Grants:APG/Fundraising and Funds Dissemination/Editable recommendations

Future of fundraising discussions - Index edit
Guiding Principles discussion Introduction Fundraising principles Funds distribution principles Fundraising models/future discussion Introduction, timeline & faq Goals Zack's observations on online fundraising How long will the Fundraiser keep growing? Wikimedia Foundation staff memo and analysis Recommendations Final recommendations from Sue Editable recommendations based on Sue's final recommendations Draft Recommendations from Sue Draft Recommendations discussion Draft Recommendations Q&A Brainstorming about Recommendation 4 Pros and cons Questions flowchart Fundraising options Alternative recommendations and philosophies Alternative recommendations (Open to all contributions) Recommendations by Tango Wikimedia Foundation resolutions Resolution: Wikimedia fundraising principles (10-9-2010) WMF Board of Trustees letter regarding fundraising accountability (8-5-2011) Resolution: Developing Scenarios for future of fundraising (1-18-2012) Draft Board resolution (2-9-12) Final Board resolutions (3-30-12) FAQ Discussion Wikimedia chapter statements Wikimedia’s culture of sharing (Wikimedia DE) Resolution on principles (Wikimedia UK) The importance of being a Wikimedia chapter (Wikimedia IT) Iberocoop joint statement Opinion French chapter Questions for the German chapter Wikimedia UK response to Sue Wikimedia CH response to Sue Wikimedia NL informal statement Overview of relevant data Sign up to participate Initial Thoughts Draft grantmaking survey Funds Dissemination Criteria мой Resource list (for survey preparation) Where the money comes from today Outcomes Final Board resolutions Creation of the Funds Dissemination Committee (FDC)

The recommendations comprise spending (here: funds disemination), and income via the movements most popular websites, like Wikipedia (here: fundraising). This entire framework on funds dissemination and fundraising will be reviewed in 2015, after 3 years of operation.

Funds Dissemination Recommendations

Recommendation 1: Share movement-wide decisions about funds dissemination

Decision-making about funds dissemination should be broad and inclusive, consistent with our mission, vision and values.

Recommendation 2: Create a Global Budget

The Wikimedia Foundation will, as part of its annual planning process, create an annual plan that divides the funds coming in via fundraising (see below) into three types:

1. Keep Alive. Funds for core operations of the WMF, covering running the sites and fulfilling other core responsibilities, as well as WMF operating reserves, to safeguard its ability to continue core operations in the event of unanticipated expenses or a shortfall in future revenues.
2. Strategic spending, in both technical and program work. Software development is part of this. In the beginning (2012/2013?) a high percentage (>95% ?) would be spent by the WMF as default. Parallel, programs should be set up and tested, which allow to attract (young?) talent all over the world, even on a research / academic level. As the movement is a global movement, as well a more "global" spending might be envisioned, i.e. spending more money in other countries as well, for both technical and program work.
3. Other spending. Funds for other program work, for dissemination to all movement entities, including individuals, chapters, other entities, and the Wikimedia Foundation itself, for activities that support our mission.

This revenue target and funds allocation will be approved by the Wikimedia Foundation Board.

Recommendations 3 and 4: Create a Funds Dissemination Committee

To support a broader and more inclusive decision-making process for funds distribution, the WMF will create a volunteer-driven body (working title: the Funds Dissemination Committee, or FDC) whose sole purpose will be to make recommendations to the WMF on setting the annual fundraising target and allocating funds. All funds raised via the Wikimedia project sites will be distributed via the recommendations of the FDC, with the exception of the WMF core operations and reserves as described above. Funds raised outside of the Wikimedia project sites need not be put into the FDC pool or disseminated by the FDC.

The work of the FDC should be follow our funds dissemination principles: to protect core operations, assess impact, promote transparency and stability, support decentralized programs, promote responsibility and accountability, and make decisions openly and collaboratively.

Recommendations 5 and 6: Design and support a Funds Dissemination Committee

An effective FDC will be extremely valuable to the Wikimedia movement, but building it will take time. It will require project management, consultation, and legal and financial expertise, and should be constructed in an iterative way.

To facilitate this, a temporary Board advisory committee will be created to help oversee the development of the FDC, evaluate its first two years, and recommend improvements. In December 2014, after the FDC’s first full year of operation, it will submit a review to the Board and will be dissolved. At that point the Board will determine whether to continue or redesign the FDC.

The Board directs the Executive Director to allocate resources towards the creation of an FDC, including staff to lead the process, working with the advisory committee and under Board oversight. A preliminary plan should be submitted to the Board by June 2012 including

• a description of how the FDC will function,
• a transition plan for rolling it out, with a partial rollout in 2012-13 and a full rollout for 2013-14,
• a process for evaluating, reviewing and making refinements at several key stages.

Following Board feedback, this plan should be finalized and implemented by September of 2012.

Fundraising Recommendations

Recommendation 1: Fundraise ethically, on- and off-wiki.

Fundraising by entities using the Wikimedia trademarks should follow our fundraising principles.

All movement entities are free to fundraise outside of the Wikimedia project sites, in line with these principles. Fundraising via avenues such as membership dues, foundation or government grants, in-kind donations, major gifts, and conference fees is healthy: it enhances the financial sustainability of the Wikimedia movement, and supports chapter independence from the Wikimedia Foundation.

Recommendation 2: Set a global revenue target each year

We affirm that all funds given to the Wikimedia movement are given in support of our global projects, in response to the value created by the global Wikimedia movement. Therefore, funds raised via the Wikimedia project sites should be considered to be movement money, not the property of a particular organization or stakeholder. In acknowledgement of the above, a global revenue target for the fundraising will be set.

Recommendation 3: Decentralize donation processing to Chapters where appropriate

While some large chapters have developed donation-processing capacity and others have expressed an interest in doing so, this requires significant experience and local capacity, as well as investment in local infrastructure. In places this duplicates existing fundraising infrastructure. We ask that the Executive Director decide whether annual fundraiser donations can be processed by a local chapter on a case-by-case basis, subject to approval by the Board. Processing of donations should be limited to chapters that both meet current criteria and benefit enough from local donation processing to offset the additional overhead for the chapter and the WMF.

In 2012, the four chapters that processed donations in 2011 may continue to do so, if they continue to meet the criteria. The board does not expect the Executive Director to decide that any other Chapter process donations in 2012, unless she feels that they meet the criteria by June 1st. In future years, a Chapters Council may also be asked for input on the matter.