[Linux-aus] Draft Donation Guidelines

[Kathy Reid]

Let's move this discussion forward by assisting the Council in 
formulating Donation Guidelines. From reading the discussions and 
concerns raised, it is my intent that the Guidelines address concerns 
such as;
- when should a Grant be applied for, and when should a Donation be made 
/ applied for
- what due diligence measures are applied to Donations viz a viz Grants
- consultation with members concerning Donations
- financial reporting of Donations and any outcome the Donation is 
intended to yield

Below is a draft 'Guidelines for making donations' based on the grants 
page at;
http://linux.org.au/projects/grants
as a starting point.

Council - I hope I'm not overstepping boundaries here - but felt it the 
best way to make progress on this matter.

Kind regards,
Kathy

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    Linux Australia - Guidelines for making donations

*How does a donation differ from a grant?*

Linux Australia for several years has provided the ability for 
organisations to seek grants for specific projects and events - such as 
Software Freedom Day and WordCamp. These projects have a tangible 
outcome; a completed piece of code, a post event report or other 
deliverable. Obligations are imposed on the requesting entity to provide 
the tangible outcome in return for the grant.

A donation differs in that;
- Linux Australia may seek to give the donation rather than a request 
for donation being received from a member
- No obligations are imposed on the recipient in return for the donation
- The donation may or may not be made to an organisation holding 
tax-exempt status in Australia or overseas

For these reasons, a donation must be subjected to additional scrutiny 
to ensure transparency, openness and alignment with Linux Australia's 
objectives.

*Under what circumstances should a Donation be made rather than a Grant 
given?*
A Donation can be made instead of requiring a member to apply for a 
Grant where;

- The organisation, project, initiative or event to which the Donation 
will be given is in the early stages of development, is experimental, or 
cannot be reasonably expected to produce deliverables such as finished 
code, post-event evaluation report, project plan or similar at this 
stage of its lifecycle. Under this circumstance Linux Australia may be 
seen as an 'angel investor' or 'seed investor'. The due diligence that 
should be undertaken under this circumstance includes;
-- Ensuring that the aims, objectives and ethos of the project or 
initiative is in line with Linux Australia's mission
-- Vetting the people involved in the project, event or initiative to 
ensure they have a strong professional track record and are likely to 
deliver on the intended outcome
-- Undertaking at a suitable period, no longer than 12 months from the 
Donation, to report to members on the progress of the project, event or 
initiative
-- Financially reporting the Donation in the Treasurer's report

- The organisation is tax-exempt charity according to Australian law and 
has some form of association with a campaign or initiative of Linux 
Australia - similar to the local charities supported by LCA. The due 
diligence that should be undertaken under this circumstance includes;
-- verifying the credentials of the charity via the appropriate 
mechanism (such as ASIC website)
-- financially reporting the Donation in the Treasurer's report

- The Donation is being made to establish an academic, scientific or 
computing prize for outstanding achievement or to reward outstanding 
achievers in Linux or a related field. The due diligence that should be 
undertaken under this circumstance includes
-- verifying the legitimacy of the institution the award is made under
-- reporting to members within 3 months of award of the prize the 
recipients via the website
-- financially reporting the Donation in the Treasurer's report

*What Donation amount is appropriate and what consultation should occur 
with members regarding a Donation?*

Donations may be monetary or in-kind, such as equipment or web hosting.

Donations of $1000 or equivalent in kind value or less do not require 
consultation with members and should be discussed in terms of these 
guidelines and moved at a Council meeting. Where a Council member has an 
actual or perceived conflict of interest in the Donation - such as being 
involved with the organisation, event or initiative to which the 
Donation is being made - the Council member will abstain from voting on 
the decision.

Donations more than $1000 or equivalent in kind value should be proposed 
via Council to the Linux-Aus mailing list, where members have seven (7) 
days to make comment on the proposed Donation. Council will then 
consider this feedback when the proposed Donation is moved at a Council 
meeting. Where a Council member has an actual or perceived conflict of 
interest in the Donation - such as being involved with the organisation, 
event or initiative to which the Donation is being made - the Council 
member will abstain from voting on the decision.

For all Donations, at least three (3) Council members must approve the 
Donation being made.

The financial position of Linux Australia should be considered at the 
time the Donation is proposed.

Donations shall not exceed ($XXX - I don't know what a reasonable amount 
would be) in any given financial year.
(? Is this reasonable - Donations should really be in line with the 
financial position of the organisation)


*What process is used?*

The entity requesting the Donation will contact Council outlining the 
request for Donation, the nature of the event, initiative or 
organisation requesting the Donation and appropriate due diligence 
material, such as proof of tax exempt charity status

OR

A member of Council will propose a Donation at a Council meeting 
outlining the reasons behind the proposal

The Council will then, depending on the amount of the Donation, consult 
with members then vote on the proposal, or vote on the proposal at the 
next meeting.


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