[Wikimedia-l] Fwd: Question: How much does administration in Chapters cost the Wikimedia movement?

[J Alexandr Ledbury-Romanov]

Forwarding from a non subscriber.

Alex


---------- Forwarded message ----------
From: Ad Huikeshoven <ad at wikimedia.nl>
Date: 2013/4/24
Subject: Question: How much does administration in Chapters cost the
Wikimedia movement?
To: wikimedia-l-owner at lists.wikimedia.org


Hi Fae,

Great question Fae. For a fundraising charity a breakdown in program,
fundraising and administrative cost is natural, and in compliance with
accountanting standards. As far as I know WMF reports according to FAS 117,
see
http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175820923228&blobheader=application%2Fpdf

In the UK the standard would be SORP. Wikimedia Nederland adopted Richtlijn
650 which is mandatory for getting a certificate from CBF, see
http://www.rjnet.nl/Documents/Uitingen%202011/0000034578_RJ-Uiting%202011-1%20dd%2031-01-11.pdf
 and http://www.cbf.nl/CBF-Beoordelingen/criteria-keur.php.

The accounting standards give guidelines about what can be allocated to
program costs, what should be included in fundraising cost and what are
administrative cost. FDC entities are required to produce audited financial
statements. The external auditor will review allocation of cost and
transparency of explanatory notes.

International charity guideline is to have
program:fundraising:administrative cost ratios according to 75:10:15,
noting the 10 and 15 are maximums. A source for these ratios is
http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=48

Costs of evaluating impact of programs. Would you include those cost in
administrative costs? Could costs of impact evaluations be part of program
cost. If not, why not? If yes, what is your rationale?

Greetings and regards,

Ad Huikeshoven
Treasurer Wikimedia Nederland