Perspectives on Rotary Charitable Fundraising
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1 Perspectives on Rotary Charitable Fundraising A review of charitable fundraising by Rotary Clubs in British Columbia in 2012 "We make a living by what we get, but we make a life by what we give." - Winston Churchill Report prepared by PDG Chris Offer Ladner (Delta BC) District 5040 Phone: or ChrisOffer@live.ca January
2 Perspectives on Rotary Charitable Fundraising Perspectives on Rotary Charitable Fundraising A review of charitable fundraising by Rotary Clubs in British Columbia in 2012 Introduction Rotary clubs in British Columbia are located in nearly every community across the province. Rotary s core values are fellowship, service, diversity, integrity, and leadership. The motto of Rotary is Service Above Self. In British Columbia Rotary clubs are active in an extensive and diverse range of projects and community service. Rotary clubs also support numerous international humanitarian and educational activities. The students at Northwestern University in Evanston, IL as part of a class project, undertook a study of Rotary and concluded that Rotary is a worldwide network of inspired individuals who transform their passions into relevant social causes to improve lives in communities. Fellowship Rotary s Core Values Leadership Diversity As no individual who shirks his community service can lay justifiable claim to being a well rounded citizen, so no Rotary club of today which is indifferent to the welfare of the city in which it is established measures up to the stature of fullgrown Rotary clubs. Paul Harris 1915 When I was a boy and I would see scary things in the news, my mother would say to me, ʹLook for the helpers. You will always find people who are helping.ʹ To this day, especially in times of ʹdisaster,ʹ I remember my motherʹs words and I am always comforted by realizing that there are still so many helpers so many caring people in this world. Integrity Service Mr. (Fred) Rogers 1
3 Perspectives on Rotary Charitable Fundraising During December 2012 a survey was sent to all Rotary clubs in British Columbia to establish the level of their charitable fundraising during There are 147 Rotary clubs in the province with a total membership of more than Each Rotary club is semi autonomous and therefore does not normally report charitable fundraising. The survey was answered by 70% of the Rotary clubs in the province. Clubs Members The data were collected by contacting Rotary club presidents and club secretaries via and requesting the number of members in the club and an estimate of total fundraising for charitable purposes in Financial statements or details of the funds collected were not requested. Sufficient data were collected to ensure a statistically accurate assessment of the total funds raised in the province and to extrapolate for the clubs that did not respond to the survey. The data supplied by Rotary clubs on charitable fundraising in 2012 indicates that Rotary clubs raised $8.5 million for charitable purposes. Rotary charitable fundraising in 2012 included approximately $2 million contributed to The Rotary Foundation and $1.5 million received from gaming licenses and Community Gaming Grants. For this report a broad definition of charitable donations was used. This includes all funds raised by a Rotary club for projects, humanitarian work, donations to The Rotary Foundation and funds raised for all benevolent purposes. Funds collected for club administration and Rotary dues are not included. The per capita fundraising by Rotary clubs in British Columbia is nearly $1300 per member. This is a significant achievement by Rotary clubs in British Columbia. The level of charitable fundraising is remarkable by some clubs. One club of 42 members reports more than $300,000 in fundraising in Several Rotary clubs exceeded $100,000 in fundraising in $8.5 million $1300 per capita 2
