mentioned district grants are modeled after the current District Simplified Grants, and are provided as block grants to districts, utilizing a portion of each districts District Designated Funds. The district will request this districts grant and the Foundation will award the block grant from the available District Designated Fund, or DDF, to the district. The district will then work with the clubs within that district, with individuals, with other Rotary affiliated entities, and cooperating organizations to award funds to conduct projects both locally and globally.Let�s look at Rotary Foundation District Grants in more detail. As I mentioned district grants are modeled after the current District Simplified Grants, and are provided as block grants to districts, utilizing a portion of each districts District Designated Funds. The district will request this districts grant and the Foundation will award the block grant from the available District Designated Fund, or DDF, to the district. The district will then work with the clubs within that district, with individuals, with other Rotary affiliated entities, and cooperating organizations to award funds to conduct projects both locally and globally.

6. Future Vision Update, Nov. 2011 Slide 6 Rotary Foundation Global Grants Long-term projects Rotarian participation Larger grant awards Sustainable outcomes International partnerships required for club- and district-developed grants Rotary Foundation Global Grants focus on sustainable impacts with long-term effects that meet specific standards of quality and include Rotarian participation. Global Grants attempt to leverage global resources and expertise with strategic partners. We will talk shortly about how the current programs of the Foundation in the humanitarian area and the educational area will fit within the Future Vision Plan and the District and Global Grants. But, simply put all of the current Foundation activities can in some form or fashion be accomplished in the new plan. The will fund longer term projects that will have significant Rotarian participation. These will be the larger grants with sustainable outcomes and international partnership will be required for club- and district- develop Global Grants. Rotary Foundation Global Grants focus on sustainable impacts with long-term effects that meet specific standards of quality and include Rotarian participation. Global Grants attempt to leverage global resources and expertise with strategic partners. We will talk shortly about how the current programs of the Foundation in the humanitarian area and the educational area will fit within the Future Vision Plan and the District and Global Grants. But, simply put all of the current Foundation activities can in some form or fashion be accomplished in the new plan. The will fund longer term projects that will have significant Rotarian participation. These will be the larger grants with sustainable outcomes and international partnership will be required for club- and district- develop Global Grants.

7. Future Vision Update, Nov. 2011 Slide 7 Rotary Foundation Global Grants Rotary Foundation Global Grants will be awarded in the six areas of focus. Under this grant type, clubs and districts will select from two options. There will either be club- and district-developed global grants or there will be packaged global grants. Club- and district- develop global grants are those sorts of activities that we are already very familiar with in the Rotary Foundation. A Rotary club in one part of the world identifies a need, partners with a Rotary club in another part of the world and through a matching grant or a 3-H grant obtains the funding to meet that specific community need. Both humanitarian and educational activities will be involved with global grants, and they must meet the minimum award amount and relate to one of the areas of focus to be eligible. Packaged grants will likely be coordinated with one of the Foundation�s strategic partners. The Foundation will work to provide projects and activities that are �off the shelf�. These activities are pre-packaged and include have a set of criteria and steps that clubs can follow to implement these projects very easily. They will have a standardized approach in creating, implementing, monitoring, and reporting for the project. It is anticipated that packaged grants will be funded entirely by the World Fund or in coordination with the strategic partner. We will talk about strategic partnerships shortly. Rotary Foundation Global Grants will be awarded in the six areas of focus. Under this grant type, clubs and districts will select from two options. There will either be club- and district-developed global grants or there will be packaged global grants. Club- and district- develop global grants are those sorts of activities that we are already very familiar with in the Rotary Foundation. A Rotary club in one part of the world identifies a need, partners with a Rotary club in another part of the world and through a matching grant or a 3-H grant obtains the funding to meet that specific community need. Both humanitarian and educational activities will be involved with global grants, and they must meet the minimum award amount and relate to one of the areas of focus to be eligible. Packaged grants will likely be coordinated with one of the Foundation�s strategic partners. The Foundation will work to provide projects and activities that are �off the shelf�. These activities are pre-packaged and include have a set of criteria and steps that clubs can follow to implement these projects very easily. They will have a standardized approach in creating, implementing, monitoring, and reporting for the project. It is anticipated that packaged grants will be funded entirely by the World Fund or in coordination with the strategic partner. We will talk about strategic partnerships shortly.

