Several points in reply to Theo:
1) You don't need to argue the value of having chapters around the world. No one debating that. It's accepted that effective global outreach requires effective local partners, and that local chapters are the way to achieve the best results. I think its generally well known that there are countries where it is problematic to receive large amounts of money from foreign organizations, or to send money overseas. But...
2) Organizations that receive money under the aegis of the WMF need to understand that the WMF has a legal and ethical duty to ensure that the funds are well spent. This isn't a "US vs. other places" argument - its a "the WMF has to meet its obligations to the community" argument. As an organization that strives to be far more accountable and transparent to the public than a normal non-profit, these obligations greatly exceed the minimum requirements of law. I'm sure many nations have strict laws governing the operations of non-profits, and we all hope and expect that all chapters meet and exceed these minimum requirements... but the chapters must meet the Foundation's expectations for transparency and fiscal responsibility, not just the what is required by law.
3) Your point about the nature of non-profit organizations doesn't make sense as a response to what I said. Perhaps you can re-read what I wrote and reconsider your response. Regardless, I'm not sure I understand exactly why people opposed to the new requirements of the WMF are ignoring the obvious fact that chapters can continue to raise funds on their own. Grants, some sorts of partnerships, direct contributions, etc. The Board letter is not "You can't raise any funds at all" its "You have to do X, Y and Z in order to join the WMF fundraiser."
Let's just reiterate the requirements described by the Board letter:
*"* An organization can directly receive donor funds as a payment processor if the following criteria are met: ** There is sufficient money raised in the geography to merit the logistical effort. ** The organization offers tax deductibility or other incentives to local donors. ** Regulatory issues about any international funds flows are fully resolved. ** The organization's current financial resources are not enough to fund proposed program work. ** The Foundation can confidently assure donors to the chapter that their donations will be safeguarded, that our movement's transparency principles will be met, and that spending will be in line with our mission and with the messages used to attract donors. * The donation process should clearly disclose basic facts about the organization receiving the donation."*
Tax deductibility may be a major challenge or impossible in some jurisdictions. Which other criteria are so onerous that folks are reacting like the letter indicts the entire system of chapters? Here's how I interpret what the Board has written:
(a) Regulatory issues have to be resolved, which was true (in order to protect local organizations from liability) regardless of this letter.
(b) Having many times more money than planned is a risk obvious to anyone. The WMF is trying to prevent a situation where chapters have huge bank accounts but no organizational capacity or financial controls. That means diligent and clear accounting according to international accounting standards, controls against the risk of theft, fraud or misappropriation, and outside independent audits. Such demands are the basic responsibility of the WMF to donors it refers to chapters.
(c) Chapters who receive money from the WMF should disclose in detail how much money they've received and how it is being spent, to the WMF and the movement community. As above, funds should be "safeguarded" by appropriate financial controls (which may or may not be mandated by law in any jurisdiction). Money received through the WMF should be spent solely on movement goals.
(d) Chapters receiving money should disclose to donors the chapters' nature, history, composition and leadership.
Why anyone should object to these requirements is hard for me to understand. I can see why chapters would be perturbed about needing to meet them on a short timeline, but generally speaking they should all have had these as aims to begin with.
Nathan