<div dir="ltr">Safety policies aren't without a cost. For example, the policy to lock the cockpit in airplanes from the inside has undoubtedly prevented some hijackings. But it has also increased the likelihood of a pilot committing murder-suicide with their plane. In this case, coming up with a policy eats Board energy that might be more wisely invested elsewhere, and it reduces flexibility of the Board to deal with unforeseen events. I think the main benefit is that there is less need to trust the Board, since their freedom is restricted in a way that should automatically safeguard the Foundation. However, I personally trust the Board to make the right calls when it comes to decisions like this. I think a simple statement about having the goal of maintaining three (or two) years of reserve would be enough to provide a guideline for spending ambitions, and would be enough to call the Board out on if they seem to be overspending.<br></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">Op ma 14 dec. 2020 om 22:50 schreef Jean-Marc Liotier <<a href="mailto:jm@liotier.org">jm@liotier.org</a>>:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex">
<div>
<p>As a new member of the Board, I wish to start term my with a
fundamental topic - the Openstreetmap Foundation's operating
reserves.</p>
<p>In answer to a guest question during the December 12th General
Meeting, Alan Mustard mentioned that the Openstreetmap Foundation
strives to keep a reserve amounting to three years of operational
expenses. <a href="https://wiki.osmfoundation.org/w/images/1/12/OpenStreetMap_Foundation_Limited_-_Profit_and_Loss_2020.pdf" target="_blank">The
Treasurer's report's profit and losses</a> show yearly operating
expenses amounting to 130k£ and the <a href="https://wiki.osmfoundation.org/w/images/2/25/OpenStreetMap_Foundation_Limited_-_Balance_Sheet_2020.pdf" target="_blank">Balance
Sheet</a> shows net assets at 621 k£ - of which even the 400 k£
in the reserves savings account does cover about three years. From
a cursory survey of non-profits, three years is at the prudent end
of the range, so I think it is a reasonable goal to continue
pursuing.</p>
<p>Nevertheless, this satisfactory state of affairs remains the
informal result of the Board's cautious management. In keeping
with my pledge of reinforcing the Openstreetmap Foundation's
financial sustainability, I wish to take it a step further and
advocate for the Board to produce an Operating Reserve Policy for
a Board-Designated Operating Reserve.<br>
</p>
<p>As a novice in the business of operating reserves policies, I
have sought best practices and found the <a href="https://www.giarts.org/sites/default/files/Operating-Reserve-Policy-Toolkit_1stEd_2010-09-16.pdf" target="_blank">Grantmakers
in the Arts' Operating Reserve Policy Toolkit for Nonprofit
Organization</a> to cover a lot of ground - interested
individuals might wish to take a glance.</p>
<p>Among other things, an Operating Reserve Policy would need to
include procedures, governance and conditions for drawdown and
replenishment.</p>
<p>This comes too late to be made a topic of the 18th December Board
meeting, so I'll propose it for the January meeting. Meanwhile,
let us please discuss the desirability of such policy and what it
might entail.</p>
</div>
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</blockquote></div><br clear="all"><br>-- <br><div dir="ltr" class="gmail_signature"><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr">Joost Schouppe</div><div dir="ltr"><a href="http://www.openstreetmap.org/user/joost%20schouppe/" target="_blank">OpenStreetMap</a> | <a href="https://twitter.com/joostjakob" target="_blank">Twitter</a> | <a href="https://www.linkedin.com/pub/joost-schouppe/48/939/603" target="_blank">LinkedIn</a> | <a href="http://www.meetup.com/OpenStreetMap-Belgium/members/97979802/" target="_blank">Meetup</a></div></div></div></div></div></div></div></div>