Annual Report of 10-23-2012

The Excelsior Rotary Foundation Annual Report                                     of October 23, 2012 at the Bayview Events Center

The Annual Report of the Excelsior Rotary Foundation was given to the Excelsior Rotary Club on October 23, 2012.  President Litfin called on Foundation Chair Don Draayer at 12:47 to give the Annual Report.

Dr. Draayer started his presentation by referencing District Governor Bob Stowell’s moving presentation of a few weeks before and Gary Thompson’s remarks at Happy Bucks reminded Don of a May, 2012 article in the Rotarian Magazine and had Steve Frazier read it to the club.  The reading emphasized the importance of Rotary’s excellence in fiscal management, being transparent and accountable, building trust and Rotary’s commitment to its core beliefs. 

Chair Draayer affirmed that this too was the goal and mission of the Foundation’s Board of Directors.  Draayer continued by referencing Lee Paris as a long-time Rotarian of the Excelsior Club who bequeathed $75,000 to the club in his will and in 2007 the Excelsior Foundation was created as a 501(C)(3) to manage the funds in a manner that garnered accountability, wise fiscal management, and trust of the membership for the Foundation.

Draayer announced that the elements of trust and good educational club programs, namely STRIVE, led Steve Sherwood who is a non-member to approach Dick Glover and has donated $10,000 to the foundation for placement in a Restricted Education Fund.  Proceeds from this donation will be available to the club for educational programs and grants.  Don noted that trust in the Foundation is vitally important as members contemplate their estate planning and their bequests to the Excelsior Rotary Foundation.

Draayer then asked members to draw their attention to the handout entitled “Annual Report to the Excelsior Rotary Club Members” (Five Year Perspective) and proceeded to discuss the Foundation Leadership (1.0) and to introduce past and present trustees.  He went on to outline the chronology of the Foundation Infrastructure (2.0) and the policies to guide the Trustees and most recently the formation of the Endowment Fund Investment Policy Statement and accountability safeguards. 

Next Don explained the need for Foundation Advisors (3.0) and introduced Gary Thompson as advisor for law and policies; finance advisors Joe Froehling and Dean Friesen; and Annual Financial Review Advisors Jerry Brecke, Hugh Gilmore and Dick Osgood.  Don clarified that two club administrations and the financial review process recommended that that alternative investment opportunities be investigated that led to the development of an Investment Policy, extensive search process for a financial advisor, and the Selection of North Star Resource Group.  Don noted that Ann Wengronowitz our Investment Advisor and her assistant Emily Nelson would be making a brief investment update after his remarks.

Chair Draayer then reviewed the Budget Overview Sheet (4.0) that differentiates the Excelsior Rotary Club’s three major funds from those of the three major funds of the Foundation’s Charity Funds.  Don then moved on to the Fund Analysis (5.0) sheet that shows the charitable expenditures by each president starting with Bob Hoebelheinrich up to Tim Litfin made through the Foundation.  Don also explained how the carry-over of unused funds goes to the next president’s budget for charitable giving.  Don noted that over $50,000 in charitable giving has occurred over the past five years through the Foundation.  The final elements of the Fund Analysis that Don explained was the General Fund Balance  (6.0) of $1,344.00 and the Lee Paris Fund balance of $86,964.05.

Draayer then introduced Ann Wengronowitz and Emily Nelson for their investment update report.  Ann introduced herself as a 31 year financial planner and working with North Star.  She explained how she had met with the Foundation Trustees and after considerable research decided to go with the MAPS Income and Growth Portfolio and referenced the handout with the various portfolios listed.  She noted that the 75K of original investment is now at 80K and that the fund is reviewed every 6 months and rebalanced if necessary and that income and interest in the fund are divided with 50% of the interest going back to the club for grant proposals and 50% remains in the fund to counteract inflation and to continue to build the growth fund.

Chair Draayer (7.0) concluded his remarks by saying that we won’t know the total amount of earnings until January and will make that known to the membership at that time.  He thanked everyone for their trust and support of the work of the Foundation and that he and Ann and the Trustees would be available after the meeting to answer any questions.

The Annual Report Minutes are respectfully submitted by Secretary Steve Frazier on October 24, 2012.