4 Perspectives on Rotary Charitable Fundraising Fundraising Rotary clubs are semi autonomous. Each club sets their own fundraising goals and each club decides how the funds will be invested in their community. Rotary clubs take on a wide variety of projects locally and internationally. Rotary clubs take on numerous projects in the communities including parks, youth programs, addiction rehabilitation, literacy, and support of various community groups. Globally Rotary clubs have diverse humanitarian projects including support for orphanages, health clinics, clean water, peace and literacy. Rotary clubs also support major initiatives by Rotary International and The Rotary Foundation. Each club is free to assess the needs in their community and decide which projects to take on. Each year Rotary International establishes various goals and clubs are encouraged to achieve these goals. How each club raises funds is also the club s decision. Clubs in British Columbia take on a wide variety of fundraising projects. This includes licensed raffles, golf tournaments, auctions, fundraising dinners, calendar sales and a wide variety of unique initiatives. Rotary Fundraising in BC 2012 The Rotary Foundation 23% General Fundraising 59% Gaming 6% Gaming Grants 12% Administrative Costs Rotary clubs in British Columbia do not use a professional fundraising staff. Some of the larger clubs and districts use part time clerical staff for bookkeeping. Rotary clubs in British Columbia do not have full time paid executive directors or any other paid staff. Rotary clubs are a voluntary organization. Fundraising is done by club members. The only fundraising costs are those incurred by a specific event such as a fundraising dinner, golf tournament or for printing publicity material such as posters. The 3
5 Perspectives on Rotary Charitable Fundraising Rotary Foundation has one full time employee and one full time contract employee in Canada both located in Ontario. What percent of the fundraising could be attributed to administrative costs is not known. However it is reasonable to assume that is two or three percent for administration. There is no paid staff, no support structure such as office rental and very limited advertising budgets. Registered charitable status The Canadian Revenue Agency (CRA) has specific rules for groups wishing to be a registered charity. The majority of Rotary clubs are not registered charities. Some Rotary clubs are incorporated provincially or federally but are not a registered charity. In some cases this is to assist in property ownership or issues of potential liability related to projects. Rotary International places restrictions on Rotary clubs who incorporate to ensure the corporation or society complies with Rotary bylaws. CRA restricts how service clubs can obtain charitable status. Those Rotary clubs that have charitable status are restricted to focus on a particular charitable purpose set out in their application for charitable status. The Canadian Revenue Agency website lists 336 registered charities in Canada with the word Rotary in the name. A total of 46 of these Rotary registered charities are in BC (see list in Appendix B). However there are other Rotary registered charities that do not use Rotary in their name. Therefore it is difficult to assess how many registered charities are affiliated with Rotary clubs in the province. Each of these registered charities has a limited and specific purpose. For example some charities focus on raising funds for seniors housing, hearing research, scholarships or a specific international project. The majority of fundraising done by Rotary clubs falls outside its CRA reporting. This means that Rotary clubs do not issue income tax receipts for their fundraising initiatives. Rotary International however does have guidelines on how clubs record their charitable fundraising. Rotary clubs do submit financial reports to their members as required by each clubʹs bylaws. However Rotary clubs do not submit financial statements to the Rotary district or to Rotary International. The impact on the ability of Rotary clubs to issue tax receipts on fundraising is beyond the scope of this report. However there is significant research that indicates that tax receipts are well down the list of reasons why people donate funds to a charity or cause. There is a significant administrative burden for a Rotary club that is incorporated and is a registered charity. The fact that the majority of Rotary fundraising is free from CRA rules allows clubs to be creative and innovative in how they invest the money in their community locally and internationally. Rotary clubs 4
