Mission: The Rotary Foundation's mission is to advance world understanding, goodwill, and peace. Rotary Foundation grants promote peace, fight disease, provide clean water an ... (More)

The Rotary Foundation of Rotary International is a 501(c)(3) organization, with an IRS ruling year of 1983, and donations are tax-deductible.

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Contact Information

  https://www.rotary.org/myrotary/en/rotary-foundation

 One Rotary Center
1560 Sherman Avenue
Evanston IL 60201 

  14280 Collections Center Drive
Chicago IL 60693

  866-976-8279


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Star Rating System by Charity Navigator


Charity Navigator evaluates a nonprofit organization’s financial health including measures of stability, efficiency and sustainability. We also track accountability and transparency policies to ensure the good governance and integrity of the organization.




Exceptional

This charity's score is 99.40, earning it a 4-Star rating. Donors can "Give with Confidence" to this charity. 

This score is calculated from two sub-scores:

This score represents Form 990 data from 2019, the latest year published by the IRS.

View this organization’s historical ratings.


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Star Rated Report

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Program Expense

Program Expense Ratio

89.8%


The Program Expense Ratio is determined by Program Expenses divided by Total Expense (average of most recent three 990s).


This measure reflects the percent of its total expenses a charity spends on the programs and services it exists to deliver. Dividing a charity's average program expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Administrative Expenses

3.8%


As reported by charities on their IRS Form 990, this measure reflects what percent of its total budget a charity spends on overhead, administrative staff and associated costs, and organizational meetings. Dividing a charity's average administrative expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Fundraising Expenses

6.3%


This measure reflects what a charity spends to raise money. Fundraising expenses can include campaign printing, publicity, mailing, and staffing and costs incurred in soliciting donations, memberships, and grants. Dividing a charity's average fundraising expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Liabilities to Assets Ratio

10.5%


The Liabilities to Assets Ratio is determined by Total Liabilities divided by Total Assets (most recent 990).


Part of our goal in rating the financial performance of charities is to help donors assess the financial capacity and sustainability of a charity. As do organizations in other sectors, charities must be mindful of their management of total liabilites in relation to their total assets. This ratio is an indicator of an organization’s solvency and or long term sustainability. Dividing a charity's total liabilities by its total assets yields this percentage.


Source: IRS Form 990

Fundraising Efficiency

$0.06


The amount spent to raise $1 in charitable contributions. To calculate a charity's fundraising efficiency, we divide its average fundraising expenses by the average total contributions it receives. We calculate the charity's average expenses and average contributions over its three most recent fiscal years.


Source: IRS Form 990

Working Capital Ratio

2.50 years


Determines how long a charity could sustain its level of spending using its net available assets, or working capital, as reported on its most recently filed Form 990. We include in a charity's working capital unrestricted and temporarily restricted net assets, and exclude permanently restricted net assets. Dividing these net available assets in the most recent year by a charity's average total expenses, yields the working capital ratio. We calculate the charity's average total expenses over its three most recent fiscal years.


Source: IRS Form 990

Program Expense Growth

7.16%


We compute the average annual growth of program expenses using the following formula: [(Yn/Y0)(1/n)]-1, where Y0 is a charity's program expenses in the first year of the interval analyzed, Yn is the charity's program expenses in the most recent year, and n is the interval of years passed between Y0 and Yn.


Source: IRS Form 990

Governance


Charity Navigator looks to confirm on the Form 990 that the organization has these governance practices in place.


Sources Include: IRS Form 990

Governance:
Independent Voting Board Members  ... (More)
No Material Diversion of Assets ... (More)

A diversion of assets – any unauthorized conversion or use of the organization's assets other than for the organization's authorized purposes, including but not limited to embezzlement or theft – can seriously call into question a charity's financial integrity. We check the charity's last two Forms 990 to see if the charity has reported any diversion of assets. If the charity does report a diversion, then we check to see if it complied with the Form 990 instructions by describing what happened and its corrective action. This metric will be assigned to one of the following categories:

  • Full Credit: There has been no diversion of assets within the last two years.

