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Appendix C: Glossary

How to use this glossary: This glossary covers the Rotary acronyms, international standards, CED operational terms and related-field references used in this book. Each entry gives the term, its full name where it is an acronym, and its definition. Entries are in strict alphabetical order within each section.

1. Rotary acronyms and terms

  • Areas of Focus: Rotary's areas of focus (also called cause areas). The seven official areas of Rotary International that guide the Foundation's funding: peacebuilding and conflict prevention, disease prevention and treatment, water, sanitation and hygiene (WASH), maternal and child health, basic education and literacy, community economic development (CED), and the environment. CED is one of the seven areas in its own right (see Chapter 2).

  • Cadre: Rotary Cadre of Technical Advisers. An international network of volunteer Rotarians who are experts in their field (microfinance, public health, education, WASH, CED, etc.). Clubs and districts can call on it to review concept notes, help write Global Grants and evaluate projects. RAGCED coordinates the Cadre's CED experts (see Chapter 17).

  • CED: Community Economic Development. One of Rotary International's seven Areas of Focus. Covers all actions that aim to improve livelihoods durably in poor and underserved communities: microfinance, vocational training, value chains, cooperatives, integrated local development.

  • CNA: Community Needs Assessment. A participatory assessment required since July 1, 2018 for every TRF Global Grant application. It must come before project design and involve the beneficiaries, local authorities and partners. Six accepted methodologies (focus groups, household surveys, interviews with community leaders, participatory mapping, community SWOT, direct observation). See Chapter 9.

  • DDF: District Designated Fund. The share of SHARE that The Rotary Foundation returns to the district. It can fund District Grants and provide the local contribution (1:1 World Fund match) to a Global Grant. A strategic resource to negotiate early with the DRFC (see Chapters 15 and 16).

  • DG: District Governor. The highest elected officer of the Rotary district. One-year term. Co-signs Global Grant applications and authorizes the commitment of DDF. The required entry point for any large-scale CED project (see Chapter 15).

  • DNA-RAG: Disaster Network Assistance Rotary Action Group. A RAG specializing in disaster preparedness, response and recovery. A natural partner of RAGCED for economic reconstruction after a shock (restarting markets, getting small businesses running again, post-crisis microcredit). See Chapter 18 and the twin book, Rotary Club Guide: Autonomous Disaster Response.

  • DRFC: District Rotary Foundation Committee Chair. Responsible for coordination between the district and The Rotary Foundation. Co-signs grant applications with the DG and approves the allocation of DDF. The essential contact for any TRF-funded CED project.

  • Endowment Fund: The Rotary Foundation's permanent capital, of which only the earnings are spent. It supports long-term priority areas, CED among them. Distinct from the World Fund (annual capital).

  • EREY: Every Rotarian, Every Year. A program inviting every member to give to The Rotary Foundation each year (indicative target: USD 100 a year). These contributions feed SHARE and, in turn, the DDF available for CED projects.

  • Four-Way Test: The Rotarian ethical test of 1932 (Herbert J. Taylor): Is it the truth? Is it fair to all concerned? Will it build goodwill and better friendships? Will it be beneficial to all concerned? It serves as an ethical review grid for any CED project, alongside humanitarian principles and economic Do No Harm.

  • Global Grant: TRF's main financial instrument for large-scale CED projects. Minimum budget USD 30,000, World Fund cap USD 400,000, World Fund match of 80% of committed DDF. Typical duration 12 to 36 months. Requires a local Host Club, an International Partner and a CNA (see Chapter 16).

  • GMS: Grant Management System. The Rotary Foundation's online platform (built into My Rotary) for submitting, tracking, documenting and reporting on all grants. Every Global Grant, District Grant or Packaged Grant application goes through the GMS.

  • Host Club: A Rotary club located in the beneficiary community, operationally responsible for the CED project in the field. It must be paired with an International Partner for any Global Grant. The Host Club manages the relationship with the beneficiaries, local authorities and the technical partner.

