Wikimedia Foundation

2011-12 Annual Plan

CONTENTS
1. Context and Background 2. 2011-12 Plan Risks 3. 2011-12 Plan Overview i) 2011-12 Key Activities ii) 2011-12 Targets iii) 2011-12 Finances and Staffing 4. Additional Finances/Staffing Schedules 5. Board Resolution
Page 30-37 Page 38-40 Pages 4-16 Pages 17-23 Page 24-29

CONTENTS, CONTINUED

6. Appendix (i) Top Spending Increases (ii) Net Financial Position by Month (iii) Additional Revenue Schedules (iv) Additional Spending Schedules

Pages 41-54

CONTEXT AND BACKGROUND

CONTEXT AND BACKGROUND

Assumptions

Amounts for 2011-12, 2010-11, 2009-10 and 2008-09 reflect management reporting, not generally accepted accounting principles (GAAP). GAAP amounts are noted where they appear. Management reporting reflects primarily cash-basis revenues and spending. As such it excludes non-cash items such as in-kind amounts and depreciation and includes total spending for capital items. Revenue projections and plan do not include ancillary revenue such as interest income, speaker fees, misc. income. Restricted amounts do not appear in this plan. As per the Gift Policy, restricted gifts above 100K are approved on a case-by-case basis by the WMF Board.

Strategic Context

In 2010-11, the Wikimedia Foundation embarked upon Year One of our five-year strategic plan. 2011-12 is Year Two.

(for reference)

Strategy Plan Priorities

Priority 1. Build the technological and operating platform that enables Wikimedia to function sustainably as a top global Internet organization Priority 2. Strengthen, grow and increase diversity of the editing community that is the lifeblood of Wikimedia projects Priority 3. Accelerate impact by investing in key geographic areas, mobile application development and bottom-up innovation

Strategy Plan 2015 Targets

1) Increase the total number of people served to 1 billion. 2) Increase the number of Wikipedia articles we offer to 50 million. 3) Ensure information is high quality by increasing the percentage of material reviewed to be of high or very high quality by 25 percent. 4) Encourage readers to become contributors by increasing the number of total editors per month who made > 5 edits to 200,000 5) Support healthy diversity in the editing community by doubling the percentage of female editors to 25 percent and increasing the percentage of Global South editors to 37 percent
8

(for reference)

How are we doing so far?

1) Readership continues to grow. But we need to do better at reaching readers who are using mobile phones. 2) The number of Wikipedia articles continues to grow. 3) The Wikimedia Foundation continues to support quality improvement as well as better tracking of quality. 4) The number of active editors is in decline, and is further threatened by the shift to mobile, because it's not easy to edit on small screens. 5) Tracking of editor diversity, as well as efforts to improve it, has begun. We have no indicators yet that diversity has begun to improve.

What does this mean for 2011-12?

In 2010-11, the bulk of our spending was focused towards putting in place solid infrastructure. In 2011-12, the majority of spending goes towards growing, strengthening and increasing the diversity of the editing community, as well as investments in key geographic areas, mobile development and innovation.

10

Recapping 2010-11 Activities

The 2010-11 plan called for us to make infrastructure investments such as the build-out of the Virginia data centre. We also planned to invest in mobile/offline and user experience work, to make preliminary investments in India, and to lay the groundwork for similar experimentation in Brazil and Middle East North Africa (MENA), as well as to support strategic activities of volunteers via grant-making. The bulk of that work got done. The new data centre will be fully operational before July. Progress has been made in mobile/offline and the user experience. Programmatic activities have begun in India, and the groundwork has been laid for Brazil. MENA groundwork has been deferred. We gave out $770K* in grants, up from $115K the previous year.
(*) Amount includes forgiveness of $115K and $160K owed to the Wikimedia Foundation by WM Netherlands and WM Germany to be used to fund, respectively, capacity building for Wikimedia Netherlands and capacity building and the chapters conference for Wikimedia Germany.

