Secretary Information File - Vol. II

Table of Contents - Clink on topic for which you desire more information.

1. Proposals for Membership
2. Liability Insurance
3. Certificates of Insurance
4. Club Financial Requirements
5. Did You Know?
6. New RI Mailing and Contact Information
7. Using the Club Recognition Summary (CRS)
8. Using the EREY Eligibility Report
9. New IRS Regulations

Proposals for Membership

The Club Secretary is involved in three of the six steps for proposing and electing new members (Steps 1, 3, and 6). You should follow through carefully and promptly on each step to keep the potential member interested in joining the club. Some secretaries use a chart to record each step in the election of new members and keep the proposal moving through the approval process without undue delay.

Rotary International’s recommended procedure for proposing and electing members:

1. An active member of the club or the Membership Development Committee submits the name of a prospective member to the Board of Directors in writing or on an official Proposal Form (Request sample form from District Secretary), through the Club Secretary. A transferring or former member of another club may be proposed to active membership by the former club or a member of that former club. The proposal should be kept confidential except as otherwise provided in this procedure.
    

2. The board shall ensure that the proposal meets all the classification and membership requirements of the club constitution, consulting with the classifications and membership committees as needed.
   

3. The Board of Directors shall approve or disapprove the proposal within 30 days of its submission and should notify the proposer, through the Club Secretary, of its decision.
   

4. If the decision of the Board of Directors is favorable, the prospective member should be informed of the purposes of Rotary and of the privileges and responsibilities of membership. The prospective member should then sign the Membership Proposal Form and give permission for his or her name and proposed classification to be published to the club.
   

5. If no written objection to the proposal is received by the Board of Directors from any active member of the club within seven days following publication of information about the prospective member, the prospective member will be considered elected to membership, upon payment of the admission fee (except for transferring or former members of another club and honorary members) as prescribed in the bylaws. If any objection has been filed with the board, it should vote on this matter at its next meeting. If approved despite the objection, the proposed member, upon payment of the admission fee (except for transferring or former members of another club and honorary members), will be considered elected to membership.
   

6. Following a new member’s election, appropriate club leaders should arrange for the member’s induction and orientation. The club secretary will issue a membership identification card, if applicable, to the member and will report the new member to RI. The Club Secretary should provide appropriate literature for presentation at the induction and assign a member to help the new member become involved in the club

While there may be club specific variations of this procedure, the above guideline should be of assistance.

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Liability Insurance

The Rotary International Insurance program provides general liability insurance coverage for active U.S. clubs and districts (including its Rotarians and volunteers in their role as such for the club or district) for their liability arising out of bodily injury to a non-insured (third party) person or damage to a non-insured (third party) person's property (subject to policy terms and conditions).

Insurance Carriers & Limits

Limits of Coverage

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Certificates of Insurance

All requests for certificates of insurance and insurance inquiries regarding the Rotary U.S. Club and District General Liability Insurance Program are handled by Lockton, Rotary's new insurance broker (effective 1 March 2007).  Aon Risk Services, Rotary's former insurance broker, will no longer forward any certificate of insurance requests to Lockton for processing. 

The “Quickest & Most Convenient” way to obtain a certificate of insurance is to create one from your computer.  All that needs to be done is to type the date (top of page) and the certificate holder's name and address (bottom of page) into the certificate and print it from your computer.

Instructions, the certificate of insurance and much more can be found on Rotary’s Insurance webpage: www.rotary.org/en/Members/GeneralInformation/Insurance/Pages/Certificateofinsurance.aspx .  The alternative way to access this information is to go to the Rotary Home Page ( www.rotary.org ), click on “Members,” then click on  “General Information,” then click on "Insurance," and then click on "Certificate of Insurance."

Lockton’s Contact Information:        Phone:   (800) 921-3172         
Email:     rotary@lockton.com                
Fax:        (312) 681-6769

If you have any questions, please contact Lockton, or e-mail insurance@rotary.org

Club Financial Requirements

Rotary International requirements on club finances and they are very simple.  Clubs are to prepare a budget at the beginning of the Rotary year and conduct a financial review of the records at the end of the Rotary year.  Below is an excerpt from the Rotary Code of Policies that deals with club finances: 

9.010. Club Finances
At the beginning of each fiscal year the club’s board of directors shall prepare or cause to be prepared a budget of estimated income and estimated expenditures for the year, which, having been agreed to by the board, shall stand as the limit of expenditures for the respective purposes unless otherwise ordered by action of the board.

