2011-02-11T09:37:07-07:00 2010-06-30 990 2009-07-01 361707667 ROTARY INTERNATIONAL ROTA 8478663000 1560 Sherman Avenue Evanston IL 602013698 Edwin H Futa 8478663000 2011-02-14 2009 2016-02-24 21:20:13Z Edwin H Futa 1560 Sherman Avenue Evanston IL 602013698 342991792 0 0573 X www.rotary.org X 1911 IL Rotary International is made up of 33,000 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. 19 17 622 1227563 608021 -195306 57862771 62613284 11790941 13453253 -4316109 3999640 1014599 3645046 66352202 83711223 661071 666984 0 0 27478665 27976516 0 0 0 47726443 49615351 75866179 78258851 -9513977 5452372 140002187 156078424 33370683 38035310 106631504 118043114 The mission of Rotary International (RI), a worldwide association of Rotary clubs, is to provide service to others, promote high ethical standards, and advance world understanding, goodwill, and peace through its fellowship of business, professional, and community leaders. 0 0 10595835 0 0 District Governors- 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. Rotary International has 531 district governors. 6283424 0 6917749 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. 5762116 0 6094346 International Convention- The International Convention is designed to inspire and inform all Rotarians at an international level on the implementation of the programs and activities of Rotary International and its Foundation during the past year and highlight upcoming activities. The convention is held annually at different venues worldwide. In 2010, the convention was held in Montreal, Canada, and attracted nearly 18,000 attendees. 34547323 666984 441158 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. 34547323 666984 441158 57188698 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 177 0 1 622 1 1 1 1 AR AS BG BR CA CE CI DA EG GM IN JA KS NI NO PE PK RP SF SW SZ TH UK VE 0 0 0 19 17 0 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X X Geoffrey C Woie- Controller 8478663000 1560 Sherman Ave Evanston IL 602013698 John Kenny 40 X X 128542 0 13701 Ray Klinginsmith 40 X X 15352 0 8284 Eric E Lacoste Adamson 15 X X 0 0 0 Michael Colasurdo Sr 15 X X 0 0 0 John T Blount 15 X 0 0 0 Lars-Olof Fredriksson 15 X 0 0 0 Frederick W Hahn Jr 15 X 0 0 0 Antonio Hallage 15 X 0 0 0 Jackson San-Lien Hsieh 15 X 0 0 0 Masahiro Kuroda 15 X 0 0 0 John M Lawrence 15 X 0 0 0 Kyu-Hang Lee 15 X 0 0 0 David C J Liddiatt 15 X 0 0 0 Catherine Noyer-Riveau 15 X 0 0 0 Ekkehart Pandel 15 X 0 0 0 K R Ravindran 15 X 0 0 0 Jose Alfredo Sepulveda 15 X 0 0 0 Philip J Silvers 15 X 0 0 0 Thomas M Thorfinnson 15 X 0 0 0 Edwin H Futa 28 X X 198527 81089 23817 Peter J DeBerge 24 X X 112033 73146 29068 Peter Markos 28 X 113537 46374 34395 Kathleen Kessenich 29 X 113384 43007 25967 Theresa Nissen 40 X 158856 0 19252 Steven Routburg 22 X 85549 71421 21438 Jeanette Hamilton 11 X 39070 103002 14816 Robert Mintz 17 X 51899 73158 31218 Vijayalakshmi Vennelakanti 20 X 61487 61487 23396 Geoffrey C Woie 20 X 62037 59604 23978 Dong-Kurn Lee 0 X 23048 0 5418 1163321 612288 274748 49 1 1 0 BlueCross BlueShield of Illinois 300 E Randolph Street Chicago IL 60601 Health Insurer 4743207 Hyatt Hotels One Market Place San Diego CA 92101 Hotel 2808357 Quad Graphics Inc 150 North Wacker Drive Chicago IL 60606 Printing 2040144 United Airlines 77 West Wacker Drive Chicago IL 60601 Air Travel 1193135 US Postal Service 1101 Davis Street Evanston IL 60201 Freight 1363608 83 0 62567126 0 0 0 46158 0 62613284 Magazine 541800 6917749 6309728 608021 0 International meetings 900099 6267308 6267308 0 0 Open World Leadership Program 900099 265627 265627 0 0 2569 2569 0 0 13453253 2535606 0 0 2535606 0 0 0 0 1556633 0 0 1556633 5313027 0 4012278 0 1300749 0 1300749 0 0 1300749 255767365 0 254303331 0 1464034 0 1464034 0 0 1464034 0 804612 964960 -160348 -160348 0 0 Currency exchange 900099 -222459 0 0 -222459 Travel service 900099 73527 73527 0 0 Insurance- US Clubs 524298 989391 989391 0 0 107553 107553 0 0 948012 83711223 13855355 608021 6634563 666984 666984 0 0 0 0 0 0 920043 625629 294414 0 20094883 14155455 5939428 0 2514065 