[Osmf-talk] Operating reserves

[Simon Poole]

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.

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.

Simon

Am 14.12.2020 um 22:47 schrieb Jean-Marc Liotier:
>
> As a new member of the Board, I wish to start term my with a 
> fundamental topic - the Openstreetmap Foundation's operating reserves.
>
> 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. The Treasurer's report's profit and losses 
> <https://wiki.osmfoundation.org/w/images/1/12/OpenStreetMap_Foundation_Limited_-_Profit_and_Loss_2020.pdf> 
> show yearly operating expenses amounting to 130k£ and the Balance 
> Sheet 
> <https://wiki.osmfoundation.org/w/images/2/25/OpenStreetMap_Foundation_Limited_-_Balance_Sheet_2020.pdf> 
> 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.
>
> 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.
>
> As a novice in the business of operating reserves policies, I have 
> sought best practices and found the Grantmakers in the Arts' Operating 
> Reserve Policy Toolkit for Nonprofit Organization 
> <https://www.giarts.org/sites/default/files/Operating-Reserve-Policy-Toolkit_1stEd_2010-09-16.pdf> 
> to cover a lot of ground - interested individuals might wish to take a 
> glance.
>
> Among other things, an Operating Reserve Policy would need to include 
> procedures, governance and conditions for drawdown and replenishment.
>
> 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.
>
>
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