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Re: IASA BCP -02 Designated Donations - section 5.3

2004-12-16 14:54:00

Let me try a slightly different cut on the discussion.

1/ I believe the IETF is trying to address the fact we would like
   to be able to accept support in chunks that are greater than
   individual meeting fees, and less than $100kUS.  IMHO,
   it's not that the IETF needs to be able to accept donations
   in *any* size between those, but I have heard people say that
   they know the person in their company who could write a cheque
   for $40k, if it will pecifically support the IETF, but there's no
   way they can get $100k through their budget.

2/ I believe we've also heard the IETF say that it wants to be able
   to clearly identify its collected assets (and, as the flipside,
   is willing to pay for all of its expenses).  This is driven
   by a lot of factors, but I think the an important one is
   that the IETF believes it can and should be financially viable.
   Taking the bad along with the good, we want to be in an
   environment where we can prove that out empirically.

3/ We've heard clear explanations that attracting and managing
   corporate donations is not a simple task.  Specifically,
   that there are reasons that it's not a simple matter to
   drop the level of donation necessary for designating
   donations.


I don't believe the BCP needs to have specific text about
*how* "1/" and "2/" are achieved.  The current text is
about "how", and perhaps that's why it does not reconcile
with "3/".

The question is, do we all believe "1/" and "2/" are achievable?
If we do have a meeting of the minds that they are, given the
constrains in "3/", then what we have is "only" a wording problem
to capture that meeting of the minds.

If we do not have such a meeting of the minds, then we should
figure out fast whether it's a difference of opinion, or whether
"1/" and/or "2/" are not reasonably achievable in any universe.


Leslie.


Brian E Carpenter wrote:
Bert, that does not change the need for the ISOC accountants
to generate a separate entry for each case and for the auditors
to check each of those entries. It's a real cost, because
accountancy and auditing cost real money.

   Brian

Wijnen, Bert (Bert) wrote:

Inline
Biran answered me:

Wijnen, Bert (Bert) wrote:

I am not a real accountant and kind of simple-minded.

So when you say:


"Lynn" == Lynn St Amour <st(_dot_)amour(_at_)isoc(_dot_)org> writes:


  Lynn> over 80% of ISOC's org. members donate less than $10K
  Lynn> annually and managing these in a 'restricted accounting
  Lynn> manner' requires more effort and overhead.  Also,
  Lynn> organizations/donors expect recognition appropriate to their
  Lynn> contribution and that implies differing levels of value and
  Lynn> distinction.


I then wonder....
- if there is s separate or special bank account for IASA/ETF
- if I can just deposit my donation into that bank account
- What then is the "more effort and overhead" ??

I just do not understand.


Bert, I'm sure Lynn will answer this too, but from when the ISOC was
discussing accounting practices for individual member subscriptions
and donations, I remember that the bank account aspect is the least
of the worries (and anyway, we already reached consensus not to
have a separate bank account).



I am not even talking about "separate bank account" as we did in an early rev of the iasa-bcp doc. I am talking about an ISOC bank account
that will ONLY receive donations targeted for a specific purpose.
By depositing money on the specific bank account, you IMPLICITLY tell
ISOC that the money is intended for a specific purpose, in this case
IETF.  Again it must be the simple-minded me who does not understand.

Bert

he issue is that accounting entries
have to be made in a very specific way for money which is tied to
a specific purpose, and while that is a small overhead if someone
donates $100k, it becomes a significant overhead if 100 people
donate $1k. It can end up eating money for accounting actions
that really serve no useful purpose but have to be done to follow
thr accounting rules. So I think Lynn is correct and we have to
give ISOC the necessary flexibility.

   Brian





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