8. Future Vision Update, Nov. 2011 Slide 8 Qualification Clubs and districts must be qualified to receive Rotary Foundation funds Ensures proper legal, financial, and stewardship controls of grants Qualification process is simple Goal for every district to become qualified Districts will be trained to qualify their clubs To participate in this new grant-structure, districts and clubs must be qualified by the Rotary Foundation. The Foundation is designing a simple process for districts to complete before applying for their first year�s district and global grants. It is anticipated that qualification will be renewable every three years. Clubs who wish to participate in global grants will also need to be qualified by their districts. This will be a simple process. Each district would be required to meet a certain minimum standard in terms of agreement of the clubs to participate, training, district leaders, and having the established committees and processes in place to ensure the effective implementation of projects and activities of the Rotary Foundation. To participate in this new grant-structure, districts and clubs must be qualified by the Rotary Foundation. The Foundation is designing a simple process for districts to complete before applying for their first year�s district and global grants. It is anticipated that qualification will be renewable every three years. Clubs who wish to participate in global grants will also need to be qualified by their districts. This will be a simple process. Each district would be required to meet a certain minimum standard in terms of agreement of the clubs to participate, training, district leaders, and having the established committees and processes in place to ensure the effective implementation of projects and activities of the Rotary Foundation.

9. Future Vision Update, Nov. 2011 Slide 9 Current Program Transition How do our current programs fit within this new structure? Here on this slide you see a list of our current programs and where they can fit within district grants and global grants. As mentioned earlier, District grants will fund smaller projects, and projects that have less sustainable outcomes. So you will certainly see smaller matching grants, volunteer service grants, tradition GSE, and scholars outside the areas of focus. And of course District Simplified Grants themselves are the model for District grants in the future. On the other hand the larger projects and activities consistent with the areas of focus will be funded through global grants. These will include ambassadorial scholarships, group study exchange, the larger matching grants, 3-H grants and the Rotary Centers for International studies. If a district wishes to send an ambassadorial scholar or a GSE team within the six areas of focus and meets the minimum grant requirement, it will be funded through global grants. The Rotary Centers for International studies will fit into the concept of Global grants and will remain the same. But let�s not forget, Polio Plus is the #1 priority of our organization and is outside of the new grant structure being discussed here.How do our current programs fit within this new structure? Here on this slide you see a list of our current programs and where they can fit within district grants and global grants. As mentioned earlier, District grants will fund smaller projects, and projects that have less sustainable outcomes. So you will certainly see smaller matching grants, volunteer service grants, tradition GSE, and scholars outside the areas of focus. And of course District Simplified Grants themselves are the model for District grants in the future. On the other hand the larger projects and activities consistent with the areas of focus will be funded through global grants. These will include ambassadorial scholarships, group study exchange, the larger matching grants, 3-H grants and the Rotary Centers for International studies. If a district wishes to send an ambassadorial scholar or a GSE team within the six areas of focus and meets the minimum grant requirement, it will be funded through global grants. The Rotary Centers for International studies will fit into the concept of Global grants and will remain the same. But let�s not forget, Polio Plus is the #1 priority of our organization and is outside of the new grant structure being discussed here.

10. Future Vision Update, Nov. 2011 Slide 10 Examples of Activity District Grants � Mission-related All of the activities of The Rotary Foundation must be related to the mission of the Foundation as approved by the Council on Legislation. This slide shows the types of projects that can be undertaken with district grants. You could have an exchange of mixed professions in a vocational training team and send that team to another district. This mixed profession vocational training team would come under the purview of district grants, because it is not within the six areas of focus. Another possibility is to donate art supplies to assist a local youth after school program. This sort of activity would be funded by a district grant rather than a global grant for two reasons: while it would be in the area of focus by providing education, it would not qualify for a global grant because it is not an international project. And also because of the small level of funding that would be involved.All of the activities of The Rotary Foundation must be related to the mission of the Foundation as approved by the Council on Legislation. This slide shows the types of projects that can be undertaken with district grants. You could have an exchange of mixed professions in a vocational training team and send that team to another district. This mixed profession vocational training team would come under the purview of district grants, because it is not within the six areas of focus. Another possibility is to donate art supplies to assist a local youth after school program. This sort of activity would be funded by a district grant rather than a global grant for two reasons: while it would be in the area of focus by providing education, it would not qualify for a global grant because it is not an international project. And also because of the small level of funding that would be involved.

11. Future Vision Update, Nov. 2011 Slide 11 Examples of Activity Moving on to global grants, and seeing some projects within the areas of focus, you can see the distinction between these grants and the activities funded by district grants. Here there we could send a scholar abroad to enroll in a water engineering degree program at a university in another country. Or we could fund an international malaria project to distribute bed nets and malaria treatments. Moving on to global grants, and seeing some projects within the areas of focus, you can see the distinction between these grants and the activities funded by district grants. Here there we could send a scholar abroad to enroll in a water engineering degree program at a university in another country. Or we could fund an international malaria project to distribute bed nets and malaria treatments.

