2013-02-14T16:10:51-06:00 2012-06-30 GRANT THORNTON LLP 175 W JACKSON BLVD STE 2000 CHICAGO IL 60604 990 2011-07-01 361707667 Rotary International % DAVID W STUMPF ROTA 8478663000 1560 Sherman Avenue Evanston IL 602013698 LORI CARLSON 2013-02-14 true DANIEL ROMANO 3128560200 2011 2016-03-07 17:11:31Z John P Hewko 1560 Sherman Avenue Evanston IL 602013698 231736216 false 0573 X www.rotary.org X 1911 IL Rotary International (RI) is a worldwide association of Rotary Clubs, whose mission is to provide service to others, promote integrity, and advance world understanding, goodwill, and peace. 19 17 601 1227189 811232 -42752 60252007 61386587 12809875 17885677 6127782 8918998 6417474 2429928 85607138 90621190 373658 414304 0 0 28024865 29517258 0 0 0 46687388 61689421 75085911 91620983 10521227 -999793 178947698 167658260 29968335 42769541 148979363 124888719 X Rotary International is made up of 34,533 clubs with more than 1.2 million members worldwide. Rotary club members are volunteers who work locally, regionally, and internationally to combat hunger, improve health and sanitation, provide education and job training, promote peace, and eradicate polio under the motto service above self. false false 10666433 0 10658627 International Convention - The International Convention is the annual business meeting of RI and is designed to inspire and inform Rotarians at an international level while advancing the strategic goals of RI and its Foundation. The convention is held annually in a different country each year. In 2012, the convention was held in Bangkok, Thailand, and attracted more than 33,000 attendees. 10534942 0 0 District Governors- The district governor is the officer of RI for each grouping of clubs that form a district. The district governor directly oversees all clubs within the district. In addition to providing leadership, the governor ensures continuity in all programs and related operations within the district and acts as a liaison between RI and the district. In FY12, RI has 537 district governors. 6301594 0 6650306 Magazine - The Rotarian magazine and the 31 regional magazines have a combined worldwide circulation of more than 1.25 million. All members are required to subscribe to one of these official magazines, which provide informative and inspirational content in 25 languages. The Rotarian, which is the flagship publication, is produced by RI; the regional magazines are published outside of the United States and are produced independently with some support from RI. 45613238 414304 560195 73116207 false false false false false false false false false true true false false false true false true false true true false false false false false false true false true false false false false false false false false false false false false false true true true false true X 206 0 601 true true true true false false true true false X 19 17 false false false false true true false true true false true true true true true true true true true true false X X DAVID W STUMPF 8478663000 1560 SHERMAN AVENUE Evanston IL 602013698 X Kalyan Banerjee 40.0 X X 71674 0 12018 Sakuji Tanaka 40.0 X X 14956 0 12018 Noel A Bajat 20.0 X X 0 0 0 Elio Cerini 20.0 X X 0 0 0 Jose Antonio F Antiorio 20.0 X 0 0 0 Kenneth R Boyd 20.0 X 0 0 0 Yash Pal Das 20.0 X 0 0 0 Elizabeth S Demaray 20.0 X 0 0 0 Kenneth W Grabeau 20.0 X 0 0 0 Stuart B Heal 20.0 X 0 0 0 Allan O Jagger 20.0 X 0 0 0 Paul Knyff 20.0 X 0 0 0 Masaomi Kondo 20.0 X 0 0 0 Barry Matheson 20.0 X 0 0 0 Shekhar Mehta 20.0 X 0 0 0 Samuel F Owori 20.0 X 0 0 0 Juin Park 20.0 X 0 0 0 Kenneth M Schuppert Jr 20.0 X 0 0 0 John C Smarge 20.0 X 0 0 0 John Hewko 28.0 X 169897 69395 18722 Peter DeBerge 27.0 X 168657 77557 32289 Lori Carlson 28.0 X 35581 14533 323 Peter Markos 28.0 X 137892 57699 34974 Kathy Kessenich 29.0 X 136602 50524 22372 Theresa Nissen 40.0 X 184104 0 20819 Jeanette Hamilton 12.0 X 47526 108299 25788 Shiro Oshima 14.0 X 60230 114350 9494 Steven Routburg 30.0 X 132343 45299 25048 Chang Kyo Kim 18.0 X 69895 90783 19313 Frank Pezzimenti 17.0 X 64882 86006 13579 Andrew McDonald 25.0 X 90728 52150 15747 