11

Recapping 2010-11 Finances

From a financial perspective, 2010-11 was an excellent year for the Wikimedia Foundation. The 2010-11 plan called for us to increase revenue 28% from 200910, to $20.4 million, and to increase spending 124% from 2009-10, to $20.4 million. The reserve was planned to stay flat at $13 million. In fact, we significantly over-achieved from a revenue perspective, and we also underspent, resulting in a larger reserve than planned. We're projecting today that 2010-11 revenue will have increased 49% from 2009-10 actuals, to $23.8 million. Spending is projected to have increased 103% from 2009-10 actuals, to $18.5 million. This means we added $5.3 million to the reserve, for a projected end-of-year total of $19.5 million which represents 8.3 months of reserves at the 201112 spending level.
12

Recapping 2010-11 Revenues

The 2010 WMF fundraiser was our shortest and most successful to date, raising $15 million (up 72% from 2009's $8.7 million) in 50 days (25% fewer than 2009's 67 days). If you include the $6.5 million received by 12 chapters which acted as payment processors in 2010, the total raised by the movement was $21.5 million. In 2010-11, the WMF refocused from a mixed revenue model towards a primary focus on the fundraiser. That paid off. Other revenue sources dropped by about a quarter, but community giving is up strongly. In part due to increased community involvement, (including experimentation with appeals from community members), the campaign was much less unpopular with the Wikimedia community than in the past. That said, in 2010 we began to see indicators of banner and Jimmy fatigue expressed in mainstream and social media. We interpret this as a warning: we expect donations to continue strong growth, but a ceiling may be coming into view. And we will need to find alternatives to over-utilization of Jimmy, in order to preserve his appeal. 13

Recapping 2010-11 Revenues

2009 Campaign
$8.7

$0.7

$1.2

$2.2

$4.2

2010 Campaign
Green line denotes December 31

$15.0

Wikimedia Foundation Chapters (retained by chapter) Chapters (later transferred to WMF)

14

Recapping 2010-11 Revenues

Going forward, the Wikimedia Foundation intends to sustain focus on growing revenues via the fundraiser. We expect strong growth. Challenges include developing successful new messaging to avoid over-exposure of Jimmy, developing messaging that is less earnest and more enjoyable, and grappling with legal, administrative and ethical challenges related to chapters acting as payment processors during the campaign.

15

Recapping 2010-11 Staffing

In 2010-11, our underspending was primarily due to hiring more slowly than called for in the plan. We started the year with an ambitious plan to grow the Wikimedia Foundation staff 82% from 50 to 91 and a decision to, if necessary, sacrifice speed for quality (hiring well rather than hiring quickly). We expect to end the year with staff of 78, representing an increase over 2009-10 of 56%.

16

RISKS

RISKS CONSIDERED IN DEVELOPING 2011-12 PLAN

17

2011-12 Risks
1) Editor decline is an intractable problem.
Declining participation is by far the most serious problem facing the Wikimedia projects: the success of the projects is entirely dependent upon a thriving, healthy editing community. We are responding with a multi-faceted approach that blends big obvious fixes (e.g., Visual Editor) with more experimental approaches (e.g., the -1 to 100 retention projects and editor recruitment initiatives in India and Brazil). The WMF is also putting resources towards expanding community awareness and understanding of the problem, and putting in place mechanisms for decentralized community innovation so that community initiatives can help to solve it. We will be tracking progress throughout the year, and if necessary will sacrifice other activities to increase resources dedicated to this.

2) Escalating movement tensions distract from program work.

Much remains to be determined with regard to movement roles, and more money is raising the stakes. The significantly increased funding directed to chapters via the annual campaign has prompted the WMF Board to ask for stronger financial controls and increased transparency requirements for chapters. The new flood of money into chapters and the risks it poses, combined with lack of clarity around roles-andresponsibilities between the WMF and the chapters, is resulting in ongoing and timeconsuming negotiations between the WMF and chapters, as well as escalating tensions. This is distracting the movement from program work. To mitigate, the WMF will aim to dedicate specific bounded resources towards these issues, in order to preserve other resources dedicated to programmatic activities.
18

2011-12 Risks
3) Readership begins to flatten or decline. Our readership numbers have
grown strongly for many years. However, they are not keeping pace with the growth of the internet. Recently we have seen a general decline online in the growth of unique visitors and in page views in the United States, as measured by comScore Media Metrix. This is happening to many major sites including Google, Facebook and the internet as a whole, but we are experiencing it significantly more sharply than most. Internationally, there has been consistent strong growth in unique visitors in general, but we are showing declining growth in uniques, and declining page views. We are exploring to find explanations for these trends, but they are not immediately understandable, and they are troubling.

