Changeset - 9050ddc7d6a8
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Bradley Kuhn (bkuhn) - 12 years ago 2012-09-03 20:41:20
bkuhn@ebb.org
Update on 10% donation requirement for Conservancy membership.
1 file changed with 19 insertions and 10 deletions:
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www/conservancy/static/members/apply/index.html
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@@ -23,204 +23,213 @@
 

	
 
<h1>Project Membership Application FAQs</h1>
 

	
 
<p>The following are various questions that we typically get from project
 
  leaders that wish to apply to Conservancy.</p>
 

	
 

	
 
<h2>I sent in my inquiry letter and/or application a long time ago.  Why haven't you replied?</h2>
 

	
 
<p>Conservancy receives an overwhelming level of interest and we have very few
 
  <a href="http://sfconservancy.org/about/staff/">staff positions</a> to
 
  meet the interest and demand
 
  for <a href="http://sfconservancy.org/members/services/">Conservancy's
 
  services</a> to its member projects.  Meanwhile, Conservancy always
 
  prioritizes needs of
 
  its <a href="http://sfconservancy.org/members/current/">existing member
 
  projects</a> over new inquiries and applications.  Therefore, it
 
  sometimes can take quite a while to finish the application process and
 
  be offered membership, but please note that such delays mean that should
 
  your project ultimately become a member project, your project will then
 
  be a beneficiary of this policy.</p>
 

	
 
<h2>What are the key criteria our project must meet to join?</h2>
 

	
 
<p>In order to join, projects need to meet certain criteria.  A rough
 
  outline of those criteria are as follows:</p>
 
<p>
 
<ul><li>The project must be a software development or documentation
 
    project.  Non-software projects to advance the cause of software
 
    freedom, while important and useful, are beyond the scope of
 
    Conservancy.</li>
 

	
 
    <li>The project must be exclusively devoted to the development and
 
    documentation of FLOSS.  The project's goals must be consistent with
 
    the Conservancy's tax-exempt purposes, and other requirements imposed
 
    on Conservancy by the IRS' 501(c)(3) rules.  Namely, the goal of the
 
    project must to develop and document the software in a not-for-profit
 
    way to advance the public good, and must develop the software in
 
    public.</li>
 

	
 
    <li>The project must be licensed in a way fitting with software
 
      freedom principles.  Specifically, all software of the project
 
      should be licensed under a license that is listed both as
 
      a <a href="http://www.gnu.org/licenses/license-list.html">Free
 
      Software license by the Free Software Foundation</a> and as
 
      an <a href="http://www.opensource.org/licenses/alphabetical">Open
 
      Source license by the Open Source Initiative</a>.  All software
 
      documentation for the project should be licensed under a license on
 
      the preceding lists, or under Creative
 
      Commons' <a href="http://creativecommons.org/licenses/by-sa/3.0/">CC-By-SA</a>
 
      or <a href="http://creativecommons.org/licenses/by/3.0/">CC-By</a>
 
      or
 
        <a href="http://creativecommons.org/choose/zero/">CC-0</a>.</li>
 

	
 
   <li>The project should have an existing, vibrant, diverse community
 
      that develops and documents the software.  For example, projects
 
      that have been under development for less than a year or only a
 
      &ldquo;proof of concept&rdquo; implementation are generally not
 
      eligible.</li>
 
</ul>
 
</p>
 

	
 
<p>While any project meeting the criteria above can apply, meeting these
 
  criteria don't guarantee acceptance of your project.  The Conservancy
 
  favors projects that are well-established and have some track record of
 
  substantial contributions from a community of volunteer developers.
 