Edwin H Futa 28.0 X 259240 111102 12291 1644207 877697 274795 56 true true false Freeman Audio Visual Solutions Inc 4545 West Davis Street DALLAS TX 75211 Audio Visual 1340581 OCE BUSINESS SERVICES INC 12534 Collections Center Drive CHICAGO IL 60693 Management Services 1221378 Ahead LLC 150 S Wacker Drive Suite 2500 CHICAGO IL 60606 IT Storage 1166803 Quad Graphics Inc PO Box 644840 PITTSBURGH PA 152644840 Printing Services 877761 Global Experience Specialists Inc 2300 S Throop St CHICAGO IL 60608 exhibit & event 820827 33 61386587 61386587 INTERNATIONAL MEETINGS 900099 10658627 10658627 MAGAZINE 541800 6650306 6107217 543089 OPEN WORLD LEADERSHIP PROGRAM 900099 333228 333228 MEETING REVENUE 900099 190589 190589 OPERATING INCOME - INFOTECH 900099 52927 52927 17885677 2561152 2561152 0 1447417 1447417 5193580 3910210 1283370 1283370 268143 1015227 141861415 466957 135622455 348072 6238960 118885 6357846 6357846 0 0 870526 1234289 -363763 -363763 INSURANCE - U.S. CLUBS 524298 1108451 1108451 SERVICE INCOME 900099 122941 122941 CURRENCY EXCHANGE 900099 -2255936 -2255936 1087448 224273 863175 62904 90621190 17326039 811232 11097332 414304 414304 0 0 0 1271636 941011 330625 0 21313470 15872417 5441053 2235758 1672755 563003 2829654 1966250 863404 1866740 1376158 490582 1759768 314285 1445483 309020 147267 161753 76040 42947 33093 0 0 402674 402674 3230021 2434179 795842 4376163 4376163 3124361 2548347 576014 3792212 1047188 2745024 0 3142721 2648004 494717 13575633 11917077 1658556 0 7806289 7709750 96539 0 0 3484563 1771118 1713445 1628953 1434619 194334 DISTRICT GOVERNORS 9577167 9577167 MAGAZINE PUBLICATIONS 3739279 3739279 EQUIPMENT RENT & MAINTENANCE 552738 390187 162551 MISCELLANEOUS 1111819 775735 336084 91620983 73116207 18504776 0 9203423 3919902 13112049 9576621 0 0 4100179 5904968 0 0 0 0 287086 234249 228493 136438 3941596 3527619 97867784 61900132 35408473 35967652 67028464 63902272 44111573 42952216 145886 450826 0 0 1380476 1085497 178947698 167658260 27322027 39105379 0 0 2646308 3664162 0 0 0 0 0 0 0 0 0 0 0 0 29968335 42769541 X 148979363 124888719 0 0 0 0 148979363 124888719 178947698 167658260 X -999793 -23090851 X false true true X false 2960445 2960445 67040429 38989602 28050827 131863 112540 19323 27678788 22741731 4937057 56259 56259 0 35967652 GLOBAL ASSET ALLOCATION 19673858 F REAL ASSET FUNDS 15900541 F ALTERNATIVE INVESTMENTS 7377817 F 42952216 0 0 Form 990, Schedule D, Part X, Line 2 FIN 48 (ASC 740) FOOTNOTE The Financial Accounting Standards Board (FASB) issued guidance that requires tax effects from uncertain positions to be recognized in the financial statements only if the position is more likely than not to be sustained if the position were to be challenged by a taxing authority. While Rotary International is exempt from income tax under IRC Section 501(c)(4) and the Foundation is exempt from income tax under IRC Section 501(c)(3), they are subject to tax on income unrelated to their exempt purposes, unless that income is otherwise excluded by the IRC. Rotary applied the uncertain tax position guidance, as required by U.S. GAAP, to all tax positions for which the statute of limitations would remain open and determined there were no material unrecognized tax liabilities or benefits. The tax years ended 2009, 2010 and 2011 are still open to audit for both federal and Illinois purposes. Central America and the Caribbean 0 0 Investments 7377817 Europe (Including Iceland and Greenland) 1 42 Program Services Membership Support 4225437 Europe (Including Iceland and Greenland) 0 0 Investments 3557332 East Asia and the Pacific 3 38 Program Services Membership Support 1620761 South America 2 17 Program Services Membership Support 626082 South Asia 0 0 Investments 900739 South Asia 1 32 Program Services Membership Support 451705 South Asia 1 98 Program Services Infotech 1642700 8 227 8 227 20402573 20402573 true false true false true true true The Rotary Foundation of Rotary International 1560 Sherman Avenue Evanston IL 602013698 363245072 501(c)(3) 414304 PolioPlus Fund 1 Form 990, Schedule I, Part I, Line 2 ORGANIZATION'S