CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.

Any time an Analysts' Note refers to a charity's Audited Financial Statements or IRS tax form, CharityWatch encourages interested donors to obtain a copy of the referenced documents so that they may view the information in context. Please contact the charity directly to request a copy of any referenced document. Charity tax forms and audits may also be obtained from a number of online databases. For a list of sources, please visit our LINKS page.

Note(s)
CharityWatch's rating of the Rotary Foundation of Rotary International is for the 501(c)(3) public charity entity (tax ID #36-3245072). The rating includes the financial activities of the Rotary Foundation's associate foundations in Australia, Brazil, Canada, Germany, India, Japan and the United Kingdom.


CharityWatch's rating does not include the financial activities of the 34,000 local Rotary Clubs located across the globe that are supported by Rotary Foundation grants or the financial activities of Rotary International (RI), the related 501(c)(4) tax-exempt, social welfare organization (tax ID #36-1707667). RI is a worldwide association of Rotary Clubs. CharityWatch does not provide a separate rating for Rotary International.

CharityWatch separates the ratings for 501(c)(3) & 501(c)(4) organizations, even if their financial activities are included together in a combined or consolidated audit, due to their differing tax treatments by the IRS. For more information on this topic, please see our sections on Types of Non-Profits, Tax Status, and Treatment of Related Organizations, which can be found in "Criteria & Methodology" under the "About Us" navigation header.
According to The Rotary Foundation of Rotary International (the Foundation) audit of June 30, 2017 (Note H - The Bill & Melinda Gates Foundation Grant):

"Beginning in the fiscal year 2008, the Foundation entered into grant agreements with the Bill & Melinda Gates Foundation (BMGF) to support the global polio eradication initiative. The intent of the grant agreements is to strengthen the Foundation's leadership in working with other organizations, such as the United Nations Children's Fund, the Centers for Disease Control and the World Health Organization, in pursuit of the eradication of polio throughout the world. In accordance with the grant agreements and all future addendums, the Foundation recognizes revenue when all contingencies to the grant are substantially met.

"In June 2013, the Foundation and BMGF signed an addendum for a grant award from BMGF of up to $350,000 subject to revised contingencies. The addendum provides a 2:1 match for new spending from non-BMGF funds, with a match of up to $70,000 per calendar year for calendar years 2014-2018. The Foundation recorded a $70,000 award as revenue in fiscal years 2017 and 2016.

"In May 2017, the Foundation and BMGF signed an addendum for a grant award from BMGF of up to $230,000. The addendum provides a 2:1 match for new spending from non-BMGF funds, with an additional match of up to $30,000 in calendar year 2018 and a match of up to $100,000 per calendar year for calendar years 2019-2020."
According to The Rotary Foundation tax filing for the fiscal year-ended June 30, 2017 regarding Highest Compensated Employees:

"The Rotary Foundation has a highest compensated employee at its office in Zurich, Switzerland, which is currently undisclosed due to potential infringement of local data privacy laws. Salaries for staff at the international offices are established in their local currency and translated to US dollars for reporting purposes, resulting in potentially large fluctuations in the US dollar reportable equivalent for compensation" (IRS Form 990, Schedule J, Part III).

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