[Chapter-delegates] FYI - new post - The Sale of PIR: The Internet Society Board Perspective

Thu Dec 5 08:13:52 PST 2019

Hi Reuben,

Revenue diversification has been a concern for board going back a decade or
more.  If you look at the minutes of Board Meeting 83 (Nov. 2010) [1], you
can see that the staff prepared a full report to the board on revenue
diversification ideas.  More recently, the board authorized an investment
in DiamondKey Security [2], in part based on the possibility that DKS could
produce another revenue stream.  Unfortunately, none of the above ideas has
panned out.

Given that history, the endowment-like approach is a better type of
diversification for this organization.  The members of the Internet Society
board are not venture capitalists, nor should they be.  With an
endowment-like structure, the board can focus on establishing the right
guidelines for where our resources should be invested, and leave the
precise choice of investments to professionals with the right expertise.
They specialize in the money; we specialize in the mission.

Hope that helps,
--Richard

[1] https://www.internetsociety.org/board-of-trustees/minutes/83
[2] https://www.internetsociety.org/board-of-trustees/minutes/139

On Thu, Dec 5, 2019 at 10:09 AM Reuben Loewy via Chapter-delegates <
chapter-delegates at elists.isoc.org> wrote:

> 
> Dear All,
>
> Thank you for your replies.
>
> I am curious to learn when this concern about ISOC’s dependency on a
> single (albeit lucrative) stream of income first arose. What efforts were
> made over the years to diversify? Or charge a membership fee? Drum up more
> commercial sponsorship for our activities (without exposing ISOC to
> conflicts of interest, naturally)?
>
> I believe transparency about these question may help shed light on the
> background and motives for the Ethos deal.
>
> Reuben
>
>
> Reuben Loewy
> Living Online Lab
> The Curriculum for the Digital Era
> - a registered 501(c)3 nonprofit
> www.livingonlinelab.org
> Tel: 609.947.3782
>
>
>
>
>
> On Dec 5, 2019, at 09:56, Gonzalo Camarillo via Chapter-delegates <
> chapter-delegates at elists.isoc.org> wrote:
>
> 
>
> Exactly, the scope of ISOC’s mission is much wider. And yes, it is true
> that this would prevent that potential moral hazard in our policy work.
>
>
>
> Cheers,
>
>
>
> Gonzalo
>
>
>
> *From:* Chapter-delegates <chapter-delegates-bounces at elists.isoc.org> *On
> Behalf Of *Livingood, Jason via Chapter-delegates
> *Sent:* Thursday, December 5, 2019 14:08
> *To:* chapter-delegates at elists.isoc.org
> *Subject:* Re: [Chapter-delegates] FYI - new post - The Sale of PIR: The
> Internet Society Board Perspective
>
>
>
> Quite right, Gonzalo. Risk & diversification are all relative. For ISOC,
> PIR poses a concentration risk. For Ethos, PIR is more likely part of a
> diversification strategy (in particular by adding an investment that may be
> less correlated to public equity markets).
>
>
>
> Also, with respect to “…if there is a problem with the single revenue
> stream coming from OUR industry, the one we have relied so far upon, means
> that there is a real problem we have to face and fix” I would say two
> things. First, ISOC’s industry is IMO the whole of the Internet and what is
> best for all users – which is much bigger that the narrower domain name
> industry. Second, a side effect of the sale is that ISOC will have a freer
> hand to express views on the domain name industry, on the future of domain
> names, technical alternatives to that system, and so on without fear of the
> potential negative effects on an operating business that supplies most of
> their income.
>
>
>
> Jason
>
>
>
> *From: *Chapter-delegates <chapter-delegates-bounces at elists.isoc.org> on
> behalf of Gonzalo Camarillo via Chapter-delegates <
> chapter-delegates at elists.isoc.org>
> *Reply-To: *Gonzalo Camarillo <gonzalo.camarillo at ericsson.com>
> *Date: *Thursday, December 5, 2019 at 3:08 AM
> *To: *Reuben Loewy <rloewy at me.com>
> *Cc: *"chapter-delegates at elists.isoc.org" <
> chapter-delegates at elists.isoc.org>
> *Subject: *Re: [Chapter-delegates] FYI - new post - The Sale of PIR: The
> Internet Society Board Perspective
>
>
>
> Hi Reuben,
>
>
>
> different people have different risk profiles. It depends on what your
> goal is. ISOC’s goal is to have a stable and reliable revenue stream to
> fund our mission-oriented work. Ethos’s goal is different and, thus, their
> appetite for risk may be different as well.
>
>
>
> Cheers,
>
>
>
> Gonzalo
>
>
>
> *From:* Reuben Loewy <rloewy at me.com>
> *Sent:* Wednesday, December 4, 2019 18:54
> *To:* Gonzalo Camarillo <gonzalo.camarillo at ericsson.com>
