Endowment Fund: Rotary’s tomorrow depends on what we do today.
In our lives and profession, we have two types of financial planning. Short-term takes care of immediate needs for the coming two/three years and long-term takes care of where one wants to be 15/20 years ahead.
The Rotary Foundation created the Endowment in 1982 to give future generations of Rotary members the resources they need to design and implement sustainable projects year after year. While a gift to the Annual Fund helps people live better lives today, gifts to Rotary’s Endowment support the same life-changing programs forever.
Giving to Annual fund, Polio plus and direct giving fall under short term planning as these givings are utilised for immediate needs and giving to Endowment fund fall under long term planning. Rotary’s other philanthropic and humanitarian projects other than Global Grant and Polio, are done through the interest earned from investments by Endowment funds. Return on investment in last 10 years has been on an average of 7.1% with last three years clocking over 9 to 10%
As we begin the Rotary Foundation’s second century of service, the Trustees of the Foundation had a shared vision of building the Endowment to $2.025 billion by 2025.
Rotary’s ‘2025 by 2025’ campaign was extremely successful, as the goal was achieved by June 2025.The Endowment Fund will continue to be a priority for the Foundation. This Endowment fund of 2 Billion+ ensures a return of around 200 million every year to TRF and part of it is used to augment World Fund, part of it to top up the Endowments created by individuals and part of it comes back as DDF to the donor through the district allocation. All endowments have been receiving back DDF to the extent of 2.75% to 3% of the value created on an average.
Rotarians/clubs can create an Endowment fund by contributing $ 25,000. This fund can be created by either paying $25,000 in one go or in three yearly instalments, starting with $8,000
Endowment creator will start getting DDF return after one year of completion of payment of $25,000. This DDF can be used by the clubs to do global grant projects. And this amount grows as the fund value is increased every year by TRF. Further the amount in form of DDF will come back to the club for ever as long as Rotary Exists and club exists.
For example, a fund of $25,000 created 20 years back has grown to around $31,000. Rotary has used equal amount for its community projects, and the DDF return has increased as the Fund value is increased.
THIS IS THE MAGIC OF CREATING AN ENDOWMENT FUND.
I strongly recommend that clubs must plan to create Endowment funds as this helps clubs, helps Rotary and creates a long lasting legacy,
You can personalize your legacy with a separately identified fund that bears your name, your family’s name, or the name of a loved one, and with larger gifts it may be possible to more-narrowly direct the use of the funds to specific programs or regions.
For further information on the subject please contact undersigned
PP Kailash Monga
Director EMGA 25-26
9822031820