1213896 1300169 0 2785438 1835065 950373 0 1662087 1151173 510914 0 1535832 216919 1318913 0 353991 164970 189021 0 123218 66510 56708 0 256771 256771 1379972 973105 406867 2103494 2102572 922 6972287 5625810 1346477 2449357 1226727 1222630 3039698 1991984 1047714 10143293 7131041 3012252 5421454 4783966 637488 3118994 1274073 1844921 1452496 1262651 189845 Equipment rental and maintenance 749438 415499 333939 0 District Governors 9465410 9465410 0 0 Miscellaneous 1049646 839259 210387 0 78258851 57188698 21070153 0 5509431 6248595 9661041 10982329 0 0 5058130 6350833 0 0 0 0 201037 331649 127525 182511 2893893 2509255 89059083 53287899 37363972 35771184 78324768 91896543 0 0 0 0 862390 1805525 140002187 156078424 29233512 36177623 0 0 4137171 1857687 0 0 0 0 0 0 0 0 0 0 0 33370683 38035310 X 106631504 118043114 0 0 0 0 106631504 118043114 140002187 156078424 X 0 1 1 X 0 0 2960445 2960445 0 62962517 33872214 29090303 0 290354 247096 43258 0 22789508 19112330 3677178 0 56259 56259 0 35771184 PPH Captive Insurance Company 1805525 1805525 SchD_P10_S00_L00 Schedule D, Part X "Part X: Footnote 2 of Rotary International's Consolidated Financial Statements as of and for the year ended 30 June 2010: Recent Accounting Pronouncements: FIN 48". In June 2006, the Financial Accounting Standards Board (FASB) issued Accounting Standards Codification (ASC) 740 (formerly FASB Interpretation (FIN) No. 48), Accounting for Uncertainty in Income Taxes. ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with ASC 740 (formerly FASB Statement No. 109), Accounting for Income Taxes. The interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This standard was originally effective for nonpublic entities for fiscal years beginning after 15 December 2006. On 30 December 2008, the FASB issued ASC 740 (formerly FASB Staff Position (FSP) FIN 48-3), which defers the effective date of ASC 740 for nonpublic entities until years beginning after 15 December 2008. Rotary's management adopted ASC 740 in the consolidated financial statements for fiscal year 2010, and the impact of adoption was not material. South America 2 17 Program Services Membership support & Management and general 508984 East Asia and the Pacific 3 37 Program Services Membership suport & Management and general 1334193 South Asia 2 111 Program Services Membership support & Management and general 1353442 Europe (including Iceland and Greenland) 1 35 Program Services Membership support & Management and general 3469748 8 200 6666367 1 Rotary Foundation of Rotary International 1560 Sherman Ave Evanston IL 60201 363245072 501(c)(3) 656984 PolioPlus Fund Rotary Foundation of Rotary International 1560 Sherman Ave Evanston IL 60201 363245072 501(c) (3) 10000 Annual Programs Fund 1 0 SchI_P01_S00_L02 Schedule I, Part I, Line 2 Rotary International issued two grants in fiscal year ended 30 June 2010 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 Annual Program Fund and PolioPlus Fund. X X X X X 1 1 X X X X X 0 0 0 0 0 0 0 0 0 Edwin H Futa 186328 76106 0 0 12199 4983 10138 4141 6772 2766 215437 87996 0 0 Peter J DeBerge 103712 67713 0 0 8321 5433 6038 3942 11548 7540 129619 84628 0 0 Peter Markos 101545 41476 0 0 11992 4898 5938 2425 18483 7549 137958 56348 0 0 Kathleen Kessenich 101387 38457 0 0 11997 4550 7390 2803 11436 4338 132210 50148 0 0 Theresa Nissen 144235 0 0 0 14621 0 10214 0 9038 0 178108 0 0 0 Steven Routburg 76344 63736 0 0 9205 7685 5022 4192 6662 5562 97233 81175 0 0 Jeanette Hamilton 33838 89208 0 0 5232 13794 2163 5703 1911 5039 43144 113744 0 0 Robert Mintz 42628 60090 0 0 9271 13068 2699 3804 10257 14458 64855 91420 0 0 Dong-Kurn Lee 23048 0 0 0 0 0 0 0 5418 0 28466 0 0 0 SchJ_P01_S00_L01a Schedule J, Part I, Line 1a 1. FIRST CLASS TRAVEL: Uncompensated volunteer leaders conduct extensive international travel on behalf of the organization. Rotary International provides business-class airfare for members of 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. 2. 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. 