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On Tue, Jul 17, 2018 at 07:01:18PM +0100, Roy Bamford wrote: |
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> On 2018.07.16 22:21, Aaron Bauman wrote: |
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> > On Thu, Jul 12, 2018 at 10:18:47PM +0200, Michał Górny wrote: |
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> > > I'd like to nominate Aaron Bauman (bman). |
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> > > |
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> > > -- |
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> > > Best regards, |
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> > > Michał Górny |
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> > |
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> > As many may be aware I had run for council in the recent election. My |
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> > intent was simply to further the items I had outlined on the -project |
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> > mailing list. While I was not elected, those items remain unchanged |
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> > and |
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> > my intent is to continue working those items from the Foundation. I |
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> > have |
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> > experience working with United States based non-profits both from a |
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> > legal |
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> > and fundraising perspective. I do not *enjoy* it, but I am willing to |
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> > do |
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> > it again if required for Gentoo. For clarity, I will outline those |
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> > items here. |
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> |
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> > |
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> > Tax issues: The tax issues should be apparent to all following the |
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> > -nfp |
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> > mailing list. Gentoo did not obtain their not-for-profit IRS tax |
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> > exemption following the one year self-declaration period. This of |
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> > course, has led to many years of contributions being accepted, but no |
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> > taxes being paid. Thus, we owe the United States Government back taxes |
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> > for those years. While this is bad, it is not a show stopper for the |
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> > Foundation. It can be rectified and a proposal has been written and |
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> > the |
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> > current trustees should have some informaiton regarding it soon. |
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> > |
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> > There have been several courses of action presented by various members |
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> > of the community to address this. The most recently discussed option |
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> > is |
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> > to join an umbrella organization such as SPI. This is a viable option |
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> > should we be accepted for representation. As of now, the financial |
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> > conundrum is a show-stopper for acceptance. |
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> > |
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> > Another option which I have explored is beginning a new incorporation |
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> > in |
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> > a different U.S. State (Indiana). This would allow us to gain a |
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> > not-for-profit status and proper IRS tax exemption. Upon forming the |
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> > incorporation we would redirect all of Gentoo's contributions to this |
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> > new organization. From there we would begin moving assets from the |
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> > New |
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> > Mexico based foundation to the new. This would be in the form of gifts |
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> > which allows a zero-sum transaction to occur given that the |
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> > organizations both address the same not-for-profit mission. This would |
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> > require a significant amount of money (approximately $30-40k dollars) |
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> > be |
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> > left in the NM foundation to deal with the IRS debt. |
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> |
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> That sounds risky for the trustees that vote to approve that. My |
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> understanding of NM law is that they would be personally liable for |
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> any shortfall as it could be seen as moving funds to avoid liability. |
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> |
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> Also, we would need to operate two NFPs when at this election |
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> we only secured enough candidates to staff one ... if they are all |
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> ranked above _reopen_nominations in the poll. |
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> |
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> Its actually worse than that, as ideally, trustees and officers should |
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> be separate individuals, except for the chairman of the board, who |
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> needs to be a board member. |
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> |
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|
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We are not attempting to avoid liability. The move is to ensure that |
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future contributions are properly protected while the old "non-profit" |
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is dissolved. Properly protected is meaning that they are indeed |
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non-taxable contributions to Gentoo vice continuing to bleed out. |
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|
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The sad state is, and don't take this personally, that operating even one |
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should have been a simple task. Here we are though. |
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|
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The laws you speak of are the criterion such as "de facto merge", "mere |
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continuation", etc. As stated though, this is not the case as we are |
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still properly dissolving the NM based non-profit. |
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|
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> > |
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> > There are multiple benefits to this approach. The first is that Gentoo |
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> > will begin accepting tax-deductible contributions (for Gentoo and |
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> > their |
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> > contributors) immediately. This is beneficial to not only Gentoo, but |
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> > our contributors as they may now claim the contribution on their |
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> > annual |
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> > taxes. Additionally, it will allow Gentoo to seek formal fundraising |
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> > and |
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> > give our contributors comfort that we are being good stewards. |
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> > |
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> > Second, a new incorporation will allow us to address concerns of how |
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> > the |
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> > council and foundation interact through proper by-laws. Many of the |
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> > current by-laws are boilerplates texts simply modified. I am currently |
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> > working these by-laws to address the following: |
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> > |
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> > The council is and will remain the leadership within Gentoo. The |
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> > by-laws |
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> > will constrain the trustees to legally execute the direction in which |
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> > the council votes. The few exceptions are any legally compromising |
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> > matters or financial. This also ensures that council members will |
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> > *not* |
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> > be forced to legally seek permission from their employers. It will, |
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> > however, not remove the requirement that trustees are legally |
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> > obligated |
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> > to the foundation. |
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> > |
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> > e.g. The council votes that all developers will be supplied with a |
