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On Wed, Jul 18, 2018 at 08:34:12PM +0100, Roy Bamford wrote: |
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> On 2018.07.17 19:18, Aaron Bauman wrote: |
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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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> |
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> [snip stuff I'm not responding to] |
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> |
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> > > > |
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> > > > Another option which I have explored is beginning a new |
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> > 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 |
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> > the |
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> > > > incorporation we would redirect all of Gentoo's contributions to |
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> > this |
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> > > > new organization. From there we would begin moving assets from |
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> > the |
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> > > > New |
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> > > > Mexico based foundation to the new. This would be in the form of |
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> > 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 |
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> > would |
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> > > > require a significant amount of money (approximately $30-40k |
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> > 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 |
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> > 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 |
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> > 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 |
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> > 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", |
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> > "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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> I was trying to respond to the timing of the gifting to the new NFP. |
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> If its done before the tax liability is known, its risky. |
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> |
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> Spinning up a new NFP and directing future donations there seems |
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> OK. Moving the residue of assetts there after the tax liability is |
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> known is OK too. Thats the formal winding up |
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> |
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> I'm unclear as to how liabilities would be funded while both NFPs |
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> operate. The IRS will take o dim view of running down the assets |
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> of the old NFP while the new one grows if we end up with |
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> insufficient funds to cover our tax liability. |
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> |
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> I can see how the IRS might interpret moving money around in that |
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> that fashion as attempting to avoid liability. |
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> |
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|
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Correct. The timing will be critical and must be deliberately planned. |
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|
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e.g. Server X has been accounted for and depreciation values properly |
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calculated. We may make a transaction transferring this asset to the |
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new foundation. Proper paperwork and liability clauses included. |
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|
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e.g. Domain X can be transferred now as there is no depreciation or |
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realized loss. Proper paperwork and liability clauses included. |
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|
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> |
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> [snip] |
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> |
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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 |
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> > 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 |
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> > 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 |
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> > "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 |
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> > as |
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> > mentioned those legal obligations still remain for the trustees. I |
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> > 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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> Maybe I'm reading too much into this. In the past, the foundation |
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> has usually asked applicants for funding to do the due diligence. |
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> The foundation then checked it. |
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> There is no reason that cannot continue and be applied to the |
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> council too. |
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> |
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> Price is only one part of the value judgment, which is why I used |
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> the term value. |
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> |
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> As long as the trustees can continue to reject incomplete applications |
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> for funding, even from the council, there is no problem. |
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> |
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> [snip] |
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> |
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|
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Of course, they would retain that ability. The only thing we are trying |
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to establish is a better relationship between the technical bodies |
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direction and the Foundation supporting them. |
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|
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e.g. |
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|
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Council: "We want some Yubikeys for our infra people" |
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Foundation: "Sorry, the Yubikey is proprietary and goes against our |
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social contract. Please choose another vendor who meets X requirements" |
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|
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e.g. |
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|
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Council: "We would like an HSM for our infra team to support crypto for |
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our end user. It costs $10k" |
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Foundation: "Sorry, this would not be a reasonable use of our money as |
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there are better options available such as end-user hardware tokens" |
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|
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*note* none of this is meant to be technically sound or imply that the |
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council would ask such things. |
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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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> -- |
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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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> arm64 |
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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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Cheers, |
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Aaron |