6 Perspectives on Rotary Charitable Fundraising are not restricted by the terms of a registered charity and how they use funds raised. Where the funds are raised through a registered charity the clubs must follow the bylaws of the charity. There are also specific rules that apply to funds received through licensed gaming and gaming grants. The Rotary Foundation Approximately $2 million was raised for The Rotary Foundation by Rotary clubs in British Columbia in The Rotary Foundation is the charitable arm of Rotary International and is a registered charity in Canada. The Rotary Foundation carries out an array of humanitarian and educational projects around the world. These grants whether local or international vary in the formula used. The $2 million fund raised in 2012 by Rotary clubs in British Columbia for The Rotary Foundation includes donations to the annual program fund, funds directed to the polio eradication initiative and funds for The Rotary Foundation permanent fund (endowment fund). A portion of the funds raised by Rotary clubs for The Rotary Foundation flows back to the Rotary districts and is available to the clubs in the form of grants. It is estimated that $500,000 was available in British Columbia in 2012 for local and international grants. The formula for these grants varies. The grant system is changing effective July as part of the Rotary Future Vision Plan. Gaming Revenue In 2012 Rotary clubs raised approximately $500,000 from licensed gaming revenue. These are funds from licensed raffles, draws, bingos and special licensed events. An additional $1 million was received from Community Gaming Grants. In 2012 Rotary clubs received a total of just over $1.5 million in gaming revenue. See Appendix A for a list of funds raised from gaming revenue. Organization of Rotary districts in British Columbia Rotary clubs are organized into districts. The number of clubs in each district varies but the average in British Columbia is approximately 50 clubs in each district. District boundaries have developed historically. The primary goal of district boundaries is to balance the number of Rotary clubs and Rotarians in each district. The boundaries are reviewed at the request of districts and have not been adjusted in BC for more than 25 years. The district boundaries do not follow geographic or political boundaries. Therefore the Rotary districts in British Columbia overlap into Washington, Idaho and Alberta. This makes collecting data unique to British Columbia from Rotary clubs a challenge. There are six Rotary districts with clubs in British Columbia: 1. District 5020 has Rotary clubs on Vancouver Island and in Washington 2. District 5040 is the only district with all its clubs in British Columbia, includes Metro Vancouver, Sunshine Coast, Cariboo, northern British Columbia and northwest coast 3. District 5050 has Rotary clubs in Metro Vancouver, Fraser Valley and Washington 5
7 Perspectives on Rotary Charitable Fundraising 4. District 5060 has Rotary clubs in the Okanagan Valley and central Washington 5. District 5080 has Rotary clubs and southeast British Columbia, eastern Washington and northern Idaho 6. District 5370 has Rotary clubs in the Peace River area of British Columbia, Alberta, Northwest Territories and a small part of Saskatchewan ALBERTA 5370 Rotary Club Central In the future it will be possible to obtain statistical information while respecting the autonomy of Rotary clubs with a new online tool available on the RI website Rotary Club Central. The new tool empowers club and district leaders to monitor club progress and achievements in three key performance areas: membership initiatives, service activities, and Rotary Foundation giving. Rotary Club Central includes charts that track membership retention and Annual Fund giving over the past five years. District leaders can view a summary of club progress. All club members can view club goals and achievements for all years. 6
8 Perspectives on Rotary Charitable Fundraising Conclusion Locally a Rotary club is a small philanthropic organization that contributes to a variety of local and international community humanitarian and educational projects. Provincially at $8.5 million Rotary is in the top tier of charities in BC. Globally Rotary raises conceivably $1.5 billion every year in the nearly 35,000 Rotary clubs in 200 countries and geographic areas. This makes Rotary one of the world s largest charities. This study focused only on the fundraising done by Rotarians. These dollars are leveraged by the tens of thousands of volunteer hours of service Rotary club members contribute every year. Thousands of contributions are made in services in kind donated by club members and other members of the community. It is almost impossible to put a dollar value on the volunteer time or the service in kind donated to enhance service projects. The outstanding fundraising ability of Rotary Clubs in British Columbia makes for better and more caring communities in the province and globally. The funds and volunteer time donated by Rotary clubs to their community locally and internationally brings life to the Rotary motto of Service Above Self. 7
