Minutes of the Meetings of the Finance Committee of the Internet Society

A meeting of the Finance Committee of the Internet Society (ISOC) was held on Thursday, September 26at 17:00 UTC. In attendance were Jason Livingood, Chair of the Finance Committee, and David Farber,Rudi Vansnick, Bert Wijen members of the Finance Committee.

Also in attendance were Lynn St.Amour, ISOC’s President and Chief Executive Officer, Greg Kapfer,Chief Financial Officer, Walda Roseman, Chief Operating Officer, Karen Rose Sr. Director, StrategicDevelopment & Business Planning Lynn McNair, Senior Director, Philanthropy and PartnershipDevelopment and Sandra Spector, Director of Finance.

Call to Order

Jason called the meeting to order.

2014 Planning Status

Lynn McNair detailed ISOC’s 2014 revenue goals stressing that these goals continue to be influenced by2013 actual revenue results. Greg stated that ISOC is working through 2014 budgets with a base revenueplan, as well as a stretch plan that Lynn McNair is currently reviewing. The business plan would be basedon the base revenue plan.

Greg explained that ISOC is currently compiling 2014 expenses and ensuring all that expenses are coveredin the 2014 budget, especially with regard to grant funding. Greg confirmed that the expenses were derivedusing the Board guidelines for 2014. Lynn St.Amour conveyed that ISOC would be reviewing the 2014 budget in detail and making strategic decisions to close any budget gap.

2014 Surplus and Addition to Continuity Funds.

Greg explained that the 2014 additions to continuity funds will likely be less than those needed to reach the$20 million goal by 2015, due to additional costs with regards to a CEO transition on the budget.

2015 and 2016 Outlook Years

Greg explained 2015 and 2016 would be assembled after the completion of the 2014 budget.

Presentation Changes

Greg walked through the new financial statement presentation that separated out “Fulfillment Expenses”.These expenses include the costs of fulfilling grants and equipment donations. These would no longer beincluded within the departments but broken out separately. This separation would show the overall impacton grants and equipment donations. The Committee agreed the new format presentation made thestatements more clear.

AOB

Walda summarized for the Committee potential additions to ISOC headcount in 2014 to reduce reliance oncontractors in IT (Drupal Development) and in Communications (Publicity and Media). Walda stressed that these additions would save on contractor costs and ensure critical functions were handled with internal staff. Bert suggested detailing out the financial impact these potential changes would have.

Walda also gave a plan for use of non-recurring funds to increase focus fund raising by placing funding specialists at the regional level to add regional emphasis to fund raising. Walda suggested an approach tomake a one-time investment in such revenue-generating resources that could pay for themselves within 12 – 18 months, and thereafter yield recurring annual funding sources.

With no further business, the meeting was adjourned at 18:00 UTC.