3 ms·
I feel that the article implies that the situation is unusual and alarming, but the reality is that this a normal, if suboptimal, set of circumstances in third-
by seabass-labrax 3y ago
I feel that the article implies that the situation is unusual and alarming, but the reality is that this a normal, if suboptimal, set of circumstances in third-sector (non-profit) organisations.
> "One concern was the lack of community input into the process that led to the fund's creation".
For the steward of a project like Wikipedia, it's true that a consensus-based governance structure would be appropriate. However, these are notoriously difficult to maintain in practice, frequently becoming split into partisan groups that obstruct decisions from being made. The Wikimedia Foundation currently has a self-selecting board of limited size, and so it is their responsibility to make decisions on their own in what they feel is in the best interests of the stakeholders. This does not preclude them from asking what the community of Wikipedia users want, but these are not the Foundation's only valid stakeholders.
> "Another was the use of money which was generally solicited on the grounds of being necessary to fund Wikimedia projects, meaning that many donors likely did not know or intend for their funds to be given to unrelated organizations."
This is indeed frustrating, but it is absolutely not uncommon for such organisations to use rhetoric in their fundraising. If the Wikimedia Foundation employ typical marketing individuals, they are most likely to run typical marketing campaigns for their fundraising. I am not defending the misleading advertisements, but I would point out that there is nothing shockingly unusual about this specific case.
> "Two of the grant recipients from the first round seem to have not shared financial reports detailing how the money was spent."
The Wikimedia Foundation will have done what they thought was due diligence; it feels too early to me (it is less than a year after the grant was announced) to claim that A. the beneficiaries are fraudulent, and B. that the Wikimedia Foundation could have reasonably determined this. I will admit that my alarm bells are ringing at the haphazard nature of the website of one of the two beneficiaries lacking a financial statement at the moment (https://iipsj.org https://iipsj.org).
> "This is a strange comment, as it would seem entirely within the power of the board to determine what information the minutes of its own meetings should contain."
This aspect is unsurprising to me, as it is generally not the board's responsibility to produce the minutes of their meetings. This is technically the responsibility of the Executive Director. The ED (sometimes called the CEO, or as an anachronism the General Secretary), is typically the most senior remunerated executive and does not sit on the board, but usually attends the board meetings in order to represent the staff. The actual writing of the minutes is usually delegated by the ED to the Secretary, who may be a board member or staff member depending on the organisation. The Board certainly have the power to refuse approval of the minutes, but it sounds from Jimbo Wale's quote that no one believed that the minutes were actually incorrect in this case, and therefore didn't want to upset the apple cart by withholding their approval.
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In conclusion, I would like to express the opinion that there are multiple valid concerns raised in this article, but from the perspective of someone generally involved in third-sector/non-profit organisations, the Wikimedia Foundation does not appear to be a train-wreck by any stretch of the imagination, and is in fact about average! The stakeholders of Wikimedia are entitled to desire more, and I personally hope the Wikimedia Foundation take every opportunity to improve. Similarly, donations are of course voluntary and maybe being more cautious with your cash is the right way to communicate discontent to the Board. However, I don't think the Wikimedia Foundation are being irresponsible in their management of their grant fund, and unless you object to their running of one at all, I would suggest that ceasing donations is an extreme response.
- akolbe 3y agoWould you say it is trustworthy for a charity funded by readers' donations to have a $120 million Endowment that has never, in 7.5 years of existence, published its revenue and expenses? (The latter seem to have run at about $2 million p.a. recently.) See https://en.wikipedia.org/w/index.php?title=User_talk:Jimbo_Wales&oldid=1170966979#Endowment https://en.wikipedia.org/w/index.php?title=User_talk:Jimbo_W... I must say I am fairly disillusioned with the nonprofit world.
- seabass-labrax 3y agoCan't you just ask for their revenue and expenses? I've never had to do so myself, but I believe you can simply ask for a copy of their 'form 990', which you're entitled to for any 501(с)(3) charity such as the Wikimedia Endowment. I'm actually rather curious now. Let me know if you write, because I'd like to avoid the airmail fee from the UK if at all possible :)
- akolbe 3y agoThere is no Form 990. The Endowment was set up as a Collective Action Fund with The Tides Foundation. The Wikimedia Foundation promised many times that it would convert the Endowment into a standalone 501(c)(3) filing an annual Form 990 but then delayed and delayed. (Even now, one year after IRS approval for the 501(c)(3), the Endowment website still says it is with Tides.) https://wikimediaendowment.org/ https://wikimediaendowment.org/ I have asked for revenue and expenses information (many times in fact), so far without success. Feel free to join the ongoing discussion on Jimmy Wales' talk page on Wikipedia: https://en.wikipedia.org/wiki/User_talk:Jimbo_Wales#Endowment https://en.wikipedia.org/wiki/User_talk:Jimbo_Wales#Endowmen... (The above link will decay once the discussion on Wales' talk page is archived. Here is a permalink: https://en.wikipedia.org/w/index.php?title=User_talk:Jimbo_Wales&oldid=1171185411#Endowment https://en.wikipedia.org/w/index.php?title=User_talk:Jimbo_W... )
- seabass-labrax 3y agoThank you for explaining this. Looking through the Tides Foundation's own financial reports, I can find only aggregated reports, except for Tide's own Form 990 which says that they gave $3M back to the Wikimedia Foundation in their 2021 financial year (this disclosure I imagine is for tax rebate purposes?). In any case, thank you for saving £2.20 of my own expenses and the IRS a letter asking about a non-existent 501(c)(3) ;)