The Annual Fund of The Rotary Foundation is probably the fund with which Rotarian's are most familiar. It is the fund that allows, after three years, a return of that which has been donated to the Annual Fund to come back to the Rotary District and Rotary Clubs as District Designated Funds. When District 5420 receives District Designated Funds, it divides the funds for District Grants or Global Grants into equal amounts with 50% going to District Grants and 50% going to Global Grants.
The District Foundation Committee has some leeway to change the mix, but currently this is the ratio being used. There is a formula in District 5420 that is used to determine the amount given to each Rotary club that applies for a district grant. Generally, it is based on the clubs donations to The Rotary Foundation from previous years and how many Rotary clubs are applying for district grants that particular year. This is why it is important for each Rotary club to do its best and even increase the per capita giving of Rotary club members each year. Rotary clubs applying for global grants are given funds of various amounts determined by the availability of funds and the amount of funding requested.
There are two following examples which help explain the importance of the Annual Fund.