Our program today was a presentation by Ross Newkirk, chair of the Kitchener Rotary Club Charitable Foundation (KRCCF). Ross was introduced by Rohit Kumar.
A long-time member of the Rotary Club of Kitchener Ross Newkirk served on the Club Board and as President. He has been a member of the Kitchener Rotary Club Charitable Foundation since 2018, and the Chair of Board since 2019. Ross has a BA (Economics), MSc (Computer Science), and a PhD (Engineering Science) from Western University, MCIP. He was a Professor Emeritus and Administrator at the University of Waterloo from 1976, retiring in 2006. He taught lots of undergraduates, and graduated 21 Masters and 13 PhD students. Ross is a “numbers” person specializing in statistics, numerical modelling & simulation, watershed (floods) planning, and a Fellow of The International Emergency Management and Engineering Society.
On a personal note, Rohit commented on what a great mentor Ross has been to him as a relatively junior member of our club. He’s been invaluable as a resource of institutional knowledge, but perhaps more significantly he’s made him feel like he can rely on him and draw on that knowledge as he matures in his role within this great club.
Ross provided a lot of background information to Rohit about the KRCCF that answered a lot of questions.
What is KRCCF and How Does it Relate to The Rotary Foundation (TRF)?
- Both Foundations are registered charities – allowing them to obtain & accumulate tax free funds that are allocated to charitable needs.
- TRF supports RI’s many projects – eg. Polio Plus, Global Grants etc. (Your Paul Harris donations go to TRF.) A RI/TRF committee decides priorities.
- KRCCF is OUR Club’s own foundation. It has a broad mandate of charitable areas it can support – International, regional, local. The KRCCF Board decides priorities.
- KRCCF expenditures must exclusively directed to CRA recognized Charities and KRCCF charitable projects.
- Some other Rotary Clubs in District 7080 have their own foundations too. Eg. Kitchener-Conestoga’s for Community Development – (it is hosting the 5 Club Catch the Ace.)
Kitchener Rotary Club Charitable Foundation
Original Members:
Leonard Baldwin Insurance Agent
John Euler Printer
Gordon Haslam Life Insurance Agent
David McFadden Medical Doctor
Wm Meikle Securities Salesman
Frank Neibert Manufacturer
Vincent Scherer Car Dealer
Joseph Zuber Hotel Keeper
We obtained our Letters Patent #1581-47 on March 31st 1967, 45 years ago, - Establishing the Foundation
Our Foundation –what was the initial purpose?
Authority to receive, manage, invest, and disburse or donate funds for:
- The finding, investigation, care, cure, education, rehabilitation of, and any other aid to, or work with crippled or handicapped children, and
- Any other charitable work or purpose which the directors of the Corporation may determine.
Kitchener Rotary Club Charitable Foundation - Statement of Charitable Purpose
- aid children with disabilities,
- advance goodwill and peace and the improvement of health,
- alleviate poverty,
- support education and the arts and
- support the work of Rotary around the world.
KRCCF support is directed Internationally, Regionally, Locally in areas of focus that are consistent with those of The Rotary Foundation (TRF).
KRCCF Identified Areas for Support
- Aid to or work with children with disabilities, including KidsAbility.
- Promoting peace: Training leaders, supporting conflict resolution, mediation, and peacebuilding - supporting studies and training.
- Fighting disease, especially Polio: Promoting, funding and participating in disease prevention programs.
- Enhancing the health infrastructure of communities.
- Providing clean water: Providing equitable access, develop, fund, and maintain sustainable water and sanitation systems, supporting studies and training.
- Saving mothers and children: Reduce the child and maternal mortality and morbidity rate, improve access to essential medical services.
- Supporting education and the arts: Increasing child and adult literacy, reducing gender disparity, supporting studies and training for career-minded professionals in education, literacy and the arts.
- Enhancing and supporting local public facilities. This includes facilities for Health, Arts, and Education (HAE), programs and agencies.
- Growing local economies: Supporting entrepreneurs, community leaders, supporting studies and training.
Current Members of KRCCF
Elected Members:
Martin Jones
Rohit Kumar
Ross Newkirk
Jess Perucho
Darren Sweeney
Ex-Officio members – From the Rotary Club of Kitchener:
Louise Gardiner President
Paul Rostrup Past-President
Adrian DeCoo President-Elect
Ray Taylor Tresurer
KRCCF Executive:
Chair of the Board Ross Newkirk
Secretary Martin Jones
Treasurer Ray Taylor
Advantages & Limitations of A Foundation
- Advantages:
- Tax exempt (including HST)
- Investment returns not taxed, can be accumulated or spent.
