[OpenID board] [Fwd: OpenID Financial report]

[Eddy Nigg (StartCom Ltd.)]

Here you go...that's the only one as far as I know...

Regards
Signer: 	Eddy Nigg, StartCom Ltd. <http://www.startcom.org>
Jabber: 	startcom at startcom.org <xmpp:startcom at startcom.org>
Blog: 	Join the Revolution! <http://blog.startcom.org>
Phone: 	+1.213.341.0390



-------- Original Message --------
Subject: 	[OpenID board] OpenID Financial report
Date: 	Tue, 4 Nov 2008 12:38:28 -0700
From: 	Dick Hardt <dick.hardt at gmail.com>
Reply-To: 	board at openid.net
To: 	board at openid.net



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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