  • International Partner: A club or district located outside the project country that co-funds and co-sponsors the Global Grant with the Host Club. It usually brings the financial resources (cash, DDF, cash contributions) and complementary expertise. The relationship is formalized in the grant application.

  • MOU: Memorandum of Understanding. A written agreement formalizing a partnership between Rotary (club or district) and an outside organization: NGO, MFI, local authority, UN agency, technical partner. Required for Global Grants involving a cooperating organization. A French/English template is provided in Appendix A.

  • Packaged Grant: A TRF instrument in which the Foundation preselects the technical partner and the program design. For CED, the Oikocredit Packaged Grant gives direct access to institutional microfinance without the club having to find the MFI itself. See Chapter 16.

  • Paul Harris Fellow: An honorary recognition given to donors who have contributed a cumulative USD 1,000 to The Rotary Foundation, or in whose name a Rotarian has donated that amount. A classic way to recognize a CED project's partners when the project closes.

  • Program of Scale: A competitive TRF grant of USD 2 million a year for a project that has proven itself as a pilot and is ready to scale up. A very selective annual selection. It can apply to a mature CED project (see Chapter 24).

  • Qualified Club / Qualified District: Status obtained after GMS training, signing the MOU with TRF and putting stewardship procedures in place. Annual qualification is required to access Global Grants. A club that is not qualified cannot be a Host Club or an International Partner.

  • RAG: Rotary Action Group. An independent thematic association recognized by the RI Board of Directors. It brings together Rotarians, Rotaractors and non-Rotarians committed to a common cause. More than twenty RAGs exist (WASH, environment, peace, disasters, CED, refugees, etc.). They operate in line with RI policy without being an agency of RI.

  • RAGCED: Rotary Action Group for Community Economic Development. The reference RAG for CED. More than 400 members in 34 countries. Based in Detroit (Michigan, USA). Provides expertise, a technical cadre, regional chapters (LATAM, Dakshinpatha, Africa), documentary resources and international matchmaking. See Chapter 17.

  • RAGFP: Rotary Action Group for Peace. A RAG specializing in peacebuilding, conflict resolution and post-conflict reconstruction. Works alongside RAGCED in fragile areas where economic development is a lever for peace.

  • RI: Rotary International. The worldwide organization of all Rotary clubs (about 1.2 million members, 46,000 clubs). Headquartered in Evanston (Illinois, USA). Provides the institutional framework, the brand, the policies (Code of Policies) and global coordination. Distinct from The Rotary Foundation (TRF), its charitable arm.

  • Rotary Showcase: An online platform where clubs post their projects (photos, results, partners). A tool for sharing lessons learned and gaining visibility. Posting is recommended for every completed CED project (see Chapter 22).

  • SHARE: SHARE program. The TRF mechanism that, every three years, distributes Rotarians' annual contributions: 50% go back to the district of origin as DDF, 50% feed the World Fund. A pillar of decentralized funding for CED projects.

  • Stewardship: The obligation to account for the use of The Rotary Foundation's funds. Includes narrative, financial and photographic reports, beneficiary registers and supporting documents. Required at mid-term and at closing of Global Grants. The quality of stewardship determines whether the club and district can obtain future grants.

  • TRF: The Rotary Foundation. The charitable arm of Rotary International. Manages Global Grants, District Grants, Packaged Grants, Programs of Scale, Disaster Response Grants, the Peace Fellowships, the World Fund, the SHARE program and the Endowment Fund. Allocates an average of USD 9.2 million a year to CED.

  • World Fund: The Rotary Foundation's annual capital, 50% of it fed by SHARE. Funds Global Grants (80% match of committed DDF, cap of USD 400,000 per grant) and Programs of Scale. Not to be confused with the Endowment Fund (permanent capital).

2. International acronyms and standards

  • ADB: Asian Development Bank. Based in Manila. Windows supporting CED in Asia: microfinance, small businesses, agricultural value chains, financial inclusion.

