by Gregory Kohs
October 18, 2010
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An expert on the RFP process is JaLynn Hudnall, founder of Ravenwood Forest Consulting.
...When asked what could possibly be the benefit of a $10 million tax-exempt charity operating without a formalized RFP policy, Hudnall wisecracked, "The only benefit I can imagine would be that your clothes will eventually be picked out for you, but you had better look good in orange. Any non-profit that doesn’t have formal procedures in place really should be audited. How do donors know that all this work isn’t being channeled to the President’s daughter, or that the work is even necessary?"
...When asked what could possibly be the benefit of a $10 million tax-exempt charity operating without a formalized RFP policy, Hudnall wisecracked, "The only benefit I can imagine would be that your clothes will eventually be picked out for you, but you had better look good in orange. Any non-profit that doesn’t have formal procedures in place really should be audited. How do donors know that all this work isn’t being channeled to the President’s daughter, or that the work is even necessary?"
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we finally have hard and fast proof from the executive leader of the Wikimedia Foundation that the following are in fact true:
Hudnall, who oversees many millions of dollars' worth of RFP-based bids, looks at a situation like this and says, "They have a fiduciary responsibility to the people that donated funds, to do what they said they would with the money. I would have serious doubts, and alarm bells would be going off all over the place, when people say things like 'I think everything is just fine', when you have reporters knocking at the door wanting to know what your policy is."
- A market research study was awarded by the WMF to Q2 Consulting
- Philippe Beaudette was the WMF employee who headed that project
- Immediately prior to working for the WMF, Beaudette was employed by Q2 Consulting
- The research study was not put out to a competitive bid before being awarded
- The WMF doesn't have a policy about when to collect bids using the RFP process
- The WMF does have a policy on purchasing and disbursements that requires supervisory approval for items greater than $250, and directorial and CFO approval for items greater than $5,000
- The Executive Director of the WMF has no idea how much the Q2 Consulting project cost
- The Executive Director thinks this state of affairs is "completely fine"
Hudnall, who oversees many millions of dollars' worth of RFP-based bids, looks at a situation like this and says, "They have a fiduciary responsibility to the people that donated funds, to do what they said they would with the money. I would have serious doubts, and alarm bells would be going off all over the place, when people say things like 'I think everything is just fine', when you have reporters knocking at the door wanting to know what your policy is."
I really hope that you will share this on Facebook, Twitter, and via e-mail with your friends. Please comment on the Examiner article, too. This piece really demonstrates just how cracked is the WMF governance structure.