9 Perspectives on Rotary Charitable Fundraising Appendix A Gaming Revenue and Community Gaming Grants received by Rotary Clubs in British Columbia B List of Registered Charities in British Columbia with word Rotary in their name 8
10 Gaming Policy and Enforcement Branch Gaming Revenue Granted to, and Earned by Community Organizations /12 Data for organizations with word "Rotary" in their name. Notes: * Prior multi-year grant commitments include former direct access and bingo affiliation grants. Gaming event licence reported earnings as of July 17, 2012, including losses. This report does not include, or show, unused grant funds returned by an organization. Organization Name Abbotsford Abbotsford Sumas Abbotsford- Matsqui Aldergrove Armstrong Burnaby Burnaby - Deer Lake Burnaby Metrotown Campbell River Campbell River - Daybreak Chemainus Chilliwack Chilliwack Fraser Chilliwack Mount Cheam Clearwater Colwood GRANTS Community Gaming Grants Prior Multi- Year Grant Commitments Independent Bingo GAMING LICENCES Ticket Raffle Wheel of Fortune Total $0.00 $18, $0.00 $0.00 $0.00 $18, $0.00 $14, $0.00 $0.00 $0.00 $14, $0.00 $1, $0.00 $0.00 $0.00 $1, $10, $0.00 $0.00 $0.00 $0.00 $10, $16, $0.00 $0.00 $0.00 $0.00 $16, $0.00 $33, $0.00 $0.00 $0.00 $33, $9, $0.00 $0.00 $0.00 $0.00 $9, $0.00 $3, $0.00 $2, $0.00 $5, $0.00 $17, $0.00 $0.00 $0.00 $17, $0.00 $15, $0.00 $20, $0.00 $35, $0.00 $15, $0.00 $0.00 $0.00 $15, $0.00 $0.00 $0.00 $32, $0.00 $32, $0.00 $16, $0.00 $0.00 $0.00 $16, $0.00 $9, $0.00 $0.00 $0.00 $9, $5, $0.00 $0.00 $0.00 $0.00 $5, $14, $0.00 $0.00 $ $0.00 $14, Appendix Page 1
11 Comox Coquitlam Coquitlam - Sunrise Courtenay Cranbrook Creston Valley Dawson Creek Duncan Fort Nelson Haney Hope Kamloops Kamloops Daybreak Kamloops North Kelowna Kelowna - Ogopogo Ladysmith Lake Country Society Langley Langley Central Lantzville Society Lions Gate - North Vancouver Mackenzie $7, $0.00 $0.00 $0.00 $0.00 $7, $15, $0.00 $0.00 $0.00 $0.00 $15, $22, $0.00 $0.00 $0.00 $0.00 $22, $10, $0.00 $0.00 $0.00 $0.00 $10, $0.00 $0.00 $0.00 $22, $0.00 $22, $0.00 $0.00 $0.00 $1, $0.00 $1, $0.00 $0.00 $0.00 $9, $0.00 $19, $18, $0.00 $0.00 $0.00 $0.00 $18, $0.00 $0.00 $0.00 $11, $0.00 $11, $27, $0.00 $0.00 $0.00 $0.00 $27, $0.00 $0.00 $0.00 $4, $0.00 $4, $0.00 $11, $0.00 $0.00 $0.00 $11, $0.00 $25, $0.00 $0.00 $0.00 $25, $0.00 $4, $0.00 $7, $0.00 $12, $16, $0.00 $0.00 $0.00 $0.00 $16, $10, $0.00 $0.00 $2, $0.00 $12, $0.00 $18, $0.00 $0.00 $0.00 $18, $30, $0.00 $0.00 $0.00 $0.00 $30, $0.00 $0.00 $0.00 $1, $0.00 $1, $15, $0.00 $0.00 $3, $0.00 $18, $0.00 $18, $0.00 $12, $0.00 $30, $9, $0.00 $0.00 $0.00 $0.00 $9, $0.00 $0.00 $0.00 $2, $0.00 $2, Appendix Page 2
12 Meadow Ridge Merritt Sunrise Rotary Club Of Nanaimo Nanaimo Daybreak Nanaimo North Rotary Club Of Nelson Daybreak New Westminster North Vancouver Rotary Club Of Oak Bay Parksville Peachland Penticton Penticton- Okanagan Port Alberni Society Port Coquitlam Centennial Port Moody Powell River Prince George Rotary Club Of Prince George- Nechako Prince Rupert Quesnel Revelstoke Richmond Sunrise $30, $0.00 $0.00 $70, $0.00 $100, $2, $0.00 $0.00 $0.00 $0.00 $2, $0.00 $17, $0.00 $0.00 $0.00 $17, $0.00 $16, $0.00 $5, $0.00 $24, $0.00 $16, $0.00 $0.00 $0.00 $16, $0.00 $0.00 $0.00 $5, $0.00 $5, $0.00 $32, $0.00 $ $0.00 $32, $0.00 $0.00 $0.00 $2, $0.00 $2, $0.00 $0.00 $0.00 $ $0.00 $ $20, $0.00 $0.00 $0.00 $0.00 $20, $0.00 $0.00 $0.00 $1, $0.00 $1, $0.00 $25, $0.00 $0.00 $0.00 $25, $0.00 $20, $0.00 $0.00 $0.00 $20, $0.00 $0.00 $0.00 $6, $0.00 $6, $30, $0.00 $0.00 $0.00 $0.00 $30, $8, $0.00 $0.00 $0.00 $0.00 $8, $0.00 $0.00 $0.00 $11, $24.99 $11, $40, $0.00 $0.00 $17, $0.00 $57, $15, $0.00 $0.00 $28, $0.00 $43, $13, $0.00 $0.00 $0.00 $0.00 $13, $19, $0.00 $0.00 $1, $0.00 $20, $0.00 $0.00 $0.00 $14, $0.00 $14, $0.00 $0.00 $0.00 $7, $0.00 $7, Appendix Page 3
