STEWARDSHIP---all the way ! DTA 2016-17 TRIDENT HOTEL 27th March 2016 By Harjit Singh Talwar Training Facilitator Designate

STEWARDSHIP “The careful and responsible management of something entrusted in one’s care”

STEWARDSHIP in ROTARY ? 1. CLUB accounts 2. TRUST accounts 3. TRF grant accounts To be VIGILANT and handle money with great CAUTION, RESPONSIBILITY, INTEGRITY, HONESTY and TOTAL TRANSPARENCY

Stewardship-ROTARY CLUB BUDGET v/s EXPENSES Contribute ourselves and then spend All activities “FOR, BY and OF” Members

Stewardship-Rotary Club ACCOUNTS Maintain separate account Route all donations/sponsorships through the account- Debit & Credit Regularly Inform memb on money spent Audited Balance Sheet at end of RY

Stewardship- Rotary Club Timely Handing over books of account to incoming team Smooth transfer and change of Signatories Income Tax liability ? ( “mutuality concept” - NO individual is directly benefitted ) Filing of Income Tax Return ?

Stewardship-ROTARY TRUST Registered with the CHARITY COMMISSIONER TRUST DEED – aims and objects and mode of management (min 2 trustees) 80-G certification entitles donors to Tax Exemption

Stewardship-ROTARY TRUST INCOME -All money received from Public in form of Donations , Sponsorships, Advertisements fund raising etc Expense- All money spent towards Service Projects Expenses Directly from Trust account Exempted from Income Tax subject to fulfillment of certain conditions

TRUST – LEGAL OBGLIGATIONS Maintain separate books of account Conduct elections of Board of Trustees, Regular Board Meetings & AGM once a year Trust accounts to be audited every year Submit audited accounts with Change Reports to Charity Commissioner Submit Income Tax return every year

Stewardship - Healthy Practice Take part Membership Dues DIRECTLY in the name of Trust( portion earmarked for service projects ) AVOID INTER TRANSFER OF FUNDS FROM CLUB ACCOUNT TO TRUST ACCOUNT AND VICE VERSA

Stewardship in TRF ??? Treating TRF funds as a sacred trust Competent and thorough supervision of project Standard business practice Reporting irregularity to TRF Implementing projects as approved Timely and complete reporting 4 – Way Test Stewardship includes a number of important components. These components are as follows: Treating TRF funds as a sacred trust Competent and thorough supervision of the project Standard business practice Reporting irregularity to TRF

Stewardship-TRF ACCOUNTS Separate accounts should be established for each grant Payment should be made to a bank account opened specifically for the project All payments should be made only by CHEQUE- NO CASH payments When opening project accounts, the following guidelines should be followed: Where feasible, separate accounts should be established for each grant. This helps to keep the funds for each project separated from other funds. Grant payment should be made to a bank account opened specifically for the project. The name of the project account should be such that it is easily identifiable with the club and the project.

REPORTING Interim report every 6 months till Project Completion Final report is due within two months of the project’s completion IN PRESCRIBED FORMAT (Accomplishment, Rotarian Involvement, Income/Exp/Bank Statements, Beneficiaries) Please note that the first report is due twelve months after the paid date of the grant. Subsequent reports are due at least every twelve months from the date when the previous report was received at TRF. The final report is due within two months of the project’s completion.

REPORTING Celebrates success Provides transparency Offers lessons learned Improves DONOR relations Improves Rotary’s charitable status ranking We have discussed the importance of appropriate fundraising, proper use of grant funds and the importance of maintaining proper financial records. What does reporting accomplish? Celebrates the successes of the project Communicates project accomplishments to TRF Demonstrates to donors the good use of TRF funds Achieves transparency and judicious use of grant funds Fulfills government requirements Demonstrates lessons learned

Bank Funds Security / Collateral / Mortgage Personal guarantee Reporting Monthly / Quarterly / Annual Interest Cost Pay back

Concerns Charging beneficiaries for project support Individual charging fees to Club for help with project – no Rotarian should personally gain Lack of Effective Communication

to our ROTARY FOUNDATION for sound fiscal management. Good News CHARITY NAVIGATOR – The premier charity evaluation service in the United States has awarded its highest rating of 4 STARS ( * * * *) to our ROTARY FOUNDATION for sound fiscal management. A donor who understands that funds were used in an appropriate and responsible manner is more likely to give to the Foundation again.

Your CHARITY NAVIGATOR ?

. THANK YOU !