OMB No 1545-0047 Form 990 Return of Organization Exempt From Income Tax Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung LOOL benefit trust or private foundation) Department of the Treasury Open to Public Internal Revenue Smote " The organization may have to use a copy of this return to satisfy state reporting requirements Inspection A For the 2002 calendar ir, or tax year beginning 1 ul , 2002, and ending 30 June , 2003 B Check if applicable Please C Name of organization D Employer identification number use IRS Address change label or THE ROTARY FOUNDATION OF ROTARY INTERNATIONAL 36-3245072 pant or Number and street (or PO box if mail is not delivered to street address) Room/suite E Telephone number a Name change type a Initial return See 1560 SHERMAN AVENUE 847-866-3000 Specific City or town, state or country, and ZIP + 4 Final return Instruc- F Accounting method U Cash UAccrual tions; OAmended return EVANSTON IL 60201-3698 ~ [-]Other (specify) t H and I are not applicable to section 527 organizations Application pending Section 501(c)(3) organizations and 4947(a)(1) nonexempt charitable trusts must attach a completed Schedule A (Form 990 or 990-EZ). H(a) Is this a group return for affiliates [:]Yes O No If G Web site* No- www rotar` H(b) "Yes," enter number of affiliates 1 NZ A H(c) Are all affiliates included? Yes E]No J Organization type (check only one) 1 O 501(c) ( 3 ) 1 (insert no ) [:] 4947(a)(1) or [-] 527 (If "No," attach a list See instructions ) H(d) Is this a separate return filed by an K Checkhere Jo. iftheorganizationsgross receipts arenormally notmore than $25,000 The organization Q organization need not file a return with the IRS, but if the organization received a Form 990 Package in the mail, it covered by a group rulings n Yes n No should file a return without financial data Some states require a complete return Enter 4-digit GEN 1 M Check 10- O it the organization is not required to attach L Gross receipts Add lines 6b, Sb, 9b, and 10b to I me 12 , 806,503,682 Sch B Form 990, 990-EZ, or 990-PF) Part I Revenue, Expenses, and Changes in Net Assets or Fund Balances (See page 17 of the instructions ) 1 Contributions, gifts, grants, and similar amounts received a Direct public support . 1a 133,029,938 b Indirect public support . 1b 0 c Government contributions (grants) . 1c 0 d Total (add lines 1a through 1c) (cash $ 127, 6~ 8,74 6 noncash $ 5 .971,192 ) 1d 133 ,029,938 2 Program service revenue including government fees and contracts (from Part VII, line 93) 2 0 ano . ' . 3 0 4 InterestrronlP'savUns'fem5si~~ns~ gs and pora rycas~ .fci~estments. .. 4 7168 762 5 Dividends and .irlterest from s~yr~ ~y `~ ~ . 5 5,856,323 41-- 6a Gross rents . '.,f . .' F, 6a 0 b Less : rental expenses.-.- . 6b 0 c Net rental income o _ ra - ine fhArom line 6a . 6c 0 d 7 Other investment inCOrriedescribe t Investment losses related to s lit-interest a reement} 7 (280 ,761 ) 8a Gross amount from sales of assets A Securities - (B) Other other than inventory Schedule .1 & 2 . 660 ,601 ,634 8a 114 ,006 E ~ b Less' cost or other basis and sales expenses . 693 ,882,374 Sb 243 ,500 c Gain or (loss) (attach schedule) . (33 ,280,740 ) 8c (129,494) d Net gain or (loss) (combine line 8c, columns (A) and (B)) . 8d (33,410 ,234) 9 Special events and activities (attach schedule) a Gross revenue (not including $ 0 of contributions reported on line 1a) . 9a 0 b less : direct expenses other than fundraising expenses . 9b 0 c Net income or (loss) from special events (subtract line 9b from line 9a) . 9c 0 10a Gross sales of inventory, less returns and allowances . 10a 0 b less : cost of goods sold . 10b 0 c Gross profit or (loss) from sales of inventory (attach schedule) (subtract line 10b from line 10a) . 10c 0 11 Other revenue (from Part VII, line 103) . 11 13,780 12 Total revenue (add lines 1d, 2, 3, 4, 5, 6c, 7, 8d, 9c, 10c,. .and. 11). .. .. 12 112,377,808 13 Program services (from line 44, column (B)) . 13 92,061 ,849 N 14 Management and general (from line 44, column (C)) . .. 14 7,635,246 a 15 Fundraising (from line 44, column (D)) . 15 11 ,546,979 t~ 16 Payments to affiliates (attach schedule) . 16 0 17 Total expenses (add lines 16 and 44, column (A)) . .. 17 111,244,074 H 18 Excess or (deficit) for the year (subtract line 17 from line 12) . 18 1 ,133 ,734 19 Net assets or fund balances at beginning of year (from line 73, column. (A)) . 19 466,406,890 ;~ 20 Other changes in net assets or fund balances (attach explanation) Schedule 3 . 20 26,044 ,170 Z 21 Net assets or fund balances at end of year (combine lines 18, 19, and 20) . 