(@Deskana: When 6-18 months go by and there is no information made public until finally forced by either legal requirements (eg the form 990s) or basic reporting standards (eg the audit report, without which the WMF would lose ratings in sites like Charity Navigator), that indicates a lack of desire for transparency. The text in the FAQ does include any information not already included in the report except the "we'll share more information later" bit and a slight elaboration of the meaning of "unconditional grant".)
Note that the "Tides" which (as mentioned by the CAO above) the WMF has been working with for years is the Tides Foundation, which is not the same organization as the grantee here (the advocacy/lobbying group called Tides Advocacy), which unlike Tides Foundation is not a 501(c)(3). (There are ambiguous "ties" between the two organizations, but they are separate entities.) If the Board approved this major action, as mentioned, it means that the Board minutes (and presumably resolutions list) are so incomplete that they cannot be relied upon to include essentially anything. If they can specifically omit such things, they do little to ensure transparency in the Board's activities. This is a very disappointing development. I do not understand how WMF internal accounting issues justify transfering the grant money to an outside organization, which additionally appears to have no obligation to publicly report where the transferred money is going. -- Yair Rand בתאריך יום ג׳, 15 בדצמ׳ 2020 ב-10:52 מאת Pharos < pharosofalexand...@gmail.com>: > Hi Lisa and all, > > Thanks for your responses and thoughts. This is an important area, and key > to get right with a consensus-driven approach. > > Are we going to announce the process for giving grants to organisations > outside the movement, including the process for community involvement, in > the spirit of the strategy recommendations? > > Or should we just expect an announcement of the first recipients? > > Thanks, > Richard > (User:Pharos) > > On Mon, Dec 14, 2020 at 12:54 PM Lisa Gruwell <lgruw...@wikimedia.org> > wrote: > >> Hi all, >> >> Thanks for the questions. We intend to announce the Knowledge Equity Fund >> in early 2021, once we have a bit more details and specifics worked out. >> However, we can share the overall intention today. >> >> Some background: Our fiscal year runs from July through June, which means >> that the second half of last year was heavily affected by the unforeseen >> effects of the Covid-19 pandemic. Community events were canceled, hiring >> slowed, and we put work on pause while we responded to the changing >> circumstances. As a result, we ended the year with funds that were >> underspent, relative to what we had planned for the budget. >> >> In May of last year, we were also planning for this current fiscal year >> and had very little insight about how fundraising would perform in this >> pandemic. People around the world were losing their sources of income, as >> unemployment soared. We worked with the board to plan for different >> scenarios, including if fundraising went really poorly. >> >> As a general matter, when the budget is underspent, any remainder goes >> into the reserve. For accounting purposes, it cannot be carried over into >> the budget of a new fiscal year. Because we were concerned about the >> uncertainty of fundraising this year, we decided to set aside underspent >> funds from the past fiscal year, so that we could keep our commitment to >> our grantees even if fundraising fell short and also make progress on >> knowledge equity. (Good news: Fundraising ended up going a lot better than >> we expected when we were planning in the early months of this pandemic. >> More to come on that.) >> >> With the WMF board’s approval, we set up a US$8.7 million grantmaking >> fund at Tides Advocacy, which has two purposes: 1) Funding Annual Plan >> Grants (APG) to the affiliates this year and 2) Funding Knowledge Equity. >> We have been working with Tides since 2016 when we launched the Endowment. >> The relationship has gone well and they have a lot of expertise at >> administering grants internationally. >> >> Our first priority was to ensure that we had enough funding to support >> community grants. We transferred the full amount for Annual Plan Grants >> (APG) for FY20-21 over to Tides to