IC3 directed funding model
Paul Trevithick
Let's say company XYZ wishes to direct a total of $50k to various projects over the course of a year.
Do they write a check for $50k to IC3?
If so, then I assume IC3 takes 20% ($10k) and considers it part of the general fund that the IC3 board (aka Stewards) can allocate however they wish. Is that right?
And therefore this means that the rest ($40k) sits in the IC3 bank account until spent, right?
If so then is it the IC3 board who takes responsibility (and absorbs all liability) that the $40k is spent correctly according to the wishes of company XYZ?
For IC3 board to assume the liability it would seem prudent that IC3 require that the instructions from company XYZ as to who its money should be spent should be extremely precise and specific. Is that right?
If so then it would seem that this directed funding could only go either to (i) an IC3 WG that was itself a corporation, or (ii) to some external individual contractor or corporation. Is that right?
In other words the funding can't go WGs (esp. Focus Area WGs).
Daniel Perry
On Oct 21, 2010, at 9:42 AM, Paul Trevithick wrote:
> Do they write a check for $50k to IC3?
Presumably they would write a check payable to IC3 who would then hold the funds in trust for the intended beneficiary.
> If so, then I assume IC3 takes 20% ($10k) and considers it part of the general fund that the IC3 board (aka Stewards) can allocate however they wish. Is that right?
I was aware that a decision had been made to keep such an amount (i.e., 20%) for Stewards to determine allocation BUT if it has been disclosed to the donor and acceptable then fine.
> And therefore this means that the rest ($40k) sits in the IC3 bank account until spent, right?
It would sit in one of the IC3 accounts (perhaps a separate account) until the funds were exhausted.
> If so then is it the IC3 board who takes responsibility (and absorbs all liability) that the $40k is spent correctly according to the wishes of company XYZ?
Yes, as trustee of those funds, IC3 would act as fiduciary to a) the funds; b) the donor; and c) the intended working group beneficiary.
> For IC3 board to assume the liability it would seem prudent that IC3 require that the instructions from company XYZ as to who its money should be spent should be extremely precise and specific. Is that right?
Absolutely, Paul - I would insist upon clear direction and timelines - possibly date or event triggered.
> If so then it would seem that this directed funding could only go either to (i) an IC3 WG that was itself a corporation, or (ii) to some external individual contractor or corporation. Is that right?
Correct
> In other words the funding can't go WGs (esp. Focus Area WGs).
Incorrect conclusion. So long as there is a responsible identified individual(s) associated with the Focus Area WG, then the monies could "go" to that person(s) on behalf of the WG.
Daniel Perry, Esquire
4767 New Broad St, #1007
Orlando, FL 32814
Ph: 407-894-9003
Daniel Perry
If so, then I assume IC3 takes 20% ($10k) and considers it part of the general fund that the IC3 board (aka Stewards) can allocate however they wish. Is that right?