4) External events distract from programmatic work. The likeliest

source of external distraction is probably media resulting from a reputational issue, such as editorial scandal or perceived organizational impropriety. Risk of editorial scandal can't be mitigated: there is an inherent level of risk that we cannot side-step. Risk of organizational impropriety is unlikely at the WMF due to its experienced leadership team and well-established controls. However, the risk is greater within the chapters, which are young and primarily run by volunteers with little experience. Mitigation: the Board has asked the WMF staff to put in place stronger financial controls and transparency requirements related to its interactions with chapters, in order to mitigate this risk to the Wikimedia movement.
19

2011-12 Risks
5) Revenue targets are not met. The 2011-12 revenue targets are WMF's
most aggressive ever, and it is possible we cannot meet them. Having said that, the plan calls for a 24% increase in revenue, which is conservative compared with the 49% increase we achieved last year. And, the Wikimedia Foundation has a track record of deliberately conservative planning: every year, we have underspend against budget, and exceeded revenue targets. In the event we miss our targets, we will be well-positioned to know early, and to adjust accordingly. The board will be immediately notified if reserves vary materially from the plan at the close of any quarter.

6) Revenue targets are met, but at the cost of significant goodwill. During the 2010 campaign, the Wikimedia Foundation began to
see the Jimmy appeals gently mocked by media and the general public. The mockery was mostly affectionate but still: people's goodwill towards Wikipedia is not unlimited, and the fundraiser is inherently annoying. In 2011 for the first time, we will dedicate significant creative focus towards creating new nonJimmy-focused appeals to intersperse throughout the campaign, and towards creating appeals that, rather than being earnest, are perceived by readers as funny or enjoyable.
20

2011-12 Risks
7) Openness about editor decline makes the problem worse. The
The Wikimedia Foundation has been extremely transparent about our participation problem, publishing a number of its own studies and analyses, and participating in media stories. This could have the effect of creating a selffulfilling prophecy, in which Wikipedia is dying becomes the conventional wisdom, and people behave accordingly. The risk of the self-fulfilling prophecy is real, but, given that media first began writing Wikipedia is dying stories back in about 2005, our actions probably don't affect it much. Regardless, withholding information would be a cure worse than the disease: we need community support to solve the problem, and we can't have it if we aren't sharing information.

8) International expansion results in unacceptable legal risk. It is

obvious that the WMF is taking a risk by not confining itself to an American footprint. Historically, an international focus has increased risks for organizations. Mitigation: we have recently hired a General Counsel with experience in this area, and we are proactively developing relationships with legal firms and activists with expertise in internet issues related to freedom of expression, as well as with media organizations and relevant others.
21

2011-12 Risks
9) A shortage of Silicon Valley technical talent hurts our ability to recruit and retain technical staff. The Bay Area is currently facing a
major shortage of talented engineers, and tech companies are finding it difficult to hire and retain good tech staff. This could impair our ability to grow our tech staff as planned from 28 to 50. Mitigation: Like the rest of the tech sector, there is not much we can do to mitigate this serious problem. However, we will dedicate more resources towards technical recruitment in 2011-12 compared with 2010-11, and we'll be very clear about our value proposition: The Wikimedia Foundation is not about monetizing eyeballs, our direction isn't set by VCs, and we're financially stable. We offer a fair, friendly, fun environment for talented engineers who want their individual contribution to result in making the world a better place for hundreds of millions of people.

10) An unforseen major expense or inability to raise revenues eats up the reserve and cripples the Wikimedia Foundation financially. The likelihood of this happening is extremely small. The
Wikimedia Foundation's costs are predictable and we have a track record of conservative planning. We have never in our history faced a major unplanned expense. Our operating reserve is planned to grow during 2011-12, and will never dip below 5.2 months of expenses. See earlier in the risks section of this desk for more on revenue generation.
22

2011-12 Risks
11) Wikimedia's ability to implement positive change is constrained by actual or perceived lack of community acceptance. There is no reason to believe the community is generally
opposed to the work being done by the WMF. The 2011 Editor Survey found the community believes the WMF is doing a good job, our strategy was developed in collaboration with 1000+ community members, and discussions following the release of the Editor Trends Study and Openness Resolution suggest that many community members are eager for editor retention initiatives such as the Visual Editor. Having said that, a small number of community members express frequent disapproval of WMF actions: as a result, staff may tend to pay disproportionate attention to critics. In response, the WMF has adopted, and is continuing to refine, strategies to work in partnership with the global community. 1) To expand discourse and collaboration, WMF has hired dedicated community liasion staff for all program departments. 2) To support data-driven decision-making, WMF now employs research/analytics staff; sharing this data widely helps build consensus. 3) To increase flexibility and ability to course-correct when necessary, WMF is adopting work methods such as agile development. 4) To improve ease and clarity of decision-making processes, WMF is beginning to standardize mechanisms such as referenda, opt-in/opt-out, centralized discussion pages, trial periods, etc.
23

THE 2011-12 PLAN

24

2011-12 Plan Overview

In 2011-12, the majority of spending goes towards growing, strengthening and increasing the diversity of the editing community, as well as investments in key geographic areas, mobile development and innovation.