  • AfDB: African Development Bank. A pan-African financial institution based in Abidjan. Instruments available for CED: small-business windows, credit lines to MFIs, blended finance, support for women's entrepreneurship (AFAWA). See Chapter 19.

  • AUSCOOP: Acte Uniforme relatif au droit des Sociétés Coopératives (OHADA Uniform Act on Cooperative Societies). The legal text governing the creation and operation of cooperatives in the seventeen OHADA member countries (West and Central Africa). It distinguishes the SCOOP-CA (cooperative society with a board of directors) from the SCOOPS (simplified cooperative society). The mandatory reference for cooperative CED projects in the OHADA zone.

  • BOAD: Banque Ouest Africaine de Développement (West African Development Bank). The WAEMU institution (eight West African countries), based in Lomé. Instruments for CED: credit lines to MFIs, support for small businesses, financing of agricultural value chains.

  • Cerise+SPTF: Cerise + Social Performance Task Force. An alliance formed in 2022 between Cerise (France) and the Social Performance Task Force (USA), steward of the Universal Standards for Social Performance Management and the SPI tools. It has succeeded the Smart Campaign for Client Protection certification since 2021. The global reference for the social performance of MFIs.

  • CGAP: Consultative Group to Assist the Poor. A consortium housed at the World Bank, the leading global think tank on microfinance and financial inclusion. Publishes standards, studies and training. A required resource for any RAGCED project in family M (microfinance), see Chapter 10.

  • CPP: Client Protection Principles. Seven international standards governing the work of microfinance institutions: appropriate product design, prevention of over-indebtedness, transparency, responsible pricing, fair treatment, privacy, complaint mechanisms. Set by the Smart Campaign and taken over by Cerise+SPTF. See Chapter 4.

  • Decent Work Agenda: The ILO's program framework built on four pillars: job creation, rights at work, social protection, social dialogue. A structuring reference for RAGCED vocational training and job placement projects.

  • FAO: Food and Agriculture Organization of the United Nations. A UN agency based in Rome. A partner for rural CED projects: food security, agricultural value chains, small-scale fisheries, family farming.

  • ICA: International Co-operative Alliance. The global umbrella body of the cooperative movement, founded in 1895. Sets the seven universal cooperative principles (voluntary membership, democratic governance, member economic participation, autonomy, education, cooperation among cooperatives, concern for community). The reference for any RAGCED project in family C (cooperatives), see Chapter 13.

  • IDB: Inter-American Development Bank. Based in Washington. Active in CED in Latin America and the Caribbean through IDB Lab (formerly MIF) for microfinance and social innovation.

  • IFC: International Finance Corporation. The private-sector arm of the World Bank Group. Finances small businesses, partner banks, MFIs and economic infrastructure. A possible co-investor in CED Global Grants with a small-business component.

  • ILO: International Labour Organization. A specialized UN agency based in Geneva. The global reference for decent work, vocational training and the social and solidarity economy. Author of the Decent Work Agenda. A preferred partner for RAGCED projects in family F (training and job placement). See Chapter 19.

  • MERS: Minimum Economic Recovery Standards. An international framework published by the SEEP Network, the economic counterpart of the humanitarian Sphere standards. Sets the minimum standards for market recovery, microfinance in crisis and rebuilding livelihoods. The reference for the RAGCED/DNA-RAG link.

  • MFI: Microfinance Institution. An organization specializing in providing financial services (credit, savings, insurance) to unbanked populations. Not to be confused with the International Monetary Fund (IMF). Rotary must never be a direct lender: it works in a formal partnership (MOU) with a licensed MFI (see Chapter 10).

  • OHADA: Organisation pour l'Harmonisation en Afrique du Droit des Affaires (Organization for the Harmonization of Business Law in Africa). A regional treaty signed in 1993 by seventeen West and Central African states. It harmonizes company law, commercial law and cooperative law (AUSCOOP). The essential legal framework for any CED project in the OHADA zone (see Chapters 13 and 19).

