[Foundation-l] Putting the Foundation back in WMF

[Ray Saintonge]

GerardM wrote:
> Hoi,
> If you take last years money and had converted it to euros, the money would
> be more valuable in dollar terms then the 4% interest that you indicate.
>   
It would not be a wise act of management to engage in currency speculation.
> Also on euro you can get 4% interest. My point is not about the dollar or
> the euro; when you spend when you get it, the difference is not that
> relevant.  At this moment in time we are raising more money then in the
> previous round from donations. We are still growing rapidly in many
> projects. 
Any plan to depend on growth over an extended period of time will be on 
shaky ground.  It can work over a limited time period, but we must not 
become addicted to growth.
> Last year some people made a lot of ugly noises during the fund drive. It
> may be the reason why we do not have matching donations. I think it shows
> how irresponsible this has been.
>   
I can't blame Virgin if they don't want to go through the same 
experience again.  The True Believers can have a hard time understanding 
how being doctrinaire about our principles can be so counterproductive.
> When we are going for the defensive measures you suggest, we will not have
> enough money for our current budget. We will not be able to expand into
> sourly needed capability. I do not know how to defend the defensive
> financing that you propose.
A contingency reserve makes good financial sense.  In the absence of big 
endowments a percentage of all net donations can be budgetted into a 
contingency reserve until that fund is built to the desired size.  When 
it is built up the investment income can be used for other things.

Ec