25

2011-12 Plan Key Activities

Key activities supporting Priority #2, Diversifying the Editor Community are: 1) Visual Editor: A new default editing environment for Wikimedia projects which does not require markup. 2) New Editor Engagement: Experimental small feature iterations designed to increase new editor retention by improving interaction between new and experienced editors, and by facilitating a more positive on-ramp experience as a whole. 3) Global Education Program: The Public Policy Initiative ends September 2011: this line item makes permanent and global the most successful aspects of the program: student clubs, ambassadors and teacher support.
26

2011-12 Plan Key Activities

Key activities supporting Priority #3, Global South, Mobile and Innovation are: 1) Mobile: Includes development of new mobile platform, new participatory features and launch of Wikipedia Zero partnerships. 2) India/Brazil: Launch of programs in India and Brazil, designed to recruit new editors. 3) Wikimedia Labs: A project designed to create a flexible sandbox and research environment based on virtualization technology which enables us to give volunteers, researchers and staffers access to a production-like infrastructure without the risks associated with working directly in production, facilitating faster development and testing of tools, research projects, and features. 4) Internationalization: Features which are designed to enable participation in languages which are currently poorly technically supported - includes input methods, font delivery, etc.
27

2011-12 Plan Targets

1) Increase the number of active editors from just under 90K in March 2011, to 95K in June 2012.* 2) Increase the number of Global South active editors from approximately 15.7K in March 2011, to 19K in June 2012. 3) Increase the number of female editors from approximately 9K in spring 2011 to 11.7K in spring 2012.** 4) Increase page-views to mobile sites from 726M in March 2011, to 2B in June 2012. 5) Develop Visual Editor. First opt-in user-facing production usage by December 2011, and first small wiki default deployment by June 2012. 6) Develop sandbox for research, prototyping, and tools development, with initial hardware build-out and first project access by December 2011, and full access for all qualifying individuals/projects by June 2012. 7) Increase read uptime from 99.8% in 2010-11 to 99.85% in 2011-12.
* Our projections say that active editors will have declined to 79K by July 2012: this target assumes the decline is successfully reversed and new growth begins. ** As derived out of the annual Editor Survey.

28

2011-12 Plan Finances and Staffing

In 2011-12, the Wikimedia Foundation plans to increase revenue 24% from 2010-11 projections, to $29.5 million. We plan to increase spending 53% from 2010-11 projections, to $28.3 million. The reserve is planned to grow 6% from 2010-11 projections, to $20.7 million. The 2011-12 plan reflects our continued desire to grow the organization's programmatic capacity by growing its staff, with an emphasis on thoughtful recruitment and integration of new people. In 2011-12, we plan to grow staff 50% from 78 to 117.

29

2011-12 Planned Spending and Revenue

Planned Spend Planned Revenue
$29.5

$28.3

2011-12

All amounts in USD, in millions

30

Revenue and spending continue to grow

All amounts in USD, in millions

2008-09 Actuals 2010-11 Projections

2009-10 Actuals 2011-12 Plan

$29.5 $23.8 $18.5 $16.0 $9.1 $5.2

$28.3

$7.7

Revenue

Spending

Revenue and spending reflect unrestricted funds only and exclude restricted grants such as the one funding the public policy initiative.

31

Revenue and Spending Trends 2011-12, 2010-11

All amounts in USD, in millions

11-12 Mo. Revenue

11-12 Mo. Spending

10-11 Mo. Revenue

10-11 Mo. Spending

$
15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June

32

2011-12 Cash Position

All amounts in USD, in millions

Cash At Month End

Next Six Months Expenses

$
30 25 20 15 10 5 0 July

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

Note: Spending is higher towards the beginning of the year due to front-loaded capex, recruiting costs, costs associated with the fundraiser and Wikimania travel.