PROCEDURES FOR MONITORING GRANT FUNDS IN THE U.S. Rotary International issued one grant in fiscal year ended 30 June 2012 to The Rotary Foundation of Rotary International [501(c)(3)]. Rotary International relies on the grant-monitoring procedures of The Rotary Foundation of Rotary International for the PolioPlus and Disaster Recovery Fund. X X X X X true true X X X X true false false false false false false false false Edwin H Futa 169464 72627 0 0 89776 38475 5482 2349 3122 1338 267844 114789 0 0 John Hewko 169784 69349 0 0 113 46 3680 1503 9613 3926 183190 74824 0 0 Peter DeBerge 168521 77495 0 0 136 62 8966 4123 13152 6048 190775 87728 0 0 Peter Markos 137752 57641 0 0 140 58 6641 2779 18016 7538 162549 68016 0 0 Kathy Kessenich 114979 42526 0 0 21623 7998 4662 1724 11670 4316 152934 56564 0 0 Theresa Nissen 183728 0 0 0 376 0 11840 0 8979 0 204923 0 0 0 Jeanette Hamilton 47466 108161 0 0 60 138 2993 6820 4872 11103 55391 126222 0 0 Shiro Oshima 55090 104592 0 0 5140 9758 3275 6219 0 0 63505 120569 0 0 Steven Routburg 132263 45271 0 0 80 28 8020 2745 10641 3642 151004 51686 0 0 Chang Kyo Kim 69895 90783 0 0 0 0 5811 7548 2590 3364 78296 101695 0 0 Frank Pezzimenti 64882 86006 0 0 0 0 5839 7740 0 0 70721 93746 0 0 Andrew McDonald 90522 52032 0 0 206 118 5253 3019 4747 2728 100728 57897 0 0 Form 990, Schedule J, Part I, Line 1 FIRST CLASS OR CHARTER TRAVEL Uncompensated volunteer leaders conduct extensive international travel on behalf of the organization. Rotary International provides business-class airfare for the Board of Directors. Business-class is available in most markets, but if it is not, first-class or economy airfares are substituted. The President and President-Elect are permitted to use first-class travel, although they may choose business-class or economy travel. The general secretary is permitted to use first-class travel when business-class in not available. Form 990, Schedule J, Part I, Line 1 HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE For efficiency, residences near RI headquarters are provided for Rotary International President and President-Elect. Personal use of the residences is reported as taxable income to the recipients. In addition, RI reimburses the President and President-Elect for certain costs associated with maintaining their personal residences while they are traveling on behalf of the association. These expense reimbursements are taxable to the recipients. Form 990, Schedule J, Part I, Line 1 TRAVEL FOR COMPANIONS Rotary International provides for spouse travel if spouse participation assists the organization in achieving its mission. The Rotarian and spouse are required to submit documentation detailing the activities and supporting the bona fide business purpose of the travel. Management reviews the documentation during the expense reimbursement approval process. Form 990, Schedule J, Part I, Line 1 TAX INDEMNIFICATION AND GROSS-UP PAYMENTS Rotary International does not compensate the President and President-Elects services other than the reimbursement of certain personal expenses related to their services (i.e., the cost to maintain their personal residence, health insurance, etc.) as defined in Rotary Code of Policies. The expense reimbursements are taxable to the recipients. It is the board policy to pay the presidents for the taxes associated with this income. Form 990, Schedule J, Part I, Line 1 HEALTH OR SOCIAL CLUB DUES OR INITIATION FEES For the President and President-Elect, expenses related to maintaining club memberships are included under the Rotary Code of Policies for personal expenses reimbursement. These expense reimbursements are taxable to the recipient. Form 990, Schedule J, Part I, Line 4a RECEIVE A SEVERANCE PAYMENT OR CHANGE-OF-CONTROL PAYMENT The following individuals received a severance payment during calendar 2011: Kathy Kessenich: $29,368 ($21,439 allocated to Rotary International) Form 990, Part VII and Schedule J Highest Compensated Employees Rotary International has a highest compensated employee at its office in Zurich, Switzerland, which is currently undisclosed due to