[Osmf-talk] Operating reserves

[Rory McCann]

Welcome to the Board! 🙂 It's a good idea to be prepared, and to have a buffer. I don't know about specific limits, and how that would work out. Maybe it's better to just always be aware of sustainability? When designing internet standards, you're required to state the “security considerations”, perhaps when getting, or spending, money, one should have to consider how it affects sustainability.

On Mon, 14 Dec 2020 22:47, Jean-Marc Liotier <jm at liotier.org> wrote:
> 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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