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

[Richard Tindal <richardtindal@xxxxxx>]

Hi Avri

Very well thought through note.

I'm a strong advocate of finding uses like you suggest for any surplus auction 
funds,   and I think it's likely there will be a significant surplus of auction 
proceeds.     

In particular I endorse your comment that:     "The monies may also be 
available to help defray the costs of the first years of operation and of 
registration fee paying to ICANN."     Even though there is appropriate 
attention in our group to the $185K application processing fee   I think its 
appropriate to remember that operating a registry to ICANN's new standards will 
be a very expensive undertaking (given all the trademark protection,  malicious 
activity prevention, reporting, technical standards, compliance and other 
requirements in the new contract).        Defraying some of the ongoing costs 
of needy applicants (including their marketing costs) seems like a sensible use 
of any auction funds.        

I'd enjoy participating in any group working on uses for auction surplus.

RT



On Dec 21, 2010, at 12:44 PM, Avri Doria wrote:

> 
> 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.
> 
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