potential infringement of local data privacy laws. Form 990, Part III, Line 4d OTHER PROGRAM SERVICES (Code:___) Expenses $45,613,238 including grants of $414,304 (Revenue $560,195) Other program services are in place to coordinate and direct the activities of Rotary International and support the Object of Rotary. The Object of Rotary is to encourage and foster the ideal of service as a basis of worthy enterprise. These other program services support the Object of Rotary by helping Rotary clubs and districts achieve their service goals, expand Rotary membership, and promote their activities to the media and general public. Form 990, Part V, Line 4b NAME OF FOREIGN COUNTRY Argentina Australia Bangladesh Brazil Canada Chile Colombia Denmark Egypt Germany India Japan Nigeria Norway Pakistan Peru Philippines Republic of South Korea South Africa Sri Lanka Sweden Switzerland Thailand United Kingdom Venezuela Form 990, Part V, Line 6b EXPRESS STATEMENT THAT SUCH CONTRIBUTIONS OR GIFTS WERE NOT TAX DEDUCTIBLE Rotary International does not directly solicit contributions from the general public. The member clubs of Rotary International, also Section 501(c)(4) entities, paid membership dues which are reported on Form 990, Part VIII, LIne 1b as contribution revenue. As such, Rotary International does not directly provide an express statement. Form 990, Part VI, Section A, Line 6 MEMBERS OR STOCKHOLDERS The membership of Rotary International consists of Rotary clubs organized and operating in accordance with the RI constitution and bylaws. Form 990, Part VI, Section A, Line 7a PERSONS WHO MAY ELECT ONE OR MORE MEMBERS OF THE GOVERNING BODY The procedures for the selection of Rotary International (RI) officers are stated in the RI bylaws. The RI nominating committees select nominees for the Board of Directors and president. Directors are nominated by zones. Each of the 34 worldwide RI zones nominates a director from the membership of the clubs in that zone every fourth year according to a schedule established by the RI Board. Each zone elects a member of a club, who must be a past director of RI, to serve on the nominating committee for president. Each club may vote in the election for president, which takes place at the annual RI convention. Form 990, Part VI, Section B, Line 11b REVIEW OF FORM 990 Rotary International's Form 990 is prepared by an independent certified public accounting firm. A draft of the Form 990 is reviewed by the Controller and the Chief Financial Officer. Upon completion of the review process, the return is provided to the Board of Directors, signed by the CFO and filed with the IRS. Form 990, Part VI, Section B, Line 12c CONFLICT OF INTEREST POLICY All directors must disclose any family or business relationships with other directors, trustees of the Rotary Foundation, key employees, or highest compensated independent contractors of Rotary International and The Rotary Foundation as identified annually by the General Secretary. To comply with this policy, directors submit an annual Potential Conflict of Interest Statement, on which they report any previously undisclosed potential conflicts of interest. The RI Executive Committee reviews these reports and works to resolve any actual or potential conflicts. If no resolution is reached, the committee refers the matter to the Board of Directors and an appropriate action will be taken. A potential conflict of interest is deemed to exist if a majority of directors voting reach an affirmative decision. The director with the potential conflict of interest shall not be present for the vote. In addition, the Operations Review Committee monitors compliance with the code of conduct and conflict of interest policy of the organization and the Board of Directors. Key employees and other employees in a position of influence are also required to make annual conflict of interest disclosures. Form 990, Part VI, Section B, Lines 15a & 15b DETERMINATION OF COMPENSATION The process for determining compensation for the general secretary, deputy general secretary and general managers was last reviewed in