Rotary Receives ARW Report
November 1, 2011
By: Stephen Kent
Rotary received a summary report from the Administrative Work Group
delivered by Valerie Roof
, who outlined the main points of the discussion of club funding.
Among the findings and analysis was the fact that the way dues and prepaid lunches are paid, and how projects are paid for, warrants some changes.
In the past the club funded two items. Expenses
covers items where the club directly pays for items (mutt mitts, Rotary garden, Dictionaries, Thesauruses, etc.) Projects and Programs
are those things for which we give money to be spent by the recipient (community grants and major projects).
Funds for expenses come from the club's operating budget. That means they are paid for by dues and by excess funds collected for lunches that are pre-paid but not used because members miss the meetings.
Projects and Programs, on the other hand, are paid for by funds raised by the club through events and programs. Those funds are deposited with and paid from the club's foundation.
Until now, Community Grants has been treated as an expense
. That means that funds are taken from the club's operating expenses. At $8,000 to $10,000, this is one of the largest expense paid by the club. By chance, that amount is close to what is collected from people who miss the meals.
One recommendation of the ARW group is that Community Grants
be changed from an expense to a project
. Funds will be paid by the club's foundation. This means that the club must raise funds for community grants rather than taking them from dues and lunches.
Taking Community Grants from the expense column means the club can eliminate the pre-paid lunches cost from the dues assessments. Lunches will be paid at the door based on the going rate arranged with the restaurant. For members that have the entire amount paid by their employer, a "business" option will be provided to allow continued pre-payment of lunches.
A second change deals with how the amount spent on projects and programs is determined. In the past a major project and its cost was promised first then the club would raise funds to cover that amount. Now the foundation board will manage funds and give the club an annual amount that is available to give.
These changes should make funding more equitable. In effect, if the club wants to give money, they have to raise it first.
These changes have been accepted by the board and will be reflected in the upcoming dues invoices for the first half of 2012.
(Moving Community Grants to the foundation may result in a shortfall the first year or so. To cover that the club will skip giving grants as necessary.)
A second topic was the meeting venue
. The recent club survey, and casual comments and requests, showed that there is a strong desire to find another meeting place based on the quality of the food, cleanliness, and program issues like the sound system.
A committee was formed to investigate meeting locations. They took into consideration food, program, parking, location, cost, and assurance of availability.
of that committee reported, including the request from the board that the membership vote on this issue
A number of locations were evaluated. The results was a choice between the Doubletree
and the current venue at Barts
. The cost of lunch at Barts was already slated to change from $9.00 to $9.50. The cost of the Doubletree would be $11.00. The Doubletree can guarantee 50 Tuesdays. Since the Long Range Plan already calls for 2 off site meetings, this works well.
A ballot was prepared and passed out at the meeting. President Keating said that passage would require a 2/3 vote of those present. The results was 56 votes. 39 selected the Doubletree. 16 selected Barts. 1 abstained. This results in 70% voting to move to the Doubletree thus exceeding the required 2/3 vote.
The administration will meet with Barts and the Doubletree. Until further notice the club will continue to meet at Barts.
CLUB NEWS and ANNOUNCEMENTS
The club welcomes new member Ryan Manz who is Disaster Services Director for the Red Cross. Welcome Ryan.
The club board meets next Tuesday, the 8th, before the regular meeting. Everyone is welcomed.
Two final concerts by the Bijou Orchestra will be held November 19 to honor the memory of former Rotarian Leo Najar. Club members are encouraged to attend.
A reminder from Bob Chadwick. The Annual Foundation Gala will be held at Zehnder's of Frankenmuth on November 18, 2011. Talk to Bob if you want to attend. And remember, leave your checkbook at home - no money will be asked for at the event.
(See the official schedule at
November 8, 2011: The Stevens Center for Family Business at SVSU
Rejeana Heinrich, Associate Director, will talk about the impact of family business in the region.
December 6, 2011: Good Samaritan Rescue Mission
is an intimate affiliation of carefully selected business and professional people,
having as its objective the promotion of high ethical standards in private, commercial
and civic life, and dedicated to the ideal that the basis of all worthy endeavor is unselfish service.
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