What is a Non-Profit Organization?
A Non-Profit Organization (NPO) is a form of organization that is non-commercial in nature. It exists to further a cause, and uses any surplus revenue to do so, rather than distributing income to its shareholders, leaders or members. NPOs are tax exempt or charitable, meaning that they do not pay income tax on money that the organization receives. Wikipedia has more information.
Why does The Fuel Rats need a NPO?
Currently, The Fuel Rats uses a significant amount of resources of a few rats - monetarily, to the tune of around USD$150 per month. We have stopped taking donations as the process was not very transparent, and the merchandise sales are no longer active due to the costs and workload associated with them. The NPO opens up some avenues for us to hold accounts bound to the legal entity of the organization itself, rather than a single person taking on that responsibility. It also allows us to apply for free software and discounts from various vendors and providers that lessens the cost to those individual rats. It will also let us do a more transparent donation and merchandise process, since the finances are not tangled into another person's personal finances.
Does that mean the Fuel Rats will be controlled by the NPO?
No. The NPO is a legal entity that supports the Fuel Rats, not an entity that controls the Fuel Rats. It's more like a fan club, providing support to the players. The NPO will have a chairman and a vice chairman for legal reasons, but the responsibilities involved there will pretty much be to have a yearly meeting, spin a bottle to see who is chairman for the next year, and then move on. The NPO will exist solely to provide additional resources to the Fuel Rats, and let the rats who currently have to pay out of pocket off the hook for the costs associated with keeping us going.
So what does the NPO mean for the average rat?
In all honesty - not much. You will get an email or two from the NPO per year, telling you about the yearly meeting and its results. If you're already a registered rat when the NPO goes live, you'll probably get an email asking you to make an action on your rat account to determine if you want to be a member or not, since the opt-out will be part of the registration process. Other than that, the rats still operate exactly the same way as before.
Hey, if the NPO is getting free software and benefits, can I get it too?
No. Most, if not all such offers from software companies, specifically designate how such software can be used. It is usually restricted to NPO management and persons designated for specific tasks. If you're looking for specifics, take a look at TechSoups eligibility rules.
What are the details with regards to the NPO?
The NPO is based in Norway, as two of our willing rats live here, Norwegian NPOs are not required to have any strict regulatory oversight, and do not cost money to form. The signatories to the establishment of the NPO are Kenneth Aalberg (Absolver) and Alex Sørlie Glomsaas (xlexious). The foundation document (translated from Norwegian) can be found below. Our organization number (For tax deduction purposes and similar) is 920216730.
Do you need help with the NPO?
Thank you for offering, but there's really not a lot of management involved in the NPO itself. Nothing that really affects the Mischief is handled in the NPOs board; it exists to give us the ability to hold a bank account without ties to the personal account of any individual rat, and cleans up any tax concerns with regards to donations, and possibly merchandise. If you want to help the Mischief more than merely through ratting, consider working towards becoming an Overseer, or if you have skills with various code bases such as C#, C++, Java or Python, consider talking to the Tech Rats about helping out on our Open Source code projects
9 Comments
Falcon JSDF (Royd)
So Patreon? I would look into setting up merch again, even if it only the T shirts. Alot of the new rats would pay good money for them
Absolver
The specifics of how we're going to handle donations are not decided yet. We're leaning towards a donation drive that aims to recover simply our operating costs, rather than a running donation stream that might end up giving us a surplus we have to deal with.
Forming the NPO makes it easier to handle merchandising, as we can have a separate accounting for selling them, but the merchandising still needs to be handled by someone. Until we have someone willing and able to take up that responsibility, we're not going to spend too much time pondering that particular issue. It is covered by the bylaws for the NPO to assign such tasks, so it isn't a blocking issue to not have it set up yet.
Unknown User (zatie)
The old system worked just fine, bring back the US system
Absolver
There was no U.S system. How it was handled before was one guy doing merchandise sales and PayPal donations to his personal account. The NPO is forming not only to provide a clearer separation from an individual rat handling something for the Mischief as a whole, but also to give the numerous benefits of having a separate legal entity to handle such things. (And prevent things like the tax man showing up at the door of said rat, demanding to know why they've been receiving funds and not paying taxes for them.)
Falcon JSDF (Royd)
Transparency is easy, $150 dollars out each month. Donations in. Also if we are going to ask for donations we are going to have get the site fixed, the leader board still isn't right. My rescues are over estimated. My account is still garbage with join date and all the info is locked off. This has been left unfixed for far too long and needs to be sorted out.
Absolver
1) The leader board is not part of the vital operations of the Fuel Rats. Your rescue count being incorrect does in no way prevent clients from being rescued. Nor is it likely to affect any external parties from whether they choose to donate to the Fuel Rats or not. If you do not wish to donate to the Fuel Rats because your rescue stats are incorrect, you are entirely in your rights to do so.
2) Forming a NPO does not actually mean that any of the developers working on the website or any other Fuel Rat related system is going to get paid. It will be fixed when the unpaid people who are working on those systems have the time and the inclination to spend said time - for free - making those changes.
3) Transparency in this case will mean that the published budget and yearly financial report will be made public, as is required by law in Norway for NPOs. The budget and financial report will be posted to Confluence as well.
Unknown User (toynt420)
Mentioned this in chat, just popping a comment here so its on the thread.
Responding to Absolver's comment: "We're leaning towards a donation drive that aims to recover simply our operating costs, rather than a running donation stream that might end up giving us a surplus we have to deal with."
Have we thought about the possibility of donating anything we raise above operating costs to a charity? Giving clients the option to, if they wish, make a donation and anything we make above operating costs will be given to x charity. The idea of receiving voluntary donations from commanders who we've helped, in a video game, and merchandise sales and donate anything we make extra to a charity that is helping people in real life, seems pretty cool my head. Also it might elevate the concern about running up too much of a surplus, and if operating costs do change for any reason, we would know we're covered.
I know this is probably quite a bit in advance as we don't really know how much we're talking about yet.
I also don't know the logistics/legalities of an NPO donating to another NPO, from what I've read it is possible with some caveats such as no conflict of interest etc.
If this is considered, we can also think about think about the possibilities of donation drives during holiday/sale season for the chosen charity.. again thinking quite a bit in advance.
Astronowolf
This page could do with an quick update to reflect that we are taking taking donations once more.
Aldarion 3TwoAlpha
I fully agree with what Taynt posted: beautiful idea. Also it would help to prevent the taxman asking for money under the right circumstances (depending where one would donate) - at least after the laws of my country, which atm is Germany.