[Foundation-l] Relocation announcement

[Ray Saintonge]

Thomas Dalton wrote:
> On 22/09/2007, Ray Saintonge <saintonge at telus.net> wrote:
>   
>> Thomas Dalton wrote:
>>     
>>> Remember, WMF is non-profit - one of the biggest
>>> problems for profit making businesses is that they have to report
>>> profits in one currency, so even if the actual money isn't being
>>> converted, they still have to convert it on paper - the WMF doesn't
>>> have to worry about that.
>>>       
>> Non-profits have to file financial reports too, and also need to convert
>> currencies.
>>     
> Yes, but they don't count for as much. If a for-profit reports a 10%
> drop in profits, that's a very bad thing, even if it's just because
> the currency they're reporting in has dropped 10% against the currency
> they are earning in. A non-profit's success is not measured in
> currency, so is not as directly affected by exchange rate shifts.
Profits are characterized differently for "non-profits".  Consider them 
as the difference between donations received and operating costs.  If 
that difference drops by 10% the organisation is able to provide 
proportionally less in benefits to the community.

Ec