ensure that all funding for >> affiliates for this year was secured, regardless of how fundraising >> performed. It also gives staff at affiliates and the Foundation more time >> to work together to make thoughtful grants, instead of an end-of-year rush. >> All affiliates who will be receiving funding through Tides were informed of >> the arrangement last summer. All other grantmaking (Community Grants, >> Rapid Grants, Project Grants) are still being funded through WMF directly, >> as usual. There is a round of APG grants set to go out via Tides this week. >> >> As the Audit Report FAQ states,[1] the remaining funds will be used to >> launch the Wikimedia Knowledge Equity Fund. This new fund is in addition to >> the existing grants that are already available for the communities >> (Community Grants, Rapid Grants, Project Grants, and APGs) and does not >> impact the amount of funds in those grant portfolios. >> >> Our goal is to use this fund to invest in new opportunities that >> increase the availability of free knowledge for marginalized people and >> counteract structural inequalities. Knowledge equity is a key pillar of the >> 2030 movement strategy, and this investment will help us to address some of >> the barriers preventing people from accessing and contributing to free >> knowledge. >> >> As of now, this is a one-time commitment of approximately $4.5 million. >> We are still working on the specific initial objectives of the fund and how >> it will operate. As a pilot initiative, we’ll be learning and adapting as >> we go. >> >> We’ll share more details in early 2021 about the Knowledge Equity Fund. >> We are excited to see what progress we can make for knowledge equity with >> this investment. >> >> Thank you, >> >> Lisa Gruwell >> >> [1] >> https://meta.wikimedia.org/wiki/Wikimedia_Foundation_reports/Financial/Audits/2019-2020_-_frequently_asked_questions/id#This_year%E2%80%99s_report_says_that_the_Wikimedia_Foundation_provided_an_unconditional_grant_of_$8.723_million_to_Tides_Advocacy_for_the_Wikimedia_Knowledge_Equity_Fund._What_is_the_Wikimedia_Knowledge_Equity_Fund? >> <https://meta.wikimedia.org/wiki/Wikimedia_Foundation_reports/Financial/Audits/2019-2020_-_frequently_asked_questions/id#This_year%E2%80%99s_report_says_that_the_Wikimedia_Foundation_provided_an_unconditional_grant_of_$8.723_million_to_Tides_Advocacy_for_the_Wikimedia_Knowledge_Equity_Fund._What_is_the_Wikimedia_Knowledge_Equity_Fund?> >> >> >> On Sun, Dec 13, 2020 at 12:35 PM Katherine Maher <kma...@wikimedia.org> >> wrote: >> >>> Hi folks, >>> >>> Happy Sunday from San Francisco -- we've seen the questions on this >>> list, and we'll reply tomorrow when folks are back at work. Thanks for your >>> understanding! >>> >>> Hope everyone is staying well and safe, >>> >>> Katherine >>> >>> On Sun, Dec 13, 2020 at 5:36 AM Isaac Olatunde <reachout2is...@gmail.com> >>> wrote: >>> >>>> I agree with Dan. A question about this should have been directed to >>>> the WMF and allow them to respond prior to raising it here (if that's even >>>> necessary in the first place.) >>>> >>>> Regards >>>> >>>> Isaac >>>> >>>> >>>> On Sun, 13 Dec 2020, 14:30 Dan Garry (Deskana), <djgw...@gmail.com> >>>> wrote: >>>> >>>>> It seems disingenous to describe it as "secret" given that it was >>>>> willingly acknowledged in the the FAQ of the annual financial audit >>>>> <https://meta.wikimedia.org/wiki/Wikimedia_Foundation_reports/Financial/Audits/2019-2020_-_frequently_asked_questions/id#This_year%E2%80%99s_report_says_that_the_Wikimedia_Foundation_provided_an_unconditional_grant_of_$8.723_million_to_Tides_Advocacy_for_the_Wikimedia_Knowledge_Equity_Fund._What_is_the_Wikimedia_Knowledge_Equity_Fund?>. >>>>> The information provided in the FAQ is somewhat lacking, but these are not >>>>> the actions of people trying to sweep it under the rug. >>>>> >>>>> Let us politely ask for more information without being unnecessarily >>>>> alarmist. >>>>> >>>>> Dan >>>>> >>>>> On Sun, 13 Dec 2020 at 08:54, Yair Rand <yyairr...