[Foundation-l] Funding for the newly elected Board Members

Mon Jun 21 19:35:49 UTC 2004

--- Delirium <delirium at hackish.org> wrote:
>...
> I like this approach---let the people giving the money decide where to 
> spend it.  We could have various funds:
> * A server fund
> * An advertising fund
> * A developer-compensation fund
> * A specific-software-feature bounty system
> * An administrative expenses overhead fund (office space, travel, etc.)
> * A print-version-expenses fund

Too many funds will result in donor confusion/indecision and a headache for
people who have to track it all (me so far). Three funds (general, developer,
and legal) along with good budgeting and telling people upfront how their money
from each fund will be spent, is all we need. 10% of the general fund, for
example, could be set-aside for overhead (board member meeting and office
expenses). Another 10% of the general fund could be set-aside for special
projects. 

Having a fund for everything will make managing the finances of the foundation
an inflexible nightmare. Only broad categories should be used to segregate
funds. We can, however, try to find the best mix of items to have in each broad
category. 

> This would be a lot better, IMO, than going the normal route of 
> non-profits and having a gigantic slush fund, which is both less 
> transparent and engenders less donator confidence, especially given that 
> over time a larger and larger percentage of the money in such slush 
> funds tends to be siphoned off to things less and less directly related 
> to the actual mission of the nonprofit.  
> ...

"Slush fund" is derogatory. Why in the world would you assume our finances
would be conducted in *ANY* way other than in a transparent manor? I plan to
publish information on *EVERYTHING* the foundation spends money on and have
already been working in this direction with the limited amount of information
Jimbo has had time to spend me. 

A good budget is the only component that has not been started on yet (just some
rough outlines on what it needs to consist of - no real specifics). I am a bit
insulted you would assume anything less from the board members and for the work
I've already done in this direction (and plan to continue helping with and
expanding on if the board decides to create a financial officer position and
have me fill it). 

-- Daniel Mayer (aka mav)

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