This seems a reasonable request.

Cheers,

Peter

 

From: Andreas Kolbe [mailto:[email protected]] 
Sent: 02 June 2022 15:13
To: Wikimedia Mailing List
Subject: [Wikimedia-l] Fact-checking Raju Narisetti in the Indian Express

 

Dear all,

 

Last weekend, an interview with Raju Narisetti, titled "Wikipedia is building 
trust with transparency", was published in the Indian Express, one of the major 
daily newspapers in India.

 

For your convenience, here is an archive link for the article: 
https://archive.ph/RaCwX

 

The Indian Express link is: 
https://indianexpress.com/article/technology/tech-news-technology/raju-narisetti-interview-wikipedia-trust-transparency-7940621/

 

The article quotes Raju as saying (my emphases),

 

----

 

“More than 75% of the money we raise globally goes to two things. One is to 
give money back to the volunteer community so they can launch a new language. 
Two is about half of it goes to the infrastructure. You need to have databases 
and put it on the cloud and make sure it’s reliable,” he said. Although a lot 
of the money is raised in the more developed Western markets, most of it is 
actually flowing into the global south, where the growth will come in languages 
and users.

 

----

 

This diverged sharply from my understanding of WMF finances. So I looked at the 
records to try to fact-check these statements.

 

I found the Foundation raised $163 million in the 2020/2021 financial year.[1] 
But it actually only spent $112 million of it (69%).[1] If the WMF kept 31% of 
its revenue to itself, it obviously can't have spent "more than 75%" (i.e. over 
$120M) of the money it raised on anything. 

 

This is a trivial point. But I was even more astonished by the other statement 
in the article, that most of the money raised "is actually flowing into the 
global south". 

 

Raju was talking to an Indian audience. This article was timed to coincide with 
the start of the Indian fundraiser – Indians are currently faced with 
fundraising banners on Wikipedia as well as emails soliciting repeat 
donations.[2] So I appreciate it is a good soundbite that might motivate Indian 
citizens to reach for their purses and wallets. After all, few people in India 
feel it is their job to send financial aid to the US, right? 

 

But is this soundbite really true? 

 

To fact-check that claim, I looked at the official figures in the latest (2020) 
WMF Form 990 tax return detailing WMF spending outside the US. According to the 
Form 990 section "General Information on Activities Outside the United States", 
spending on activities outside the US amounted to a total of $20,076,181 in 
2020.[3] This means well over 80% of WMF expenditure was in the US.

 

The Form 990 also provides a breakdown by global regions, detailing the precise 
amounts the WMF spent in each region. Again, I found this paints a very 
different picture to what the Indian public has been told in the Indian Express.

 

First I added up all the amounts (Program Services, p. 29, and Grantmaking, pp. 
30–31) that were spent in Europe and North America (excluding the US). I 
arrived at a total of $14.8M – which means that 73.5% of the total spending on 
non-US activities was in these regions of the affluent north. 

 

This left only $5.3M, or about 3% of total WMF revenue in 2020/2021, for the 
entire rest of the world, which also includes countries like Saudi Arabia, 
Russia, Japan, Korea and Taiwan, which are not usually included in the Global 
South. The actual money flowing into the Global South is thus even less than 3% 
– hardly "most" of the money raised.

 

Raju mentioned the volunteers. I thought, let's leave Program Services expenses 
(which presumably would include servers and caching centres abroad) out of the 
equation and look at Grantmaking alone (pages 30 and 31 of the Form 990). 

 

The Grantmaking total for activities outside the US given in the Form 990 is 
$3,475,062.

 

Almost exactly $1.2M (35%) of that went to Europe and North America (excluding 
the US). 

 

So total grantmaking in the entire rest of the world outside Europe and North 
America was $2.3M, or 1.4% of the money the WMF raised in 2020/2021. 

 

Again 1.4% is not "most of the money raised", by any stretch of the 
imagination. And the Global South only accounts for a part of that 1.4%.

 

Lastly, as Raju was speaking to the Indian public, I wanted to find out how 
much money the WMF actually spent on grantmaking in India. The Form 990 only 
gives grantmaking totals for "South Asia" – which along with India includes 
other major countries like Bangladesh and Pakistan. 

 

These totals are $75,198 (grants and other assistance to 22 individuals, 
certainly not rank-and-file Wikipedians, given the average amount) and $3,339 
(grants to organisations). This yields a total of $78,537 for all of South Asia.

 

I make that 0.048% of the WMF's 2020/2021 revenue. Only a part of that may have 
been spent in India. 

 

Please verify these figures for yourselves; I have provided the sources below. 
If I have made a mistake somewhere, please tell me.

 

It occurred to me that perhaps some grantmaking figures in 2020 were 
particularly low because of the Covid pandemic, which began in the spring of 
that year. But Covid was a global pandemic affecting countries around the 
world. So all countries would have been affected equally. And Covid was not as 
serious in India in 2020 as it was in 2021. 

 

I also know the WMF increased its grantmaking budget for the current year. But 
even if grants to South Asia were to increase a hundredfold compared to 2020, 
they would still represent only 5% of WMF revenue. Such is the gap between what 
is said in the Indian Express and the reality on the ground.

 

Allow me to make an appeal to your conscience. 

 

The Wikipedia idea is to provide neutral and accurate information to the 
public. I would say that Wikimedians – especially Indian Wikimedians – who 
believe in that idea have a job to do here, because based on the above, what 
the Indian public has been told in the Indian Express simply does not match the 
reality. 

 

Look at it like a Wikipedia article. If you found an article making claims so 
wildly at variance with published facts, would you let them stand? Or would you 
at least start a discussion on the talk page, to try and find out why there is 
such an apparent discrepancy?

 

Let's have that discussion now, here and on social media.

 

Best,

Andreas

 

[1] 
https://upload.wikimedia.org/wikipedia/foundation/1/1e/Wikimedia_Foundation_FY2020-2021_Audit_Report.pdf#page=5
 – see also https://www.dailydot.com/debug/wikipedia-endownemnt-fundraising/

[2] https://meta.wikimedia.org/wiki/Talk:Fundraising#Indian_email_texts

[3] 
https://upload.wikimedia.org/wikipedia/foundation/e/e4/Wikimedia_Foundation_2020_Form_990.pdf#page=29

 


 
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