[Owasp-board] Profit Sharing Policy for Local Events

Michael Coates michael.coates at owasp.org
Wed Aug 21 13:24:20 UTC 2013


Josh,

Thanks for your note and question. Last year when we examined this issue we
considered a variety of angles and invited community and leaders for
feedback. I am happy with the decision that was made at the time by the
board with all of the information.

Do let us know if there are other outstanding financial situations that
your chapter is experiencing that we should talk through separately.

Thanks,
Michael


--
Michael Coates | OWASP | @_mwc



On Tue, Aug 20, 2013 at 8:14 AM, Josh Sokol <josh.sokol at owasp.org> wrote:

> Board,
>
> 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
> comments.
>
> ~josh
>
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