Perhaps a conversation about the most optimal location for WMF (which I
imagine is more relevant in a strategy framework) is more constructive in
its own thread. I imagine that this has been part of plenty strategic
conversations over the past years, and will be in the future - meaning that
there are likely some people who have more insightful things to say about
this, than the people who open a thread about form 990 :)

Best,
Lodewijk

On Tue, Mar 8, 2022 at 3:40 AM Andreas Kolbe <[email protected]> wrote:

> Hi Bodhisattwa,
>
> I quite agree. A somewhat similar set-up exists in Germany where donations
> are collected by the Wikimedia Fördergesellschaft ("Wikimedia Patron
> Society"), a subsidiary of Wikimedia Germany. The Fördergesellschaft then
> sends a part of its funds to the Wikimedia Foundation in the United States
> and uses the rest to fund Wikimedia Germany:
>
> https://spenden.wikimedia.de/use-of-funds
>
> However, this is the only such arrangement I am aware of. (Wikimedia UK
> used to have a similar one, but this ended when various conflicts of
> interest arose in the chapter, prompting a governance review.[1])
>
> In my opinion, the kind of decentralised arrangement you suggest is much
> more compatible with a worldwide movement. Such decentralisation and
> distributed decision-making also aids diversity, in a far more
> down-to-earth sense than talking about it does. (For example, Wikimedia
> Germany writes and designs its own fundraising banners, and over the years
> they've often been more culturally appropriate – and honest – than the WMF
> ones.)
>
> But, coming back to the question of where staff should be located, to the
> extent that the Wikimedia Foundation in the United States does take on
> global responsibilities (e.g. for keeping the software up to date ... I
> really like the new Reply feature on talk pages, for example), I think it
> would be desirable to have more of its staff outside the United States,
> including places like India.
>
> San Francisco is one of the most expensive places to live in the world,
> and if Covid and Zoom have taught us anything it's that it is really not
> necessary to be physically in the same place all the time to work together.
> Hiring more staff abroad rather than in Silicon Valley is another thing
> that would make the WMF culturally more diverse.
>
> Regards,
> Andreas
>
> [1]
> https://www.civilsociety.co.uk/news/investigation-into-governance-at-wikimedia-uk-launched.html
>
> https://www.civilsociety.co.uk/news/wikimedia-uk-trustees-have-been--too-involved--to-effectively-govern-charity.html
>
> https://www.thirdsector.co.uk/review-urges-major-overhaul-governance-wikimedia-uk/governance/article/1170282
>
> On Tue, Mar 8, 2022 at 1:37 AM Bodhisattwa <[email protected]>
> wrote:
>
>> Hi Andreas,
>>
>> Regarding the money raised in India, there is actually another option
>> which can be more useful for the Indian volunteers. The money does not need
>> to be transferred out of India to US and then come back through different
>> grants as foreign money under strict regulations from the government. The
>> money can just be kept in India in an organization account which will agree
>> to be the custodian of it. A process can then be initiated to sustain the
>> Indian affiliates and communities for future with that money as per
>> movement strategy recommendation. I think that would be far better an
>> option for us than to increase the number of growing WMF staffs in India or
>> pay them salary with that money.
>>
>> Regards,
>> Bodhisattwa
>>
>>
>>
>>
>> On Tue, Mar 8, 2022, 03:45 Andreas Kolbe <[email protected]> wrote:
>>
>>> Strainu,
>>>
>>> The outlier problem is manageable I believe, given that the Form 990
>>> lists the compensation of the dozen highest-paid employees (going up to
>>> just over $400,000 in 2019).
>>>
>>> There were actually more people (four) north of $300,000 in 2018 than
>>> there were in 2019 (two) – a reflection of long-term C-level vacancies, I
>>> believe. So the average does tell us something.
>>>
>>> As for people working at the Foundation easily being able to earn much
>>> more in for-profit companies, the same applies to us, mate. :) Instead of
>>> working for free on Wikipedia, you and me could easily be doing work
>>> elsewhere that pays *much* better. :)) Also, I don't ask people in
>>> second- and third-world countries to give me more money each year –
>>> pretending to be hard up, while earning a burgeoning six-figure salary and
>>> living a first-world lifestyle.
>>>
>>> Levity aside, and returning to the topic of the upcoming fundraisers, I
>>> am aware that there are many reasonably or even extremely wealthy people in
>>> India who can well afford to donate to Wikipedia. And donating can be a
>>> good feeling, for anyone who is able to afford it. On the other hand it
>>> seems to me from watching social media that the people who are most
>>> affected or even distressed by Wikipedia's meretricious claims of poverty
>>> are often those who are *genuinely* not well off themselves. The
>>> messages resonate with them, and they falsely assume Wikipedia is in a
>>> similar position. :/ I wouldn't want people with $100 in the bank to give
>>> $2 so that people in SF can pocket a six-figure salary.
