How you can fund the Rotary International Foundation

There are many levels of giving so that each Rotarian can participate in funding their Foundation’s humanitarian projections around the world

Current Donations

The Foothills Rotary Club has set a goal that each and every year the Foothills Club will be recognized for the fact that (1) every Club member makes a donation and (2) the average per capita donation is at least $100. This initiative is known as Every Rotarian Every Year. This is an affordable, and should be an easily, attainable goal. Those of us who can only write a check for $25 will help meet our Club’s goal because another member is able to give more. The donor methods noted with an asterisk (*) qualify for Every Rotarian Every Year.

Ways to donate:

• *Once a fiscal year (7/1 - 6/30) no later than May 1^st write a check for whatever amount you can afford. Make your check payable to the Rotary International Foundation and give your check to the Club’s Secretary. The Secretary will get it to the correct R I Foundation committee member to submit on your behalf and to assure you get the proper donor credit. If your check is at least $100 you will be recognized as a Sustaining Member. Your donations count towards becoming a Paul Harris Fellow.
• *Become a Sustaining Member via quarterly dues billing. Speak to the Club’s Treasurer to get started and you can donate $25 or more per quarter automatically. Your donations count towards becoming a Paul Harris Fellow.
• *At any time become a Paul Harris Fellow by writing a check to the R. I. Foundation for $1,000. Give your check to the Club’s Secretary. Fellows receive several special recognition items including a certificate, medallion and lapel pin.
• *Become a member of the Paul Harris Society by writing a check to the Foundation each year for $1,000. This is a donor program that was created by our own District 5440 and was adopted by the Foundation worldwide. Society members receive special recognition including a distinctive “ribbon” to wear with your Rotary pin.
• *Become a Major Donor by writing a check to the Foundation for a minimum of $10,000. Major Donors receive special recognition including a distinctive lapel pin and inclusion in the donor registry published in the Foundation’s annual report.
• Establish a Donor Advised Fund by writing a check to the Foundation for a minimum of $20,000. There is no set-up fee and no annual administration fee. The only stipulation is that from your Fund you designate a $250 per year gift to the R I Foundation. You may donate from your Fund to any other qualified charity.
• Create a source of income for yourself or others via a Charitable Annuity, Charitable Remainder Trust or Pooled Income Trust. All of these income generators are appropriate for Rotarians looking for predictable income for a set period of time or for their lifetime, and the Rotarian has significant amount of low or non-yielding assets which may have highly appreciated since their acquisition.

Future Donations

This is a way to give via your estate planning rather than, or in addition to, making a current cash donation. Any member who plans to leave some form of legacy can affordably make a contribution. These donations fund the R. I. Foundation’s Permanent Fund - an endowment of sorts that will assure that there will always be sufficient funds for humanitarian projects.
This method of giving will not count toward the Foothills Club’s Every Rotarian Every Year Goal.
Information towards the bottom of this page details how to fund the R. I. Foundation in the following ways and for technical support (will or beneficiary language).

Ways to donate:

• Become a Benefactor by leaving at least $1,000 to the Foundation by naming the Foundation in your will or as a beneficiary to some amount of cash value (permanent) life insurance. Benefactors receive a unique certificate and “ribbon” to wear with your Rotary pin.
• Become a member of the Bequest Society. As a Benefactor, you are included in the Society if your future donation is a minimum of $10,000. Society members are recognized with an engraved crystal and a special lapel pin that incorporates gem stones that identify the amount of your future gift. Members are also, included in the donor registry published in the Foundation’s annual report.

What you can donate

Acceptable donations can be made in cash, appraisable personal property (art, jewelry, ect), real estate, stocks, bonds and other marketable securities. Assets with a low cost basis are perfect donation resources, especially for use with any of the income generators.

(Text and supplementary files in what follows is taken from the Rotary International website :: reference :: Please refer to the RI site for the latest information and downloads)

Planned giving

About planned giving

The Rotary Foundation offers many ways for you to help further its mission. Here are some of the available planned giving options:

• Life income agreements
• Charitable bequests
• Life insurance

Life income agreements

Have you ever thought about making a contribution to The Rotary Foundation during your lifetime but were concerned about outliving your resources, meeting family obligations, or preparing for retirement? With careful planning, it’s possible to enjoy the advantages of a life income gift and turn appreciated assets into an income for yourself or others. Life income agreements are one way to make a significant charitable contribution during your lifetime while furthering your financial plans and security.

