international and foundation

Adrian Lupton
Committee Chairman

In 1917, RI President Arch C. Klumph proposed that an endowment be set up "for the purpose of doing good in the world." In 1928 when the endowment fund had grown to more than US$5,000. it was renamed The Rotary Foundation, and it became a distinct entity within Rotary International.

Five trustees, including Klumph, were appointed to 'hold, invest, manage, and administer all of its property….as a single trust, for the furtherance of the purposes of RI.'

Two years later, the Foundation made its first grant of $500 to the International Society for Crippled Children. The organisation, created by Rotarian Edgar F. 'Daddy' Allen, later grew into the Easter Seals.

The Great Depression and World War II both impeded the growth, but the need for lasting peace generated great post war interest in its development. After Rotary's founder, Paul Harris, died in 1947, contributions began pouring into Rotary International, and the Paul Harris Memorial Fund was created to build the Foundation.

That year, the first Foundation program-the forerunner of Rotary Foundation Ambassadorial Scholarships - was established, In 1965-66 three new programmes were launched: Group Study Exchange, Awards for Technical Training, and Grants for Activities in Keeping with the Objective of The Rotary Foundation, which was later called Matching Grants.

Health, Hunger and Humanity (3H) Grants program was launched in 1978, and Rotary Volunteers was created as part of that programme in 1980. Polio Plus was announced in 1984-85, and the next year brought Rotary Grants for University Teachers. The first peace forums were held 1987-88 leading to the Foundation's Peace and Conflict Studies Programs.

Throughout this time, support for the Foundation grew tremendously. Since the first donation of $26.50 in 1917, it has received contributions totaling more than $1 billion. More than $70 million was donated in 2003-04 alone. To date more than one million individuals have been recognised as Paul Harris Fellows - People who have given $1,000 to the Annual Programs Fund or have had that amount contributed in their name.

Such strong support, along with Rotarian involvement worldwide, ensures a secure future for The Rotary Foundation as it continues in its vital work for international understanding and world peace.

The Rotary Foundation prides itself on its commitment to stewardship of its funds. Today, the Foundation has a strong balance sheet and good liquidity.

One of the greatest strengths of The Rotary Foundation is its ability to finance Foundation operations from investment earnings generated by the Annual Programs Fund. Contributions to this fund are invested for three years and then made available to spend on programs. The earnings on these funds are then used to fund the operations of the Foundation.

The Board of Trustees is responsible for the prudent investment of the Foundation's assets. Contributions to The Rotary Foundation are invested in one of three main funds: the Annual Programs Fund, The Permanent Fund, and the Polio Plus Fund

Copyright of Rotary International.