33

2010-11 Spending (Projected) Compared with 2010-11 Plan and with 2011-12 Plan
All amounts in USD, in thousands

2010-11
Plan Salaries, wages, recruiting and other hiring costs Internet hosting Capital expenditures Fundraising exps External contractors Travel Wikimania Travel Legal and Audit Fees Facilities and operations Volunteer & staff development Merchandise Awards and grants TOTAL Projections Variance $ Variance %
(1)

2011-12
Plan Variance $ Variance %
(2)

$8,972 1,837 3,270 483 2,274 864 134 155 1,273 813 325

$7,164 1,789 3,292 575 2,413 812 160 297 1,295 211 492

($1,808) (48) 22 92 139 (52) 26 142 22 (602) 167

-20% -3% 1% 19% 6% -6% 19% 92% 2% -74% n/a 51%

(a)

(b) (c) (d) (e) (f)

$13,356 2,667 2,607 1,094 2,572 1,646 96 555 1,674 776 300 938

$6,192 $878 ($685) 519 159 834 (64) 258 379 565 300 446

86% 49% -21% 90% 7% 103% -40% 87% 29% 268% n/a 91%

(aa) (bb) (cc) (dd) (ee) (ff) (gg) (hh) (ii) (jj) (kk) (ll)

(g)

(h)

$20,400

$18,500

($1,900)

-9%

$28,281

$9,781

53%

(1) Variance of 2010-11 projections against 2010-11 plan; (2) Variance of 2011-12 plan against 2010-11 projections. See next page for variance comments.

34

Variance Comments
2010-11 Spending (Projected) Compared with 2010-11 Plan and with 2011-12 Plan 2010-11 Projections vs. 2010-11 Plan Summary: Spending in 2010-11 was $1.9MM (9%) below plan.
(a) The organization didn't have capacity to grow staffing 82% as per the plan. Hiring was slowed to ensure quality, resulting in an under-spend, partially offset by an increase in spending on external contractors. (b) Higher PayPal fees due to higher than planned revenue. (c) Additional external contractors were used due to slowed hiring of permanent staff. See (a) above. (d) Travel under related to hiring delays. (e) Wikimania travel higher due to late staff editions (i.e. CGDO and CCO were hired right before Wikimania) and higher Board travel costs. (f) Legal expenses were higher than anticipated due to interim legal counsel costs, as well as a higher-than-anticipated legal defense costs. (g) Volunteer and staff development was underspent due to a variety of factors: staff was smaller than planned and under-utilized allowable benefits, the spring All Staff meeting was canceled, and spending in volunteer development was lower than planned. (h) Because full-year spending was below plan, we were able to spend more on awards and grants than originally budgeted. 2011-12 Plan vs. 2010-11 Projections Summary: Spending in 2011-12 continues to follow the priorities of the strategic plan; building the technological and operating platform to sustain Wikimedia as a top global Internet organization, strengthening and growing the editing community, and investing in key geographic areas and mobile application/development. (aa) Annualizing the end-of-year staffing costs, including standard salary increase, would result in an increase of $3.6MM over 2010-11 staffing costs, bringing total salaries, wages and benefits to $10.1MM. An additional increase of $2.1MM for 35 new positions brings salaries, wages and benefits to $12.2MM. Increases in recruiting and other hiring costs brings total salaries, wages, recruiting and other hiring costs to $13.4MM; for details see Planned New Hires chart in the Appendix. (bb) Represents additional hosting costs related to the Virginia data centre. (cc) Capex is lower in 2011-12 because 2010-11 projections include costs related to building the second data centre. (dd) Includes increase of Paypal fees related to increase in donations as well as costs for fundraising support such as Storyteller. (ee) Slight increase in outside contract services to support growing organization. (ff) Travel increase is primarily in the Global Development area related to Global initiatives as well as Mobile initiatives. (gg) Fewer staff attending Wikimania. (hh) Represents increase in legal fees in order to pursue legal defense more strategically and increase in audit and tax fees due to the increase in transactions and complexity of the organization. (ii) Increase includes rent, printing, telephone, computer equipment for new staff and replacement equipment for some existing staff, property insurance. (jj) Represents $300K increase for volunteer development; remainder is funds for staff development/training for additional staff. (kk) Represents merchandise for the online store. (ll) The strategy plan calls for an increased allocation for awards and grants supporting volunteer quality improvement and new editor outreach activities.

