Hello, Lodewijk (Anders). Let me preface this by saying that I am responding to you with the benefit of years of IRL experience and education in the area of financial due diligence. I am aware of the "fallacy of appeal to authority". I am not doing that. In this case, "authority" would be mandatory reporting requirements as mentioned by SJ aka Samuel Klein in his remarks of 10 Jan 2023 https://lists.wikimedia.org/hyperkitty/list/wikimedia-l@lists.wikimedia.org/message/2JBV2WWRWVS5FOXRG4NZYKAOJK6X3XCX/ I am confident in his oversight of mandatory reporting, given my interactions with him as a Wikipedia editor. I am not an attorney. This is me in IRL https://linkedin.com/in/4lisa I know about ethical and defensible asset management. I'm not referring to ESG, but rather, to fair disclosure and adherence to investment guidelines.
My tone is harsher than is my want due to your response to Andreas of 19 Jan 2023 https://lists.wikimedia.org/hyperkitty/list/wikimedia-l@lists.wikimedia.org/message/IC32GRFZPR5JRJ43S2GPETUTNZP3JWQW/ challenging whether his questions were constructive. Andreas is unfailingly polite and courteous, far more so than necessary by U.S. standards for expressions of fiduciary and custodial concern. Since the WMF and Endowment funds are domiciled in the U.S., our local customs should be followed. Dan Szymborski https://lists.wikimedia.org/hyperkitty/list/wikimedia-l@lists.wikimedia.org/message/STYZAODTWAI2VUR73ZB23LNKQKP2Y2JA/ and The Cuncator https://lists.wikimedia.org/hyperkitty/list/wikimedia-l@lists.wikimedia.org/message/NWN67V2UCH4NXZ7QNFLM6DNBO6QAUOKK/ both addressed this already, but in cordial terms. I am accustomed to speaking in the voice of governance and compliance IRL, thus wish to reinforce their defense of Andreas. Yes, you are correct in your reply to Lane Chance: >we are in the process" typically means "no, not yet. But we are going towards >that new situation" The problem here is this: That response is insufficient because of the time value of money. Inquiries about the status of assets under beneficial ownership--whether held by a charitable organization or other entity--require a response that includes both magnitude AND control. In other words, we need to know the dollar amount AND a projected time frame associated with a change in control of these assets. (Note too that the trustees of these funds must be held accountable for both magnitude and time.) I will make an engineering math analogy. A vector requires two values in order to completely describe it: Magnitude and Direction. The Magnitude of the Endowment is approximately $100 million. The Form 990s provide additional details of magnitude (although that isn't easily accessible to the Movement). Instead of Direction, given that this is an Endowment not a vector, we need to know where the funds are held, (i.e. by whom they are controlled) and how they are invested. WMF has informed us that U.S. Internal Revenue Service granted a non-profit 501(c)3 organizational status to the Endowment no later than October 2022. Many, many inquiries, by Andreas and others, were required to obtain this information. Even the news media (in Italy) were unable to get a meaningful response. A meaningful response as of October 2022 would have been: Yes, the Endowment has been granted non-profit 501(c)3 status as of <monthX, yearX> and we anticipate transfer of control from Tides to a WMF controlled entity no later than <monthY, yearY>. Any delays and the reasons for those delays will be communicated to the public and the Wikimedia movement via our periodic WMF blog posts at <URL>. It is now March 1, 2023. We still do not know what <monthY, yearY> is. Why didn't WMF do the groundwork for transferring the endowment funds from Tides to a WMF 501(c)3 given that there were over SIX long years to make such plans? Why does WMF STILL not know how to effect this transfer or when it will be completed, despite the passage of six months? My greater concern is based on what SJ said, and the quotes provided by Lane Chance. These suggest that WMF does not intend to transfer the Endowment away from the Tides Foundation, despite achieving 501(c)3 status. That means the WMF Endowment would remain under the control of Tides as a Tides Collective Action Fund. Based on Tides FAQ for Collective Action Funds https://www.tides.org/faq/what-are-collective-action-funds-cafs/ Tides has the authority to disburse WMF Endowment funds in support of Tides Foundation’s charitable purposes. These are NOT the same as Wikimedia's charitable purposes. _______________________________________________ Wikimedia-l mailing list -- wikimedia-l@lists.wikimedia.org, guidelines at: https://meta.wikimedia.org/wiki/Mailing_lists/Guidelines and https://meta.wikimedia.org/wiki/Wikimedia-l Public archives at https://lists.wikimedia.org/hyperkitty/list/wikimedia-l@lists.wikimedia.org/message/SB672G25XY55ZOBLJ2ZASO43DAU3EOJ5/ To unsubscribe send an email to wikimedia-l-le...@lists.wikimedia.org
