Hello everyone,

The Wikimedia Foundation has submitted to the US Internal Revenue Service (IRS) and posted on-wiki[1] our annual Form 990 filing. The Form 990 is the annual financial reporting which is required by the federal government for active nonprofit organizations in the United States.

In addition to posting the Form 990 on-wiki, we have also posted an accompanying page with answers to frequently asked questions related to the form and information we submitted.[2] Almost all financial reports by their very nature can be confusing, so to add clarity here is a simple breakdown of what this form covers.

It was pointed out last year that the dates covered by our financial reports can be confusing given our fiscal year is different from the calendar year. This "2015 Form 990" covers the financial activities of the Wikimedia Foundation for the 2015-2016 fiscal year, which ran from July 1, 2015 to June 30, 2016. A notable exception is information related to the compensation of our officers, key employees, highest paid staff and independent contractors, which is instead based on the 2015 calendar year.

The Wikimedia Foundation's total revenue from fiscal year 2015-2016 was US$78,691,737. Our total expenses from this period were US$65,061,845 and our total net assets at the end of the fiscal year were US$91,782,795.

Included in the approximately US$65 million expenses from this period is a US$5 million seed contribution to the Wikimedia Endowment, building on the initial donation by Jim Pacha of approximately US$1 million. This contribution accounts for the bulk of the increase from the year before in "grants and similar amounts paid" listed on the summary page. It is listed as an expense in the form because the Endowment is an independent fund housed at Tides. To learn more about the purpose and structure of the Wikimedia Endowment, visit its Meta-Wiki page.[3]

The Form 990 also includes information about the salaries of the Wikimedia Foundation's five highest paid employees. The salaries for all paid positions are set according to salary bands which are determined bi-annually based on independent third party survey data.[4] Executive salaries are subject to this same standard. All executive salaries, with the exception of the Executive Director's salary, are set by the Executive Director in discussion with the Board of Trustees. The Board of Trustees uses the independent third party survey data, as well as comparative data from other nonprofit organizations, to set the salary of the Executive Director, and to assess and advise on other executive salaries.

The largely technical and high-skilled nature of some of our work requires competitive wages to recruit the best talent and compensate them fairly for their expertise and commitment. We believe that the Wikimedia Foundation continues to pay competitively, but within in the average (50th percentile) when compared to tech companies, and higher average (90th percentile) compared to nonprofits.

In addition to salary information, the report includes other payments made to the highest paid employees upon their departure from the organization (known as severance payments). Following our regular practice for staff departures, these amounts are set on a case-by-case based on a person's tenure with the organization. We recognize that people have an interest in this topic, and that there will be some questions. However, as an employer we are limited in what we can discuss publicly. Out of respect for the people involved, and in consideration of the laws and ethics related to sharing human resources information, we will not be commenting on the specific nature of the severance payments or circumstances which may be related to them.

Through reports and discussions like these, the Wikimedia Foundation will continue to strive to provide a responsible level of transparency and accountability for our work. I imagine there are other questions, and I invite you to review the on-wiki FAQ[2], or email me if your question is not answered there.