WMF banks $11 million Options

[thekohser]

Just in case you've lost track of how much money the Wikimedia Foundation is collecting but not spending, the most recent Foundation report indicates that there is $11 million worth of donors' contributions just sitting there in a bank account.

Money well (not) spent!

This post has been edited by thekohser:

[Selina]

can has

[Cock-up-over-conspiracy]

They are trying to get enough in the bank so that when the downturn comes ... which it will ... the can live off the interest on the investment.

I don't think it is entirely ethical because that was not what the fundraising drive said ... and, of course, I think what use it is being put to (sustaining the Pornopedia) is pretty shitty really, and outside of normally charitable purposes.

Is sustaining a social networking and gamer website REALLY charitable activity?

Folks, give your money to a local school programme in some developing nation where it will have real impact and change people's lives rather than provide webhosting for whack off material and pornstar's biographies.

[Jmh649]

This is a really smart strategy. If only our governments would do this. If people or organizations spend beyond there means before they know it much of their incomes goes to interest.

[thekohser]

This is a really smart strategy. If only our governments would do this. If people or organizations spend beyond there means before they know it much of their incomes goes to interest.

I'm not sure it's a "really smart strategy" to keep $11 million in a checking/savings account and certificates of deposit within a banking system that did so well in 2009, and is looking to repeat in 2010.

[Cock-up-over-conspiracy]

In their business, it would be smarter than spending it. But what would be smarter would be to have it managed and working better. Is that beyond them?

I think Jimmy and his partner's MO is all about manage "the event", and keep it running for as long as it brings the money elsewhere (... speaking fees, endorsements etc).

Then, for secondary level (the paid workers), it is about keeping being paid doing something "cool" which can be cashed in afterwards.

They appear to want to spend to promulgate "the event" ever further rather than resolve all its expensive and costly problems ... mainly because the cost of the problems are borne by the donators and contributors not themselves.

[EricBarbour]

As I said long ago, any smart nonprofit would first use a large cash surplus to buy itself a headquarters building. The fact that the WMF hasn't done that, even though the currently dead-miserable real-estate market would make it a breeze, says something about their weird "management style".

(Or are they hoarding the money for the off-chance they get sued? Or has someone already embezzled it, and that financial report is complete crap?)

This post has been edited by EricBarbour:

[anthony]

I'm not sure it's a "really smart strategy" to keep $11 million in a checking/savings account and certificates of deposit within a banking system that did so well in 2009, and is looking to repeat in 2010.

They should invest the money in Wikia.

[thekohser]

I think it's rather comical that the Wikimedia Foundation would rather bank the $11 million than spend about $200 or $300 reclaiming all of the "wikipedia<dot>country-code" domains that they've asked private lackeys to hold onto at their own expense.

Our loyal lady Japanese Wikipediot, Aphaia, commented on this:

Hi, I think there is no problem. Those domains has been taken in good faith, and we once asked WMF if they wanted to get them transferred. At that time, we got a informal reply like "no, thank you, we'd rather be grateful for you a trusted Wikipedian to hold them in your own expense". That is why an individual Wikipedia user holds those domains. And Was a bee pointed out, there is no Wikimedia chapter in Japan yet. If asked by WMF or a future chapter, those domains would be transferred without trouble, I believe. --[[User:Aphaia|Aphaia]] ([[User talk:Aphaia|talk]]) 10:33, 6 September 2010 (UTC)

(IMG:smilys0b23ax56/default/wacko.gif)

If a web-based company can't even get this basic matter in order, I have to ask, what exactly are the 49 nitwits running around at 149 New Montgomery Street actually doing?

[Jon Awbrey]

If a web-based company can't even get this basic matter in order, I have to ask, what exactly are the 49 nitwits running around at 149 New Montgomery Street actually doing?

ROTFALOLATWTTB

Jon (IMG:smilys0b23ax56/default/tongue.gif)

[thekohser]

ROTFALOLATWTTB

Jon (IMG:smilys0b23ax56/default/tongue.gif)

I'll give it a try...

Rolling on the floor and laughing out loud at the white trash trailer bash.

(IMG:smilys0b23ax56/default/hmmm.gif)

This post has been edited by thekohser:

[Jon Awbrey]

ROTFALOLATWTTB

Jon (IMG:smilys0b23ax56/default/tongue.gif)

I'll give it a try …

Rolling on the floor and laughing out loud at Tomorrow, When The War Began.

(IMG:smilys0b23ax56/default/hmmm.gif)

Close, but No Smoking in this Forum …

All The Way To The Bank —

Jon (IMG:smilys0b23ax56/default/tongue.gif)

[thekohser]

All The Way To The Bank —

Jon (IMG:smilys0b23ax56/default/tongue.gif)

I like my revised one (above) better!

