[Linux-aus] Draft Donation Guidelines

[Silvia Pfeiffer]

Nice work! A little feedback below.

On Sat, Feb 26, 2011 at 3:17 PM, Kathy Reid <kathy at kathyreid.id.au> wrote:
> 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
>
> ------------------
>
> 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.


I would prefer the use of "open source" here rather than "Linux or a
related field", since a "related field" could be other operating
systems. "Open source" or "open technology or open content" is much
more appropriate IMHO.


> 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.

I would think a 75% majority within the council should be achievable
for something that is obvious. That is: 75% of the council member of
those that are not conflicted.


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

Or more clearly: the donation cannot be made if it adversely affects
the financial position of LA.


> 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)

Yeah, maybe a percentage of LA bank account balance may be easier.


>
> *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

This part is not appropriate, since in this case it would be a grant,
seeing as there is a request form the organisation. The difference
really is that in this case, where it is a donation, the receving
organisation did NOT put in a request, so we should not require
anything from the receiving organisation. Instead, it is up to the
council to put together due diligence material.

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

Yes, this is a lot more appropriate.


> 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.


Cheers,
Silvia.