  • PAR 30: Portfolio at Risk 30 days. The reference indicator in microfinance: the share of the loan portfolio with at least one payment more than 30 days overdue. Warning threshold: 5%. Above 10%, the MFI is in trouble. A standard indicator in any CED project that includes credit (see Chapter 10).

  • SDGs: Sustainable Development Goals. Seventeen global goals adopted by the UN in 2015, with a 2030 horizon. CED contributes directly to SDGs 1 (no poverty), 5 (gender equality), 8 (decent work and economic growth) and 10 (reduced inequalities). Every Global Grant must reference the relevant SDGs.

  • SILC: Savings and Internal Lending Communities. A methodology developed by Catholic Relief Services (CRS), a documented variant of the VSLA model. Groups of fifteen to twenty-five people who save together and make small internal loans to one another. See Chapter 10.

  • Smart Campaign: A global initiative launched in 2009 by the Center for Financial Inclusion (Accion) to promote client protection in microfinance. It defined the seven CPP. Certification transferred to Cerise+SPTF in 2021. A historical reference still cited in RAGCED doctrine (see Chapter 4).

  • Sphere: Sphere Minimum Standards. The global reference for minimum humanitarian standards (water, food, shelter, health). Used at RAGCED alongside the MERS for any CED project carried out in a crisis or post-disaster context.

  • SPI4 / Universal Standards: Social Performance Indicators 4 / Universal Standards for Social Performance Management. An audit tool (SPI4) and global framework (Universal Standards) stewarded by Cerise+SPTF to measure how well an MFI is aligned with its social mission. Increasingly a condition of eligibility for ethical investors.

  • UN Women: United Nations Entity for Gender Equality and the Empowerment of Women. A UN agency based in New York. A partner for CED projects focused on women's entrepreneurship, women's economic empowerment and a gender lens on interventions.

  • UNCDF: United Nations Capital Development Fund. A UN agency based in New York, specializing in inclusive finance for the least developed countries. Provides seed capital to MFIs, guarantees to financial institutions and digital inclusion programs. A strategic partner for ambitious CED Global Grants.

  • UNDP: United Nations Development Programme. A UN agency based in New York. Works in nearly 170 countries on poverty reduction, governance and local economic development. Champion of the SDGs. A natural partner for multi-area CED projects.

  • UNIDO: United Nations Industrial Development Organization. A UN agency based in Vienna. Specializes in inclusive and sustainable industrial development, agro-industrial value chains and energy efficiency. It has adopted the ValueLinks methodology for value chain analysis. A key partner for family V (see Chapter 12).

  • VSLA: Village Savings and Loan Association. A methodology popularized by CARE International in the 1990s. Groups of fifteen to twenty-five people who pool weekly savings, make short-term loans to one another and share the interest at the end of the cycle (nine to twelve months). The reference format for sheet M1 (see Part VI).

3. CED operational terms

  • Agency / capabilities approach: The capabilities approach (Amartya Sen). A theoretical framework in which development is not income growth but the expansion of people's real freedoms (capabilities) and of their ability to make choices (agency). It grounds the ethical obligation of Rotarian CED to respect beneficiaries as subjects, not as objects of aid. See Chapter 4.

  • Baseline / Mid-term / Endline: Baseline, mid-term and endline evaluation. Three measurements required for any serious CED project. The baseline is taken before the project starts (without it, no impact can be demonstrated), the mid-term at 50% of the timeline (to correct course), the endline at closing (to measure change). Template in Appendix A.

  • Beneficiary: A person who directly receives help from the CED project. Preferable to "victim" or "aid recipient," which deny the person's agency. The term "participant" or "project partner" is even more respectful where the beneficiary contributes in kind, in time or in co-financing.

  • Blended finance: A combination of public or philanthropic resources (Global Grants, DDF, grants) and private capital (impact investing, concessional commercial debt) to fund a CED project. It allows leverage of USD 1 from Rotary to USD 4 to 10 mobilized.

  • Collective entrepreneurship: The creation and growth of economic activities by an organized group: cooperative, GIE (groupement d'intérêt économique, economic interest grouping), producers' association. A preferred form of CED intervention where individual capital is low.