3. TAX INDEMNIFICATION and GROSS-UP PAYMENTS: Rotary International does not compensate the president and president-elect's 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. These expense reimbursements are taxable to the recipient. It is the Board's policy to pay the presidents for the taxes associated with this income. 4. HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE: For efficiency, residences near RI headquarters are provided for Rotary International's 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. 5. 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. F990_P06_S0A_L06 Form 990, Part VI, Section A, Line 6 The membership of Rotary International consists of Rotary clubs organized and operating in accordance with the RI Constitution and Bylaws. F990_P06_S0A_L07a Form 990, Part VI, Section A, Line 7a The prodedures 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. F990_P06_S0B_L11 Form 990, Part VI, Section B, Line 11 The Form 990 is reviewed by the controller, the chief financial officer, and the appointed external tax consultant. The return is signed by the general secretary, provided to the Board of Directors, and filed with the IRS. F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c 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. F990_P06_S0B_L15 Form 990, Part VI, Section B, Line 15 The process for determining compensation for the general secretary and general managers was last reviewed in fiscal year 2009. RI's 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 Chicago area. Human Resources provides a salary range for the general secretary position and the Executive Committee of the Board of Directors determines the compensation amount. The general secretary provides specific recommendations for the general managers' salary increases, which are approved by the board. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 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. F990_P07_S0A_L01b Form 990, Part VII, Section A, Line 1b Average hours per week devoted to related organization, The Rotary Foundation: Edwin H. Futa, General Secretary, 12 hrs. Peter J. DeBerge, Chief Financial Officer, General Manager, 16 hrs. Peter Markos, Chief Information Officer, General Manager, 12 hrs. Kathleen Kassenich, Communications Services General Manager, 11 hrs. Steven Routburg, General Counsel, Legal Services Division Manager, 18 hrs. Jeanette Hamilton, Investments & Treasury Division Manager, 29 hrs. Robert Mintz, Corp Relations & Global Travel Division Manager, 23 hrs. Vijayalakshmi Vennelakanti, Enterprise Applications Division Manager, 20 hrs. Geoffrey C. Woie, Controller, 20 hrs. Rotary International Infotech Pvt Ltd 6th Floor Marisoft III Bldg E Pune Maharashtra IN 411014 000000000 Information Services IN 1747705 522861 N/A The Rotary Foundation of Rotary International 1560 Sherman Ave Evanston IL 60201 363245072 Charitable services and grants IL 501(c)(3) line 7 N/A Fixed Income Gen PRTSP II of Rotary 1560 Sherman Ave Evanston IL 60201 364401367 Investment IL The Rotary Foundation Excluded 3527103 40712123 0 0 1 Equity General PTRSHP II of Rotary 1560 Sherman Ave Evanston IL 60201 364401359 Investment IL The Rotary Foundation Excluded -1139072 30513282 0 0 1 International Equity Gen PRTSHP II of Rotary 1560 Sherman Ave Evanston IL 60201 364401363 Investment IL The Rotary Foundation Excluded 342000 21627757 0 0 1 PPH National Insurance Co 76 St Paul Street Suite 500 Burlington VT 05401 030370108 Captive insurance VT N/A C 1032975 5067908 1 1 1 0 0 0 0 0 0 0 0 1 0 1 1 1 1 1 1 The Rotary Foundation of Rotary International b 666984 The Rotary Foundation of Rotary International m 3090411 The Rotary Foundation of Rotary International n 25026436 The Rotary Foundation of Rotary International p 13935298 PPH National Insurance Co n 105288 PPH National Insurance Co q 775538 Equity General PTRSHP II of Rotary a-i 167676 Fixed Income Gen PRTSP II of Rotary a-i 1615942 Fixed Income Gen PRTSP II of Rotary q 3000000 Fixed Income Gen PRTSP II of Rotary r 12000000 International Equity Gen PRTSHP II of Rotary a-i 2 International Equity Gen PRTSHP II of Rotary q 12000000