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> > Nitrokey to address 2FA concerns. The trustees will execute this |
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> > matter |
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> > legally and financially. There will be no choice as the "technical |
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> > board" has voted and it is final. |
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> |
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> The technical board currently has no duty to ensure fhaf their |
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> decisions offer value for money. Which body would perform |
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> 'due dillegence'? |
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> To follow on your example, there are several competing 2FA |
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> solutions with differing feature sets. While Nitrokey may be |
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> selected for <reasons> the comparative value assesment still |
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> needs to be performed or the trustees would be neglecting their |
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> duty by rubber stamping council decisions. |
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> |
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> The council can do this today. I'm sure other groups/individuals |
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> already do this work before they submit funding requests. |
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> |
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|
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Yes, the intent of the example was not to "rubber stamp" anything and as |
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mentioned those legal obligations still remain for the trustees. I used |
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Nitrokey in the example unwittingly. The trustees would still be |
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required due diligence etc. The example would work though as Nitrokey |
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meets the foundation's mission statement (FOSS etc). Point taken |
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though. Other's would not even if cheaper due to proprietary |
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technology. |
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|
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> > |
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> > e.g. The council votes to adopt the FHS as a standard of which all |
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> > Gentoo developers must adhere within the Gentoo distribution. The |
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> > trustees will enact this by amending the by-laws. |
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> > |
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> > e.g. The council votes to require all developers to sign commits using |
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> > their @gentoo.org email address and key. Once again, the trustees |
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> > will |
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> > enforce this by amending the by-laws. Any failure to adhere will be |
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> > addressed through the proper channels and developers warned/banned for |
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> > failing to do so. |
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> > |
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> > Third, a new incorporation will address the short-falls we have seen |
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> > in |
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> > the current situation. The by-laws will require the proper CPA, Tax |
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> > lawyers, etc to be contracted quarterly, annually, or as-needed to |
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> > prepare and finalize required documents. Once again, the trustees |
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> > will |
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> > be legally obligated to address these matters and can and will be held |
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> > accountable should they fail to do so. |
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> |
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> Why does this need a new legal entity, we have to fix the existing one |
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> anyway. |
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> |
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> Such bylaws would make me nervous ... what happens if the new |
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> legal entity has insuffcient funds to pay these people. I suppose it |
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> just goes bankrupt, like any other legal entity. |
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> |
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|
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That is a valid point and I cannot disagree that it should be a concern. |
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I don't think risks outweight the benefits though. Non-profits always |
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risk this chance when starting up. The fact is that a few hours a |
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quarter to reconcile monies is not expensive to pay a CPA. Furthermore, the income |
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in Gentoo is so little that the form 990 etc can be completed by an |
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individual willing to do it. It really isn't that complex. |
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|
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We also take a risk with an umbrella for this as well. As many have |
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stated, one concern SPI has is that they cannot take us on due to their |
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current workload (verified over the phone with them). They also |
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contract their CPA's, etc. |
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|
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> > |
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> > While umbrella organizations can address these matters it is not |
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> > likely |
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> > that we will be accepted anytime soon even if we address the financial |
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> > matters. This does not mean I am opposed to such a solution, but only |
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> > lends to why I have suggested a new incorporation. |
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> > |
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> > As I have stated, I am currently working a set of proposed by-laws and |
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> > will send them to the community once complete. From there we can begin |
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> > discussion and fine-tuning of the proposal. It will take approximately |
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> > 1-2 months at most for a new incorporation to be stood up once the |
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> > by-laws are codified. My intent is to open it for discussion to all, |
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> > but should it become a bikeshed it will simply be left to the trustees |
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> > and council to finalize. |
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> > |
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> > The trustees and current council will be adopted by the new |
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> > incorporation. These are the individuals the community has voted for. |
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> > As |
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> > such, I find it important that we adhere to their choice. |
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> > |
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> > Standing by for questions... |
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> > |
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> > -- |
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> > Cheers, |
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> > Aaron |
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> > |
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> |
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> I welcome any and all proposals to move things forward. |
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> If I'm asking questions that will be addressed by your more |
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> detailed proposal, a response to that effect is fine. |
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> Don't be doing more work to answer questions that will be addressed |
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> with the passage of time anyway. |
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> |
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|
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All valid questions. Thank you for asking them. |
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|
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> -- |
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> Regards, |
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> |
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> Roy Bamford |
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> (Neddyseagoon) a member of |
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> elections |
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> gentoo-ops |
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> forum-mods |
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|
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-- |
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Cheers, |
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Aaron |