Grants:APG/Funds Dissemination Committee/Overview of Board of Trustees funds allocation process

Purpose of this document

This document provides context and clarification for how the Board of Trustees allocates funds to the FDC.

Overview of Board of Trustees funds allocation process

As noted, the Board of Trustess has passed a resolution that defines the scope of the FDC fund dissemination responsibility. Under the Board's resolution, all funds given to the Wikimedia movement are given in support of the Wikimedia global projects, in response to the values created by the global Wikimedia movement. Therefore, funds raised through the Wikimedia project sites should be considered to be movement money (within proper legal constraints): those funds are not the "entitlement" of a particular organization or stakeholder. Decision-making about funds dissemination should be broad and inclusive, consistent with our mission, vision, and values.

The Wikimedia Foundation will set a global revenue target, as part of its annual planning process, for all funds raised through the Wikimedia project sites. The Foundation will create an annual plan that divides the funds into three types:

Funds for core operations of the Foundation. This first type of funds includes the technical demands of running, maintaining, and supporting the project sites, as well as maintaining the basic operations of the organization, such as legal, fundraising, accounting, human resources, governance, and communications.
Funds for operating reserves of the Foundation. This second type of funds is to safeguard core operations in the event of unanticipated expenses or a shortfall in future revenues.
Funds for other movement spending. This third type of funds ("the FDC allocation") is for dissemination to all movement entities, including individuals, chapters, other entities, and the Foundation itself, for activities that support our mission. The FDC will be responsible for making a recommendation to the Board of Trustees regarding dissemination of these funds.

The FDC allocation exists independent of fundraiser performance. While the Board has the ability to change the allocation mid-year, that would only happen in extraordinary circumstances. Unused funds within the FDC allocation may be returned to the reserves of the Wikimedia Foundation.