[OpenID board] [Fwd: OpenID Financial report]

[David Recordon]

It should also be noted that the financials have not significantly  
shifted since this report in November.

--David

On Dec 17, 2008, at 2:28 PM, Eddy Nigg (StartCom Ltd.) wrote:

> Here you go...that's the only one as far as I know...
>
> Regards
>
> Signer: 	Eddy Nigg, StartCom Ltd.
> Jabber: 	startcom at startcom.org
> Blog: 	Join the Revolution!
> 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)
>
>
>
>
> <CPA  Report September 30, 2008.pdf><Attached Message  
> Part.txt><Attached Message  
> Part.txt>_______________________________________________
> board mailing list
> board at openid.net
> http://openid.net/mailman/listinfo/board

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