  • Partial Credit: There has been a diversion of assets within the last two years and the charity has used Schedule O on the Form 990 to explain: the nature of the diversion, the amount of money or property involved and the corrective action taken to address the matter. In this situation, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: There has been a diversion of assets within the last two years and the charity's explanation on Schedule O is either non-existent or not sufficient. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
(Less)
Audited Financials Prepared by Independent Accountant ... (More)

Audited financial statements provide important information about financial accountability and accuracy. They should be prepared by an independent accountant with oversight from an audit committee. (It is not necessary that the audit committee be a separate committee. Often at smaller charities, it falls within the responsibilities of the finance committee or the executive committee.) The committee provides an important oversight layer between the management of the organization, which is responsible for the financial information reported, and the independent accountant, who reviews the financials and issues an opinion based on its findings. We check the charity's Form 990 reporting to see if it meets this criteria.

  • Full Credit: The charity's audited financials were prepared by an independent accountant with an audit oversight committee.

  • Partial Credit: The charity's audited financials were prepared by an independent accountant, but it did not have an audit oversight committee. In this case, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: The charity did not have its audited financials prepared by an independent accountant. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
(Less)
Does Not Provide Loan(s) to or Receive Loan(s) From Related Parties ... (More)
Documents Board Meeting Minutes ... (More)
Distributes 990 to Board Before Filing ... (More)
Compensates Board ... (More)

Policies


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization has these policies in place.


Sources Include: IRS Form 990 and organization's website

Policies:
Conflict of Interest  ... (More)
Whistleblower ... (More)
Records Retention and Destruction ... (More)
CEO Compensation Process ... (More)
Donor Privacy ... (More)

Donors have expressed extreme concern about the use of their personal information by charities and the desire to have this information kept confidential. The exchanging and sale of lists for telemarketing and the mass distribution of "junk mail," among other things, can be minimized if the charity assures the privacy of its donors. Privacy policies are assigned to one of the following categories:

  • Yes: This charity has a written donor privacy policy published on its website, which states unambiguously that (1) it will not share or sell a donor's personal information with anyone else, nor send donor mailings on behalf of other organizations or (2) it will only share or sell personal information once the donor has given the charity specific permission to do so.

  • Opt-out: The charity has a written privacy policy published on its website which enables donors to tell the charity to remove their names and contact information from lists the charity shares or sells. How a donor can have themselves removed from a list differs from one charity to the next, but any and all opt-out policies require donors to take specific action to protect their privacy.
  • No: This charity either does not have a written donor privacy policy in place to protect their contributors' personal information, or the existing policy does not meet our criteria.

The privacy policy must be specific to donor information. A general website policy which references "visitor" or "user" personal information will not suffice. A policy that refers to donor information collected on the website is also not sufficient as the policy must be comprehensive and applicable to both online and offline donors. The existence of a privacy policy of any type does not prohibit the charity itself from contacting the donor for informational, educational, or solicitation purposes.

(Less)

Transparency


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization makes this information easily accessible.


Sources Include: IRS Form 990 and organization's website

Transparency:
CEO Salary Listed on 990 ... (More)
Board of Directors Listed on Website ... (More)
Key Staff Listed on Website ... (More)
Audited Financial Statements on Website ... (More)
Form 990 Available on Website ... (More)

Additional Information

Unscored

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Total Revenue and Expenses

Total Revenue and Expenses

This chart displays the trend of revenue and expenses over the past several years for this organization, as reported on their IRS Form 990.

Salary of Key Persons

Presented here are this organizations key compensated staff members as identified by our analysts. This compensation data includes salary, cash bonuses and expense accounts and is displayed exactly how it is reported to the IRS. The amounts do not include nontaxable benefits, deferred compensation, or other amounts not reported on W-2. In some cases, these amounts may include compensation from related organizations. Read the IRS policies for compensation reporting



John Hewko, General Secretary

$185,623 (0.05% of Total Expenses)

Plus $316,061 of Compensation from Affliates

Eric Jones, Chief Investment Officer

$265,338 (0.08% of Total Expenses)

