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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;<br>
- when should a Grant be applied for, and when should a Donation be
made / applied for<br>
- what due diligence measures are applied to Donations viz a viz
Grants<br>
- consultation with members concerning Donations<br>
- financial reporting of Donations and any outcome the Donation is
intended to yield<br>
<br>
Below is a draft 'Guidelines for making donations' based on the
grants page at;<br>
<a class="moz-txt-link-freetext" href="http://linux.org.au/projects/grants">http://linux.org.au/projects/grants</a><br>
as a starting point. <br>
<br>
Council - I hope I'm not overstepping boundaries here - but felt it
the best way to make progress on this matter. <br>
<br>
Kind regards,<br>
Kathy<br>
<br>
------------------<br>
<br>
<h2>Linux Australia - Guidelines for making donations</h2>
*How does a donation differ from a grant?*<br>
<br>
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. <br>
<br>
A donation differs in that;<br>
- Linux Australia may seek to give the donation rather than a
request for donation being received from a member<br>
- No obligations are imposed on the recipient in return for the
donation<br>
- The donation may or may not be made to an organisation holding
tax-exempt status in Australia or overseas<br>
<br>
For these reasons, a donation must be subjected to additional
scrutiny to ensure transparency, openness and alignment with Linux
Australia's objectives. <br>
<br>
*Under what circumstances should a Donation be made rather than a
Grant given?*<br>
A Donation can be made instead of requiring a member to apply for a
Grant where;<br>
<br>
- 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;<br>
-- Ensuring that the aims, objectives and ethos of the project or
initiative is in line with Linux Australia's mission<br>
-- 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<br>
-- 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<br>
-- Financially reporting the Donation in the Treasurer's report<br>
<br>
- 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;<br>
-- verifying the credentials of the charity via the appropriate
mechanism (such as ASIC website)<br>
-- financially reporting the Donation in the Treasurer's report<br>
<br>
- 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<br>
-- verifying the legitimacy of the institution the award is made
under <br>
-- reporting to members within 3 months of award of the prize the
recipients via the website<br>
-- financially reporting the Donation in the Treasurer's report<br>
<br>
*What Donation amount is appropriate and what consultation should
occur with members regarding a Donation?*<br>
<br>
Donations may be monetary or in-kind, such as equipment or web
hosting.<br>
<br>
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. <br>
<br>
Donations more than $1000 or equivalent in kind value should be
proposed via Council to the Linux-Aus mailing list, where members
have seven (7) days to make comment on the proposed Donation.
Council will then consider this feedback when the proposed Donation
is moved at a Council meeting. Where a Council member has an actual
or perceived conflict of interest in the Donation - such as being
involved with the organisation, event or initiative to which the
Donation is being made - the Council member will abstain from voting
on the decision. <br>
<br>
For all Donations, at least three (3) Council members must approve
the Donation being made. <br>
<br>
The financial position of Linux Australia should be considered at
the time the Donation is proposed.<br>
<br>
Donations shall not exceed ($XXX - I don't know what a reasonable
amount would be) in any given financial year.<br>
(? Is this reasonable - Donations should really be in line with the
financial position of the organisation)<br>
<br>
<br>
*What process is used?*<br>
<br>
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<br>
<br>
OR<br>
<br>
A member of Council will propose a Donation at a Council meeting
outlining the reasons behind the proposal<br>
<br>
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.<br>
<br>
<br>
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