ALAMO HEIGHTS ROTARY CHARITABLE GIVING

January 2007

SUMMARY

1.  The Alamo Heights Rotary Club (AHR) provides funds for a variety of charitable activities and special projects.  This paper summarizes the historical charitable funding activities of the AHR and documents policies, guidelines and procedures to be followed in the future.  As an evolving process, this document may be modified from time to time by the AHR Board of Directors (BD) and/or the general membership.  The original guidance was approved by the AHR BD in July 1999.  This edition includes changes approved in June 2002, February 2004, and January 2007.

2.  SOURCE OF FUNDS. Following is a list of the sources of funds available for charitable giving (More detailed information concerning these sources is at Annex B):

            a.  Alamo Heights Night (AHN) proceeds
            b.  Raffle conducted at weekly meetings
            c.  Donations to the club (Restricted/trusts or unrestricted)
            d.  Investment income from funds available to the AHR and Alamo Heights Night Limited Liability Co (AHNLLC)
            e.  AHR operating funds
            f.  Other fund raising activities

3.  USE OF FUNDS.  Following is a list of the uses of funds available to the AHR (More detailed information concerning these uses is at Annex C):

            a.  Administrative and fund raising costs
            b.  AHN Rain Fund
            c.  AHR Permanent Fund
            d.  Special projects
            e.  Charitable giving

            (1)  AHR projects (includes Rotary International (RI) Foundation and scholarship program)
            (2)  Priority commitments  (normally ongoing and includes City of Alamo Heights, AH School Foundation, and Little League)
            (3)  Major charitable donations
            (4)  Other charitable donations

4.  Abbreviations.  A summary of abbreviations used in this paper is at ANNEX A.

5.  Charitable Giving Procedures/guidelines.  Annex D.

6. MISCELLANEOUS CHARITABLE PROGRAMS AND DONATIONS

are at ANNEX E.

ANNEX A

ABBREVIATIONS

This Annex contains a summary of abbreviations used in this document.
Year 1:  Fiscal year funds are earned
Year 2:  Year that funds earned in year 1 are disbursed
AHNLLC:  Alamo Heights Night Limited Liability Company
AHR:  Alamo Heights Rotary Club
BM:  AHNLC Board of Managers
BD:  AHR Board of Directors
FC:  AHR Finance Committee
RI: Rotary International

ANNEX B

SOURCE OF FUNDS

1.  This Annex summarizes information about the sources of funds to be made available for charitable giving by the AHR.

2.  Alamo Heights Night.  Alamo Heights Night raises funds primarily from gate admissions, spending by participants, sponsor donations, sale of T shirts and other items, and a raffle.  AHN activities generally fall into one of the following categories:

            a.  Run by AHR club - Normally all funds are retained for charitable giving by the AHN LC.
            b.  Run by Charitable/Non-Profit organizations - Normal split is 75% to charitable/non-profit organization; 25% retained for disbursement by AHNLLC (breakout may vary from those percentages).  We contribute 100% of proceeds to interact clubs sponsored by AHR.
            c.  Run by profit making food service organizations - Normal split is 50/50; some donate 100%.
            d.  Run by profit making organizations - 100% retained for distribution by AHNLLC.
            e. Entertainment activities - payment normally made by contract arrangement. Split varies with the activity; some entertainment we pay for 100%.

In effect, while any portion of the funds returned to participants in a or b, above, is recorded as an operating expense for the event, it is in effect another fund raising effort of the club.  Appropriate records must be maintained by the Treasurer, AHNLLC, to account for that money so that a true picture of total monies raised for charitable/non-profit organization support can be documented if required.

3.  Weekly Raffle.  Each week at the regularly scheduled AHR meeting a raffle is conducted.

4.  Donations to the AHR club.  Donations to the AHR club may be made by any one at any time including death bequests.  To be a charitable donation, donations should be made out to the AHNLLC.

5. Investment income.  The maximum amount of funding not required for day to day operating requirements will be placed in interest bearing accounts for both the AHR and AHNLLC.

