[Foundation-l] Chapters

[Nathan]

On Fri, Aug 26, 2011 at 3:44 PM, Lodewijk <lodewijk at effeietsanders.org> wrote:
> Hi Jimmy,
>
> There are several side effects to the idea of not allowing chapters at all
> to fundraise (I note that boardmembers and staff members have a different
> take on this, so I'll keep it general - keeping in mind there are many other
> aspects to be considered, such as transparancy. However, imho fundraising
> through chapters should remain the best way).
>

Lodewijk,

I don't think the chapters are barred from all fundraising... At most,
they are at risk of not being able to participate in the global WMF
fundraiser. They can still raise funds on their own through other
methods. Maybe such other methods are more time consuming, difficult
and less lucrative... But there are innovative substitutes for the WMF
annual fundraiser, I'm sure.

In any case, the barriers to participation relate to the
organizational capacity of the chapters and the associated risks. A
chapter that has financial controls and active leadership should be
able to meet the WMFs requirements (with the exception of tax
deduction eligibility, based on jurisdiction); a chapter that does not
puts both their funds and their public reputation at risk.  As the
host of the fundraiser and the mark owner, the WMF shares in that risk
- and it is both reasonable and necessary that the Foundation adhere
to and require minimum standards of accountability in order to
mitigate the risk of fraud, waste and abuse.

If it were only the chapters themselves at stake (as is the case when
they raise funds independently), then they could get money first and
organization second. But the WMF shares in the risk, and is offering
organizational support to chapters, so cart before horse does not make
sense.

Nathan