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On Mon, Jul 01, 2019 at 09:34:06PM +0200, Andreas K. Huettel wrote: |
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> > > Yes, I understand that. However, I still believe that a contract |
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> > > initiated between CPA and a single small-ish entity such a Gentoo |
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> > > involves more costs than fees taken by umbrella dedicated to multiple |
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> > > entities. Please correct me if I'm wrong. |
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> > |
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> > Nobody knows yet. Different umbrellas work differently. |
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|
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The CPA we have engaged so far, Corporate Capital, has a standard |
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preparation fee of USD1500 per fiscal year. We do have some estimates of |
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Umbrella fees, plus the Financial Statements I prepared... |
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|
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> |
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> Sigh. I agree with the second statement. The first one, well... |
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> |
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> Here's the example of SPI (disclaimer, we do not know if they would take us): |
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> * no direct costs associated |
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> * 5% deduction from donations for SPI's overhead |
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> |
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> Big Hint, it helps to first research something and then talk / discuss. That's |
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> however, rather rare on this list. |
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|
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The Trustees HAVE previously done _some_ of this legwork on the major |
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umbrellas, I don't have a link to hand, but I do remember details, |
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because it was in scope of my work as Treasurer; and we can combine |
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these with the financial statements to compare against the CPA quotes to |
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date. Further would should take the longer list of Umbrellas and |
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comprehensively document their costs. |
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|
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As further concrete example: |
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https://sfconservancy.org/projects/apply/ |
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>> How much does it cost us financially to join Conservancy? |
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>> New Conservancy members are required to pay 10% of their revenue |
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|
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The umbrella fees I've seen range: |
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- smallest: 5% of net revenue (income less expenses) |
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- largest: 20% of gross income |
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|
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The exact definition of which expenses might be included/excluded by a |
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given umbrella might also vary, I didn't find a clear public |
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documentation on it. |
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|
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Basing that on the FY2018 fiscal, with the additional caveat that I |
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don't have any value assigned to in-kind server/hosting services |
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received by Infra; That would increase gross & net values. |
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|
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Gross Income: USD 28,600.15 |
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Gross Expenses: USD 9,292.95 |
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- Depreciation: USD 3,659.64 (it devalued assets but wasn't something we actually spent) |
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- "Real" Expense: USD 5,633.31 |
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= Net revenue: USD 22,966.84 |
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|
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5% of net: USD 1,148.34 |
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20% of gross: USD 5,720.03 |
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|
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At an outward glance, this does imply that some umbrellas would be |
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cheaper than a CPA, while others would be more expensive; but the |
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equation is more complicated, because we need to be careful about the |
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accounting of services that the umbrella would provide. |
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|
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The equation therefore should be more of: |
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Cost(Umbrella) vs [Umbrella baseline without umbrella-provided expenses] |
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|
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Regardless of the scale of the numbers, the change would REDUCE the |
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expenses, and increase the net revenue number (and thus also the |
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Umbrella's actual fee). |
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|
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-- |
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Robin Hugh Johnson |
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Gentoo Linux: Dev, Infra Lead, Foundation Treasurer |
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E-Mail : robbat2@g.o |
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GnuPG FP : 11ACBA4F 4778E3F6 E4EDF38E B27B944E 34884E85 |
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GnuPG FP : 7D0B3CEB E9B85B1F 825BCECF EE05E6F6 A48F6136 |
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