6.  AHR operating funds.  The funds to operate the AHR club come primarily from membership dues, induction fees, and meal payments.  Funds also are received periodically for ad revenue for the Rotator and participation in special activities (e.g., fellowship meetings, district meetings, etc.).

7.  Other fund raising activities.  Periodically funds are raised through other means (e.g., special raffles, silent auction, etc.).

ANNEX C

USE OF FUNDS

1.  This Annex summarizes the use of funds available to the AHR and AHNLLC.

2.  Operating expenses.  Ordinary and necessary expenses to operate the Alamo Heights Rotary Club and AHNLLC.   This includes dues to Rotary International and other activities; meal, banquet and fellowship activities; training; salaries; taxes and insurance; service activities; etc.

3.  Administrative and fund raising expenses. Ordinary and necessary expenses to raise funds. This includes materials and services (e.g., electrical, cleanup, entertainment) to operate AHN; rentals, licenses, advertising, and fees; items for resale; contract labor; payments to participating organizations; and other expenses.

4.  Rain Fund.  Early in the evolution of AHN it was evident that weather may cause a cancellation of the event after it was set up but before or soon after the gates were to open to the public.  To insure that sufficient funds were available to cover the expenses incurred/committed up to that point, but not covered by any income from the event a  Rain Fund was established.  Moneys for the Rain Fund were funds retained from the proceeds of the event and maintained in a separate sub account in the AHN Chart of Accounts.  This action removed the necessity of expending a potentially large amount of funds from the operating funds of AHR.  The amount of the Rain Fund is reviewed each year by the AHNLLC BM and adjusted as needed to insure sufficient funds are available to meet the needs of the following year’s event.  This is to be accomplished prior to allocating the funds for charitable giving (normally accomplished during the quarter the event takes place in or the following quarter which is the first quarter of the new fiscal year).  The Rain Fund provides for two capabilities:

            a.  Provides adequate funds to permit all expenses to be paid in the event AHN is cancelled prior to or soon after opening to the public.

            b.  Provides seed money each year to pay necessary expenses that must be paid prior to ANH opening to the public and prior to sufficient income from that year’s event from being received.

5.  Alamo Heights Night Permanent Fund (AHNPF)

            a.  In 1995, the AHNLLC began contributing approximately 10% of the net proceeds of AHN to a subaccount in its chart of accounts known as the AHN Permanent Fund Account.  This action was accomplished by board action of the AHNLLC and approved by the AH Rotary Board. When originally approved, the title of the account was not yet determined.  The title AHNPF was added in 1997.  The object of this account is to function in a manner similar to an endowment fund.  The intent is to build up the account principal and to invest accrued interest until it is large enough to permit the interest to be used to augment any shortfalls in normal annual AHN fund raising efforts (e.g., because of a rainout of all or a portion of the event).  This would then permit the Alamo Heights Rotary Club to continue its charitable giving program during any year that follows any actual problem causing a shortfall.

            b  It is not intended that the principal in the AHNPF be used unless at some future time the entire fund is to be eliminated.  All proceeds from the AHNPF (principal and interest) are to be used for charitable purposes.

            c.  In addition to the percentage of AHN funds that are placed in this account, Rotarians and others may contribute directly to this account  (as a charitable contribution) to assist in meeting its objective/intent. Monies given to the Alamo Heights Rotary Club as an endowment contribution may be included in this fund.  Permanent deposits for AHN booths are also placed in this fund. Additionally, interest received from investment of the monies in the AHN “Rainout Fund” and other AHNLLC funds are to be included in the AHNPF.

            d.  This AHNPF is not intended to be part of the “Rainout Fund” (a separate account in the AHNLLC chart of accounts) nor is it intended to replace or be a substitute for any Rotary International gift giving program.

6.  Special projects.  Funds raised for charitable purposes may be used for a special AHR project. Proposals for this type of project may be made by a member of the AHR at any time.  Examples are the reading pavillion the club funded in the Cambridge School park; the computer lab at the Robins School; and support for the building of the AHR Little League Field.  The project requirements will be developed either by the proposer or individuals designated by the BD.  The proposal will be evaluated by the BD or by an individual or group designated by the AHR President.  Evaluation will include funding alternatives and availability, time lines, possibility of obtaining RI matching grant, value to the community/charity involved, etc.  Depending on the scope and complexity of the project, the BD may approve the project or take it to the full membership for consideration.  If approved and funding is scheduled to support the project, the required funds will normally take priority over other charitable giving.

