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the latest report from RI shows that our funds are coming back strong

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  • rvepl
    Dear Rotarians, Make sure your applications are listed on Project Link &/or www.matchinggrants.com asap, once we have partners we need to ensure the
    Message 1 of 1 , Dec 1, 2009
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      Dear Rotarians,

      Make sure your applications are listed on "Project Link' &/or www.matchinggrants.com asap, once we have partners we need to ensure the application is uploaded & sent to TRF on 1st July 2010 to stand a good chance of funding success

      Madhukar Malhotra




      Dear Rotarians,

      I am happy to report continuing improvement in the financial picture for
      Rotary International and The Rotary Foundation since my last communication
      on 8 September. Positive market performance this fiscal year through
      September resulted in investment earnings of US$11 million for Rotary
      International and $58 million for The Rotary Foundation. We are continuing
      to see further improvement this quarter, though the markets remain volatile.

      Many Rotarians have expressed concern over the magnitude of last year's
      investment losses. Last year was truly extraordinary in that global
      financial markets suffered their greatest losses since the Great Depression.
      Nearly all asset classes (stocks, bonds, real estate, etc.), including those
      in which the Foundation's assets are invested, experienced losses. The
      Foundation's investment losses were very similar to those experienced by
      other major endowments and foundations.

      RI's reserve fund remains above mandated levels. The Foundation reserve has
      increased by approximately $34 million since 30 June 2009, though it stands
      at a negative $8 million, well below the target reserve level. Rotary's cash
      flows remain positive, and we have not had to liquidate securities to
      operate or fund program spending this fiscal year.

      Contributions to the Foundation's Annual Programs Fund dipped in the first
      quarter of this year, a situation that can be attributed in part to Rotary's
      US$200 Million Challenge, which has already passed the halfway mark. The
      Trustees realize that conducting multiple major fundraising initiatives
      simultaneously can generate donor fatigue. Yet all are extremely important
      efforts that cannot be delayed. Rotary must fulfill its promise of a
      polio-free world, but at the same time, we need to continue, and expand when
      possible, our worldwide educational and humanitarian efforts that are
      supported by the Annual Programs Fund. Fortunately, many Rotarians realize
      the great needs that both of these initiatives are meeting and remain
      generous donors to our Foundation.

      Investment returns, reserve funds, and contributions are only part of our
      financial picture. Controlling costs remains a top priority for Rotary
      senior leaders and the Secretariat staff. Currently, operating expenses and
      staffing levels remain under our tight 2009-10 budgets for both RI and the
      Foundation. Expenses related to travel have been cut substantially. Many
      committees are meeting via teleconference and webinars, and staff travel has
      been reduced considerably. Your Secretariat staff and Rotary senior leaders
      continue to monitor spending and explore ways to further cut costs without
      significantly reducing service.

      Based on the improvements in Rotary's finances as summarized above, at this
      time the Board of Directors and Trustees have decided to

      Maintain the Foundation's three-year investment cycle and the current
      District Designated Fund/World Fund 50-50 SHARE ratio

      Preserve District Designated Fund balances at full value and provide more
      flexibility for districts to use these funds

      Temporarily modify Rotary's existing investment policies to provide more
      flexibility in managing our investments during this market recovery

      Request the Investment Advisory Committee to accelerate its review of the
      investment and spending policies for both the Annual Programs Fund and
      Permanent Fund to address liquidity needs and risk tolerance

      Continue to reduce operating expenses throughout the organization

      Finally, I invite you to view the 2008-09 audited financial statements for
      both RI and The Rotary Foundation, which have been successfully completed
      with unqualified opinions from our independent auditors and approved by both
      boards. In December and January, every club will receive a copy of the joint
      RI/Rotary Foundation annual report, which will also be posted on
      www.rotary.org. In addition to financial highlights, this publication
      features compelling stories and photographs that vividly illustrate the
      remarkable range and value of Rotarian service worldwide.


      Ed Futa

      General Secretary

      [Non-text portions of this message have been removed]

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