Plus $29,482 of Compensation from Affliates

Eric Schmelling, Chief Philanthropy Officer

$200,765 (0.06% of Total Expenses)

Plus $4,097 of Compensation from Affliates

Source: IRS Form 990 (page 7), filing year 2020

Business Master File Data

Below are some key data points from the Exempt Organization IRS Business Master File (BMF) for this organization. Learn more about the BMF on the IRS website


Activities:

Activity data not reported from the IRS


Foundation Status:

Organization which receives a substantial part of its support from a governmental unit or the general public   170(b)(1)(A)(vi) (BMF foundation code: 15)


Affiliation:

Independent - the organization is an independent organization or an independent auxiliary (i.e., not affiliated with a National, Regional, or Geographic grouping of organizations). (BMF affiliation code: 3)

Data Sources: IRS Forms 990

The Form 990 is a document that nonprofit organizations file with the IRS annually. We leverage finance and accountability data from it to form Encompass ratings. Click here to view this organization's Forms 990 on the IRS website (if any are available).

Pandemic Response

Due to the unprecedented nature of the pandemic, we give charities such as this one the opportunity to share the story of COVID's impact on them. Charities may submit their own pandemic responses through their nonprofit portal.


The Rotary Foundation of Rotary International reported being impacted by COVID-19 in the following ways:
  • Staffing

  • Grants Received

  • Grants Sent


How COVID-19 impacted the organization's operations financially:

The Foundation saw significant decreases in fund development and general administration expenses due to savings from lack of travel and in-person events. These savings were applied to programs.


How COVID-19 impacted the organization's delivery of programs:

Rotarians responded in a time of great need which allowed us to expand our program offerings to have grants supporting COVID-19 efforts. Our polio eradication efforts also provided a strong infrastructure to detect COVID-19 in the most remote locations.


How this organization adapted to changing conditions caused by COVID-19:

We reduced costs, all staff worked remotely, pivoted our fundraising strategy to modes that would work in a virtual setting, and held more governance meetings to ensure the work we were doing was relevant to the situation.


Innovations the organization intends to continue permanently after the pandemic:

We will continue to utilize tools developed to fundraise virtually and will also likely see more employees working from home either full time or hybridly.


Historical Ratings

Date PublishedForm 990 FYEOverall ScoreOverall Rating
Rating Version: 2.1
12/1/20202019 99.40
8/1/20192018 100.00
12/1/20182017 97.51
12/1/20172016 100.00
11/1/20162015 97.87
9/1/20162014 100.00
6/1/20162014 97.17

This organization received multiple star ratings within this fiscal year, due to an update to it's Accountability and Transparency data and/or the receipt of an amended Form 990.

Rating Version: 2.0
9/1/20152014 96.31
10/1/20142013 92.45
9/1/20132012 90.34
9/1/20122011 98.57
11/1/20112010 99.26
9/20/20112010 97.75
Rating Version: 1.0
10/1/20102009 98.81
10/1/20092008 99.08
7/1/20082007 98.45
7/1/20072006 86.45
7/1/20062005 90.92
7/1/20052004 83.23
7/1/20042003 85.78
6/9/20032002 85.56
10/15/20022001 84.15

...   Impact & Results


This score estimates the actual impact a nonprofit has on the lives of those it serves, and determines whether it is making good use of donor resources to achieve that impact.


Impact & Results Score

Not Currently Scored

The Rotary Foundation of Rotary International cannot currently be evaluated by our Encompass Rating Impact & Results methodology because either (A) it is eligible, but we have not yet received data; (B) we have not yet developed an algorithm to estimate its programmatic impact; (C) its programs are not direct services; or (D) it is not heavily reliant on contributions from individual donors.

Note: The absence of a score does not indicate a positive or negative assessment, it only indicates that we have not yet evaluated the organization.

Learn more about Impact & Results.

Do you work at The Rotary Foundation of Rotary International? Join the waitlist for an updated Impact & Results score.