35

Staffing by Functional Area

This chart includes only paid staff.
117

Other Program Tech Fundraising Mgmt, Finance & Admin

33

78

22 50 10 26 4 10 4 8 7 11 50

28 9 8 20 25

22

2008-09 End of Year Staff

2009-10 End of Year Staff 2011-12 Planned End of Year Staff 2010-11 Projected End of Year Staff

36

Spending by Functional Area

2010-11
Total $18.5
$0.4 2% $4.9 26% $6.9 24%

2011-12
Total $28.3
$0.3 1%

$8.3 45% $2.2 8% $1.8 10% $6.5 23%

$12.4 44%

$3.1 17%

Fundraising Other Program Technology Governance Management, Finance and Admin

All amounts in USD in millions, and as a percentage of the whole

37

BOARD RESOLUTION

BOARD RESOLUTION

38

RESOLUTION
RESOLVED, that the Board of Trustees hereby approves management's proposed 2011-12 annual plan of $28.3 million of spending and $29.5 million of revenues with the annual reserve at $20.7 million at the end of 2011-12. These amounts do not include restricted gifts to fund additional project work such as the Public Policy grant. If, during the year, management anticipates the annual reserve at each quarter-end will differ materially from the plan, the Board directs management to consult the Board Treasurer promptly. Reference: Management's currently anticipated quarterly breakdown of this approved annual plan.
39

Quarterly Breakdown of Annual Plan

All amounts in USD, in millions

2011-12 Cash Revenues Cash Spending NET CASH RESERVE BALANCE

Q1 (July-Sept) $1.6 6.8 $(5.2) $14.3

Q2 (Oct.-Dec.) $21.6 7.6 $14.0 $28.3

Q3 Q4 (Jan.-March) (April-June) $5.6 6.9 $(1.3) $27.0 $0.7 7.0 $(6.3) $20.7

Total $29.5 28.3 $1.2 $20.7

40

APPENDIX

APPENDIX

41

APPENDIX: TOP SPENDING INCREASES

APPENDIX: TOP SPENDING INCREASES

42

Top Spending Increases (Slide 1 of 2)

This chart includes all increases and new spending above $150K.

1.

Additional technical staff and contractors:

i) Features department: staffing and contractors for development of Visual Editor, new editor engagement features, internationalization improvements; Director of Feature Development. $1M ii) General Engineering department: staffing and contractors for analytics, code/security review, API development, QA. $400K iii) Tech Operations department: staffing and contractors for improved monitoring, failover, backups, specialized operations support. $200K

+$1.6

2. 3. 4. 5. 6.

Increased hosting costs (primarily due to two data centres now in

parallel operation for safe failover) mobile partnerships and support

+$0.8

Mobile: Staffing/travel/contractors for development of new mobile platform and +$0.7 India and Brazil editor recruitment: will fund activities aimed at
increasing number of active editors in India and Brazil

+$0.7 +$0.5 +$0.5

Increased spending on grants: will fund strategically-aligned

grantmaking to chapters, individuals and like-minded organizations (up 500K from 2010-11 for a total of $0.9MM)

Labs: Development of a sandbox environment for research and volunteer

experimentation.
All amounts in USD in millions

43

Top Spending Increases (Slide 2 of 2)

This chart includes all increases and new spending above $150K.

7. 8. 9.

Recruiting costs: fees for recruiters and other hiring support, particularly for
technical hiring

+$0.5 +$0.3 +$0.3 +$0.3 +$0.2

Global Education initiative: making permanent the most successful

elements of the Public Policy Initiative, and shifting its focus to be international rather than American

Legal: will fund initiatives aimed at assessing compliance and minimizing risk
outside contract services, designed to increase revenues

10. Increased spending on fundraising: necessary investments, mainly 11. Convenings: gatherings of community members, staged by the Community
department, to tackle high-priority issues

All amounts in USD in millions

44

APPENDIX: NET FINANCIAL POSITION

APPENDIX: NET FINANCIAL POSITION

45

Net Financial Position By Month

14.0 $ 12.0 10.0 8.0 $6.7 6.0 4.0 2.0 0.0 July -2.0 -4.0 -$1.1 -$2.1 -$1.9 -$1.8 Aug Sep Oct Nov Dec Jan -$1.1 -$1.9 -$2.2 -$2.0 -$2.1 Feb Mar Apr May June $1.7 All amounts in USD, in millions

