[Owasp-board] Profit Sharing Policy for Local Events

Josh Sokol josh.sokol at owasp.org
Tue Aug 20 15:14:44 UTC 2013


In preparing to sign contracts for our LASCON 2014 event, it was brought to
the teams attention that we had to agree to a new profit sharing policy in
order to proceed.  The problem is that because $5k is used as the margin
between a 90/10 split and a 40/60 split, the new profit sharing policy
takes our chapter cut of the LASCON profits down to somewhere around 50%.
We've had several objections from our core team members on doing that much
work and realizing such a small cut of the reward.  Since the new profit
sharing policy was designed without scale in mind, I'd like to ask that for
the LASCON event only, we raise this margin to $10k.  Here's some rough
math based on 2011 numbers:

*Current Model*
$17k profit
$5k margin
Chapter Cut = $4500 (90/10 split) + $4800 (40/60 split) = $9300
Foundation Cut = $500 (10/90 split) + $7200 (60/40 split) = $7700
Realized Percentage Split = 55% Chapter / 45% Foundation

*Proposed Model*
$17k profit
$10k margin
Chapter Cut = $9000 (90/10 split) + $2800 (40/60 split) = $11800
Foundation Cut = $1000 (10/90 split) + $4200 (60/40 split) = $5200
Realized Percentage Split = 69% Chapter / 31% Foundation

This still amounts to a realized 70/30 split between the Chapter and
Foundation which, IMHO, is still a lot of money considering the limited
assistance provided to us by the Foundation.  As an additional reference
point, it is also more money raised for the Foundation than any other
Chapter organized activity.

I had really hoped that the Board would have come up with a profit sharing
model that did not require us to be granted an exception year over year,
but despite clear objections from me and a "NO" vote from Tom, the
remaining Board members appears to have passed the proposal anyway.  Thus,
my request that before we sign the paperwork guaranteeing a LASCON 2014, we
raise this margin from $5k to $10k for our event only (leaving the
percentage splits in tact).  This will provide enough revenue for our
chapter to continue to thrive and innovate as we have done in the past
while at the same time ensuring that the OWASP Foundation receives an ample
cut for any of our borrowed resources that we cannot directly expense back
to the conference.  Does this sound agreeable?  Thank you for your time and

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