Rotary International Convention

During the RI Convention Business Session this afternoon, all 2017-19 RI Directors, 2017-18 Governors, and the 2017-18 RI President were elected and thus confirmed.

Summary of John Hewko’s report:

1. Rotary’s #1 priority is the eradication of polio. The 2016-17 fundraising goal is US$35 million. The Bill & Melinda Gates Foundation will match US$2 for every US$1 raised, up to US$70 million per year.

2. Rotary’s public image is 15% visual, 85% telling our story. We tell our story using the narrative structure: “Join Leaders, Exchange Ideas, Take Action.”

3. Some 500 articles have been written on Rotary in 20 countries by well-known media producers such as Forbes, AP, AFP, BBC, CNN, Reuters, New York Times, Washington Post, and Wall Street Journal.

4. Membership is Rotary’s #1 internal priority. It’s not just about attracting new members but also about enhancing the club experience for members. As at end-April, Rotary’s membership stands at 1,239,401.

5. We must attract new members but also must engage existing members to retain them. Several ways we can do this:

5.1 Flexibility. We can no longer offer a one-size-fits-all solution for club meetings, attendance, and membership.

5.2 Rotary Club Central and rotary.org website. We must be creative and enrich the member experience.

6. Without The Rotary Foundation we won’t be the great organization we are today. In the coming Centennial year we remember the millions of lives we’ve changed in the last 100 years and look forward to transforming lives in the next 100 years.

7. Among other accolades, The Rotary Foundation is recognized by Charity Navigator as a 4-star charity and ranked #5 in the CNBC Top Ten charities.

8. The 2016-17 Annual Fund goal is US$130 million. The Endowment Fund assets now exceed US$1 billion, ahead of its original 2017 target date. The Rotary Peace Center target is US$150 million.

9. How are these funds used?

9.1 In 2015-16, total number of Global Grants approved worldwide was 888. This is 7.5% more than a year ago.

9.2 Investing in a new and improved Grant application system.

10. Power of partnerships. We’re always looking for partners for impact, e.g. Bill & Melinda Gates Foundation, World Health Organization. Another partnership in the pipeline: with USAID.

John Hewko concluded by saying those who attend RI Conventions are “among the most engaged and involved Rotarians.”

Next, Per Hoyen, RI Treasurer, gave his report.

1. Despite the generally poor economic conditions, we’re in good shape.

2. RI has two primary sources of revenue:

2.1 Rotary is the world’s foremost member-based organization. While many other similar organizations have shrunk, we held steady and even increased our membership. From 1 July 2015 to end-April 2015, we have a net membership increase worldwide of 29,910. This is our largest source of revenue. The increase from US$1 to US$4 per Rotarian in RI dues after the 2016 Council on Legislation was the most progressive move ever for our organization.

2.2 The second source of revenue is investments. RI uses a 5- to 7-year horizon rather than simply going for short-term gains. We have to maintain a reserve fund for emergencies and for liquidity.

2.3 There’s actually a third source of revenue: from events such as the Councils on Legislation, RI Conventions, and rental income from the RI Headquarters building in Evanston. Surpluses from profitable RI Conventions are put in a reserve for other convention losses.

3. Now for the expenses. In 2015-16, RI enjoyed savings from staffing and travel. Even the RI President’s expenses are below budget. Total savings this year was in excess of US$1 million.

4. Reducing costs is not new to Rotary. We must constantly look out for areas where costs can be reduced.

5. Rotary Global Rewards. This is Rotary’s investment for the future. It’s also a way for Rotary to give back to Rotarians.

6. The RI Finance Committee is studying a risk-based reserve for the organization.

7. We are happy to note that while membership has increased, costs have decreased.