  Furthermore, the Conservancy does give higher priority to projects that
 
  have an established userbase and interest, but also tries to accept some
 
  smaller projects with strong potential.</p>
 

	
 
<h2>Is our project required to accept membership if offered?</h2>
 

	
 
<p>Not at all.  Many projects apply and subsequently decide not to join a
 
  non-profit, or decide to join a different non-profit entity.  Don't
 
  worry about &ldquo;wasting our time&rdquo; if your project's developers
 
  aren't completely sure yet if they want to join Conservancy.  If
 
  membership in Conservancy is currently a legitimate consideration for
 
  your project, we encourage you to apply.  We'd rather that you apply and
 
  turn down an offer for membership than fail to apply and have to wait
 
  until the next application round when you're sure.</p>
 

	
 
<h2>What benefits does our project get from joining?</h2>
 

	
 
<p>We maintain a <a href="/members/services">detailed list of services
 
    that Conservancy provides to member projects</a>.  If you have
 
    detailed questions about any of the benefits, please
 
    ask <a href="mailto:apply@sfconservancy.org">&lt;apply@sfconservancy.org&gt;</a>.</p>
 

	
 
<h2>Conservancy seems to be called a &ldquo;fiscal sponsor&rdquo; to its
 
  member projects.  Does that mean you give our project money if we join?</h2>
 

	
 
<p>It's true that we would love to fund our member projects if it were
 
  possible, because we believe they deserve to be funded.  However, that's
 
  not typically what a fiscal sponsor does.  The term &ldquo;fiscal
 
  sponsor&ldquo; is often used in non-profit settings and has a standard
 
  meaning there.  But, to those not familiar with non-profit operations,
 
  it comes across as a bit of a misnomer.</p>
 

	
 
<p>In this context, a fiscal sponsor is a non-profit organization that,
 
  rather than fund a project directly, provides the required
 
  infrastructure and facilitates the project's ability to raise its own
 
  funds.  Conservancy therefore assists your project in raising funds, and
 
  allows your project to hold those funds and spend them on activities
 
  that simultaneously advance the non-profit mission of the Conservancy
 
  and the FLOSS development and documentation goals of the project.</p>
 

	
 
<h2>What will the project leaders have to agree to if our project joins?</h2>
 

	
 
<p>Once you're offered membership, we'll send you a draft fiscal
 
  sponsorship agreement.  These aren't secret documents and many of our
 
  member projects have even chosen to put theirs online.  However, we wait
 
  to send a draft of this document until the application process is
 
  complete, as we often tailor and modify the agreements based on
 
  individual project needs.  This is painstaking work, and it's better to
 
  complete that work after both Conservancy and the project are quite sure
 
  that they both want the project to join Conservancy.</p>
 

	
 

	
 
<h2>If my project joins the Conservancy, how will it change?</h2>
 

	
 
<p>Substantively, member projects continue to operate in the same way as
 
they did before joining the Conservancy.  So long as the project remains
 
devoted to software freedom and operates consistently with the
 
Conservancy's tax-exempt status, the Conservancy does not intervene in the
 
project's development other than to provide administrative assistance.
 
For example, the Conservancy keeps and maintains books and records for the
 
project and assists with the logistics of receiving donations, but does
 
not involve itself with technical or artistic decision making.  Projects
 
are asked, however, to keep the Conservancy up to date on their
 
activities.</p>
 

	
 
<h2>Once our project joins, who holds its assets (money, copyrights, trademarks, etc.)?</h2>
 

	
 
<p>The Conservancy holds assets on behalf of its member projects and
 
manages and disburses those assets in accordance with the wishes of the
 
project's leadership.  Funds received by the Conservancy on behalf of a
 
project are kept track of separately for each specific project and the
 
management of those funds is directed by the project.  For example, if a
 
donor wanted to contribute $100 to Project Foo, they would formally make
 
the donation to the Conservancy and identify Project Foo as the desired
 
project to support.  The Conservancy would then deposit the check and
 
earmark the funds for use by Project Foo.  Project Foo would then tell the
 
Conservancy how that money should be spent.  As long as that expense is a
 
legitimate non-profit expense fitting with Conservancy's non-profit
 
  mission, Conservancy pays the expense on the Project's behalf.</p>
 

	
 
