[Chapter-delegates] Follow-up on Chapters Advisory Council Meeting of 17 September 2024

[Ilona Levine]

Dear Olivier,
I understand that the nature of your request is to assist the Chapters Advisory Council and Chris Locke in preparation to his session on the communication plan. The agreement in place since 2018 between the Foundation and Internet Society focuses on the legal obligations in line with the Foundation's role as a 509(a)(3) and therefore, won’t be useful for that purpose.
Best regards,
Ilona

From: Olivier MJ Crépin-Leblond <ocl at gih.com>
Date: Sunday, September 22, 2024 at 8:52 AM
To: Ilona Levine <levine at isoc.org>, Ted IETF <ted.ietf at gmail.com>
Cc: Chapter Delegates <Chapter-delegates at elists.isoc.org>, Sally Wentworth <wentworth at isoc.org>
Subject: Re: Follow-up on Chapters Advisory Council Meeting of 17 September 2024

Dear Ilona,

thank you for clarifying that all necessary legal documents, including agreements, have been duly executed to respect the separate nature of the two organisations.

I am aware of the publication of the original IETF Administration LLC agreements with the Internet Society, specifically:
IETF-ISOC Funding Agreement (2020)<https://www.ietf.org/media/documents/IETF_Funding_Agreement_-_Executed_-_20201123.pdf>
IETF-ISOC Funding Agreement Amendment (2020)<https://www.ietf.org/media/documents/IETF_ISOC_Funding_Amendment_Amendment_-_20201222.pdf>
IETF-ISOC Funding Agreement Amended and Restated (2024)<https://www.ietf.org/media/documents/ISOC-IETF_Amended_Funding_Agreement_-_20240103_-_Redacted_Executed.pdf>

These documents are accessible on the IETF Administration LLC’s website at https://www.ietf.org/administration/overview/.

Could you kindly confirm whether the agreements between the Foundation and the Internet Society are also publicly available? I have been unable to locate them on either website.

I would appreciate it if you could provide a list of the agreements to which you refer, including the date of the agreement, the name of the agreement, the signatory parties, and a brief description of each agreement.

I look forward to your kind response.

Kindest regards,

Olivier

On 20/09/2024 19:48, Ilona Levine wrote:
Hi Olivier, thank you for your follow up email.  You noted that you are aware of the tax requirements that apply to supporting organizations.  Mainly, those requirements relate to supporting the mission of its supported entities.  In this case, the Internet Society.

As part of that support, the Foundation provides grants to other organizations that have missions consistent with the Internet Society’s in order to fund programs that further the Internet Society’s purposes. The Foundation also engages in activities that support Internet Society directly. For example, the Foundation engages in fundraising and communication activities for the benefit of the Internet Society.

As you also pointed out, the Foundation is a separate legal entity.  It is a controlled subsidiary of Internet Society.  All necessary legal documents, including agreements, have been put in place to respect the separate nature of the two organizations.

I trust this answers your question.

Best regards,
Ilona

Ilona Levine, SVP, General Counsel and Corporate Secretary
levine at isoc.org<mailto:levine at isoc.org>|
internetsociety.org | @internetsociety
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From: Olivier MJ Crépin-Leblond <ocl at gih.com><mailto:ocl at gih.com>
Date: Friday, September 20, 2024 at 11:38 AM
To: Ted IETF <ted.ietf at gmail.com><mailto:ted.ietf at gmail.com>, Ilona Levine <levine at isoc.org><mailto:levine at isoc.org>
Cc: Chapter Delegates <Chapter-delegates at elists.isoc.org><mailto:Chapter-delegates at elists.isoc.org>, Sally Wentworth <wentworth at isoc.org><mailto:wentworth at isoc.org>
Subject: Re: Follow-up on Chapters Advisory Council Meeting of 17 September 2024

Dear Ted,

thank you for your follow-up on this matter. I am aware of the special tax terms in relation to "supporting organisations".

That being said, the Internet Society Foundation is a distinct and separate legal entity to the Internet Society, irrespective of the relationship between them. As a result, any outsourcing task undertaken by one, for the other entity, would be defined in a contract, whether written, verbal or otherwise. If not, there is a lack of clarity and expectations about the relationship, which brings potential liability and risk that both entities are subjected to, in relation to the other's actions. Any lawyer would tell you that it is highly advisable to have a written contract, if only for legal protection.

Thanks for letting me know that you are travelling. I am copying President and CEO Sally Wentworth in case you're unavailable for a length of time.

Kindest regards,

Olivier
On 20/09/2024 13:12, Ted Hardie wrote:
Hi Olivier,

A supporting organization is a term of art in US tax law, please see:

https://www.irs.gov/charities-non-profits/charitable-organizations/supporting-organizations-requirements-and-types

and

https://www.irs.gov/charities-non-profits/section-509a3-supporting-organizations

Explaining how the two relate is complicated enough that there are legal briefs on it; I have cc'ed the Society's chief counsel in case you would like that level of detail.  The summary, however, is that a supporting organization is a charity because it supports the charitable purpose of the main organization.  As a result, it can provide services to the main organization under the special tax rules noted above.

Note that I am traveling and will generally be slow to respond for a few days, but hopefully the links above will get you started and Ilona can provide more detailed legal information as needed.

regards,

Ted Hardie


On Fri, Sep 20, 2024 at 6:24 AM Olivier MJ Crépin-Leblond <ocl at gih.com<mailto:ocl at gih.com>> wrote:
Dear Ted,

During this week’s Chapters Advisory Council call, you mentioned that the Internet Society Foundation, as a "supporting organisation" of the Internet Society, is managing the communications department for the Internet Society.

Upon seeking clarification, you explained that the Internet Society Foundation comprises two elements: one philanthropic (grant-making) and the other as a "supporting organisation" of the Internet Society. "This implies that many of the supporting functions for the Internet Society as a whole are now part of the Foundation, primarily because the Foundation can provide these services to the Internet Society at no cost".

You further elaborated that this "arrangement" allows the Internet Society to allocate its budget more effectively.

I was previously unaware of this change. Although the Internet Society Foundation may have been designated by the Internet Society as a "supporting organisation" of the Internet Society, it remains a distinct and separate legal entity. Therefore, I assume that any "outsourcing" of responsibilities such as Marketing and/or Communications would be defined in a written "contract for services" between the Parties setting out (inter-alia) the terms, rights, and obligations of each Party. Could you please provide the terms for such an agreement and any limitations therein?

My principal concern lies in distinguishing between executing the Communications Plan and drafting the Communications Plan. These are fundamentally different tasks and would undoubtedly be included in the "contract for services".

The "contract for services" (together with any relevant supporting information) will be helpful input for both the Chapters Advisory Council and also for Chris Locke and his Team (including for the current "branding" presentations) in preparation for the promised session from Chris Locke to the Chapters Advisory Council.

I look forward to your response and to receiving a copy of the "contract for services" agreement, together with any relevant supporting information as requested above.

Kindest regards,

Olivier





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