12. Future Vision Update, Nov. 2011 Slide 12 Funding Model Now, how do we fund this new grant structure? The current SHARE system will remain�Annual Programs Fund will be split 50/50 between the DDF (the District Designated Fund) and the World Fund. Within the DDF, each district may elect to receive up to 50% of the available DDF for Rotary Foundation District Grants. At district�s direction, the remaining DDF�that is at least 50% as districts can choose to use up to a maximum of 50% for district grants� along with the World Fund, cash flow through from contributions, permanent fund earnings, named gifts, and donor advised funds will support Rotary Foundation Global Grants. Keep in mind that the current World Fund matching concept will remain in the funding model. All club- and district- developed global grants will provide a World Fund match to DDF, cash and Donor Advised Funds, regardless of activity. The Foundation will no longer provide a World Fund match for smaller, less strategic projects and activities that will be undertaken by district grants. As mentioned earlier, the Trustees approved the concept that packaged grants will be primarily funded solely from the World Fund. However, there may be circumstances the clubs and districts may also use DDF and cash to develop packaged grants.Now, how do we fund this new grant structure? The current SHARE system will remain�Annual Programs Fund will be split 50/50 between the DDF (the District Designated Fund) and the World Fund. Within the DDF, each district may elect to receive up to 50% of the available DDF for Rotary Foundation District Grants. At district�s direction, the remaining DDF�that is at least 50% as districts can choose to use up to a maximum of 50% for district grants� along with the World Fund, cash flow through from contributions, permanent fund earnings, named gifts, and donor advised funds will support Rotary Foundation Global Grants. Keep in mind that the current World Fund matching concept will remain in the funding model. All club- and district- developed global grants will provide a World Fund match to DDF, cash and Donor Advised Funds, regardless of activity. The Foundation will no longer provide a World Fund match for smaller, less strategic projects and activities that will be undertaken by district grants. As mentioned earlier, the Trustees approved the concept that packaged grants will be primarily funded solely from the World Fund. However, there may be circumstances the clubs and districts may also use DDF and cash to develop packaged grants.

13. Future Vision Update, Nov. 2011 Slide 13 Funding Attributes District Grants Initiated by districts Block grant District administers General TRF guidelines Creativity and accountability Local and DDF funding only Up to 50% DDF - No min. or max. monetary limits Now here are some of the details of the funding characteristics of the district grants. The district grant is initiated by the district. It is a block grant that the district administers. There will be general foundation guidelines to the specific requirements and the typed of projects that will be undertaken will be determined by the district. This will permit creativity and also permit accountability. The funding will be only local funds and District Designated Funds with no money coming from the world fund. Up to 50% of the DDF fund may be allocated to district grants and within that 50% there is no minimum or maximum monetary limit on the size of the request. Now here are some of the details of the funding characteristics of the district grants. The district grant is initiated by the district. It is a block grant that the district administers. There will be general foundation guidelines to the specific requirements and the typed of projects that will be undertaken will be determined by the district. This will permit creativity and also permit accountability. The funding will be only local funds and District Designated Funds with no money coming from the world fund.

14. Future Vision Update, Nov. 2011 Slide 14 Funding Attributes Global Grants Initiated by qualified club and/or district DDF, World Fund, cash flow through, PF earnings, named gifts Larger awards (min. US$15,000) and project costs World Fund match of DDF, cash, and DAF Streamlined stewardship and accountability Global grants these will be initialed either by a qualified club or by a district. Funding will include the district designated funds, World Funds, cash flow though funds, permanent fund earnings, and earnings from named gifts. This will involve larger awards. The minimum foundation award for a global grant will be U.S. $15,000. Club- and district- developed global grants will provide a World Fund match to DDF, cash, and donor advised funds. Global grants these will be initialed either by a qualified club or by a district. Funding will include the district designated funds, World Funds, cash flow though funds, permanent fund earnings, and earnings from named gifts. This will involve larger awards. The minimum foundation award for a global grant will be U.S. $15,000. Club- and district- developed global grants will provide a World Fund match to DDF, cash, and donor advised funds.

