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So, one thing that always gets brought up is "yeah, but what about those reserves?" WMF have in the past said that they keep about six months of cash in reserv

So, one thing that always gets brought up is "yeah, but what about those reserves?" WMF have in the past said that they keep about six months of cash in reserve. And have for a few years now. Orlowski and some of the troll brigade get very antsy about this. I think it is... sound financial planning. I don't know about you, but having a cash reserve is kind of a useful selling point if you are trying to hire programmers and engineers. "We're not suddenly going to go bankrupt overnight and leave you in the lurch" is something you actually need to be able to tell prospective employees if they've got families and mortgages and so on. As a Wikipedia admin and volunteer, I'm actually mostly okay with how the Foundation operates. Some of the local chapters are probably a bit too bloated but the Foundation itself, I'm broadly okay with.

pwthornton 14y ago
As someone who has worked in the non-profit sector for several years, having a cash reserve is a best practice. Six months is on the smaller end. If you don't have cash reserves and fund raising falls short, you have to start laying people off, cutting programs, turning off servers, etc. Or if the global economy tanks and people stop donating, your whole non-profit may be in trouble. Six months of cash to cover all expenses is a selling point of Wikipedia, not a detraction. I want to donate to and work for financially prudent non-profits. If anything, I'd like to see their cash reserves upped to more like a year or so.
- tommorris 14y ago
  Six months was the last time I attended a fundraising discussion meeting. I think that there may be long-term plans to try and keep a bigger cash reserve. It's what happens when non-profits grow up.
- kamjam 14y ago
  It's a very interesting point, and i guess the issue is if you have to start laying fundraisers off, you have no fund raiser to raise funds. Kind of a vicious circle situation!
- cpeterso 14y ago
  Plus, donations are not flat through the year. In the US, at least, donations spike in December because it's the last chance to qualify as a tax deduction for the current tax year.

pwthornton 14y ago

As someone who has worked in the non-profit sector for several years, having a cash reserve is a best practice. Six months is on the smaller end. If you don't have cash reserves and fund raising falls short, you have to start laying people off, cutting programs, turning off servers, etc. Or if the global economy tanks and people stop donating, your whole non-profit may be in trouble. Six months of cash to cover all expenses is a selling point of Wikipedia, not a detraction. I want to donate to and work for financially prudent non-profits. If anything, I'd like to see their cash reserves upped to more like a year or so.

tommorris 14y ago
Six months was the last time I attended a fundraising discussion meeting. I think that there may be long-term plans to try and keep a bigger cash reserve. It's what happens when non-profits grow up.
kamjam 14y ago
It's a very interesting point, and i guess the issue is if you have to start laying fundraisers off, you have no fund raiser to raise funds. Kind of a vicious circle situation!
cpeterso 14y ago
Plus, donations are not flat through the year. In the US, at least, donations spike in December because it's the last chance to qualify as a tax deduction for the current tax year.