The concept of forming a Los Gatos Rotary Charities Fund had been discussed many times and was one of the recommendations of the five Year Plan of 1985-86. The idea of a tax deductible charitable Foundation was crystallized on May 3, 1986, when President Al Charter, John Pencer, Bill Cilker and Ray Cobb were together at a District social function on the balcony terraces of the Red Lion Hotel.

During the week of May 22, 1986, a critique meeting for the Los Gatos Rotary Auction was held in a private room at the La Hacienda Restaurant in Monte Sereno.  Rotary had just completed its most successful auction to date, exceeding the prior years income by more than $10,000.00.  It was a joyous time and amid congratulations Ken Black, Treasurer for the committee, singled out the need for a tax deductible foundation to carry some of these funds forward to subsequent years.  He also pointed out that the Internal Revenue Service was tightening its restrictions on tax deductibility and without designation of a 501(c) (3) charity, the deductibility of donations to the Auction may be in jeopardy.

John Pencer was asked to present a proposal to the Board of Directors.  The project was approved even though some officers voiced a concern that if we removed the auction funds from the club's general fund it might tie up the day to day club operations.

Forming a 501(c) (3) non-profit corporation would allow a' person to contribute monies for our local charitable purposes and legally take a tax deduction.  This would make the Fund similar to the Rotary International Fund operating for international charities and the Rotary Scholarship Fund set up for our high school students going to college, both which already had 501(c) (3) status.

The feelings were that contributions would be larger and a part of the Fund would be placed in an endowment category so the Fund could grow.  Income earned on the endowment portion would also assist in making our local charities giving more significant.

The Fund is a very important tool for our major fundraisers, "The Auction" and "The Great Race."  It gives donors a tax benefit and allows money raised to be carried over to future years.

Al Charter, Bill Cilker, Ray Cobb and John Pencer made initial donations totaling $4,500.00 to start the ball rolling.  LeRoy Neider volunteered to do the legal work.  Corporate documents were drafted and after many revisions the Internal Revenue Service gave final approval on February 7, 1989.  John Pencer headed a group of Rotarians to work with LeRoy in the development of documents for form and concept, tailoring them to our Club's Service focus.  Ken Black, John Coiwell, Sam Burtchaell, John Foley1 Cas Szukalski, Gordon Aumack, Al Charter, Bill Cilker, Don wimberly, Everett Bryan, Ray Cobb and others participated in this project. Our hats are off to LeRoy who so diligently worked on getting it organized and approved by both State and Federal authorities. Ken Black, the Club's Treasurer, was very instrumental in keeping on track with all the reports required in the financial management of the Fund.

Some of the basics of the Bylaws are: The Fund is governed by the Club Board.  An Advisory Committee has been established to review and investigate and recommend on all requests for gifts. This committee of five consists of the past three presidents, the chairman of the latest Auction and one Rotarian at large who generally has been the chairman of the Great Race.

As of May, 1995 the Fund stands at roughly $140,000.00 of which approximately $120,000.00 is set up under the Endowment category.   This has greatly strengthened our local charities support.

After the '89 earthquake the Club gave over $45,000.00 to go toward local relief for families who were devastated by the damage to their homes.   This past year the Club was able to give $18,475.00  to  local  charities  plus  $4,406.00 for Southern California Earthquake Relief.

We are extremely grateful for members who have provided in their wills for donations to the Fund.  We also hope that others will follow this example by doing the same.

The Club is very proud of the service we perform and our Charities Fund has greatly assisted us in this task.  Providing service is certainly at the center of the Club's purpose.

Ray Cobb, May, 1995