The Rotary Foundation given an A+ from the American Institute of Philanthropy

Posted by Craig Clarke 
on Feb 8, 2012
 
excerpt from article in November 2011 issue of the Rotarian Magazine 

The Rotary Foundation at work

With program awards totaling more than US$200 million in 2009-10, The Rotary Foundation provides financial support for a wide range of humanitarian and educational programs initiated by local clubs and districts around the world. The Foundation has earned a grade of A+ from the American Institute of Philanthropy , a top rating of four stars from Charity Navigator, and full accreditation from the Wise Giving Alliance of the Better Business Bureau.
 
Only 2.3 percent of Foundation funding goes to administrative expenses, and 7.3 percent goes to fundraising. The Foundation focuses more than 90 percent of its spending on programs, far exceeding the threshold of 75 percent that independent charity-rating services view as a measure of high efficiency.
 
That comes as no surprise to Foundation Trustee Steve Brown, who expresses confidence that the organization’s grant application and review process contains the safeguards necessary to ensure that funds are used wisely.
 
Typically, Brown explains, international projects funded by the Foundation involve a sponsor club or district, which partners with an on-site host club or district. Funding may go through the sponsor or host. To implement a project, clubs must spell out what they plan on doing, how they plan on doing it, and what Rotarians’ involvement will be. All projects require a detailed budget and often additional supporting documentation before receiving Foundation approval.
Once an approved project is funded, says Brown, a detailed progress report must be presented within one year. The reporting includes verification of what has happened (usually with photos) and requires copies of bank statements showing the flow of funds. The presidents of either the host or sponsor club must sign off on the report.
The Foundation has a stewardship committee that can review a project and impose a resolution if issues occur. If money was improperly spent, a club can be asked to return funds or even have its membership in Rotary International terminated.
“You don’t want to have everything controlled from Evanston,” Brown says. “We probably have more complaints about our rigorous stewardship than applause for it. But 99 percent of the time, things go the way we expect.”

 

 

Our projects in Afghanistan

While Greg Mortenson’s Central Asia Institute has received a mountain of media coverage for its work building schools in Afghanistan, a group associated with the Rotary Club of La Jolla Golden Triangle, Calif., USA, has been quietly working on a variety of education-related projects in Afghanistan, including building a school. Club members Fary Moini and Foundation Trustee Steve Brown have led the initiatives, which began in 2002.
Brown says that on the one occasion he met Mortenson, “I asked him a question that I frequently ask myself: How do you monitor things in Afghanistan to make sure they’re running smoothly?’ He said he has a team of people doing that for him.”
In Rotary, clubs worldwide play a critical role in project monitoring, Brown notes. “Rotary, through its network of clubs, including a host club on-site, allows us to verify the progress on our projects,” he explains. “[Mortenson] has chosen to work in an environment that is difficult to monitor. His experience, and the whole controversy that arose, have caused me to reflect very carefully on the safeguards that we have in place.”

Diligence online

  • Take some time to examine an organization’s website carefully.
  • While exploring the website, make sure the organization provides access to its IRS form 990, a list of its board members, their backgrounds, and their tenure. Be wary of large organizations with very small boards.
  • Do not give in to high-pressure tactics. Request that information be sent by mail or email.
  • Read the organization’s mission carefully, making sure it’s in line with what you support.
  • Visit websites that provide information about philanthropy and evaluate the performance of charities, including www.foundationcenter.org, www.guidestar.org, www.charitywatch.org, www.charitynavigator.org, and www.bbb.org/us/charity.
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