ITS HISTORY AND ACHIEVEMENTS.

This memo is to present a brief history of the organization and growth of the Rotary Foundation and what is has accomplished since its inception.

1917 - At the convention held in Atlanta, Georgia, U.S.A., Arch Klumph, president of the then International Association of Rotary Clubs, spoke of the need for some type of endowment in order to carry out "some great educational service to mankind." He said, "it seems eminently proper that we should accept endowments for the purpose of doing good in the world in charitable, educational or other avenues of community service."

The reaction to the suggestion was not entirely spontaneous and six years later the fund amounted to only $709.92. Later there was added to this amount a sum of money from a fund which had been collected for relief. This brought the total to $3,893.35.

1928 - The Minneapolis convention gave full recognition to the suggestion made eleven years prior, and approved the establishment of what is now known as the Rotary Foundation. The By-Laws of Rotary International were amended to make provision for the Foundation under the supervision of five trustees.

1931 - The board of directors of Rotary International ratified the action of the trustees by arranging for a declaration of trust between Rotary International and the trustees of the Foundation which had the legal effect of guaranteeing the perpetuity of the Foundation. Thus the idea originating in the mind of Arch Klumph 14 years earlier became a reality, with well-defined purposes and administrative plans. With $5,739.07 now in the treasury the Rotary Foundation was on its way.

1932 - The first Foundation Committee was appointed and in the succeeding five years, due to the untiring efforts of the members of these committees, the surplus of the Foundation rose to approximately $56,000. In addition to this, contingent assets consisting of insurance policies and will bequests in which the Rotary Foundation was named as the beneficiary, amounted to approximately $43,000.

1937 - Rotary was growing in prestige as well as membership; its voice was being heard around the world. The board of directors felt that the dignity of the expanding organization called for a larger fund and that a campaign should be undertaken to raise funds particularly for the purpose of promoting the fourth avenue of Rotary service. The announcement that the board of directors was planning a two million dollar fund was made at the 1937 Nice convention.

1938 - Approval of the plan to raise a two million dollar fund was given by the convention held in San Francisco and detailed plans were made to carry out this very worth-while program. The thunder clouds of war were starting together in Europe and before much could be accomplished the storm broke loose and soon the world was plunged into the darkness of World War II. During the war years the board of directors approved the transfer of $375,000 from the surplus of Rotary International to the Rotary Foundation.

1945 - The Rotary Foundation Committee made a complete review of the history of the Foundation and found that a re-statement of its objectives, in the light of changing world conditions would be most desirable.

These objectives now read as follows:

1.-the promotion of Rotary Foundation Fellowships for Advanced Study.

2.-the fostering of any tangible and effective projects which have as their purpose the furthering of better understanding and friendly relations between the peoples of different nations, and

3.-the providing of emergency relief for Rotarians and their families wherever war or other disaster has brought general destruction and suffering.

The plans for the two million dollar campaign which had been proceeding slowly during the war were re-activated and splendid progress was made by the Foundation committees serving since that time.

1947 - Two days after the January 1947 meeting of the board of directors had adjourned, Paul Harris, the beloved founder of Rotary passed away. Immediately requests from many parts of the world poured into the secretariat asking what might be done to honor the Founder of Rotary.

Paul had always evidenced great interest in the Foundation as an agency to promote the fourth avenue of Rotary service. One of the last thoughts to which he gave expression was the hope that whatever Rotarians might want to do in his honor, there was nothing he desired more than to advance world understanding. President Richard Hedke and Chairman Harry Rogers, of the Rotary Foundation Committee, therefore suggested to all clubs that it would be most appropriate for individual Rotarians to make contributions to the Foundation in memory of Paul Harris.

The year 1947 also marked the inauguration of two very important projects; Rotary Foundation Fellowships for Advanced Study and the Rotary Foundation Research Fellowships.

