Community Service Fund

FROM:    TERI KREPS, President 2006-2007

DATE:     June 8, 2007

Fellow Rotarians:

As you know, our new Club Bylaws will take effect on July 1, 2007.   You will probably also recall that one of the changes we made was to separate the bylaws for the Rotary Club of Colorado Springs (Club) from the bylaws for the Community Service Fund (CSF).  The Task Force presented the new CSF bylaws to the Board of Directors, and the Board approved them at a special board meeting on May 30, 2007.  The new CSF bylaws are now ready for the membership’s consideration.

The same Committee that worked on the Club bylaws, also developed the proposed CSF bylaws.  That committee was led by President-Elect Jack Donley, and included John Buckley, Jane Hammoud, Past President Mike McGrath, Past President Ed Ward and me. 

Before discussing the new bylaws I thought it might be helpful to review some of the history surrounding the CSF, its current purpose and structure, and the vision for the future.

The Community Service Fund was organized in 1951, and was incorporated as a 501(c)3 in 1971.  The bylaws for the CSF were incorporated in the Club’s bylaws, and the Club’s Board of Directors also served as the Board for the CSF.  The CSF’s purpose was and is to support the philanthropic and service activities of the Rotary Club of Colorado Springs. The CSF is a separate corporation, has had its own financial statements, and has filed separate tax returns; and most importantly has been used to fund the Club’s charitable activities.  Because of it’s status as a “non-profit” it has not and can not support the actual administration of the Club.

When I first joined the Club, the CSF was almost exclusively used to provide funds to local non-profits that submitted grant requests.  The Community Service Fund Committee reported to the Club's Board of Directors and had responsibility for soliciting, reviewing and distributing grants. Because this standing committee carried on the primary function of the CSF it has often been mistaken as the Board of Directors for the CSF.

A few years ago the Club leadership realized the great potential the CSF has.  Its legal status gives our Club the ability to carry out its mission of “Service Above Self” with the ability to take tax deductible donations.  So in more recent years, your donations, combined with the donations of non-Rotarians, have funded the grant program, as well as our Club's own 501(c)3 eligible projects.  Some of the Club projects that have been supported by the CSF include the Merit Scholarship Program, the YMCA Campership Program, the Diamond Awards, the Freedom Memorial and Friendship Bridge.  Needless to say, by broadening the use of the CSF, we as a Club have been able to increase our support to the local and world community.

Our goal for the future is to maximize the potential of the CSF and the good that we can do in the local and world community.  At a minimum, we want it to serve as the vehicle to not only accept your regular gifts to support the projects and programs the Club undertakes, but also as a structure to support larger fundraising activities and larger projects.  It needs to be the funding vehicle for carrying out our mission of Service Above Self.

Therefore, as you read the attached bylaws you will see that one thing has not changed - the mission of the CSF continues to act “exclusively for charitable, educational, cultural and scientific purposes that meet the vision and mission of the Rotary Club of Colorado Springs.”  What will change is that the CSF will now have its own Board of Trustees. (We have used the term “Trustees” so as to distinguish between the two boards.)  We have made this change primarily to provide an additional level of protection for the assets of the CSF.  However, this independent Board will also provide another level of fund management, vision and leadership.

To ensure that the CSF and the Club’s Board are on the same page, the new Board of Trustees will be comprised of four Directors from the Club’s Board of Directors and three members-at-large.  The members of the Club's Board of Directors who will also serve on the CSF Board of Trustees will be: The Director of the Community Service Fund who will serve as the Trustee’s chairperson (Ron Rubin, 2007-2008); the Club’s Treasurer (Craig Engelage, 2007-2008); the Director of Local Community Service Projects (Gail Fernandez, 2007-2008); and, the Director of International Service Projects (Gil Vondrasek, 2007-2008).  The three Members-at-Large will be elected from the active Club membership in the same way members of the Board of Directors of the Club are elected.

In order to provide you time to review these bylaws, ask any questions you have and assure your comments and concerns are addressed, we have presented these bylaws to you during our June 8 meeting.  On June 22, 2007, we will open the meeting for questions and comments, consider changes, and if appropriate vote on the new bylaws. If approved by the membership, the new bylaws will go into effect on July 1, 2007.

I am expecting that the nominating committee will be ready to announce the proposed slate for the 2007-2008 Board of Trustees at the Club meeting on either June 22^nd or 29^th.  As required by the bylaws, we will vote on the slate at the Club meeting two weeks after the slate is announced.

Please review the proposed bylaws over the next couple of weeks.  If you have any significant concerns or feel changes should be made, please contact either Jack Donley or myself so those issues can be considered before we vote.  I hope that after you review the information, you will agree that the new bylaws will help move both the CSF and our Rotary Club to the next level, and that you will support the recommended changes.

Yours in Rotary,

Teri Kreps

President 2006-2007