All bills shall be paid by the treasurer, or other authorized officer, only after approval by two other officers or directors. An independent review by a qualified accountant or other qualified person shall be made once each year of all the club’s financial transactions.
Source: November 2004 Mtg., Bd. Dec. 59

The financial review may be done by someone in your club, with specialized skills, or simply a small committee of Rotarians in the club.  All that needs to be done is to ensure that the bank statements agree with Treasurer’s records and that club funds are being handled in a businesslike manner.  

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Club Presidents and Secretaries: Did You Know….?                     

Did you know that the Club and District Support (CDS) staff at Rotary International serves as your primary contact at the RI Headquarters?   They are ready to answer almost any question you may have about Rotary, and can provide you with advice on such topics as club elections, constitutional matters, club traditions and customs, club operations, and RI Board policy. 

Do you know who your CDS representative is?   Click here to find out.

Have you seen some of our web resources that will make it easier for you to administer your club? 

Helpful resources have been designed specifically for club presidents and secretaries, and can be found on the web by clicking here.

·        Learn how you can make online changes to your club’s membership records, reference various Rotary Foundation reports, pay your club's dues online, and report next year's club officers using Member Access.  Click here for full instructions and helpful suggestions. 

·        You can find a selection of informative club administration publications including audiovisual programs, club software, forms and supplies on the web by simply clicking here.  

·         The Club President's Checklist is a month-to-month calendar, for the club president and president-elect, with reminders about important club and district functions, as well as RI and Rotary Foundation program due dates.  Find it quickly by clicking here.

·        The Club Leadership Plan is a great new way to invigorate stagnant clubs, based on the best practices of effective Rotary clubs.  You can find this plan on the web by clicking here. 

·         Important information for Rotary clubs located in the USA is provided here regarding your club’s tax status and mandatory reports to the I.R.S.     

The RI Secretariat staff looks forward to working with you and supporting your club’s service efforts in the year ahead.  Be sure to contact your CDS representative whenever you may need help from RI Headquarters!

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New RI Mailing and Contact Information

IMPORTANT NOTICE:  Effective 1 October 2006, lockbox addresses are changing for Rotary International and The Rotary Foundation. Please take note of our new mailing addresses below:

Send membership dues and payments to Rotary International:
Rotary International
14255 Collections Center Drive
Chicago, IL 60693

Send contributions to The Rotary Foundation:
The Rotary Foundation
14280 Collections Center Drive
Chicago, IL 60693

New Toll-Free TRF Contract Center
In October, The Rotary Foundation Contact Center will begin taking general inquiry calls and emails for The Rotary Foundation and its programs from Rotarians, clubs and districts in the United States and Canada.

Call 1-866-975-8279 or E- mail: contact.center@rotary.org to check on your donations and recognition points, deadlines for grants and applications, contact names for your applications, and more.  The TRF Contact Center is open Monday-Friday, 8 a.m. - 5 p.m., Central Standard Time.

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New IRS Regulations

Effective with the 2007-08 Rotary Year (July 1, 2007 – June 30, 2008) ALL clubs must file either the Form 990 “Return of Organization Exempt From Income Tax” (9 pages plus attachments), Form 990-EZ “Return of Organization Exempt From Income Tax – Short Form” (3 pages plus attachments) or the Form 990-N “e-Postcard” (8 questions).

Which form do you file?

• If your “Gross Receipts” are $25,000 or less you may file the 990-N.
   
• If your “Gross Receipts” are more than $25,000 but less than $100,000 you should file the 990-EZ.
   
• If your “Gross Receipts” are more than $100,000 you must file the full 990.

What is the definition of “Gross Receipts?”

“Gross receipts are the sum the total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses.” IRS publication “Instructions for Form 990 and Form 990-EZ”

Quick and Dirty Test: Using your monthly bank statement, add the clubs total deposits for 12 consecutive months to determine your gross receipts.

There is a question of whether money collected from individual members for the Rotary Foundation that is transmitted to the foundation can be exempted.  Check with your local tax advisor or legal advisor.

Helpful Information:

·        All Rotary Clubs are 501(c)(4) organizations and Rotary’s Group Exemption Number is “0573”

·        If your club has a separate 501(c)(3) foundation, you must file a report for both the foundation and the club.

·        IRS website with forms and information:  www.irs.ustreas.gov .

·        IRS toll free phone number: 1-800-829-1040.

·        PDG Lee Ahlum has the Employer Identification Numbers EIN for all the clubs in the district and can be contacted for your club’s number.

Caveat:  The above is not tax advice, but general information, which may be useful.  Questions regarding any tax matters need to be referred to local counsel, your tax advisor or to the IRS.

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CLA Associates

Rotary Graphics have been supplied compliments of Tord Elfwendahl. The Rotary Club of Stockholm Strand, RI District 2360 Creator and Curator of a very extensive Library of Rotary Graphics.