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Legacy Forums => Suggestions => Topic started by: ngomes on June 22, 2004, 03:18:08 PM

Title: Organization Models for funding the SME Server Project(s)
Post by: ngomes on June 22, 2004, 03:18:08 PM
Hi everyone,

One of the critical challenges that every non-for-profit linux project faces in the long run is the juridical form of its organization, because this decision is vital for raising funds to the project in a consistently and structured manner.

Many linux projects did this step successfully. Some did this step but its members get lost in the process. Some never did this step at all. And some decided to became a commercial venture. There are several possible and valid options. On the above poll I tried to list all the ones I know.

Please feel free to participate (after login) and criticize.

Yours,
Nuno Gomes
Title: I Must've Posted in the Wrong Place
Post by: wallyrp on June 22, 2004, 06:07:13 PM
Good Morning,

I've got a similar discussion going in this thread with a poll as well:

http://forums.contribs.org/index.php?topic=22804.0

Did I post in the wrong place?
Title: Organization Models for funding the SME Server Project(s)
Post by: satovey on June 27, 2004, 10:09:21 PM
I'm glad to see this survey.

I'm not to particular about which method of non profit you use. However, I think if you combined the two following methods you might end up with the best options available. In other words, don't box yourself in.

  An online community sponsored by several entities (individual and organization members, sponsors) and with funds derived from the services and/or products that are sold by its members (examples: Typo3 CMS, OpenACS CMS)
  An online community + commercial company that lead the development and support the ongoing costs (example: ClarkConnect, Redhat/Fedora, Trustix)
 
Here's my post from the general discussion forum. Just some extra suggestions you might want to consider, however, the ultimate setup of the organization must protect the future of the project. So if you go with a non voting member setup, that's fine by me. I wouldn't be eligible to run for any of those positions anyway. I just firure that the more people involved in supporting the project, the better the furure system will be.

Some of you guys have a point.

However, you are all also missing a point.

Every company, no matter what, where, when,
or how must have a single leader in charge.

When it comes to making the decision as to what direction that SME should go in, there can be no we. It has to be an I as in I am going in this direction, if you agree follow me. This of course will offend many, howeveer, it will give concrete decisive direction to the project. So as opposed to voting on a direction for the future of SME, why not vote for a project director who has a vision and a direction that he or she would like to see the system go in?

A community can provide suggestions, however, there can be only one person with the final decision and responsibilty to lead and direct the project. This person would also be responsible for providing a monthly report to the community as to the status of the project. The project director would be primarily responsible for testing the changes and thereby making a decision as to whether a development is stable for release or not.

This is how Linus Travoldi develops the kernel. It works for the kernel and it can work for the SME development project as well.

Once a project developer has been chosen, he can set up a non-profit organization to receive donations and membership dues. Where Only due paying members would be allowed to vote for the board of directors and the project director. Requirements for President and board members would be as follows. He or she would have to be first and foremost, a due paying member, other eleigibilty requirements could be set such as, achieving a certain amount of time invested in the project. The criteria for determining this would be based upon area's such as developement, contribs donated to the community, support given through the forums ect. In this way, only those people who actively give to the community and support the project in one way or another will be eligible to run for the position of board member or the president (project director) of the corporation. The dues paid by voting members would then be utilized to pay developement costs such as salaries for the President and board members, developers, and those additional staff members that would be needed to support the project.

While tis wouldn't allow for every little things someone wants added to the system, this would allow for a proper and continueing development of the SME distro, as well as maintain it's free distro standing.

Scott
Title: Hrmm, Where do we post financing suggestions for SME?
Post by: wallyrp on June 27, 2004, 10:41:59 PM
Good Afternoon,

I believe that all the ideas presented are good. I strongly believe that we need to get something in place soon with some type of revenue generation.

I would be the first in line to purchase a CD with all the forums on it. I would also be the first in line to purchase a CD with all the contribs on it as well. I believe either of these two types of CD's would generate money now.

Do we need to setup a corporation and sell shares? I agree that there needs to be someone at the head that is directing the project while being surrounded by others to provide suggestions and other ideas.