In general, special projects will support some charitable or community need or will function as an added one time or ongoing fund raising activity of the AHR so that added funds are available for charitable giving.

7.  Charitable giving.  Historically, the AHR Club has donated funds to a wide variety of charitable and non-profit activities.  The size of the donations have also varied. 

            a.  Alamo Heights Rotary projects.  While changes may be made in the future, the following activities have been routinely funded (at different levels each year) as supported AHR projects each year:

            (1)  Rotary International
            (2)  Scholarship program

            b.  Alamo Heights Rotary priority commitments.  While changes may be made in the future, the following priority commitments have been routinely funded (at different levels each year) each year (applications for funding not required):

            (1)  City of Alamo Heights
            (2)  Alamo Heights School Foundation
            (3)  Alamo Heights Little league and pony league

            c.  Major charitable donations.  Historically, AHR has provided larger ongoing donations each year to a few charitable organizations including Any Baby Can and San Antonio Youth Literacy.  Applications for funding are required.  The Finance Committee may recommend larger donations and or other organizations.

            d.  Other charitable donations.  All other charitable giving.  Applications for funding are required. Exceptions may be made by the BD.

            e.  Alamo Heights Rotary community service projects.  The AHR club performs numerous club service projects in support of charitable organizations and other community service activities.  These all involve participation of AHR members and projects are approved in advance by the AHR BD.  Funding for incidental expenses for these projects prior to Rotary year 2002-2003 had normally been provided from AHR operating expense funds.  In an effort to expand project possibilities in support of community service, the AHR BD approved in June 2002, the expenditure of some of the funds which are raised at AHN by the booths operated by AHR.  The amount of funds may not exceed the same split as other non-profit organizations (75%); must be approved in advance by the AHR BD; and must be for projects where the funds are managed by AHR members in support of a specific project.  It is specifically not intended to circumvent the need for a charitable organization to obtain funding for a project for which it would normally have to submit an application for review by the AHR FC, which would not have the involvement of AHR members, and which would give that organization control over expenditure of the funds.

ANNEX D

Charitable Giving Procedures/guidelines

1.  This Annex describes the procedures and guidelines for processing charitable giving.

2.  Sequence for processing donations

            a.   Funds are earned in Year 1 through Alamo Heights Night and any other donations/interest received and are placed in the AHNLC bank account(s).

            b.  Late in Year 1 or early in year 2, the BM determines how much money may be distributed in Year 2 for charitable purposes.  Normally, this amount will be the total revenues available less the Alamo Heights Night “Rain Fund”, the internal Alamo Heights Night Permanent Fund (See Annex C), and anything required to pay outstanding Year 1 or anticipated Year 2 obligations.  This information will be passed on to the BD.  The BM will also provide the BD the maximum amount of funds raised by AHR run booths that could be used for AHR community service projects

            c.  The BD will determine how much charitable giving funds will be used for support of AHR community service projects and any other BD directed purposes and will provide the remaining available funding amount to the FC before the end of the 1st quarter of Year 2.  The FC will also be provided any applications for charitable funding and any guidance from the BD concerning funding recommendations for major charities or activities (see paragraph 7, Annex C).

            d.  The FC will meet late in the 1st quarter or early in the 2d quarter of Year 2 to make recommendations on the disbursement of funds available.  It is not required that all of the funds be allocated in that quarter.  The AHR Club budget will be reviewed during the year and any funds not needed for other activities will be released for charitable giving by FC recommendation. Meetings may be conducted in the 3d and 4th quarters, if required.  The FC will submit their recommendations to the BD.

            e.  The BD will approve/disapprove/change the FC recommendations and furnish their approved final list to the BM.

            f. The AHNLLC Treasurer will be instructed to write checks for the appropriate charitable organizations.