>>>
>>> Another point about fundraising from relatively poor people and
>>> countries: overall, according to the most recent Wikimedia fundraising
>>> report, the lion's share of donations in 2020/21 (around 94%) came from US,
>>> European and Australian donors. So the main financial burden is borne by
>>> the richest societies, which is as it should be. But it may be an idea to
>>> make a public commitment that money collected in places like India will
>>> never go to pay for expenses or salaries in the US, but will always be
>>> spent locally (again without ever implying that continuation of local
>>> services is *dependent* on new donations).
>>>
>>> It might also be good to increase the proportion of staff based in those
>>> countries – which, to be fair, I believe the Foundation is already in the
>>> process of doing.
>>>
>>> Best,
>>> Andreas
>>>
>>>
>>>
>>>
>>> On Sat, Mar 5, 2022 at 10:31 AM Strainu <[email protected]> wrote:
>>>
>>>> Andreas, I understand this email won't address your more serious
>>>> questions, but I believe it's fair to point out that the average salary
>>>> will tell you nothing relevant. Without drilling down on job family, your
>>>> results will be skewed by outliers.
>>>>
>>>> I can name out of the top of my head 10 people working at the
>>>> foundation in 2019 which I believe could get half a million dollar offers
>>>> from software companies in the bay area (that's $500.000 per year before
>>>> tax). While it's likely the Foundation doesn't pay this much, they're
>>>> probably not paying at 50% discount either.
>>>>
>>>> It's also worth asking if the salary costs include other type of
>>>> compensation,such as visa support or relocation costs.
>>>>
>>>> Also, maybe a lawyer can answer some of the questions the WMF won't
>>>> answer, as they are familiar with form 990 and the "tricks" of filling it.
>>>>
>>>> Strainu
>>>>
>>>>
>>>> Pe joi, 3 martie 2022, Andreas Kolbe <[email protected]> a scris:
>>>> > Dear all,
>>>> >
>>>> > To bring some sort of closure to this thread about Wikimedia salary
>>>> costs, Wikimedia CEO Maryana Iskander did eventually post a response on
>>>> Meta.[1] My question and her reply are copied in full below.
>>>> >
>>>> > What please was the 2019 salary cost per WMF employee, per the most
>>>> recent Wikimedia Foundation Form 990?
>>>> >
>>>> > According to the linked Form 990, the WMF had salary costs of
>>>> $55,634,913 (page 1, line 15, "Salaries, other compensation, employee
>>>> benefits") in 2019, and a total of 291 employees (page 1, line 5). On the
>>>> face of it, this makes for an average salary cost of over $191K per
>>>> employee.
>>>> >
>>>> > Is this the correct figure, or if not, what is the correct
>>>> calculation for the average salary cost per employee in 2019? Are there
>>>> estimates for more recent years? Thanks, --Andreas JN466 01:04, 17 February
>>>> 2022 (UTC)[reply]
>>>> >
>>>> > Hi Andreas - I am six weeks into the job and have seen your questions
>>>> about salaries at the Wikimedia Foundation in various public forums. I
>>>> would like to try and give you a response. What interests me most is
>>>> understanding the motivations for your questions so that I can attempt to
>>>> share appropriate information. You are welcome to contact me directly at
>>>> miskander<
>>>> https://ci5.googleusercontent.com/proxy/jiZCnbhuUZi7Hpf8KqsEHXt0SN6owx0bjebYerkxpmxJAXQeLwDEUXJlkBSND1k_KKAT_HGgJax2rAHcxuDhk9LayaxRvh0yA7OWGh0_Mq0X6vLvKVNkvEHfGZfYjYYcQ1q3ItszeGDk_4Vb5Q=s0-d-e1-ft#https://upload.wikimedia.org/wikipedia/commons/thumb/8/88/At_sign.svg/16px-At_sign.svg.png
>>>> >wikimedia.org for a conversation as I won’t respond further here.What
>>>> I can share is the following:Calculating an average salary based on the
>>>> Form 990 is highly misleading. It produces totals that match our
>>>> highest-paid employees, as you see on the 990 form. This is true of many
>>>> organisations, not only the Wikimedia Foundation. As we will not release
>>>> non-public salary information in public forums, we accept that this number
>>>> is much higher than the true average salary. We currently have over 500
>>>> staff all over the world that are in a wide variety of job types and
>>>> levels, each of which are paid differently and by location. An average is
>>>> difficult to calculate and while it may provide a data point, it lacks
>>>> meaning for evaluating our performance as an organisation. An average
>>>> salary cost, even based on non-public data, is not useful for most of the
>>>> issues that concern me most. We hire in over 50 countries, which is a
>>>> reflection of our values as a global movement, but introduces complexity in
>>>> ensuring we can offer competitive packages that will attract mission-driven
>>>> talent, and especially engineers who we need to support the technology
>>>> obligations of the Foundation. People are the biggest investment we make in
>>>> supporting the Wikimedia projects and community, so this is a topic of
>>>> critical importance to me. Finally, I have also checked that we are in line
>>>> with other open knowledge organisations (e.g., Mozilla, Creative Commons,
>>>> EFF) in the financial, salary, budget, and staff information that we
>>>> publish. MIskander-WMF (talk) 14:54, 17 February 2022 (UTC)[reply]
>>>> > I'll just leave some general comments on Maryana's response here.