Benefits

• Annual payments for you or another beneficiary
• Immediate federal income tax deduction
• Potential estate tax savings
• Increased income from low-yield assets
• Avoidance or reduction of capital gains taxes on gifts of appreciated assets
• Opportunity to be recognized as a Major Donor to The Rotary Foundation
• Satisfaction in knowing that your contribution will make a difference in many lives

Types of life income agreements

Charitable gift annuities

In exchange for your gift of cash or marketable securities to the Foundation, you (and another beneficiary or a survivor) receive guaranteed fixed payments for life.

Under the terms of a charitable gift annuity agreement, you make a gift of cash or publicly traded securities and, in return, collect regular payments for life that never change in size or frequency, regardless of changes in the economy. Payments to you (and another beneficiary, if you wish) are backed by the Foundation’s available assets. The number of annuitants and their ages determine the payout rate. See the gift annuity rates table for examples.

The Rotary Foundation’s Permanent Fund receives the charitable portion of the gift upon the death of the last annuitant. Donors interested in the stability of fixed payments tend to favor this type of life income agreement.

Deferred charitable gift annuities

Like the charitable gift annuity, the deferred charitable gift annuity is a simple agreement with regular payments that never change in size or frequency, regardless of changes in the economy. However, with a deferred charitable gift annuity, these payments are postponed for a specified time (at least one year after the date of the gift).

The size of the payment you receive each year depends on the amount transferred, your age now, and your age when the payments begin. You receive a charitable income tax deduction in the year of the gift. Because you identify the date to begin payments, this life income agreement is a helpful retirement and tax planning tool.

Charitable remainder trusts

A charitable remainder trust is a trust into which you irrevocably place assets in exchange for an income, either for life or a certain number of years. These trusts allow you to reduce capital gains taxes on gifts of appreciated property and are a great strategy for incorporating charity into your estate plans.

A charitable remainder trust can be funded with cash, real estate, publicly traded stock, closely held stock, bonds (including tax-exempt bonds), and certain other assets. You’ll receive income at a rate agreed upon by you and the Foundation, with a minimum of 5 percent of the initial trust principal. There are two types of charitable remainder trusts:

• Unitrust - Income fluctuates annually with the trust’s fair market value
• Annuity trust - Income payments are fixed and determined when the gift is made

Pooled income fund

The contributions of many individuals are pooled and invested under professional management. Each contribution purchases “units” in the fund at their current value, and you or another beneficiary receive a proportional share of the fund’s net income on a quarterly basis.

Participating in the pooled income fund is easy and requires a smaller investment than other life income agreements. The minimum initial gift is US$5,000 and involves the irrevocable transfer of property, such as cash or publicly traded securities, to the fund. Similar to a mutual fund, the income you receive is based on your gift’s fair market value and the variable rate of return that the fund is producing. The fund’s investment objective is to secure a reasonable current rate of return consistent with the preservation and long-term growth of principal. Pooled income fund gifts support the Permanent Fund.

More information on Life Income Gifts (PDF)

Charitable bequests

Each year, thousands of Rotarians and friends designate a portion of their assets in their estate plans to benefit the Foundation. Bequests made through wills or living trusts play an important role in securing the future of Foundation programs by building the Permanent Fund. These commitments also enable individuals to make gifts that may not have been possible during their lifetimes.

Bequests can take several forms:

• Specific bequest - Gives the Foundation a specific piece of property: “I give 500 shares of stock.”
• Residual bequest - Designates all or a portion of whatever remains after all debts, taxes, and expenses have been paid: “I give 50 percent of the next residue and remainder of my estate.”
• Contingent bequest - Takes effect only under certain conditions: “In the event that my spouse does not survive me, I give to The Rotary Foundation of Rotary International, an Illinois not-for-profit corporation, the sum of . . . ”

Sample codicil language (PDF)

Benefactor Commitment Card (PDF)

Bequest Society Fact Sheet (PDF)

Life insurance

By making a gift of life insurance to The Rotary Foundation, you help secure the future of Foundation programs. Canadian or U.S. donors who irrevocably assign ownership and beneficial interest to the Foundation in a policy may also qualify for a charitable tax deductions.

Life Insurance Gifts (PDF)