(IMG:smilys0b23ax56/default/evilgrin.gif)

[Peter Damian]

I missed this thread when it came out. Truly astonishing. There are all sorts of useful guidelines about how charities can or should invest

http://www.mccreafs.co.uk/site/charitable.php

Why is the money sitting in a bank account? If the objectives are to spend every penny that is donated, then not unreasonable. Even then, are they distributing the cash across different banks? As Greg has noted, having all your cash in one account can be dangerous. I don't know about FDIC but the UK equivalent was limited to quite a small amount of compensation. A friend of mine invested his entire life savings ($100,000) in Lehmann and lost the lot (though this was a bond, not a deposit).

If the objectives are to hold assets for long-term objectives, then these should not be invested in cash deposit, which pay very low rates of interest. I don't know the situation in the US but here you can get a 1-year bond with various mutuals ('building societies') for 2.5-3%. I recently invested some money with our National Savings which pays inflation + 2% which with hindsight was a great deal. I also got 8% last year with a mutual that was looking to raise cash. There is also the stock market although there is a degree of risk attached.

Wales apparently has some investment experience, perhaps they should put him in charge of the assets? (IMG:smilys0b23ax56/default/unhappy.gif)

[edit] The financial reports here http://wikimediafoundation.org/wiki/Financial_reports do not specify whether the "Total Checking/Savings" are in deposit accounts or in some other vehicle.

This post has been edited by Peter Damian:

[thekohser]

The financial reports here http://wikimediafoundation.org/wiki/Financial_reports do not specify whether the "Total Checking/Savings" are in deposit accounts or in some other vehicle.

Because they didn't think the kids in their mom's basement would care to know. They certainly don't want guys like you or me to know, either!

[anthony]

The financial reports here http://wikimediafoundation.org/wiki/Financial_reports do not specify whether the "Total Checking/Savings" are in deposit accounts or in some other vehicle.

Because they didn't think the kids in their mom's basement would care to know. They certainly don't want guys like you or me to know, either!

How could "some other vehicle" be described as a "Checking/Savings"?

[Peter Damian]

The financial reports here http://wikimediafoundation.org/wiki/Financial_reports do not specify whether the "Total Checking/Savings" are in deposit accounts or in some other vehicle.

Because they didn't think the kids in their mom's basement would care to know. They certainly don't want guys like you or me to know, either!

How could "some other vehicle" be described as a "Checking/Savings"?

I'm not an expert on accounting terminology (I was just wondering where you were, Anthony). Also 'checking' is US terminology. It just says 'checking/savings', and I assumed this means 'checking or savings', that 'checking' means 'bank deposit' and that 'savings' means some other non-deposit form of investment.

Perhaps you can help, you are in the accounting business.

[Emperor]

The funny thing about all these nonprofits banking huge piles of money is that eventually, someone finds a way to steal it.

[Peter Damian]

I looked up the distinction. A 'checking account' is what we call an 'instant access account'. A 'savings account' is not instant access, and thus commands a higher rate of interest proportionate to the time the money is locked away. Is that correct? So it is possible that the money was not in cash, but in some interest-earning account.

But I am now puzzled how the investment income could have been negative, if the money was in checking or savings.

The funny thing about all these nonprofits banking huge piles of money is that eventually, someone finds a way to steal it.

Well that is one possibility.

This post has been edited by Peter Damian:

[NuclearWarfare]

I looked up the distinction. A 'checking account' is what we call an 'instant access account'. A 'savings account' is not instant access, and thus commands a higher rate of interest proportionate to the time the money is locked away. Is that correct? So it is possible that the money was not in cash, but in some interest-earning account.

I am not sure if an instant access account can be used for checks or debit cards, but a checking account can. A savings account, on the other hand, cannot be used for either. It generally earns a set interest rate, sometimes dependent on how much money is placed in the savings account but not based on the length of time it is left in the account. Free withdrawals or transfers from a savings account are often limited to a certain number per billing cycle. What I believe you are thinking of is a certificate of deposit, which locks your money away for a certain amount of time. The interest rate you earn is dependent on the amount of money you lock away and on the length of time you lock it away for.

A CD is generally considered a deposit account, so it is possible that the WMF placed money in it. Interest rates these days are pretty terrible, though marginally better than standard savings accounts, so while it is possible, I would think it to be unlikely.

But I am now puzzled how the investment income could have been negative, if the money was in checking or savings.

I haven't read the report, but could some money have been invested in the stock market?