[Owasp-board] Profit Sharing Policy for Local Events

Eoin Keary eoin.keary at owasp.org
Wed Aug 21 13:34:41 UTC 2013

Hi Josh,
May I ask if your chapter is actively spending your funds? 
The issue still remains globally that chapters are not spending their ring fenced funds.
Is this a fair question?


Eoin Keary
Owasp Global Board
+353 87 977 2988

On 20 Aug 2013, at 17:14, 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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