13 Royal Oak Saanich ( Victoria) Salmon Arm Salmon Arm - Shuswap Salmon Arm Daybreak Saltspring Island Sechelt Sidney by the Sea Sidney, British Columbia South Cowichan (Mill Bay) Squamish Strathcona Sunrise Summerland Surrey Surrey - Guildford Terrace the Sunshine Coast - Sechelt Tsawwassen Vancouver Vernon Vernon - Silver Star $8, $0.00 $0.00 $0.00 $0.00 $8, $8, $0.00 $0.00 -$1, $0.00 $6, $0.00 $22, $0.00 $0.00 $0.00 $22, $13, $0.00 $0.00 $7, $0.00 $20, $0.00 $16, $0.00 $2, $0.00 $19, $0.00 $0.00 $0.00 $6, $0.00 $6, $0.00 $0.00 $0.00 $22, $0.00 $22, $0.00 $0.00 $0.00 $1, $0.00 $1, $0.00 $0.00 $4, $0.00 $2, $6, $18, $0.00 $0.00 $11, $0.00 $29, $15, $0.00 $0.00 $0.00 $0.00 $15, $14, $0.00 $0.00 $3, $0.00 $17, $0.00 $28, $0.00 $0.00 $0.00 $28, $0.00 $40, $0.00 $0.00 $0.00 $40, $15, $0.00 $0.00 $0.00 $0.00 $15, $0.00 $0.00 $0.00 $20, $0.00 $20, $0.00 $0.00 $0.00 $ $0.00 $ $10, $0.00 $0.00 $7, $0.00 $17, $43, $0.00 $0.00 $0.00 $0.00 $43, $0.00 $8, $0.00 $0.00 $0.00 $8, $0.00 $18, $0.00 $9, $0.00 $27, Appendix Page 4
14 Victoria West Vancouver Sunrise Westbank Rotary Club Vancouver Arbutus $0.00 $0.00 $0.00 $48, $0.00 $48, $4, $0.00 $0.00 $0.00 $0.00 $4, $18, $0.00 $0.00 $0.00 $0.00 $18, $37, $0.00 $0.00 $0.00 $0.00 $37, Totals $618, $479, $4, $447, $2, $1,565, GRANTS GAMING LICENCES Prior Multi- Organization Community Independent Wheel of Year Grant Ticket Raffle Total Name Gaming Grants Bingo Fortune Commitments Appendix Page 5
15 Registered Rotary Charities in British Columbia List of Registered Charities in BC with Rotary in the organization name. Data from CRA website. There are additional charities affiliated with Rotary Clubs in BC that do not have Rotary in the name of the charity. Name of Chariaty Date City Registered 1. Campbell River Rotary Club Foundation Campbell River 2. Coquitlam Rotary Club Foundation Society Coquitlam 3. Fernie Rotary Golf Foundation Fernie 4. Merritt Rotary Club Society Merritt 5. Rotary Club Of Steveston-Richmond Charitable Society Richmond 6. Rotary Club Of Abbotsford Foundation Abbotsford 7. Rotary Club Of Burnaby Foundation Burnaby 8. Rotary Club Of Coquitlam Centre Foundation Belcarra 9. Rotary Club Of Kelowna - Ogopogo Charitable Society Kelowna 10. Rotary Club Of Kelowna Foundation Kelowna 11. Rotary Club Of Kelowna Sunrise Charitable Society Kelowna 12. Rotary Club Of Lantzville Society Lantzville 13. Rotary Club Of Nanaimo Charitable Society Nanaimo 14. Rotary Club Of Port Moody Foundation Port Moody 15. Rotary Club Of Qualicum Beach Sunrise Society Qualicum Beach 16. Rotary Club Of Richmond A.M. Foundation Richmond 17. Rotary Club Of Richmond Foundation Richmond 18. Rotary Club Of Salt Spring Island Foundation Salt Spring Isl 19. Rotary Club Of Sechelt Foundation Sechelt 20. Rotary Club Of Semiahmoo, (White Rock), B.C. Canada Charitable Trust White Rock 21. Rotary Club Of Squamish Foundation Squamish 22. Rotary Club Of Surrey Foundation Surrey 23. Rotary Club Of Surrey-Guildford Foundation Surrey 24. Rotary Club Of Tsawwassen Charitable Society Richmond 25. Rotary Club Of Vancouver Sunrise Foundation North Vancouver 26. Rotary Club Of Victoria British Columbia Foundation Victoria 27. Rotary Club Of Victoria-Harbourside Foundation Victoria 28. Rotary Club Of West Vancouver Foundation West Vancouver Appendix Page 6
16 29. Rotary Club Of West Vancouver Sunrise Foundation West Vancouver 30. Rotary Clubs Of The Lower Mainland Of BC World Help Network Vancouver 31. Sandover-Sly Memorial Fund For Youth Exchange Terrace Program Of Rotary International 32. Sooke Rotary Community Organization Sooke 33. South Cowichan Rotary Club Foundation Mill Bay 34. Summerland Rotary Charitable Trust Fund Summerland 35. The Rotary Club Of Colwood Foundation Victoria 36. The Rotary Club Of Oak Bay Foundation Victoria 37. The Rotary Club Of Parksville Community Foundation Parksville 38. The Rotary Club Of Saanich Foundation Victoria 39. The Salvation Army Richmond Rotary Hospice Richmond 40. The White Rock Rotary Clubs Service Foundation Surrey 41. Vancouver Arbutus Rotary Fund Vancouver 42. Vancouver Rotary Club Foundation Vancouver 43. Whistler Rotary Club Foundation Whistler 44. White Rock Peace Arch Rotary Trust Surrey 45. White Rock Rotary Club Charitable Society Surrey Mile House Rotary Club Fund Mile House Appendix Page 7
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