  • Community Assessment: A practical synonym for CNA in RAGCED internal communications. It refers to the whole participatory assessment process, not only the written deliverable.

  • Cooperative: An association of people grouped on a democratic basis (one person, one vote) to pool an economic activity: production, consumption, services, credit, multi-activity. Governed in OHADA Africa by the AUSCOOP (see Chapter 13).

  • Do No Harm (economic): Do No Harm (Mary Anderson). A fundamental humanitarian principle applied to CED: every economic intervention must avoid creating side damage (unfair competition with the local market, dependency, over-indebtedness, elite capture, destruction of social cohesion). See Chapter 4.

  • Exit strategy: A plan set from the project design stage to organize the end of Rotary's involvement without the program collapsing. Four models: the activity's own revenue, takeover by a partner institution, integration into public policy, transfer of know-how to the beneficiaries. See Chapter 21.

  • Financial inclusion: Effective access to, and responsible use by the population of, a range of formal financial services: account, savings, credit, insurance, payments. A cross-cutting objective of family M (see Chapter 10).

  • Impact investing: Investing capital in businesses or projects that generate a measurable social or environmental impact as well as a financial return. The Talanton Impact Fund (RAGCED) is a direct example.

  • KPI: Key Performance Indicator. A quantitative measure of an expected result of the CED project. Three to five KPIs at most per project, aligned with the theory of change, disaggregated by gender and recorded at baseline, mid-term and endline.

  • M&E: Monitoring and Evaluation. An ongoing system for collecting and analyzing project data, linked to the KPIs and the theory of change. Required in every Global Grant. See Chapter 22 and the grid in Appendix A.

  • Match / co-financing: A TRF requirement for every Global Grant: DDF matched at 80% by the World Fund (USD 1 of DDF triggers USD 0.80 from the World Fund); cash matched at 50% (USD 1 in cash triggers USD 0.50 from the World Fund). Total co-financing must reach at least USD 30,000.

  • Microcredit: A small loan (typically USD 50 to 5,000) granted to an unbanked entrepreneur by an MFI or a savings group. Historically popularized by Muhammad Yunus and the Grameen Bank.

  • Microfinance: A broader set than microcredit: credit, savings, insurance, transfers and mobile money for unbanked populations. One of the five CED intervention families (see Chapter 10).

  • Mobile money: Financial services available through a mobile phone (storing money, transfers, payments) without a bank account. Global leader: M-Pesa (Kenya). A key driver of rural financial inclusion. See Chapter 14 (sheet M4).

  • Savings group: The most basic form of financial inclusion: fifteen to twenty-five people who pool regular savings and make small internal loans to one another. Main models: VSLA, SILC, improved tontines (traditional rotating savings groups). No outside MFI is needed (see Chapter 10).

  • SCOOP-CA / SCOOPS: Société coopérative avec conseil d'administration (cooperative society with a board of directors) / Société coopérative simplifiée (simplified cooperative society) (OHADA). Two legal forms of cooperative defined by the AUSCOOP. The SCOOP-CA (minimum 15 members) suits cooperatives of some size with complex governance. The SCOOPS (minimum 5 members) is suited to small groups. A critical choice at the bylaws stage (see Chapter 13).

  • Social and solidarity economy: SSE. All the businesses with a social purpose and democratic governance: cooperatives, mutual societies, associations, social enterprises. A conceptual framework that legitimizes CED interventions as an alternative to purely profit-driven models.

  • Sustainability: The project's ability to keep producing its effects after Rotary funding is withdrawn. Measured at 12, 24 and 36 months after the project. The ultimate test of success: if the project stops when the grant closes, it has not achieved its mission.

  • Theory of Change: A logic diagram that spells out the project's causal chain: activities → outputs → outcomes → impact. It makes implicit assumptions visible, lets you test the project's coherence and build the M&E plan. Required in every Global Grant concept note.

  • Value chain: All the stages a product or service goes through from the first producer to the end consumer: inputs, production, processing, distribution, marketing. The reference unit of analysis for family V (see Chapter 12).

