[Imc] Global IMC Network Finance Structure:

Thu Jan 17 17:46:55 UTC 2002

Hello everyone,

There has been an ongoing debate over how to run the IMC Network's Global
finance structure.  We are nearing implementation of our process and if
anyone is interested in getting up to speed, the following information
will help orient you.  This is particularly important for us since we have
officially offered to become the fiscal sponsor for the global network and
the possibility that the Global IMC Finance Working Group will decide to
transfer fiscal sponsorship to the UCIMC.

If you have any questions, let me know,

--Sascha

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What follows is the Brief History of the development of a decision making process to give people
coming onto the list a place to go to help them become full participants of the discussion and
process. This summary is not as brief as Lisa's recent synopsis, but I am not an editor and hope
that we all make use of the Archive as the source.

Please translate this document into as many languages as possible and share with local imc's
(thank you, thank you translators). If there are corrections, please by all means post them to
the list as they are welcome.

john.
aimc.
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BREIF HISTORY
-- The reason that this finance list was originally formed appears to be for the creation a
structured decision making process for how money is to be handled, to specifically address the
role of money within the network's sustainability à from Sept. 2000 --
http://lists.indymedia.org/mailman/public/imc-finance/2000-September/000573.html

-- During the summer of 2001 the finance list confronted the issues of working with or without a
structured decision making process by trying to resolve decisions that needed to be made (i.e.
sending Toya to the conference in Brazil). The financial working group realized that it could
not make a money spending decision without more representation from the local imc's.

-- It was anticipated that a global decision making process was going to come from the DMWG
(decision making working group) in the near future. In preparation for this, the finance list
worked to become a working group.

-- To assist in the democratic project, a contact database was begun so that the finance working
group would know which imc's were represented by whom (also referred to as the commwork
initiative).

-- The finance list became a working group on September the 10th.

-- In October the discussion began to split into different threads. This made it more difficult
to focus on the development of a decision making process, but acknowledged the larger issues --
the need for the finance working group to become "empowered", the alternatives such as the use
of PayPal accounts, the possibility of forming a not-for-profit organization, the desire to have
global north become more responsible to global south, and so on.

-- Blicero puts forward a proposal for the creation of a decision making process that would
operate as a passive consensus model with the purpose of assisting imc's in global south. This
is the model that people have returned to repeatedly and will deserve closer inspection.
http://lists.indymedia.org/mailman/public/imc-finance/2001-October/000612.html

-- Jay mentions the steps that need to be taken for Finance to become an empowered working
group.

He also raises an interesting point regarding the Process list -- that the list is unwieldy for
decision making and requires some kind of structure ("moderation"). This thread between Jay and
blicero mentions waiting for the Commwork initiative. Presumably this initiative is the contact
database to help structure the consensus building process of decision making,
http://lists.indymedia.org/mailman/public/imc-finance/2001-October/000625.html

-- November saw the finance working group begin to make informal decisions based on a passive
consensus model. This was never acknowledged by the finance working group, nor did these
decisions result in disbursing funds, however, here is a list of some of those informal
decisions:

---- to write the letter of intent for an application to the Threshold Grant,

---- the handling of the request from IMC Chiapas,

---- to not divide the global funds by a formula model and disburse to local imc's

---- to endorse the precedence for accepting donations by accepting Chumbawamba's donation

---- to develop the procedures for operating the donate list and archive

---- to wait for final approval before transferring the funds of the global account to UCIMC as
the new fiscal sponsor. This now awaits final approval from the working group, itself waiting
for a decision making process (see Agenda Item F).

---- to have fiscal sponsorships of individuals be coordinated at the local imc level (Sheri and
UCIMC).

---- to build a donate page on the website to direct donors to the Philly imc's building
project.

---- to not seek funds for global projects by asking local imc's (unless in an emergency or the
like)

---- to use PayPal accounts where needed, to assist Argentina IMC in this way.

---- etc.

See the Full History for more information,
http://lists.indymedia.org/mailman/public/imc-finance/2002-January/001007.html

-- November ended with a request for the finance group to send $400 to Argentina to help
Sebastian cover the crisis emerging there. This was different than sending Toya to Brazil to
cover a conference and involved a much closer look at how such a decision was going to be made.

-- December was not so graceful. At this point in the development of the finance working group's
procedures, it had informally decided what the process was for accepting money, and had
informally decided that its direction was to come from the local imc's through representatives.
It had also informally decided to work through a passive consensus model, as demonstrated in
November.

