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<p>Given that I'm on the record as suggesting the same more than
once, though I would be happy with two years, I obviously support
this.</p>
<p>I do have to point out that I believe that your annual expenses
number is too low, I suspect that the 2021 budget will be more
like 250-300k€. No inside knowledge here, but we all know what the
OSMF has indicated what it wants to do going forward and that will
increase expenses substantially. As a result we should be looking
at increasing the reserves by quite a bit.</p>
<p>Simon<br>
</p>
<div class="moz-cite-prefix">Am 14.12.2020 um 22:47 schrieb
Jean-Marc Liotier:<br>
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cite="mid:8d2efe52-d584-be01-3a0f-7f11ef0e2c85@liotier.org">
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<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 moz-do-not-send="true"
href="https://wiki.osmfoundation.org/w/images/1/12/OpenStreetMap_Foundation_Limited_-_Profit_and_Loss_2020.pdf">The
Treasurer's report's profit and losses</a> show yearly
operating expenses amounting to 130k£ and the <a
moz-do-not-send="true"
href="https://wiki.osmfoundation.org/w/images/2/25/OpenStreetMap_Foundation_Limited_-_Balance_Sheet_2020.pdf">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
moz-do-not-send="true"
href="https://www.giarts.org/sites/default/files/Operating-Reserve-Policy-Toolkit_1stEd_2010-09-16.pdf">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>
<br>
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