What resources will be available to a Rotary District/Club when a disaster hits?

What resources will be available

to a Rotary District/Club

when a disaster hits?

Disaster Recovery Program

• Initiative sponsored by RI & TRF

• Financial contributions for a specific disaster

• Funds used to rebuild communities

Recovery vs. Relief

• Program focuses on long-term recovery efforts

• Immediate disaster relief available through local relief agencies

• Local projects publicized on RI Web site

How Does it Work?

• Disaster occurs

• Rotarians contact RI programs

• General Secretary may open account

• Contributions accepted for six months

• Funds distributed to local committees

• Recovery efforts implemented

More information ~

• Disaster Recovery Terms and Conditions

• www.rotary.org

• TRF and RI staff

TRF Donor Advised Fund

• Initiative coordinated with TRF

• Financial contributions accepted for a specific disaster

• Funds used to fund relief and recovery projects.

How Does it Work?

• Disaster occurs

• Rotarians working with TRF establish a Donor Advised Fund for a specific disaster

• Oversight committee is appointed by TRF to review funding request

• Recovery efforts implemented

Rotary District Foundation

• Puts in place a mechanism for accepting contributions

• Develops the criteria for awarding funds for relief/recovery efforts

• Provides the clubs with guides, criteria, procedures and responsibilities

• Provides forms necessary to request funding & report on completed projects

Advantages to creating a District Foundation• Having a separate tax-exempt organization

facilitates receipt of charitable contributions.• A district foundation permits decisions to be

made locally on a timelier basis, thereby providing more efficient relief.

• District managers would be better informed as to the needs of the district than would managers of an organization outside of the district.

Advantages (cont’d)

• Because the district foundation is a separate legal entity, if operated and managed properly, its assets would be protected from claims against the district itself.

• A district foundation provides an avenue to involve more Rotarians at the district level.

Disadvantages to creating a District Foundation

• Some costs are involved in creating the foundation and obtaining an income tax exemption from the IRS.

• Some additional ongoing costs are involved. For example, a separate Federal informational return using Form 990 may have to be filed annually, as well as a separate reporting form in many states.

Disadvantages (cont’d)

• Foundation funds should not, under any circumstances, be commingled with the funds of any other organization, specifically including the district itself.

• Increase responsibility to educate so there exist an good understanding as to the respective purposes of the District Foundation and The Rotary Foundation

How Does it Work?• Disaster occurs

• Rotarians, through their club, contact the District Foundation

• Funds distributed to local Rotary clubs

• Relief & recovery efforts implemented

• Rotary Clubs report to District Foundation on completed projects.

• District Foundation updates contributors

3 Phases of Disaster Relief

Phase OneImmediate Need• Duration ~ up to 3 months• 75% of contributions will be received• Address immediate humanitarian needs• Be aware of the efforts of other relief

organizations, non-profits, and businesses ~ attempt to avoid duplication

• Trustees will be meeting weekly• Remember ~ there are two more phases yet to

come!

Phase TwoIntermediate Need

• Duration ~ From 3 to 9 months• 15% of contributions will be received• Address issues such as:

– Temporary living arrangements– Replacement of furniture and appliances– Clothing– Ect.

• Trustees will meet once a month – with weekly communications via e-mail.

Phase ThreeLong Term Re-investment

• Duration ~ From 9 months until!!!!• Last 10% of contributions will be received• Address issues such as:

– Community Based Projects ~ Example – parks and playgrounds

– Business Assistance– Partnerships with agencies assisting the needy and

“at-risk” populations

Expectations of theDistrict Foundation

• Support the clubs in their relief efforts.• As a qualified subsidiary, receive all monetary

donations. • Coordinate the disbursement of funds.• Facilitate donations to Donor Advised Fund• Coordinate publicity for District relief efforts.

Expectations of theIndividual Rotary Club

• Cooperate with the District and the District Foundation in providing relief to communities.

• Club use approved methods to request and account for monetary donations received from the District Foundation

• Keep the District and the District Foundation informed of the needs in its community.

Request for fundsKey Points to include• Unique name project and project number

• Identify scope of project

• Estimate number of people to benefit

• Amount of funding needed - budget

• Date funds will be required

• Contact information on Rotarian with oversight of project

• Signature of Club President

Accounting for fundsKey Points to include• Club needs to establish special relief

fund or sub-account to handle relief funds

• With distribution of relief funds, note payee, memo as to what check covered, and copies of all receipts

• Update reports every six months till project is closed out

Accounting for fundscon’t• District needs to:

– Assure accountability of all funds received– Issue letters of thanks with tax information

for donation purposes to all donors– Establish tracing system for distribution of

funds, progress reports and final distribution reports from clubs.

– File with the IRS all reporting documents required (Form 990)