> *Cc:* Enzo Puliatti <epuliatti at itsyn.com>;
> chapter-delegates at elists.isoc.org
> *Subject:* Re: [Chapter-delegates] FYI - new post - The Sale of PIR: The
> Internet Society Board Perspective
>
>
>
> With all due respect, Gonzalo.
>
>
>
> If PIR’s single-stream funding model was not “resilient”, “future proof”,
> and diversified, then one might legitimately ask why anyone would want to
> pay ISOC over $1 B to purchase it.
>
>
>
> With regards,
>
> Reuben
>
>
>
> ISOC New York
>
>
>
>
>
> Reuben Loewy
>
> Living Online Lab
>
> The Curriculum for the Digital Era
>
> - a registered 501(c)3 nonprofit
>
> www.livingonlinelab.org
> <https://protect2.fireeye.com/v1/url?k=ddc32830-814af277-ddc368ab-0cc47ad93e96-af8371a935f48fec&q=1&e=0f7020d3-e37f-41d8-a978-3446ac055f83&u=https%3A%2F%2Furldefense.com%2Fv3%2F__https%3A%2Fprotect2.fireeye.com%2Fv1%2Furl%3Fk%3D1d77800c-41fd552a-1d77c097-86aae6564056-8670e82a6ba11df2%26q%3D1%26e%3Dd94f983d-3a1b-4b28-82e1-c2f667277cb7%26u%3Dhttp%2A3A%2A2F%2A2Fwww.livingonlinelab.org%2A2F__%3BJSUlJQ%21rx_L75ITgOQ%21Sg1iU67gAT4TGpCrF9YQ20iaIk8F9bxT9Z5x4Ebxq0QI7YaoUvpwIszCtqFJv5Uzz3gnaw%24>
>
> Tel: 609.947.3782
>
>
>
>
>
>
>
>
>
>
>
> On Dec 4, 2019, at 06:49, Gonzalo Camarillo via Chapter-delegates <
> chapter-delegates at elists.isoc.org> wrote:
>
> Hi Enzo,
>
>
>
> ISOC’s mission is too important to depend on a single source of revenue,
> no matter how solid the source currently may seem to be. Putting all your
> eggs in the same basket is not a good financial approach. Our job is to
> make sure that the activities that support our mission are supported, in
> turn, by a **resilient** funding model. It is a way to future proof our
> mission.
>
>
>
> Cheers,
>
>
>
> Gonzalo
>
>
>
> *From:* Enzo Puliatti <epuliatti at itsyn.com>
> *Sent:* Wednesday, December 4, 2019 10:31
> *To:* Gonzalo Camarillo <gonzalo.camarillo at ericsson.com>
> *Cc:* chapter-delegates at elists.isoc.org
> *Subject:* Re: [Chapter-delegates] FYI - new post - The Sale of PIR: The
> Internet Society Board Perspective
>
>
>
> Dear Gonzalo,
>
>
> first of all, I would like to thank you all for the effort done in sharing
> your views with us and for answering our concerns. Thanks also for the blog
> that resume pretty well the issues discussed.
>
>
> I would like to share my concern with a statement I have heard during the
> call that I also find stated in the blog:
>
>
> “we will no longer be reliant on one single revenue stream, from one
> company, in one industry”.
>
> Maybe it’s only me but this statement strikes me: we are those who have
> made it happen so far and if there is a problem with the single revenue
> stream coming from OUR industry, the one we have relied so far upon, means
> that there is a real problem we have to face and fix. Being comfortable if
> such a problem exists but will not affect our revenue stream sounds more
> like a statement from the board of a company with a purely speculative
> approach aimed to maximise its revenues and profits.
>
> Independently from the issue we are currently discussing, I would like to
> say that personally I feel quite happy in ISOC relying on a revenue stream
> coming straight from our industry and that in any case I personally cannot
> see this as a plus in favour of the sale of the PIR. Even if it’s a
> financially sound approach sounds pretty bad to the ears of those thousands
> of activist that during all these years have worked as volunteer dedicating
> time and money to our cause.
>
> Best regards,
>
>
>
> Enzo Puliatti
>
> ISOC Italy
>
>
>
> On Wed, Dec 4, 2019 at 9:15 AM Gonzalo Camarillo via Chapter-delegates <
> chapter-delegates at elists.isoc.org> wrote:
>
> Hi,
>
> FYI: we have just published this post on behalf of the Board of Trustees:
>
> https://www.internetsociety.org/blog/2019/12/the-sale-of-pir-the-internet-society-board-perspective/
> <https://protect2.fireeye.com/v1/url?k=6835cf12-34bc1555-68358f89-0cc47ad93e96-78556a400f922b85&q=1&e=0f7020d3-e37f-41d8-a978-3446ac055f83&u=https%3A%2F%2Furldefense.com%2Fv3%2F__https%3A%2Fwww.internetsociety.org%2Fblog%2F2019%2F12%2Fthe-sale-of-pir-the-internet-society-board-perspective%2F__%3B%21rx_L75ITgOQ%21Sg1iU67gAT4TGpCrF9YQ20iaIk8F9bxT9Z5x4Ebxq0QI7YaoUvpwIszCtqFJv5ULpCwadw%24>
>
> Cheers,
>
> Gonzalo
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> --
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> ****
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>
> Vincenzo Puliatti
>
> Amministratore Unico - ITSYN Srl
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>
>
>
> <epuliatti at itsyn.com>
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