Foundation Update: Club cash contributions to global grants incur 5% extra support charge
 
By Sanjay Deshpande
 
Global grants are funded through cash contributions made by Rotary clubs, district-designated funds contributed by Rotary districts and the resulting matching grants from The Rotary Foundation. For example, Global Grant No.1528425, led by Nashoba Valley Rotary, seeks to conduct malaria-reduction spraying in Malawi at a total cost of $60,600. The funding for the project, matching the total cost, is as shown below:
 
Funding Method
Club or District
Amount
Foundation Matching Grant
Total Project Funding
Cash from club in D7910
Nashoba Valley
$18,400
$9,200
$27,600
Cash from club in D7910
Westborough
$1,000
$500
$1,500
Cash from club in D7910
Acton-Boxborough
$1,000
$500
$1,500
District Designated Fund (DDF)
7910
$10,000
$10,000
$20,000
Cash from clubs outside D7910
3 clubs in 2 districts
$2,000
$1,000
$3,000
Other DDF
7150 and 7190
$3,500
$3,500
$7,000
Total:
$60,600
 
Starting last July 1, The Rotary Foundation instituted a 5-percent charge for handling cash contributions made to global grants to cover the extra effort needed to wire-transfer funds to the project account of the Rotary club in the host country plus to process Paul Harris credits for members and recognition points for clubs. Accordingly, all clubs making cash contributions must pay the 5-percent charge, as shown below. In our example, the project receives $22,400 but all of the $23,520 is eligible for Paul Harris considerations.
 
Funding Method
Club
Amount to Project
5% Extra Support charge
Payment sent to Foundation
Cash from club in D7910
Nashoba Valley
$18,400
$920
$19,320
Cash from club in D7910
Westborough
$1,000
$50
$1,050
Cash from club in D7910
Acton-Boxborough
$1,000
$50
$1,050
Cash from clubs outside D7910
3 clubs in 2 Districts
$2,000
$100
$2,100
Total:
$22,400
$1,120
$23,520
 
Here are the guidelines and instructions for sending the payment to the Foundation.
  1. Clubs making cash contributions to global grants pay the 5-percent extra support charge from club funds.
  2. Clubs are required to pay 5 percent of the amount that is contributed to the project. Thus, Nashoba Valley, Westborough and Acton-Boxborough must pay $1,9320, $1,050 and $1,050, respectively, to the Foundation, so that Paul Harris credits and/or recognition points are earned and the Foundation will wire-transfer $22,400 to the host club, Lilongwe Rotary of District 9210 in Malawi. The $1,120 extra support charge will not be sent. 
  3. The Nashoba Valley, Westborough and Acton-Boxborough need to decide whether they will:
    1. Distribute Paul Harris credits (and recognition points) for the entire $1,050 (or a portion) among some or all members, and/or 
    2. Make the contribution on behalf of their clubs and secure $1,050 (or the portion not credited to members) in recognition points for later use.
  4. If the decision is to distribute credits, then a Multiple Donor Form (94-EN) would need to be submitted showing the amount credited to each member. The pre-populated version is easier to use than the blank version.
  5. If the decision is to make the contribution on behalf of the club, then Global Contribution Form (123 EN) would need to be filled out. Again, the pre-populated version is easier to use than the blank version. 
  6. Both forms can be mailed directly to The Rotary Foundation with the check for the amount shown in the table, above, to the address shown on the form.
  7. Alternately, Nashoba Valley, as the lead club, can collect the payments and forms from the other five clubs and send a consolidated cash contribution to the appropriate address.
To select the form to download, click here.
 
For more information, Please contact either me, District Foundation Committee Chair Sanjay Deshpande, at sanjdesh51@aol.com, or District Grants Subcommittee Chair Jorge Yarzebski at yj.rotary@gmail.com,