Why aren the assets of the Annual Programs Fund invested in deposit accounts, given the three-year spending cycle?
A. The primary objective of the Annual Programs Fund (APF) is to fund the programs of The Rotary Foundation. Additionally, a portion of the assets will be used to fund the general administrative, program operations, and fund development expenses of The Rotary Foundation that are associated with the fund. APF contributions are invested for a three-year period before becoming available to fund programs. The purpose of this investment cycle is to generate sufficient investment earnings to fund the Foundation’s operations (general administration, fund development, and, if additional funds are available, program operations) so that Rotarians’ contributions can be spent entirely on the Foundation’s programs. The APF assets need to be invested in securities that will generate sufficient earnings to operate the Foundation. Investing primarily in assets such as U.S. treasury bills and deposit accounts does not generate sufficient investment earnings to pay for all of the Foundation’s operations