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Additional Information

Unscored

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Largest Programs

Largest Programs



The Rotary Foundation of Rotary International reported its three largest programs on its FY 2020 Form 990 as:


$154,052,411

Spent in most recent FY

46%

Percent of program expenses


POLIOPLUS - THE POLIOPLUS PROGRAM IS ROTARY'S EFFORT TO ERADICATE THE POLIOVIRUS WORLDWIDE. ROTARIANS HAVE PROVIDED FINANCIAL SUPPORT AND COUNTLESS VOLUNTEER HOURS TO ENSURE THAT CHILDREN ARE IMMUNIZE ... (More)


$154,004,408

Spent in most recent FY

46%

Percent of program expenses


ROTARY GRANTS - GLOBAL GRANTS SUPPORT HUMANITARIAN PROJECTS, SCHOLARSHIPS, AND VOCATIONAL TRAINING TEAMS IN ROTARY'S AREAS OF FOCUS.DISTRICT GRANTS SUPPORT SMALLER-SCALE PROJECTS RELATED TO THE FOUNDA ... (More)


$12,882,717

Spent in most recent FY

3%

Percent of program expenses


DONOR ADVISED FUND - THE DONOR ADVISED FUND IS A CHARITABLE GIVING VEHICLE THAT OFFERS INDIVIDUALS AND ROTARY-AFFILIATED GROUPS THE ABILITY TO MAKE GRANT RECOMMENDATIONS TO SUPPORT EITHER THE ROTARY F ... (More)


...   Leadership & Adaptability


This score provides an assessment of the organization's leadership capacity, strategic thinking and planning, and ability to innovate or respond to changes in constituent demand/need or other relevant social and economic conditions to achieve the organization's mission.


Leadership & Adaptability Score

100

out of 100

The score earned by The Rotary Foundation of Rotary International is a passing score.

Encompass Rating V4 provides an evaluation of the organization's Leadership & Adaptability through the nonprofit organization submitting a survey response directly to Charity Navigator.


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Leadership & Adaptability Report

100

of 100 points

Mission

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s mission


The Rotary Foundation helps Rotary members to advance world understanding, goodwill, and peace by improving health, providing quality education, improving the environment, and alleviating poverty. The Foundation is a worldwide leader in the efforts to eradicate polio through its partnership in the Global Polio Eradication Initiative (GPEI). Since 1988, Rotary and its partners in the GPEI have immunized over 3 billion children, reducing the incidence of polio by 99.9 percent and eradicating it from all but two countries. Rotary has contributed more than $2.2 billion and thousands of volunteer hours to eradication efforts. The Foundation also funds training of peacemakers through the Rotary Peace Center program.


Source: Nonprofit submitted responses

Vision

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s vision.


Together, we see a world where people unite and take action and create lasting change – across the world, in our communities, and in ourselves.


Source: Nonprofit submitted responses

Strategic Goals

The nonprofit organization presents evidence of strategic thinking and goal setting through sharing their most important strategic goals.


Goal One: Eradicate polio.

Goal Type: This goal reflects our commitment to further our advocacy work for our organization and or cause area.


Goal Two: Increase contributions to the Annual Fund, PolioPlus Fund and the Endowment.

Goal Type: Invest in the capacity of our organization (financial, management, technical, etc.).


Goal Three: Improve and effectively communicate the measurable impact of the Foundation's grants.

Goal Type: Grow, expand, scale or increase access to the existing programs and services.


Source: Nonprofit submitted responses

Leadership Development

The nonprofit provides evidence of investment in leadership development


Describe an investment in leadership

Annual trainings and orientations take place for every incoming leader at all levels of the organization. For example, 500+ leaders from across the globe are trained together each year for their upcoming term. Additionally, leadership retreats and board development take place annually. Rotary is focused on Diversity, Equity and Inclusion (DEI) efforts, including special sessions with leadership. For example, a new DEI statement was adopted, a DEI Committee was appointed and specific goals were set.

Source: Nonprofit submitted responses

Mobilizing for Mission

The nonprofit provides evidence of leadership through focusing externally and mobilizing resources for the mission.


This organization mobilizes for mission in the following ways:
  • Strategic Partnerships

  • Networks of Collective Impact Efforts

  • Thought Leadership

  • Raising Awareness

  • Community Building

  • Policy Advocacy

What are this organization’s external mobilizaton efforts?

