[Owasp-board] Profit Sharing Policy for Local Events

Jim Manico jim.manico at owasp.org
Thu Aug 29 17:50:30 UTC 2013

I support this proposal. Josh had a very solid conference with significant profit before it became an OWASP conference. We are pretty lucky he agreed to make his already success conference OWASP branded. This is also a significant experiment in seeing how a chapter can build serious funds so they can fund a major national-level conference without needing foundation funds or risk.

I would not support this for any OWASP event, but I do think Josh has demonstrated his dedication to his OWASP chapter and spreading the word on AppSec in a fairly independent way.

Josh, since you will be getting additional profit, perhaps you will need less of the full time staff resources?

But yes, I support this.
- Jim

> 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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