15. Future Vision Update, Nov. 2011 Slide 15 In year 1of the pilot, the Foundation will begin awarding grants to pilot districts and monitor the successes and challenges of the initial year. We will be operating two grant-making models at the same time. We will have up to a hundred districts participating in the future vision model of the Rotary Foundation. While the other 430 districts of the world will be participating in the current model of the Rotary Foundation. Because we will be operating two Rotary Foundations in parallel for the three years of the pilot it will be absolutely necessary to phase out some programs of the Foundation. The 1st year of the pilot will be the last year that the following activities will be available: Multi Year Ambassadorial Scholarships Cultural Ambassadorial Scholarships Rotary Grants for University Teachers 3-H Grants Volunteer Service Grants Disaster Recovery GrantsIn year 1of the pilot, the Foundation will begin awarding grants to pilot districts and monitor the successes and challenges of the initial year. We will be operating two grant-making models at the same time. We will have up to a hundred districts participating in the future vision model of the Rotary Foundation. While the other 430 districts of the world will be participating in the current model of the Rotary Foundation. Because we will be operating two Rotary Foundations in parallel for the three years of the pilot it will be absolutely necessary to phase out some programs of the Foundation. The 1st year of the pilot will be the last year that the following activities will be available: Multi Year Ambassadorial Scholarships Cultural Ambassadorial Scholarships Rotary Grants for University Teachers 3-H Grants Volunteer Service Grants Disaster Recovery Grants

16. Future Vision Update, Nov. 2011 Slide 16 In year 2 of the pilot the Foundation will continue awarding grants to pilot districts and complete a formal evaluation of the new structure for consideration by the Trustees.In year 2 of the pilot the Foundation will continue awarding grants to pilot districts and complete a formal evaluation of the new structure for consideration by the Trustees.

17. Future Vision Update, Nov. 2011 Slide 17 In year 3, the Foundation will still continue to award grants to pilot districts and finalize the evaluation of the pilot for necessary adjustments to the grant structure. The Trustees expect that the pilot districts will provide a lot of feedback in testing the strategies and assumptions of the plan and (as the pilot goes forward) there will necessarily be certain adjustments made based upon the feedback received by the foundation. In year 3, the Foundation will still continue to award grants to pilot districts and finalize the evaluation of the pilot for necessary adjustments to the grant structure. The Trustees expect that the pilot districts will provide a lot of feedback in testing the strategies and assumptions of the plan and (as the pilot goes forward) there will necessarily be certain adjustments made based upon the feedback received by the foundation.

18. Future Vision Update, Nov. 2011 Slide 18 During this 3rd year of the pilot all remaining districts will then be qualified and trained on the new grant structure of The Rotary Foundation. And, then in 2013-14, the Trustees plan to complete the full rollout of the Future Vision Plan to the entire Rotary world.During this 3rd year of the pilot all remaining districts will then be qualified and trained on the new grant structure of The Rotary Foundation. And, then in 2013-14, the Trustees plan to complete the full rollout of the Future Vision Plan to the entire Rotary world.

19. Future Vision Update, Nov. 2008 Slide 19 The Trustees appreciate your consideration as the Foundation assembles and implements this plan. The Trustees recognize that we don�t have all the details worked through yet. The detailed processes to support the plan are still being formulated. If you have any questions, additional information and details are available through The Rotary Foundation at the website noted on the screen. Additionally, specific questions about the details of the plan can be sent to newgrantspilot@rotary.org. The Foundation can address some of the specifics that we are unable to address in this short presentation. In closing, the Trustees believe the Future Vision Plan simplifies Foundation programs and administration, aligns outcomes with the mission of the Foundation, increases ownership at the local level, and provides necessary funding and resources to achieve the goals of our foundation. Our mission is to enable Rotarians to improve health, support education and alleviate poverty. That�s what we are trying to do with the Future Vision Plan. With the Future Vision Plan, The Rotary Foundation stands at a moment of unprecedented change and unequalled opportunity. And that change and opportunity will come because of your efforts and the efforts of Rotarians around the world to help improve our Foundation. Thank you very much.The Trustees appreciate your consideration as the Foundation assembles and implements this plan. The Trustees recognize that we don�t have all the details worked through yet. The detailed processes to support the plan are still being formulated. If you have any questions, additional information and details are available through The Rotary Foundation at the website noted on the screen. Additionally, specific questions about the details of the plan can be sent to newgrantspilot@rotary.org. The Foundation can address some of the specifics that we are unable to address in this short presentation. In closing, the Trustees believe the Future Vision Plan simplifies Foundation programs and administration, aligns outcomes with the mission of the Foundation, increases ownership at the local level, and provides necessary funding and resources to achieve the goals of our foundation. Our mission is to enable Rotarians to improve health, support education and alleviate poverty. That�s what we are trying to do with the Future Vision Plan. With the Future Vision Plan, The Rotary Foundation stands at a moment of unprecedented change and unequalled opportunity. And that change and opportunity will come because of your efforts and the efforts of Rotarians around the world to help improve our Foundation. Thank you very much.