[Osmf-talk] Financing the OSMF

Simon Poole simon at osmfoundation.org
Mon Aug 26 15:20:43 UTC 2013


Jaak, the 2012 financials are here
http://wiki.osmfoundation.org/wiki/Finances/Income_2012 as Oliver has
previously announced.

As said, we naturally have had in the past, significant income from SOTM
(net typically £10'000 to £20'000) and donations. The later will be no
different this year, however this money is earmarked for hardware
purchases and cannot be used for G&A, IMHO spending such funds on tech.
ops would already be inappropriate.

Simon

Am 26.08.2013 16:24, schrieb Jaak Laineste (Nutiteq):
> Hello,
>
> Is there more detailed break-down of the costs, and how they have been covered so far? First of all, paying 2000 as "bank charges" in the context of 6000 revenues sounds a bit un-proportional for me. And what is "expenses". Only clear item here is 1000/month for hosting, and this is clear enough to justify yearly fundraising campaign specifically for it.
>
> Obviously there are fixed administrative costs, where set of corporate members or supporters might come handy. I'd prefer to keep them as supporters, not even official members. So you cannot buy bigger influence with money. Their (or our) representatives can be private OSMF members anyway.
>
> Jaak
>
> On 26.08.2013, at 13:54, Simon Poole <simon at osmfoundation.org> wrote:
>
>> [This is a topic of some personal interest to me and hasn't been
>> discussed in depth nor has the discussion of this been sanctioned by the
>> board]
>>
>> One of the issues that I believe we need to attack is the financing of
>> the OSMF. I've mentioned this before in the articles of association
>> discussions. Given that we now have 2012 financials as some facts to
>> check our assumptions against, I would like to see if there are some
>> ideas other than my own (the topic just doesn't seem to interest very
>> much) that might be interesting to pursue.
>>
>> To illustrate the issues, lets look at the 2012 numbers. Leaving the
>> earmarked donations for hardware and depreciation away and income and
>> expense for SOTM (more on that later), we have roughly
>>
>> £3'000 income from membership fees
>> £3'000 of misc. income
>>
>> versus
>>
>> £12'000     of operational expenses (hosting etc)
>> £4'000        insurance
>> £2'000        bank charges and other misc expenses
>> £6'500        accounting and legal
>> £5'000        expenses
>> £6'000        professional fees (I suspect this was one time,
>> historically this item was always negligible)
>>
>> of the above at least the hosting, insurance, accounting and bank
>> charges are unavoidable recurring fixed costs. Comparing  our "secured"
>> regular income (£'3000) with these costs (£25'000) we see an annual
>> short fall of at least £22'000 (assuming that travel expenses and
>> professional fees are not really necessary). Historically this hasn't
>> been an issue because we have been able to rely on SOTM turning a neat
>> profit, however there is no guarantee that this will continue and it is
>> unfair in the sense that it adds an unspoken requirement on the SOTM
>> organizers that may be very difficult to fulfil.
>>
>> Further, we are not exactly splurging on our operational costs, if we
>> would have to pay anything near commercial rates we would likely be at
>> least 10 times higher. It seems unlikely that with growth we will be
>> able to maintain the extremely low rate of £1'000 per month in any case.
>>
>> I believe the issue is clear, we need a medium to long term model for
>> financing the OSMF. My personal favourite solution would be to balance
>> out our fixed costs with a similar amount of fixed income. Based on the,
>> not unreasonable, feeling that it is relatively easy to get donations
>> for hardware, asking the same to cover insurance is likely not to work.
>> Assuming further that we are not going to change our business model, our
>> only potential source of such fixed income are our membership fees, and
>> given that we would rather lower, than increase such fees for
>> individuals, that leaves fees for corporate membership as the only
>> source of such income.
>>
>> But, as I wrote above, maybe there are other viable scenarios and ideas.
>> If you have such, please bring them to the table.
>>
>> Simon
>>
>>
>>
>>
>>
>>
>>
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