From mboxrd@z Thu Jan 1 00:00:00 1970 Return-Path: Received: from lists.gentoo.org (pigeon.gentoo.org [208.92.234.80]) (using TLSv1.2 with cipher ECDHE-RSA-AES256-GCM-SHA384 (256/256 bits)) (No client certificate requested) by finch.gentoo.org (Postfix) with ESMTPS id 02976138359 for ; Sun, 5 Jul 2020 03:20:37 +0000 (UTC) Received: from pigeon.gentoo.org (localhost [127.0.0.1]) by pigeon.gentoo.org (Postfix) with SMTP id D9B1FE0822; Sun, 5 Jul 2020 03:20:35 +0000 (UTC) Received: from smtp.gentoo.org (mail.gentoo.org [IPv6:2001:470:ea4a:1:5054:ff:fec7:86e4]) (using TLSv1.2 with cipher ECDHE-RSA-AES128-GCM-SHA256 (128/128 bits)) (No client certificate requested) by pigeon.gentoo.org (Postfix) with ESMTPS id 04AEAE081E for ; Sun, 5 Jul 2020 03:20:34 +0000 (UTC) Date: Sat, 04 Jul 2020 23:20:05 -0400 User-Agent: K-9 Mail for Android In-Reply-To: References: <20200704193316.ae2d3f0fd3908036301c10c5@gentoo.org> Precedence: bulk List-Post: List-Help: List-Unsubscribe: List-Subscribe: List-Id: Gentoo Project discussion list X-BeenThere: gentoo-project@lists.gentoo.org Reply-To: gentoo-project@lists.gentoo.org X-Auto-Response-Suppress: DR, RN, NRN, OOF, AutoReply MIME-Version: 1.0 Content-Type: text/plain; charset=utf-8 Content-Transfer-Encoding: quoted-printable Subject: Re: [gentoo-project] Questions for Council candidates: Future of the Foundation To: gentoo-project@lists.gentoo.org From: Aaron Bauman Message-ID: <6DDF9C97-2168-4E61-BD8A-89D16EBDB947@gentoo.org> X-Archives-Salt: d58b0c02-2448-4688-b6cf-9cc12f0e2ebd X-Archives-Hash: e9c10096967fb0fb06131c94537d1dbd On July 4, 2020 8:57:33 PM EDT, Alec Warner wrote: >On Sat, Jul 4, 2020 at 2:44 PM Rich Freeman wrote: > >> On Sat, Jul 4, 2020 at 12:33 PM Andrew Savchenko >> wrote: >> > >> > This is one more aspect to this: some companies double donations >> > for 501c3 organizations=2E A friend of mine works in a large >> > corporation with HQ is the US and told me that his employer doubles >> > any donations made to 501c3, so he made no donation for Gentoo, >> > because that will mean loosing money for community which otherwise >> > can be doubled=2E So it is likely that 501c3 will increase incoming >> > donations=2E >> >> That is a really good point and I'll expand on this=2E >> >> Some organizations will only donate money to 501c3 organizations=2E >> Basically they're letting the IRS do the due diligence around whether >> the organization is actually charitable=2E They can potentially also >> receive tax benefits this way=2E=20 >> >> If you want to receive grants/donations from other 501c3 >organizations >> you will be far more likely to get them if you are yourself a 501c3 >> organization=2E These transactions receive far less scrutiny than >> transfers from 501c3s to other types of corporations=2E=20 >> > >This can be problematic for us in some cases=2E > >Currently our annual revenue is approximately 10,000 (All USD in this >example=2E) If we are a 501c3 public charity, we are required to source >1/3rd >of our revenue from the public; and the public is determined by a >complex >set of rules=2E Generally this is "donations less than 2% of gross >receipts=2E" >So e=2Eg=2E in our current funding model, 2% of 10,000 is 200$; and we ne= ed >to >gross at least 3,333$ in donations < 200$=2E I can tell you the Gentoo >Foundation easily passes this test[0]=2E However, if we were to be a >501c3 >and suddenly donations increased, when do we need to start worrying? > You should really double check this math=2E=20 >For example; assume gross receipts tripled in the new system, to >30,000$=2E >Now we need 1/3rd of this new total (10,000$) to come from donations >less >than 600$ (2% of 30,000$)=2E Plugging in our 2019-2020 data, our support >level here is not sufficient[1] and we will fail the public support >test=2E >Obviously the real numbers would be different but we might want to be >careful in terms of how we tell people to donate and how we account for >donations[2]=2E > >For example if I donate X and my employer donates X, I assume that >counts >as 2 donations (not 1) and we can influence the recommended value for X >(e=2Eg=2E we want X to be less than 2% of of expected gross revenues for >that >year, so it counts toward public support for the majority of >donations=2E) > >The other challenge is that we have no actual plan for spending money=2E Many have suggested ways to do this=2E=20 >Feedback from the community has not been very positive when I have >tried to >engage with them on how to spend the money=2E This presents an ethical >problem in terms of raising funds we have no existing need for; the >existing public donations from individual contributors already exceed >our >expenses by a fair margin=2E I suspect in addition to moving to a >tax-exempt >non-profit we would need clearer guidance from the community on how to >allocate the potential increase in revenue=2E When exactly did you engage the community on how to spend this revenue/inc= ome? --=20 Sent from my Android device with K-9 Mail=2E Please excuse my brevity=2E