@gmail.com> wrote: >>>>> >>>>>> According to the recent Independent Auditors' Report of the WMF [1], >>>>>> at some point prior to the end of June 2020, an entity called the >>>>>> "Wikimedia Knowledge Equity Fund" was established, and $8.723 million was >>>>>> transferred to it by the WMF, in the form of an unconditional grant. The >>>>>> Fund is "managed and controlled by Tides Advocacy" (a 501(c)(4) advocacy >>>>>> nonprofit previously led by the WMF's current General Counsel/Board >>>>>> Secretary, who served as CEO, Board Secretary, and Treasurer there). >>>>>> Given that a Google search for "Wikimedia Knowledge Equity Fund" yields >>>>>> zero results prior to the release of the report, it is clear that the WMF >>>>>> kept this significant move completely secret for over five months, >>>>>> perhaps >>>>>> over a year. The Report FAQ additionally emphasizes that the WMF "has no >>>>>> right of return to the grant funds provided, with the exception of >>>>>> unexpended funds." >>>>>> >>>>>> The WMF unilaterally and secretly transferred nearly $9 million of >>>>>> movement funds to an outside organization not recognized by the >>>>>> Affiliations Committee. No mention of the grant was made in any Board >>>>>> resolutions or minutes from the relevant time period. The amount was not >>>>>> mentioned in the public annual plan, which set out rather less than this >>>>>> amount for the entire grantmaking budget for the year. No application was >>>>>> made through any of the various Wikimedia grants processes. No further >>>>>> information has been provided on the administration of this new Fund, or >>>>>> on >>>>>> the text of the grant agreement. >>>>>> >>>>>> I am appalled. >>>>>> >>>>>> -- Yair Rand >>>>>> >>>>>> [1] >>>>>> https://upload.wikimedia.org/wikipedia/foundation/f/f7/Wikimedia_Foundation_FY2019-2020_Audit_Report.pdf >>>>>> _______________________________________________ >>>>>> Wikimedia-l mailing list, guidelines at: >>>>>> https://meta.wikimedia.org/wiki/Mailing_lists/Guidelines and >>>>>> https://meta.wikimedia.org/wiki/Wikimedia-l >>>>>> New messages to: Wikimedia-l@lists.wikimedia.org >>>>>> Unsubscribe: https://lists.wikimedia.org/mailman/listinfo/wikimedia-l, >>>>>> <mailto:wikimedia-l-requ...@lists.wikimedia.org?subject=unsubscribe> >>>>>> >>>>> _______________________________________________ >>>>> Wikimedia-l mailing list, guidelines at: >>>>> https://meta.wikimedia.org/wiki/Mailing_lists/Guidelines and >>>>> https://meta.wikimedia.org/wiki/Wikimedia-l >>>>> New messages to: Wikimedia-l@lists.wikimedia.org >>>>> Unsubscribe: https://lists.wikimedia.org/mailman/listinfo/wikimedia-l, >>>>> <mailto:wikimedia-l-requ...@lists.wikimedia.org?subject=unsubscribe> >>>>> >>>> _______________________________________________ >>>> Wikimedia-l mailing list, guidelines at: >>>> https://meta.wikimedia.org/wiki/Mailing_lists/Guidelines and >>>> https://meta.wikimedia.org/wiki/Wikimedia-l >>>> New messages to: Wikimedia-l@lists.wikimedia.org >>>> Unsubscribe: https://lists.wikimedia.org/mailman/listinfo/wikimedia-l, >>>> <mailto:wikimedia-l-requ...@lists.wikimedia.org?subject=unsubscribe> >>>> >>> >>> >>> -- >>> >>> Katherine Maher (she/her) >>> >>> CEO >>> >>> Wikimedia Foundation <https://wikimediafoundation.org/> >>> >>> >>> _______________________________________________ >>> Wikimedia-l mailing list, guidelines at: >>> https://meta.wikimedia.org/wiki/Mailing_lists/Guidelines and >>> https://meta.wikimedia.org/wiki/Wikimedia-l >>> New messages to: Wikimedia-l@lists.wikimedia.org >>> Unsubscribe: https://lists.wikimedia.org/mailman/listinfo/wikimedia-l, >>> <mailto:wikimedia-l-requ...@lists.wikimedia.org?subject=unsubscribe> >>> >> >> >> -- >> >> Lisa Seitz Gruwell >> >> Chief Advancement Officer >> >> Wikimedia Foundation <https://wikimediafoundation.org/> >> >> _______________________________________________ >> Wikimedia-l mailing list, guidelines at: >> https://meta.wikimedia.org/wiki/Mailing_lists/Guidelines and >> https://meta.wikimedia.org/wiki/Wikimedia-l >> New messages to: Wikimedia-l@lists.wikimedia.org >> Unsubscribe: https://lists.wikimedia.org/mailman/listinfo/wikimedia-l, >> <mailto:wikimedia-l-requ...@lists.wikimedia.org?subject=unsubscribe> >> > _______________________________________________ > Wikimedia-l mailing list, guidelines at: > https://meta.wikimedia.org/wiki/Mailing_lists/Guidelines and > https://meta.wikimedia.org/wiki/Wikimedia-l > New messages to: Wikimedia-l@lists.wikimedia.org > Unsubscribe: https://lists.wikimedia.org/mailman/listinfo/wikimedia-l, > <mailto:wikimedia-l-requ...@lists.wikimedia.org?subject=unsubscribe> >
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