3.  Finance Committee

            a.  Members. The AHR President-elect will serve as the FC chairperson.  Committee members are the current  President, the immediate past president, the Secretary, and the vice president. The Executive Secretary attends all FC meetings as a non voting member.  Any club member may attend a FC meeting with voice and no vote.

            b. Meetings.  Meetings are called by the Chairperson.  To consider charitable funding requests, meetings are normally on a quarterly basis.  To consider matters relating to the Club Budget, meetings are held as required.

            c.  Request processing.

            (1)  The Executive Secretary will maintain copies of the General Information Form and covering Guidelines and Policies information sheet (copy of each attached to this Annex) needed by organizations/agencies to request charitable funding.  Forms can be picked up at the regular club meetings or requested by phone/mail or from the AHR website.  Sponsoring Rotarians or the organization/agency may obtain the forms.

            (2)  The Executive Secretary will maintain a folder for each organization requesting funding.  All previous year’s applications and related papers will be maintained. The complete file on each organization requesting funds (current and previous requests) will be provided the Finance committee chairperson prior to the meeting.

            (3)  The Chairperson will prioritize requests in advance of the meeting according to the following priorities:

            1-   Requests which directly support Rotary and have a long history of support of the AHR club

            2-  Requests that have been supported by AHR in past with strong endorsement from club members

            3-  Requests that are new requests which have not previously received club support but do have a strong endorsement from club members and strong ties with the city of Alamo Heights or San Antonio

            New requests that do not have the endorsement of a Rotary club member will not be considered.

            (4)  Requests will be considered at the meeting in alphabetical order within each priority.  Once considered and acted upon, minutes of the meeting will be prepared by the Rotarian Secretary and given to the Executive Secretary.  These will be included in the next Board of Director’s meeting.  Those approved by the Board of Directors will be forwarded to the Alamo Heights Night (AHN) Board of Managers and theAHNLLC Treasurer will prepare the checks.

ANNEX E

MISCELLANEOUS CHARITABLE PROGRAMS AND DONATIONS

1.  The AHR Club provides community support for a variety of charitable programs other than those described elsewhere in this document.  Some are one-time requirements and others are ongoing programs or special projects involving the use of funds or goods.   These may be conducted by one or more Rotarians; a committee may or may not be required.  Examples of this type of activity include:

            -Collection of used spectacles.
            -Collection of food.
            -Collection of books.
            -Donate-a-phone project.
            -Requests for support of a specific fund raising activity from District/RI.

2.  All new fund  (and material) raising efforts will be initially reviewed and coordinated through the AHR Fund Raising Committee. 

3.  Individual Rotarians donating funds/materials may desire a receipt for their donation for record/tax purposes.  The format attached as Inclosure 1 will be used to recognize these donations.  The value of the donation will be entered by the donor.  All forms will be prepared by the individual responsible for the program/activity involved and will be numbered and signed by the AHNLLC Treasurer.  The AHNLLC Treasurer will maintain a log to record all donation receipts issued.

4.  All program chairs will maintain records of funds or materials collected for any charitable purposes and provide that information to the AHNLLC Treasurer upon completion of the program/activity or at the end of each fiscal year if it lasts longer.

ALAMO HEIGHTS NIGHT LLC

POB 6995

San Antonio, TX 78209

DONOR INFORMATION AND CONTRIBUTION RECEIPT RECORD

Receipt is hereby acknowledged of your contribution to the Alamo Heights Night LLC a 501(c)(3) tax exempt organization as determined under the Internal Revenue Code.

DONOR_______________________________________________________________

BUSINESS_____________________________________________________________

ADDRESS______________________________________________________________

PHONE_________________________________________________________________

DETAILED DESCRIPTION OF DONATION__________________________________

FAIR MARKET VALUE (Assigned by Donor)_________________________________

DATE_______________________   DONOR SIGNATURE_______________________

AHNLLC RECEIPT NUMBER______________________________________________

AHNLLC REPRESENTATIVE SIGNATURE__________________________________

Inclosure 1, Annex E, AHR Charitable Giving (Feb 04)