Club vs. Foundation:
Club vs. Foundation From a financial perspective, the London Bridge Rotary Club is essentially a lunch club where the membership contributes quarterly dues payments to cover the costs of operating the club.
The London Bridge Rotary Foundation is a non-profit organization where all monies are raised by Rotarians and then distributed to causes or needs determined worthy by the membership.
How does the club get money?:
How does the club get money? Dues $58,000
Guest Meals $ 8,000
Raffle $ 8,500
Sgt. @ Arms $10,000
TOTAL CLUB REVENUE $84,500*
*All numbers are rough estimates based on the ’06-’07 budget.
Where does the club spend $?:
Where does the club spend $?
Where does the club spend $? (II):
Where does the club spend $? (II)
Club P&L summary:
Club P&L summary Total Revenue $84,500
Total Expenses $82,200
NET INCOME BUDGETED $ 2,300
What restrictions exist on club?:
What restrictions exist on club? The club needs to operate as close to break even as possible. This is why sticking to the budget is so important. A large surplus of cash cannot be maintained from year to year.
Everything that is a benefit to the members (meals, parties, conferences, etc.) must be paid with club funds. The foundation cannot pay any of these expenses.
Who decides where the money is spent?:
Who decides where the money is spent? You do!
Each year every member is presented with proposed budgets for your approval. These budgets detail where all of the money will be spent during the next year. Once this budget is approved, the board of directors ensures spending is within the budget. Any changes to that budget are presented to the membership for approval.
In other words – EVERY DOLLAR SPENT AND WHERE IT IS SPENT HAS BEEN APPROVED BY THE MAJORITY OF THE MEMBERSHIP.