On another note, do we need to setup a forum just for financing ideas?
Title: Organization Models for funding the SME Server Project(s)
Post by: Anonymous on June 30, 2004, 02:59:05 AM
"Every company, no matter what, where, when,
or how must have a single leader in charge. "

Its Called a CEO

and he answers to the board that answers to the shareholders
Title: Organization Models for funding the SME Server Project(s)
Post by: Anonymous on June 30, 2004, 03:13:32 AM
"I strongly believe that we need to get something in place soon with some type of revenue generation."

Again wihtout a business plan, stated by the CEO (jeff,I think weve seen that "We need more funding !!!!OR ELSE!!")
the idea of revenue generation is mute.
The community drives the need for SME not Contribs.
Title: Interesting fnding ideas
Post by: guest on June 30, 2004, 02:20:54 PM
There is another interesting idea about funding our effort at http://forums.contribs.org/index.php?topic=22909.0

I find the idea of contribs.org offering inexpensive value-added features to the community appealing as a funding source.
Title: Organization Models for funding the SME Server Project(s)
Post by: ngomes on July 03, 2004, 06:10:25 PM
Thanks to everyone who posted and voted until now, 03.07.2004,

Right now, from 2000+ members of Contribs.org this thread had only 23 votes and 325 views. From the poll results we come to the conclusion that 64% agree with some sort of non-for-profit organization (foundation or cooperative).

In my country (Portugal) the main differences between a cooperative and a foundation are these:

- the main objective of a foundation is to develop social activities towards the community wealth. Also in Portugal is very difficult to start a foundation because it requires a lot of money (don't know how much...) and a "state recognition" of the public interest for the foundation (very burocratic...)

- the main objective of a cooperative is to develop activities towards its members wealth. There's no need of a "state recognition" of public interest. To start a cooperative we only need 2500 Euros and 5 members to invest this money and to be the first associates (after that adding members and the correspondent share/capital is very easy...)

Finally, if there is some interest from you (that voted and posted), and specially from the Contribs.org staff, I can start the process of creating a cooperative based in Portugal. The related information will be posted in this thread.

Yours,
Nuno Gomes
Title: Organization Models for funding the SME Server Project(s)
Post by: boringgit on July 06, 2004, 11:14:18 PM
Hi,

I think a not-for profit is a good way to go.

It encourages a formal heirachy / structure which I think is to the benefit of the distro / community at large.

It also makes commercial activities more palletable to those of us who, like myself feel indebted to the SME distro, and community as a whole, but for personal use (I left the company where I used SME servers) would struggle to make a worthwile financial contribution. (A contribution in terms of time is a different matter, I am more than willing in that respect).

Those commercial activities, be they advertising or even custom modules paid for by companies, would generate a certain revenue, which, after covering costs, could hopefully be "divvied" out to those who are able to help the community with specific tasks. There has to be accountability and transparency in order for the process to work, but that can be dealt with when it becomes an issue.

This also stands to increase the corporate acceptance of the distro. I couldn't convince my MD to use "community supported software" even if it is free (I am not implying that the software is deficient in any way). I could easilly convince him to use and pay a support fee for software which is maintained and supported by a not for profit organisation....

I am sure there are plenty of holes in my arguments, but maybee the ideas will be of some use?
Title: Fund Raising Ideas
Post by: sonoracomm on July 09, 2004, 04:37:05 AM
I also tend to think some form of non-profit organization best.  I think a tax-deductible status might also appeal to donors.

I had these ideas for fund raising:

1) How about creating a ClubSME...something like ClubMandrake...Web based and low-maintenance. Mandrake pulled themselves out of bankruptcy (partly) using this mechanism. I joined the Club at the $65/year level simply to contribute to a good cause and because I felt guilty for not paying ANYTHING. It might even be tax deductible!?

2) I'm sure there are lots of other resellers/VARs/vendors out there making money supporting SME. What if we had a campaign/program/web page/awards (or something) for the number of 'sponsors' or 'ClubSME Memberships' we signed up. Hell, I'd like a SME coffee mug or T-shirt! I'm sure I could sign up every new SME server customer to the 'Club' at the $65/year level with no problem...

3) Why don't we create a 'Support' page where support professionals can offer their (paid) services for people needing urgent support. This sounds like a 'Professional' ClubSME membership level to me...

G

Gene Cooper
Sonora Communnications, Inc.