<p>Similarly, any copyrights, trademarks, domain name or other assets
 
transferred to a project can also be held by the Conservancy on behalf of
 
the project.  A significant service that the Conservancy provides its
 
members is a vehicle through which copyright ownership in the project can
 
be unified.  There are several advantages to having a consolidated
 
copyright structure, including that it makes enforcement activity easier
 
and more effective.  However, copyright, trademark, and domain name
 
assignment is not a requirement in order to join the Conservancy, rather,
 
it is an option for those projects that ask for it.</p>
 

	
 
<h2>If our project joins, must it be a member project of Conservancy forever?</h2>
 

	
 
<p>All agreements between member projects and the Conservancy stipulate
 
clearly that the member project can leave the Conservancy with a few
 
months' notice.  Federal tax exemption law, though, states that projects
 
must transfer their assets from the Conservancy in a way that is
 
consistent with the Conservancy's not-for-profit tax status &mdash;
 
meaning the assets cannot be transferred to an individual or a for-profit
 
entity.  Generally, a project would either find another fiscal sponsor or
 
form their own independent tax-exempt non-profit.</p>
 

	
 
<p>We fully expect that some Conservancy projects will ultimately wish to
 
  form their own non-profit 501(c)(3) organizations; that's why we design
 
  our agreements with projects to allow them to leave to another 501(c)(3)
 
  organization.  Typically, projects join Conservancy because the project
 
  leaders don't want the burdens of running a non-profit themselves.
 
  Often, as projects grow, leaders get interested in the non-profit
 
  management and organizational side of the activities and are then
 
  prepared to take on the additional work themselves.</p>
 

	
 
<h2>How are &ldquo;project leaders&rdquo; defined with respect to Conservancy?</h2>
 

	
 
<p>How leaders are chosen for projects varies greatly from project to
 
  project.  Our goal is to do our best to embody the &ldquo;natural&rdquo;
 
  leadership structure that evolved in your project into the formal
 
  agreement with Conservancy.  As part of the agreement drafting, we work
 
  carefully with you to understand your project's governance and write up
 
  formally with you the decision-making process you use. Most project
 
  contributors find this process of formalizing the leadership structure
 
  helps them clarify in their own minds the governance of their project,
 
  even though the process can be difficult.  Since it can be a complicated
 
  process, we suggest that you prepare your project community for this
 
  discussion once your project is accepted.</p>
 

	
 
<h2>How much does it cost us financially to join Conservancy?</h2>
 

	
 
<p>After your application is approved, as part of the negotiation of the
 
  formal agreement, we'll discuss this issue.  Typically, we ask that
 
  member projects voluntarily choose to donate some percentage of their
 
  donations received to support Conservancy's general operations servicing
 
  all its member projects (including yours).  We do understand that,
 
  particularly for small projects that only receive a few small donations,
 
  that donating a percentage of your income back to Conservancy can be a
 
  high burden.  Therefore, this is not a mandatory requirement.  We thus
 
  suggest that you be prepared to discuss this issue with us in detail
 
  after your application is approved.</p>
 
<p>New Conservancy members are required to pay 10% of their revenue that
 
  Conservancy processes to Conservancy's general fund, which primarily is
 
  used to pay staff.  (Details on how Conservancy spends its funds,
 
  including salaries of key employees, can be found
 
  in <a href="http://sfconservancy.org/about/filings/">Conservancy's
 
  annual filings</a>.)</p>
 

	
 
<p>Historically, Conservancy allowed projects to give less or nothing at
 
  all to the general fund, but we unfortunately discovered that without
 
  this requirement, Conservancy was not able to offer the myriad of
 
  services to all its projects, particularly to larger projects that
 
  have more income and therefore need more attention from staff.</p>
 

	
 
<p>We do understand that, particularly for small projects that only
 
  receive a few small donations, that donating a percentage of your income
 
  back to Conservancy can be a high burden.  Therefore, Conservancy
 
  remains open to discussion on a case-by-case basis for smaller projects
 
  about how to handle this requirement, and applicants should feel free to
 
  raise any concerns about this issue during the application process.</p>
 

	
 
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