>>>> > 1. An organisation committed to transparency shouldn't give a
>>>> friendly or beholden inquirer any different information than a hostile one
>>>> in response to questions of fact. In both cases, the information should
>>>> simply be accurate. I have no desire to ingratiate myself.
>>>> > 2. As for my motivation, it's surely one that any Wikipedian can
>>>> relate to: I would like the public to have access to accurate information.
>>>> I sometimes write about these topics[2][3] and assist journalists with
>>>> related research.
>>>> > 3. I don't accept that calculating an average for 291 employees
>>>> produces a figure that matches "our highest-paid employees". On the
>>>> contrary, it produces a figure for ALL "employees" in the strict sense of
>>>> the word (excluding freelancers). Even factoring in freelancers, the 291
>>>> employees listed on the Form 990 were by far the majority of the total
>>>> number of people working for the WMF in 2019, and not some sort of elite.
>>>> > 4. I did not ask for the release of non-public information. I simply
>>>> wanted to know how many people's pay, approximately, the front-page figure
>>>> of $55.6 million represents. I thought it was 291, based on the "Total
>>>> number of individuals employed in calendar year 2019" given in the Form
>>>> 990. Anne/Risker asserted the $55.6 million figure also included the pay of
>>>> the 82 contractors listed in Part V, line 1a. Which is it? Are some or all
>>>> of those contractors included in the salary costs total? The WMF won't say.
>>>> > 5. Salary costs are the WMF's biggest expenditure item. They reached
>>>> $69M in 2020/21 – a tenfold increase in the course of a decade. Throughout
>>>> that period of staff and salary growth, the Wikimedia Foundation regularly
>>>> and purposely created an impression in the public's mind that it was
>>>> struggling to have enough money to keep Wikipedia up and running –
>>>> donations were solicited by telling the public that money was urgently
>>>> needed to keep Wikipedia "ad-free", "keep Wikipedia online", "protect
>>>> Wikipedia's independence", etc. Money used to fund organisational growth
>>>> should not be collected under the pretence of financial emergencies
>>>> jeopardising the continuation of basic services; members of the public
>>>> should know what they are funding.
>>>> > 6. Another Indian fundraiser is due to start in a few weeks' time.
>>>> Former WMF CEO Katherine Maher acknowledged to me[4] that there were
>>>> problems with the messaging in the last Indian fundraiser, resulting in
>>>> press stories that were "misleading and alarmist". I hope that the WMF will
>>>> do its best this year to ensure that the Indian press is accurately
>>>> informed about Wikimedia's financial past and present situation, including
>>>> the Wikimedia Endowment, and that fundraising messages, emails and
>>>> statements given to the press will not continue to imply that Wikipedia's
>>>> "independence", online "accessibility" or "survival" will be endangered
>>>> unless the Indian public donates money.
>>>> > 7. While I'm on this topic, the Wikimedia Endowment, now well on its
>>>> way to the $200M mark, is completely non-transparent. It has no public
>>>> records and no audited accounts; people have no way of knowing how the
>>>> money is invested, what if anything it is spent on, how much Tides and
>>>> other consultants and contractors are paid for holding and administering
>>>> the fund, and so on. In my view, both the community and the public are owed
>>>> a little more transparency than that.
>>>> > Andreas
>>>> > [1]
>>>> https://meta.wikimedia.org/w/index.php?title=Talk:IRS_tax_related_information/2019_Wikimedia_Foundation_Form_990_Frequently_Asked_Questions&diff=22851697&oldid=22849131
>>>>
>>>> > [2]
>>>> https://en.wikipedia.org/wiki/Wikipedia:Wikipedia_Signpost/2015-03-18/Op-ed
>>>> > [3] https://www.dailydot.com/debug/wikipedia-endownemnt-fundraising/
>>>> > [4] https://news.ycombinator.com/item?id=27371849
>>>> >
>>>> > On Mon, Jan 31, 2022 at 2:10 PM Andreas Kolbe <[email protected]>
>>>> wrote:
>>>> >>
>>>> >> Dear WMF accounts staff,
>>>> >> Could you kindly clarify whether the "Salaries, other compensation,
>>>> employee benefits" figure in Part I, line 15 of the Form 990 relates solely
>>>> to the 291 employees indicated in Part I, line 5, or whether it also
>>>> includes salaries, compensation and benefits for the 82 contractors listed
>>>> in Part V, line 1a of the Form 990.
>>>> >> Thank you.
>>>> >> Andreas
>>>> > _______________________________________________
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>>>
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