Revenue

Spending

Net

$9.0

46

APPENDIX: ADDITIONAL REVENUE SCHEDULES

APPENDIX: ADDITIONAL REVENUE SCHEDULES

47

2011-12 Revenues Compared with 2010-11 Projections and 2009-10, 2008-09 Actuals
(Totals, Overlay View, Includes Source)
2008-09 Actuals 2009-10 Actual 2010-11 Projections All amounts in USD, in millions 2011-12 Plan
$2 9 .5

$2 5.0 $2 3 .8

$1 8.8 $1 6 .0

$9 .0 $7 .7 $5.1 $3 .0 $2 .7 $0.7 $1 .5 $1 .5 $3 .0 $1 .5 $1 .5 $0.4 $1 .0 $0.8 $1 .5

Donations<10K

Donations>10K

Grants

Earned Income

Total

Targets are for unrestricted revenue only. The Wikimedia Foundation does not set revenue targets for restricted gifts.

48

2011-12 Revenue Plan

(By Month, Includes Source)
14.0 $ 12.0 All amounts in USD, in millions

Donations <10K

Donations >10K

Grants

Earned Income

$11.7

10.0

$9.2

8.0

6.0 $3.9

4.0 $1.4 $1.2 $0.2 July Aug $0.2 Sep Oct Nov Dec Jan $0.7 $0.3 Feb

2.0

$0.3 Mar Apr

0.0

$0.2 May

$0.2 June

Targets are for unrestricted revenue only. The Wikimedia Foundation does not set revenue targets for restricted gifts.

49

2011-12 Revenues Compared with 2010-11 Projections

(By Month, Overlay View, Totals Only)
2010-11 Projections
All amounts in USD, in millions

2011-12 Targets

$11.7

$9.2 $8.0 $6.6

$3.9 $3.1 $1.6$1.4 $0.2 $0.1 $0.2 $0.1 $0.7 $0.3 $0.2 $1.8 $0.3 $0.2 $0.5 $0.2 $1.5 $0.2

$1.2 $0.1

July

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

Targets are for unrestricted revenue only. The Wikimedia Foundation does not set revenue targets for restricted gifts.

50

2011-12 Revenues Compared with 2010-11 Projections

(By Month, Side-by-Side View, Includes Source)
Donations < 10K
$ All 12.0 amounts in USD, in millions

Donations >10K

Grants

Earned Income

10.0

8.0

6.0

4.0

2.0

0.0 Jul 10 Oct 10 Jan 11 Apr 11 July 11 Oct 11 Jan 12 Apr 12 Jun 12

Targets are for unrestricted revenue only. The Wikimedia Foundation does not set revenue targets for restricted gifts.

51

APPENDIX: ADDITIONAL SPENDING SCHEDULES

APPENDIX: ADDITIONAL SPENDING SCHEDULES

52

2011-12 Spending by Type

Expenses in USD, in thousands All amounts

Salaries and wages Internet hosting Capital expenditures Fundraising exps External contractors Travel Wikimania Travel Legal and Audit Fees Facilities and operations Volunteer and staff development Merchandise Awards and grants $13,356 2,667 2,607 1,094 2,572 1,646 96 555 1,674 776 300 938

Notes Salaries, wages, benefits and recruiting Existing data centers in Tampa and the Netherlands plus additional data center ,including bandwidth Buildout of additional data center and equipment to support audience growth and new functionality Donation processing fees, charitable registrations, and fundraising support Technical contractors and writing/design support Travel for staff, Board, Advisory Board and volunteers Travel for staff, Board, Advisory Board and volunteers for Wikimania Legal fees including trademark registrations and legal defense fees and audit fees Office rent, furniture and equipment, supplies and maintenance Meetings with volunteers and staff, conferences, training, workshops Merchandise for online store New allocation for awards and grants supporting volunteer initiatives

TOTAL

$28,281

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Restricted Spending and Unrestricted Spending 2009-10, 2010-11 and 2011-12

Restricted Spending Unrestricted Spending
$28.3

$18.5

$8.7

$0.8

$1.2

$0.4

2009-10

2010-11

2011-12

Restricted spending in 2009-10 includes a portion of the following special projects: usability initiative, multimedia project, Theora development work. It also includes the public policy initiative and scholarships. In 2010-11 and 2011-12, restricted spending is the public policy grant.

All amounts in USD, in millions

54