fiscal year 2012. RIs Human Resources collects data on total compensation (i.e., base salary and benefits) from several sources, including independent compensation consultants, salary surveys, internet sites, professional publications, and information from similar organizations in the same geographic area. Human Resources provides a salary range for the general secretary, deputy general secretary, and general managers positions and the Executive Committee of the Board of Directors review salary ranges and salary increase parameters for reasonableness. The general secretarys compensation is based on the terms in the general secretarys contract. The general secretary approves salary increases for the deputy general secretary and general managers within the salary ranges approved by the Executive Committee of the Board of Directors. This process is contemporaneously docuemnted. Form 990, Part VI, Section C, Line 19 ORGANIZATIONAL DOCUMENTS AVAILABLE TO THE PUBLIC Rotary International makes its governing documents, conflict of interest policy, and audited financial statements available to the public on the organization's website, www.rotary.org. Form 990, Part XI, Line 5 OTHER CHANGES IN NET ASSETS OR FUND BALANCES Net unrealized losses on investments -12,308,475. Pension related changes -10,459,423. PPH activity -294,979. Infotech tax adjustments -28,987. Various book/tax reporting differences 1,013. ----------- Total: -23,090,851. HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:John Hewko TITLE:General Secretary HOURS:12 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Peter DeBerge TITLE:Deputy General Secretary HOURS:13 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Lori Carlson TITLE:Chief Financial Officer HOURS:12 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Peter Markos TITLE:G.M. Admin Support Service HOURS:12 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Kathy Kessenich TITLE:Comm Services G.M. HOURS:11 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Jeanette Hamilton TITLE:Investments & Treasury Manager HOURS:28 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Shiro Oshima TITLE:Mgr Japan International Office HOURS:26 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Steven Routburg TITLE:Mgr Legal Services & Gen Couns HOURS:10 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Chang Kyo Kim TITLE:Mgr Korea International Office HOURS:22 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Frank Pezzimenti TITLE:Mgr Australia Interntl Office HOURS:23 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Andrew McDonald TITLE:Mgr Corp Svc Div/Ch. of Staff HOURS:15 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Edwin H. Futa TITLE:General Secretary HOURS:12 The Rotary Fdn of Rotary International 1560 Sherman Avenue Evanston IL 602013698 363245072 Charitable IL 501(c)(3) 07 Rotary Int'l true Fixed Income Gen Ptrshp II of 1560 Sherman Avenue Evanston IL 602013698 364401367 Investment IL Rotary Fdn Excluded 0 0 false 0 true 0.09481 Equity General Partnership II 1560 Sherman Avenue Evanston IL 602013698 364401359 Investment IL Rotary Fdn Excluded 0 0 false 0 true 0.16310 Intl Equity Gen Partnership II 1560 Sherman Avenue Evanston IL 602013698 364401363 Investment IL Rotary Fdn Excluded 0 0 false 0 true 0.15853 Rotary International Infotech 6th Floor Marisoft III Building E Pune IN 411014 981050532 Info Services IN NA Related 133350 423773 false 0 true 0.99990 PPH National Insurance Co 76 St Paul Street Suite 500 Burlington VT 05401 030370108 CaptiveInsurance VT NA C Corp -294979 4952260 1.00000 true true false false false false false false false false true false true true true true true false Rotary International Infotech a 24080 Cost The Rotary Foundation of Rotary International b 414304 Cost The Rotary Foundation of Rotary International m 1604370 Cost The Rotary Foundation of Rotary International n 25968505 Cost Rotary International Infotech o 1669135 Cost The Rotary Foundation of Rotary International p 15106102 Cost PPH National Insurance Co n 122941 Cost PPH National Insurance Co q 578098 Cost