[soac-newgtldapsup-wg] On the issue of fund raising, auctions and monies.

[Avri Doria <avri@xxxxxxx>]

Hi,

Since the start of this group, there seems to have been some resistance to 
working on fund raising.  And there seems to be a strong resistance on the idea 
of doing something with auctions funds.  As I indicated during today's meeting 
I disagreed with the notion that trying to do something about auction funds was 
a waste of time for the first round.  I wish to advocate for this as an 
activity in this group and want to show how this goal is interwoven with other 
goals.

Some points I would like to make on fund raising.

a - There are two ways in which outside funding can come into this process:
   - a donor agency works directly with applicants and funds them directly.
   - a donor is wiling to put funds into a fund that is administered by gTLD 
knowledgeable staff of some sort.

b - In the first instance there just needs to be a way to match the donor with 
the applicant (after qualification of  course)

c - in the second instance there needs to be a way to properly/legally receive 
and administer the funds.  This is where we need a mechanism that is 
financially separate from  ICANN that can receive and administer these funds.  
Thus the need for some sort of 'foundation' for want of a better name, that can 
work with the funds.  

d - in terms of auctions, first it is essential that ICANN find a solution for 
the GNSO mandate that auction funds not become part of ICANN general funds.  
The ICANN staff, Kurt specifically, indicated that this is a pending work item 
and that he was looking for cooperation with the volunteer policy makers in 
figuring out how this could be done.  This can be found in the records of 
Kurt's discussions with the GNSO Council.  It is probable that ICANN's 501c 
status and its status as a nonprofit California corporation in the public 
interest may prohibit it from actually transferring the funds to another 
nonprofit, but if the funds never come into ICANN and are processed by the 
outside auction provider and sent directly to a funding agency, there may be a 
solution to the conundrum.  I think there is a lot to be said for never having 
the auction money put into ICANN's hands.  I also think there is a lot of work 
to be done to make this possible.

e - while it is true that the auction money is not available for the initial 
pats of the application process, if recommendations made by this group, like 
the staged payment of fees by qualifying applicants are accepted, the monies 
may be available at later stages in the application process.  The monies may 
also be available to help defray the costs of the first years of operation and 
of registration fee paying to ICANN.

f - Even if the money from auctions are not available at the beginning of the 
process, other monies might be.  There are many ways to raise money, beyond 
gTLD auctions and bake sales, when there is a proper agency to organize the 
fund raising, to receive and to administer such funds.  But until such a 
'foundation' is created, all of this is moot.

Thus I think the tasks of fund raising and looking into the formation of an 
outside group to properly receive and administer the funds is one of our work 
priorities.  And given my skepticism, though with ever renewed hope, about the 
chances of ever getting the Board/Staff to agree to lowering the fees for 
qualifying applicants - though it is within the bounds as established in the 
GNSO's original recommendations for differential fees, I think the need to get 
some outside funding pumping into the process is essential if we have any hope 
at all of help developing economies get involved with the first round.

This is, incidentally,  the area I am most interested in volunteering to work 
on.

a.