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Here's my original post. Apologies for any formatting glitches -- I've been |
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trying to use Outlook and it seems to do weird stuff with formatting. |
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|
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-----Original Message----- |
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From: Daniel Robbins [mailto:drobbins@g.o] |
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Sent: Monday, April 12, 2004 6:40 PM |
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To: gentoo-nfp@l.g.o |
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Subject: [gentoo-nfp] Summary of NFP options |
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|
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Hi guys, |
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|
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Here is a very short summary of the NFP progress so far: |
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|
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1) I have committed to get something going by the end of this month (April.) |
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This would be either an establishment of an NFP, or some kind of action plan |
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to set up multiple entities like a NFP with one or more cooperatives to |
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provide funding. |
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|
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2) The main issue of concern for me is (obviously) not getting the NFP set |
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up as soon as humanly possible but making sure that whatever is really best |
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for the Gentoo community, as it is very hard to change things once things |
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have been established. |
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|
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This has been very difficult because I have been trying to meet many |
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conflicting and contradictory expectations of users and developers: |
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|
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A) Expectation: Gentoo will be competitive against Microsoft |
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Reality: Microsoft spends $6.8 Billion USD on R&D every year. Free |
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software |
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is lacking its own internal economic ecosystem, let alone a |
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significant R&D |
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budget. Realistically, Gentoo can do well for HPC (high-peformance |
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computing,) |
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clusters, maybe some grid computing, servers, and somewhat for |
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embedded. |
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It's not viable on the desktop, nor is any other Linux distro (this |
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is a |
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systemic problem of the Linux community, and not the fault of KDE or |
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GNOME. |
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If you don't see why this is so, just please trust me on this that |
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this will |
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be true for at least the next year.) |
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|
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B) Expectation: I want to be able to work on Gentoo full-time. |
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Reality: As time goes on, Linux and free software is getting |
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supported more |
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and more by large corporations and universities. The economic model |
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driving |
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free software development is not in favor of the establishment of |
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small |
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businesses and self-sufficient local developer communities. This |
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means as the current economic model plays out, it is more and more likely |
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that people working |
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full-time on free software will be employed by big companies and |
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higher education. |
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This is not a model that gives developers the kind of independence |
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that they may be |
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used to from working in their spare time from home. |
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|
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"Well why can't we just take money from companies that give it to |
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us?" |
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|
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Good question. These big companies will want some return on their |
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dollar, so they |
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will expect you to do what *they* want and not what you want. Also |
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see item E) which |
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explains why this fact prevents us from taking 501(c)(3) status |
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without risking |
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revocation of that status by the IRS. |
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|
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C) Expectation: Gentoo should be representative of user needs. |
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Reality: Having an open participatory model makes it easier for |
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external entities |
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(such as the dreaded Microsoft) to co-opt (ie take over) the entity. |
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|
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D) Expectation: Gentoo should be set up to protect against co-option. |
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Reality: This requires a closed and non-participatory model in order |
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to implement, |
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which is contrary to the nature of having an fair and accountable |
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open |
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participatory model. This kind of system will tend to run much more |
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like a |
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dictatorship, and elections will not be held as elections always |
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allow for |
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co-options to take place. |
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|
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And how does one get the benefits of C *and* D at the same time? It requires |
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*tons* of planning and complex regulations. In other words, in an attempt to |
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get both C and D at the same time, we will end up with a very complex |
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bureaucratic system that takes a very long time to design. |
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|
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E) Expectation: We should have 501(c)(3) status |
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Reality: I have learned that 501(c)(3) status is for charities. It |
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is very popular |
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to apply for this status in the US, as it allows donations to Gentoo |
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to be tax |
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deductible. However, it is not the appropriate classification for |
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Gentoo. If anyone |
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gives money to Gentoo and derives some material benefit from it (ie |
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we do work |
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that benefits their company or themselves in some way,) the IRS is |
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able |
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to revoke our tax-exempt status and the 501(c)(3) entity is then |
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immediately |
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responsible to pay all back taxes that would have been collected. |
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This would |
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generally cause the not-for-profit to have to cease operations. I |
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have learned |
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that we should be classified as a not-for-profit trade association |
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(501(c)(4)) |
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or NFP support organization. Otherwise the NFP will be a very |
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susceptible to |
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being shut down by the IRS. The rule here is that just because |
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others have applied |
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for 501(c)(3) status doesn't mean that they have made the right |
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decision and we |
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should follow their (erroneous) lead. It has taken me maybe 6 months |
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to be convinced |
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by my lawyer and others that 501(c)(3) status is *not* the right |
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classification |
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in the US code for our future organization, and this has also |
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significantly |
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impeded NFP progress. Again, it is the struggle of trying to find |
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some possible |
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way to meet all developer expectations. |
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|
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3) Several major universities are in negotiation about setting up some kind |
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of entity to fund Gentoo development, and I am participating in some of |
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these discussions. |
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|
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Based on this, my current plan was to set up a couple of not-for-profit |
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cooperatives, one for universities and another for gentoo users, that allows |
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them to pool their resources to help fund Gentoo development. |
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|
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Several developers like the idea of the coop but wanted Gentoo to have its |
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own NFP entity separate from the cooperatives. I am perfectly willing to do |
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this -- just set up the NFP entity alone, and then set up the cooperatives |
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or leave the NFP to figure out how to fund itself if you want. |
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|
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It certainly makes my job easier, and my desire was for the coop to be a |
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"good thing" for gentoo developers and I was trying to ensure its success by |
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setting up funding for the entity ahead of time. If you don't want it, I |
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won't do it. |
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|
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Just please understand that NFP status in itself doesn't address any larger |
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long-term sustainability or software quality or "how do I work on gentoo |
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full-time" concerns. Thus, NFP status in itself does not necessarily help |
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Gentoo become a long-term success on the desktop or allow Gentoo to be |
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competitive long-term with Microsoft. Setting up a NFP does not help you |
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resolve the problem of how you will be able to work on Gentoo full-time and |
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quit your miserable day job. This is because just setting up an NFP doesn't |
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create any ties of accountability between the software users and developers, |
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nor does it necessarily create a healthy or sustainable software |
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economy/ecosystem that allows our developers and projects to be funded. |
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|
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It doesn't ensure that the board of directors is accountable to your needs. |
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It doesn't ensure that the NFP will not be co-opted, and it does not ensure |
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that some company will not be able to make lots of money from your work on |
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Gentoo without compensating you (your work could always be rewritten under a |
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non-GPL license, or included as-is in some piece of commercial software that |
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someone makes millions from due to having lots of marketing resources that |
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you don't.) |
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|
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You will need to choose between an "open, participatory" (and co-optable) |
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and a "closed, non-co-optable" (and non-representative/unfair) governing |
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model. So let me know which you prefer and I'll get it set up. The other |
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alternative is to try to find some kind of compromise, where the government |
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for the not-for-profit isn't too fair or open, but is more bureaucratic and |
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harder to co-opt. Let me know which one appeals to you. |
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Sincerely, |
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|
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Daniel |
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-- |
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gentoo-nfp@g.o mailing list |
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-- |
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gentoo-nfp@g.o mailing list |