  • Value Chain Analysis / ValueLinks: Value chain analysis / ValueLinks methodology (GIZ). A methodology developed by German development cooperation (GIZ) to map, diagnose and upgrade a value chain. Adopted by UNIDO and a global reference. The cornerstone of family V (see Chapter 12).

  • Vocational Training: Vocational training (Technical and Vocational Education and Training, TVET). All forms of training for technical and skilled trades: apprenticeship, training centers, retraining, certification. One of the two CED eligibility lines explicitly mentioned by TRF. See Chapter 11.

  • Workforce integration / reintegration: Returning to employment or to independent economic activity for people far from the labor market: young people without qualifications, former inmates, people with disabilities, refugees, women leaving violent situations. A priority target of family F (see Chapter 11).

  • Andhra Pradesh 2010: The 2010 microfinance crisis in the Indian state of Andhra Pradesh. The collapse of the commercial model in that state (35 million borrowers) after a wave of suicides attributed to over-indebtedness and aggressive collection practices. A founding event of modern regulation (CPP, Cerise+SPTF, Smart Campaign). A mandatory ethical reference in RAGCED doctrine (see Chapter 4).

  • Dakshinpatha: RAGCED's South Asian chapter (RAGCED South Asia). Also refers to the support program for Indian communities run by this chapter: entrepreneurship, microcredit, education, health, emergency relief, environmental sustainability. A participatory methodology (assessment → training → microcredit → mentoring). See Chapter 17.

  • Empowerment Foundation: Economic Development & Empowerment Foundation. An American 501(c)(3) foundation linked to RAGCED (contact info@empowermentfdn.org). It receives tax-deductible donations and invests, among other things, in the Talanton Impact Fund. RAGCED's legal vehicle for co-financing.

  • Grameen Bank / Grameen model: A microfinance bank founded in 1983 in Bangladesh by Muhammad Yunus (2006 Nobel Peace Prize). A pioneer of group microcredit: solidarity loans to five women who guarantee one another, with no collateral. One of the three microfinance models taught in Chapter 10.

  • Honduras HECD: Honduras Economic & Community Development. A flagship RAGCED project launched in 2012, a ten-phase program (seven completed by 2021), more than USD 2 million raised. Puerto Cortés microcredit portfolio of USD 1.27 million at the end of 2021, 523 active clients. NGO partners: IDH (International Development Hondureña), Opportunity International Canada. Case studies in Chapter 17.

  • Oikocredit: A Dutch international financial cooperative specializing in social investment. TRF's partner for the microfinance Packaged Grant: a club can direct a Global Grant to Oikocredit, which selects and supervises the recipient MFI. An easy option for clubs without a local microfinance network (see Chapter 16).

  • Rotary Disaster Response Grant: Disaster Response Grant. A TRF grant of up to USD 25,000 per affected district, separate from Global Grants. Mentioned here for the RAGCED/DNA-RAG link: post-disaster economic recovery can start on a DRG, then move to a CED Global Grant for the durable rebuilding of livelihoods.

  • Talanton Impact Fund: An impact investing fund operated by Talanton LLC (talantonllc.com), targeting small businesses in East Africa. Rotary investor: Economic Development & Empowerment Foundation. A concrete example of the link between Rotary philanthropy and impact finance. See Chapter 17.

  • WASH-RAG: Water, Sanitation and Hygiene Rotary Action Group. A natural partner of RAGCED: access to safe drinking water is an economic prerequisite (productivity, health, time freed up for women, a chance to run a small business). Many CED projects include a WASH component (see Chapter 18).

  • West Africa Project Fair: The annual West Africa project fair (RAGCED). An event organized by RAGCED that brings together clubs from Ghana, Nigeria and other West African countries to present their projects to international partners. Areas: health, education, WASH, vocational training, renewable energy. An international matchmaking program documented in Chapter 17.

Appendix C: Glossary. Rotary Club Guide: Community Economic Development