21 493,584 ,794 For Paperwork Reduction Act Notice, see the separate instructions . Form 990 (2002) ISA STF FEW 923F 1 Form 990(2002) Page 2 Part II Statement of All organizations must complete column (A) Columns (B), (C), and (D) are required for section 501(c)(3) and (4) organizations and Functional Expenses section 4947(a)(1) nonexempt charitable trusts but optional for others (See page 21 of the instructions ) DO 1101 include amounts reported on line (A) Total (B) Program (C) Management (D) Fundraising 6b, 8b, 9b, 10b, or 16 of Part 1 services and genera 22 Grants and allocations (attach schedule) (cash $ 83,259,370 noncash $ ) 22 83,259,370 83,259,370 23 Specific assistance to individuals (attach schedule) 23 0 0 24 Benefits paid to or for members (attach schedule) 24 0 0 25 Compensation of officers, directors, etc. 25 332,593 0 332,593 0 26 Other salaries and wages . 26 6,583,726 21816,057 1 ,234,615 2,533,054 27 Pension plan contributions . 27 267,064 120 534 37,838 108 692 28 Other employee benefits . 28 666,810 254139 165,279 247 392 29 Payroll taxes . 29 478,015 222,080 63,806 192129 30 Professional fundraising fees . 30 0 0 0 0 31 Accounting fees . 31 165113 74,517 90,596 0 32 Legal fees . 32 30,539 0 7,965 22 574 33 Supplies . 33 73,727 19,997 23,948 29,782 34 Telephone . 34 85,754 21,395 16,604 47,755 35 Postage and shipping . 35 1,118,999 129,266 124,821 864,912 36 Occupancy . 36 737,699 347,452 81,89(L 308,357 37 Equipment rental and maintenance . 37 1 ,689 482 1,207 0 38 Panting and publications . 38 1,268,534 306,815 345,210 616,509 39 Travel . 39 284,498 84,309 105162 95,027 40 Conferences, conventions, and meetings . 40 1395 704 277170 1 ,126,471 (7,937) 41 Interest . 41 1007 599 4142 21847 981,610 sA06(~~1e.5 42 Depreciation, depletion, etc (attach 42 8,922 3 732 2,389 2,801 43 Other expenses not covered above (itemize) a Schedule 6 43a 13,477,719 4120 392 3,853,005 5,504,322 b 43b 0 0 0 0 c 43c 0 0 0 0 d 43d 0 0 0 0 e 43e 0 0 0 0 44 Total functional expenses (add lines 22 through 43) Organizations . completing columns (B) - (D), carry these totals to lines 13-15. I 44T111,244,074 I 92,061,849 I 7,635,246 I 11,546,979 Joint Costs. Check lo- E] if you are following SOP 98-2. Are any joint costs from a combined educational campaign and fundraising solicitation reported in (B) Program services? . lo. E] YesM No If "Yes," enter (i) the aggregate amount of these point costs $ NBA , (ii) the amount allocated to Program services $ N/A ; (iii) the amount allocated to Management and general $ N/ A , and (iv) the amount allocated to Fundraising $ N/ A Part III Statement of Program Service Accomplishments (See page 24 of the instructions .) What is the organization's primary exempt purpose? t Provide educational, humanitarian, and cultural programs . Program Service All organizations must describe their exempt purpose achievements in a clear and concise manner State the number of clients served, publications Expenses oReqimed (or 501(c)(3) em ~a~ issued, etc. Discuss achievements that are not measurable. (Section 501(c)(3) and (4) organizations and 4947(a)(1) nonexempt chantable trusts rgs , and 4447(a)(1) Wsts, but must also enter the amount of grants and allocations to others ~ optional for others ) a Scholarships= University Teachers- _ _ _ _ _ _ _ _ Schedule 4 Summary _ _ _ ------------------------------------------------------ Grants and allocations $ 20,645,659 22,683,671 b Group Study_Excha12& Team and Representatives- - - - - - - - - - - - - - - - - - - - - - - - - - - Sch_ed_ul_e_43umma_ry ------------------------------------------ ------------------------------------------------------ Grants and allocations $ 2,696,568 4,197,554 Matching.Grants -------------------------------------------- Sche &de-4.5uramw)C------------------------------------------ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Grants and allocations $ 18 042139 21,589,387 Polio Plus and other Humanitarian Grants SChed111e-419umwayy ------------------------------------------ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Grants and allocations $ 41,875,004 45,643,882 e Other program services attach schedule) Grants and allocations $ Schedule 4 Summa (2,052,645) f Total of Program Service Expenses (should equal line 44, column (B), Program services) . lo. 92,061,849 Form 990 (2002) STF FED1923F 2 Form 990 (2002) Page 3 Part IV Balance Sheets (See page 24 of the instructions.) Note: Where required, attached schedules and amounts within the description (A) 1B1 column should be for end-of-year amounts only Beginning of year End of year 45 Cash - non-interest-bearing .