[Foundation-l] Wikimedia finances and the economy

[Thomas Dalton]

> The actual spending budget has a built in cushion
> of $1.3M, but the budget indicates that the cash reserve as of the end of
> September was anticipated to be in the hole $752. With a negative reserve, a
> threat to revenue and a very poor borrowing environment are the finances of
> the organization still secure?

I think you may be misinterpreting the plan (it's worded rather
strangely, IMO) - the -$752,000 is the change in cash levels, the
footnote says there should have been more than $1,000,000 in the bank
at the beginning of the year, so there should still be a reserve of
more than $248,000. That means we should still be in the black as long
as Q1 revenue wasn't more than 34% worse than expected. Q1 finished 11
days ago, so I expect the powers that be either have, or will soon
have, preliminary data on how things went (and will at least have a
rough idea) and will tell us if we're in serious trouble. Assuming
we're not already in the red, we can stay above water with just 39% of
the expected Q2 revenue and 69% of expected Q3 revenue (and that is,
again, with no spending cuts), we would then be in trouble for Q4, but
there is plenty of time to implement spending cuts before then if
necessary.