Southtowne Rotary Foundation Fiscal Year 2020 21 Financial Report to the Club
The Eugene Southtowne Rotary Foundation operates on an April 1 – March 31 fiscal year. With FY 2020-21 now closed, the Foundation Board wishes to share a financial report with the membership of the Southtowne Rotary Club.
Highlights of the year include: (1) The Foundation transitioned successfully to an online accounting system – QuickBooks Online. As part of this transition, a new, more simplified chart of accounts was developed and implemented. (2) In response to the Club switching to online fundraising due to the Covid-19 pandemic, the Foundation created systems to account for online donations, many of which were restricted by donors to particular uses. (3) FY 2020-21 revenues and expenditures are summarized in the following table:
Unrestricted Donations $ 6,504 4%
Restricted Donations 43,683 29%
Memorial Donations 5,410 4%
Investment Earnings 7,719 5%
Unrealized Investment Gains 86,004 58%
Total Revenue $149,320 100%
Scholarships $ 5,600 4%
Grants to Rotary Club 41,658 28%
Administration 2,982 2%
Total Expenses $50,240 34%
The Foundation ended the year with net cash revenues of $13,076. When the growth of investments are included, the Foundation ended the fiscal year with total net revenues of $99,080, including $86,004 of unrealized investment gains (i.e. gains in value that have not been cashed in). While this number is impressive, please recall that the US Stock Market crashed in March 2020 in response to the shutdown of the economy due to Covid-19. Its recovery started in April 2020 and continued throughout the balance of the Foundation’s fiscal year.
The Foundation holds investments in three accounts, two of which are endowment accounts – the Local Community Services Endowment Fund and the Bruce Shaw Scholarship for Homeless Youth Endowment Fund. With endowment funds, the principle cannot be spent. Rather, it is invested to produce returns which can be used to achieve the goals of the fund.
Of the $86,004 in investment returns noted above, nearly $65,000 represented growth in the values of the Foundation’s two endowment funds.
As a result of the Covid-19 pandemic, Southtowne’s 2020 in-person fundraiser was canceled and it is questionable whether one can be held in 2021. Traditionally, one-half of the net proceeds of the Club’s annual fundraiser is dedicated to funding scholarships. Due to the loss of this revenue source, funding for scholarships was reduced significantly in FY 2020-21 and will continue to be reduced in FY 2021-22. Scholarships for disadvantaged students have been a Club project for nearly 30 years. They have helped recipients further their educational goals and, by extension, break free from the cycle of poverty. Returning scholarship funding back to pre-pandemic levels and higher is now more important than ever. The continuing help of Club members with this important support for our community is needed. Thank you for all you do.
Questions regarding the Foundation’s finances can be directed to its Treasurer, Ted Stevens.
Bruce Shaw Scholarship
Last Updated: 1/14/21
Bruce Shaw, in his 46 years of Rotary service, was deeply committed to the youth of our area.
In his last months, the Southtowne Foundation established a scholarship fund in Bruce’s name. He wanted the fund to assist academically successful students impacted by homelessness in achieving a college education. With the help of his friends and Southtowne members, the Bruce Shaw Scholarship fund now totals $38,000 with the goal to reach $50,000. The Fund is endowed and the capital is never spent; only the earnings. The first scholarship of $3,000 for each of two years ($6,000 total) will be awarded in Bruce’s name for the 2020-21 school year.
We need your help in growing this important scholarship and reaching more students impacted by homelessness, please make your gift now. You can mail a check made out to Southtowne Rotary Foundation/Shaw Fund to:
Ted Stevens, Foundation Treasurer P.O. Box 84 Lorane OR 97451