[OpenID board] OpenID Financial report

Dick Hardt dick.hardt at gmail.com
Tue Nov 4 19:38:28 UTC 2008


Fellow board members

Attached are the financial statements for the Foundation. These  
statements are less then ideal, but I think sharing what we have is  
better then not sharing anything.

Items to note on these financials:
---------------------------------------------
- We received the $50,000 payment from Microsoft for their corporate  
board seat[1] which

- We also received $10,650 in membership fees. This is an increase  
from previous months and is a key metric to track as it balances the  
revenue from the corporate board members.

- Expenses are as expected. Note that none of the marketing  
projects[2] were expensed in September, so this number is not  
indicative of our normal expenses.

- We had $140K in cash at the end of the month, so there is no fear of  
the Foundation running out of funds near term.

General Observations:
-------------------------------

- the anticipated fully loaded cost of the new Executive Director  
(included travel etc.) is estimated to be $200K - $350K

- based on the CRC report, the community and corporate sponsors expect  
the Foundation to roll out programs, which will cost money. Given the  
lack of any substantial budget input, I would estimate that costs to  
be similar to the ED: $200K - $350K.

- this leads to a budget of between $400K - $700k.

- I would estimate our current annual revenue to be $100K from  
community and $250K from 5 corporate seats. This is only $350K, a $50K  
to $350K shortfall.

- Although we have 2 other corps willing to pay $50K each, the board  
has not approved these other board members from joining.

- There is significant risk that the current revenue may not be  
repeated if the community and board members do not think they are  
getting value for their funds.

Summary
-------------

We either need to drastically reduce our budget and lower our ED  
expectations, or actively increase our revenue in a timely manner. Not  
addressing the revenue will significantly hinder our ability to retain  
an ED of the calibre we have been recruiting.

-- Dick




[1] for those wondering why we just did receive the $50,000, Microsoft  
had made a substantial contribution to OpenID by way of the legal fees  
for the IPR agreement. They essentially had spent their OpenID Budget  
and had to go back to get the funds for the board seat. Given

[2] The core messaging platform project (~$10K left) and the CRC  
project ($10K)



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