Contributions to the Rotary Foundation: It is most gratifying to observe that clubs allover the world - recognizing the tremendous good that has been done by the Foundation - are continuing to make regular contributions. Some 100% clubs-that is clubs which have given an amount equivalent to $10.00 per member-continue to contribute on the basis of one dollar per year per member, some have increased their admission fee to provide for an additional ten dollars for each new member, some have a "birthday Foundation fund" whereby each member donates a sum of money on the anniversary of his birth, some have taken out insurance policies on several of their members, naming the Rotary Foundation as beneficiary, and many Rotarians have made generous provisions for the Foundation by naming it as a beneficiary in their will.

Since the inception of the Rotary Foundation, contributions amounting to approximately $3,525,000 have been made by Rotary clubs and individuals who believe that it provides a real opportunity for the development of a common understanding between the peoples of many countries and a logical approach to the achievement of world peace.

In Canada and the United States (and possibly some other countries), contributions to the Rotary Foundation are deductible from the income tax returns of donors.

How can this money be expended? Is only the income, or the interest on the principal to be used - can any part of the corpus (principal) be expended?

These are good questions! Much thought and wise counsel was employed to draw up the terms of the declaration of trust and the sections of Article XVIII of the by-laws of Rotary International, which govern and control the disbursement of these funds. Section 6 of Article XVIII provides that the trustees of the Foundation have the right to expend the income from, or the principal of any monies for any purpose specifically prescribed by the donor. Also, that expenditures from the income of all other donations can be made only after having been approved by the board of directors of R.I., or by a convention of R.I. provided that such expenditure is covered by resolution. Even then, no expenditure can be made unless first approved by a majority of the trustees.

That covers the manner by which the income can be expended. Expenditures from the corpus (principal) of the fund can be made only by or in the manner stated in Section 6 of Article XVIII, wherein it is stated:

"No part of the corpus of the Rotary Foundation, except for a purpose specifically prescribed by the donors or testators, shall be expended unless ordered by a resolution of a convention of Rotary International, and by a resolution of the board of directors, and with the approval of a majority of the Foundation trustees."

Thus the corpus of the Foundation is well protected and adequately controlled by three independently operating bodies, an unusual but extremely workable procedure.

At the end of each fiscal year an audit is made by a competent firm of certified public accountants and its report is published and a copy sent to all club secretaries. An interesting account of the administration and operation of the Rotary Foundation is given in the Manual of Procedure.

What the Foundation Has Done and Is Doing !

Rotary Foundation Fellowships for Advanced Study: Carefully selected college graduate students from all parts of the Rotary world are awarded Fellowships for one year of advanced study in universities located in countries other than their own. This world-wide project now in its eighth year has been acclaimed by government officials, educators and experts in the field of international relations as a most decisive step in the achievement of world peace.

Since this program was started in 1947, Fellowships have been awarded to 600 young men and women from the following 56 countries and/or geographical regions:

Schools chosen by these Fellows are located in the following 36 countries:

The Rotary Foundation Fellowship program for advanced Study is no longer an experiment! This world-wide proj ect has created a new approach in the deve1opnent of better understanding between the peoples of the world. Alert young men and women deeply concerned with the many problems confronting them as leaders of world affairs tomorrow realize that there can be no international peace unless there is international understanding and that international understanding cannot be gained unless there is an exchange of international thinking that can be brought bout only by travel and study in countries other than, their own.

This is a potent challenge! How the Rotary Foundation bas accepted it is indicated by the following figures which show the constantly increasing number of Fellowships awarded:

Rotary Foundation Research Fellowships: The Rotay Foundation developed this type of special Fellowship for the purpose of bringing well qualified persons from one country to another country to study and learn about existing facts and techniques in medical (and allied professions), social, scientific, and educational fields which are not known and applied in the country from which the person comes.

During the past years the Foundation has granted thirteen Research Fellowships. The Fellowships provide for one year of specialized study or research in countries where advanced knowledge and newly developed techniques are available. Upon returning to their homeland, the Fellows make the knowledge thus obtained available to their coll es through various educational and clinical facilities.