Rotary leadership focuses on partnerships, thought leadership, networking, training, and advocacy. With our GPEI partners, the Bill & Melinda Gates Foundation (B&MGF), WHO, CDC, UNICEF, and GAVI, we’ve made the world 99.9 percent polio-free. Programs of Scale, co-funded by the B&MGF and World Vision, supports Rotarian-led Partners for a Malaria-Free Zambia to reduce the disease 90% in two key provinces. A study done with John Hopkins estimates Rotarians volunteer some 47 million hours, valued at $850 million, in a typical year. Thirty Rotary leaders serve as unofficial ambassadors to 22 United Nations agencies and key international organizations in 13 cities worldwide. Our 2020 virtual convention attracted 175,000 viewers and our online leadership series with Toastmasters drew 15,000 registrants. Rotary social channels reach an audience of 2.5 million. Last year’s World Polio Day raised awareness through 5,900 events in 136 countries, generating 4.8 million in social engagement.

Source: Nonprofit submitted responses

Story of Adaptability

The nonprofit has an opportunity to tell the story of how the organization adapted to tremendous external changes in the last year.


In 2019-20, The Rotary Foundation awarded over $307 million in grants for the first time in its history, advancing the Foundation’s strategic goals like never before. The COVID-19 pandemic brought unprecedented challenges to communities around the world. Where help was needed, Rotary responded. By 30 June 2020, the Foundation had awarded nearly $22 million for COVID-19-related projects. Outside of funding an exceptional amount of grants, Rotary members served their communities in the time of greatest need, with over 65% of clubs participating in a COVID-19 service project. Over 72% of Rotary clubs also transitioned their weekly in-person meetings to a virtual format.

Source: Nonprofit submitted responses

...   Culture & Community


This score provides an assessment of the organization's engagement with the constituents it serves, a practice we term Constituent Feedback. When organizations listen to constituents, they are able to better deliver on programs and meet the needs of stakeholders. A future version of this Beacon will also assess an organization's people operations and its Diversity, Equity and Inclusion (DEI) metrics.


Culture & Community Score

Not Currently Scored

The Rotary Foundation of Rotary International is currently not eligible for a Culture & Community score because we have not received its Constituent Feedback data. Nonprofit organizations are encouraged to fill out the How We Listen section of their Candid profile. This data will provide the basis for the initial evaluation of Culture & Community.

Note: The absence of a score does not indicate a positive or negative assessment, it only indicates that we have not yet evaluated the organization.


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Culture & Community Report

Unscored

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Constituent Feedback

Constituent Feedback


Constituent Feedback and Listening Practice data are not available for this organization. Nonprofit organizations are encouraged to fill out the How We Listen section of their Candid profile. This data will provide the basis for the initial evaluation of Culture & Community.


Charity Navigator believes nonprofit organizations that engage in inclusive practices, such as collecting feedback from the people and communities they serve, may be more effective. We award every nonprofit that completes the Candid survey full credit for this Beacon, in recognition of their willingness to publicly share this information with the nonprofit and philanthropic communities. Although the data is not evaluated for quality at this time, future iterations of this Beacon will include third party or other data that will serve to validate the information provided by the nonprofit.

Analysis and Research


Like the overall Encompass Rating System, the Culture & Community Beacon is designed to evolve as metrics are developed and ready for integration. Our partnership with Feedback Labs and Guidestar by Candid, and other partners including Fund for Shared Insight, GlobalGiving, and Keystone Accountability, enables us to launch the first version of this beacon with Constituent Feedback information collected on Candid's site.


Feedback practices have been shown to support better Diversity, Equity, and Inclusion outcomes, an essential area of assessment that we intend to further expand and develop in the future. Feedback Labs has documented several studies which indicate that beyond achieving organizational goals, nonprofits that are attentive and responsive to concerns and ideas raised by beneficiaries establish stronger relationships with the people they serve, promote greater equity, and empower constituents in ways that can help to ensure better long-term outcomes. You can find resources to help nonprofits improve their feedback practices here.

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