-- The next step was the transition to becoming an empowered working group. The working group
would be empowered after having done three things:

1) notified the other global lists of the intention to become empowered,

2) announced the change of status to all local imc's, and

3) having made a serious attempt to invite representatives from all imc's

The request from Argentina became a test of the passive consensus model to empower the finance
working group when there was little representation. Could the working group make a decision to
support Sebastian in Argentina without having officially become an empowered working group
first?

-- From all attempts to work around this next step and despite total support for Argentina's
request, the financial working group was not comfortable with the amount of representation it
had from the local imc's to make such an empowered decision and was unable to disburse funds to
the imc in Argentina.

-- However, there was a very large amount of work done during this period toward creating
procedures that would empower the working group to disburse network funds. A formal decision
making process will embody these informal decisions/discussions/debates/procedures/suggestions
in the future, and this is where the history resumes.

-- John proposes a decision making process that is more or less the traditional or active
consensus model and will hopefully be useful in finding a middle-ground between active and
passive consensus.
http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000849.html

-- Running Code and Rough Consensus -- Sheri provides a summary and action plan, and suggests
that more participation is needed as a minimum,
http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000881.html

-- Ana brings forward a proposal that attempts to summarize the discussion to date and amend the
other existing guideline proposals with the introduction of a granting structure. Ana also
raises her concern for the lack of criteria to say what is and is not a relevant network
expenditure/priority.

The thread begins here,
http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000907.html

-- Sascha proposes that a website be created to list and organize:

1) All proposals to the working group

2) Deadlines for decision making

3) The Status of the proposal (passed, rejected, in process, etc.)

http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000919.html

-- Jay outlines a process for how to make the list an empowered working group, in step with
Blicero's proposal for decision making. The steps for doing so are:

1) sending out a notice to each local imc to let them know of the finance list becoming
empowered and to include a summary of the working group's informally agreed upon financial
guidelines for distributing funding;

2) developing the contact database into a satisfactory form;

3) inviting each imc to bring forward a representative.

Jay also recognizes the process for how other guidelines and policies regarding a decision
making process would be developed incrementally, but that this would only happen after the
workgroup was empowered. Jay begins this message with reiteration of his strong support for
sending money to Argentina.

http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000924.html , and then
http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000925.html , and again

http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000934.html

-- The suggestion to break up of the finance list into separate proposals of discussion began
with a message from Sheri that was to introduce a message from Ana and Joshua. This "agenda" was
a means for the finance working group to organize and separate its priorities and workloads, and
to focus on the development of specific processes and methods for each.

"The agenda looks like this:

A) PROPOSAL for a decision making process

B) PROPOSAL on spending criteria and caps

C) PROPOSAL for organizing finance tasks

D) PROPOSAL for making imc-finance an empowered working group

E) PROPOSAL for highlighting local imc's (includes donate page and PayPal account)

F) PROPOSAL to have the Urbana Champaign IMC serve as the fiscal sponsor for U.S. donations to
the global account

G) PROPOSAL to give $400 to Argentina for emergency coverage from the global account

For the finance team to move forward, it will be far more effective if working groups tackle the
first 5 items on the agenda individually, to hash out a clear proposal for each that will have
some debate and momentum behind it. (The last two items might not need working groups right
now.)"

The thread begins here,

http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000948.html

--A request came through from Sebastian via Blicero to access the global funds and/or attempt to
establish a PayPal account for Argentina imc as the situation in that country was becoming
worse. This demonstrated the need for the working group to establish emergency procedures for
channeling funding or working with PayPal.
http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000962.html, and
http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000971.html. Once the
existing PayPal account for imc-tech had been set to receive donations for Argentina, the thread
continues here, http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000983.html
. This then results in Sebastian proposing that a PayPal account be established for every imc in
global south, in response to Joshua's argument that this particular setup be kept temporary,
http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000989.html. And in response
to the question of accountability, Blicero suggests that imc's who receive money should report
back to say how the money was spent. This subject implies that the working group will need to
eventually create a process for reporting and accountability,
http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000990.html

-- The first proposal from the agenda came from item D -- empowering the working group, sent to
the list on Dec. 20 (thanks Jay and others),
http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000969.html, and
http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000970.html.

-- Jay in Philly sends in his thanks --- They raised enough money to purchase the building!!!
http://lists.indymedia.org/mailman/public/imc-finance/2001-December/000995.html

-- Since that time, over $1000 has been raised for Argentina through PayPal and a feature length
video production is now underway.

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