- Can build long term legacy (endowment) funds.
- Can Issue Charitable Donation Receipts for income tax purposes –this to encourage donations.
- Limitations:
- Can only donate to CRA recognized Charities OR a Charitable project run and controlled by the Foundation.
Foundation’s Limitations Could be Eased
- Easiest route is for a foundation just to donate funds only to a CRA registered charity.
- BUT, a foundation may establish its own specific charitable program to donate funds to non-charity groups and individuals to meet a priority need.
- Such a program has to be directly under the control and management of the foundation.
- KRCCF could do this but has not looked into it. Perhaps in the current financial climate it’s not a good time.
Practical Matters: Donations & Receipts “Without Benefit”
- Can only issue receipts for donations KRCCF directly receives or realizes from sale.
- “Regular Donations”
- In cash, the amount receipted is the value donated.
- In kind (e.g., items, gift cards):
- If Receipt provided by donor, value is amount of the receipt.
- If no receipt and under $1,000, the receipted amount is what is realized from sale (eg. Amount On-Line Auction received.)
- If no receipt and over $1,000 an independent appraisal will determine receipted value.
Practical Matter: Donations & Receipts
- “Directed” Donations (where donor indicates a specific program or charity to receive the donated funds.)
- If Directed to another CRA approved charity but not one KRCCF is supporting, the amount being donated must be over $500.00
- If Directed to projects, programs, agencies receiving support by KRCCF (eg. RAWEF, KidsAbility) any amount will be accepted and receipted.
- KRCCF may elect not to accept a donation.
- The Foundation prefers to receive regular non directed donations.
- For smaller donations (less than $100) Please use the website Canada Helps
- Canada Helps will process your credit card donation and issue the charitable donation receipt right away. Proceeds transfer to KRCCF monthly.
This is a great way to do Birthday, Happy Jar, and Memorial donations.
Canada Helps for Smaller Donations
Enter the amount, your personal information and credit card details.
Tax receipts are issued for amounts of $3 or greater
Foundation can facilitate Club’s Charity Work
- Foundation’s can issue Charitable Donation Receipts (but it’s really “Small Beer.”)
- Foundation’s real leverage comes from building and sustaining legacy funds that can support on-going charitable projects through annual investment income.
(Some other club’s foundations have built large enough legacy funds that the club no longer have to do heavy annual fund raising
How has the Foundation been functioning?
- Until just recently, the Foundation has just been practicing only “Full Flow-Through” financial operations for most funds (except Wipper fund)
- Full Flow-Through - Generally, all the year’s donations are immediately sent on to beneficiary organizations. This generates no legacy (other than “Good Will.”)
- Gives us a nice “buzz” of doing charitable things.
- BUT it does not build legacy and its flexibility.
- Leaves an annual urgency for fund raising. Especially noticeable in difficult times!
KRCCF Permanent Fund
- A while ago, the Foundation established its Permanent Fund.
- The Permanent Fund accumulates funds from bequests and donations. The fund is invested and managed to maintain and grow its principal value.
- Permanent Fund Income generated annually (net of inflation) could be available to fund qualifying international, regional or local charitable activities.
- But we need to build a substantial capital in the fund to provide sufficient annual income to support charitable programs.
- The Permanent Fund is a wonderful way for Rotarians to leave a lasting legacy through memorial bequests and donations.
KRCCF Audrey Wipper (RAWEF) Fund
- In 2010 Kitchener Rotarian Audrey Wipper donated $500,000 to establish the Audrey Wipper Education Fund.
- Audrey intended it to be a permanent fund to support the post secondary education of African women.
- She and her estate upon her death have contributed an additional $1 million to the fund.
- KRCCF established the Rotary African Women’s Education Fund (RAWEF) Committee terms of reference to operate this activity.
- To date, 85 African women have benefitted with 40 students already finishing their degree programs.
KRCCF Legacy Funds
Fund Name Value
Permanent Fund $65,000
Wipper Fund (RAWEF) $1,550,000
Total $1,610,000
The Permanent Fund is too Small
Nominal annual yield of the $65,000 is only about $3,000.
We need to build this up.
Strategic Questions to Answer
- Wipper (RAWEF) Fund: To support more African women how should we: Grow the Wipper Fund
Leverage the Wipper Fund
(Suggestions, please send to Martin Jones.)
The Main Questions:
- Do we continue annual “Full Flow-Through” use of funds (not add to a Permanent Fund Legacy)?
- Do we commit to adding to the Permanent Fund to provide for long-term charity support?
(Do we want to reduce annual fundraising demand on members and provide for challenging times?)
