Internet Society 2006 Annual Report Copyright (c) Internet Society 2007. All rights reserved. TABLE OF CONTENTS Foreword by Daniel Karrenberg, Chair, Board of Trustees Foreword by Lynn St. Amour, President and CEO ISOC in 2006: A Year of Growth, Influence, and Leadership What Is the Internet Society? Related Organisations: IETF and PIR Members, Chapters, and Partners: Global Presence, Local Strength Plans for the Future: Growth, Refinement, and Ongoing Improvement Financial Report Notes on Financial Information For More Information OUR VISION From its inception the mission of the Internet Society has been to promote the open development, evolution, and use of the Internet for the benefit of all people throughout the world. We believe the standards, technologies, business practices, and government and community-driven policies connected with the Internet must sustain an open, universally accessible platform for innovation, creativity, and economic opportunity. In this way, the Internet can improve the quality of life for people in all parts of the world. Complementing its vision of the future is the Internet Society's vision of its role in creating that future: As the hub of a global network of individuals and organisations, the Internet Society is an effective advocate for the core values of an open and accessible Internet. FOREWORD BY DANIEL KARRENBERG, CHAIR, BOARD OF TRUSTEES In countless ways, 2006 was a turning point, both for ISOC and for the Internet community at large. Two notable events bracketed the year: In January, the world's premier Internet standards-making body celebrated its 20th anniversary and, in December, Time magazine--with its global audience of 27 million--named the Internet users of the world its 2006 Person of the Year. The significance of the IETF anniversary is impossible to overstate. The Internet Engineering Task Force (IETF) continues to make a significant contribution to the success of the Internet as we know it today. In 20 years, the IETF has not strayed from its belief in the power of building consensus or from its fierce commitment to an open process for standards development. Since its inception, those values have informed the vision of the Internet Society. As the organisational home of the IETF, ISOC made considerable strides in 2006 to consolidate the administrative support for the IETF. In 2007, we will continue our efforts to make the IETF even more accessible to engineers worldwide and to make the work of the IETF more transparent to those not directly involved in its work. By naming Internet users Person of the Year, Time magazine expressed what the Internet Society has known since it began: Those who are committed to keeping the Internet free of constraint, open, and accessible are shaping the future. ISOC is doing its share by supporting a growing number of local Chapters and Individual Members to do useful work in the development of the Internet. In 2007 we will improve our support for Chapters and we will work toward a renewed basis for our common efforts. We will also continue our close relationship with ISOC's Organisation Members through the Advisory Council. Throughout 2006, the Internet Society played an important role in the direction of Internet policy and governance through participation in international bodies, such as the Internet Governance Forum. In addition, the organization, its staff, and its partners worked diligently to increase Internet education and training in all regions of the world. Last, but not least, I am pleased to report that the Internet Society is in good financial health. Our challenge for the coming years will be to make the best use of our resources to meet diverse and sometimes competing needs. There are many more accomplishments, some of which you will read about in the pages of this annual report. Ultimately, however, it is the effort and work of all of us that made 2006 our most successful year yet. We look forward to even greater success in 2007 and beyond. To all who helped to make the Internet Society stronger and more influential than ever before, thank you! FOREWORD BY LYNN ST. AMOUR, PRESIDENT AND CEO It is my pleasure to report that in all programme areas, 2006 was a year of considerable progress and achievement for the Internet Society. With the addition of several new staff members, ISOC was able to significantly increase our education and training activities, Member and Chapter support, and public policy efforts, while also increasing our level of support to the Internet Engineering Task Force (IETF). Measuring the progress we've made in 2006 isn't difficult. Most notably, ISOC has made considerable strides in advancing our worldwide network of Chapters. ISOC Chapters work on the local level to energize the Internet community and to promote the proliferation and integration of Internet technologies in all areas of society. Chapters influence local and regional policy and they help ensure that a new generation of technologists and end users has access to the tools and information they need to succeed. With that in mind, I am especially pleased to announce that in 2006, ISOC successfully launched its first Regional Bureau--in Africa--as part of its efforts to support, amplify, and enhance all of our activities at the local level. A second bureau was launched in early 2007 in Latin America and the Caribbean. In addition, a number of INET workshops, Network Operating Group (NOG) events, and ccTLD workshops were held in developing countries with the support and participation of many of our Chapters. ISOC continued to assert its leadership on the international stage in 2006, lending its voice to a wide range of discussions on Internet policy and governance issues. In particular, ISOC participated in the Internet Governance Forum, which follows the World Summit on the Information Society, and staff members were actively engaged in a number of related activities, consultations, and international conferences. I am proud to report that ISOC's role in these various forums earned us considerable recognition and respect. The organisation's leadership was further reinforced through its contributions to discussions on the future of the Domain Name System transition and the U.S. Department of Commerce-Internet Corporation for Assigned Names and Numbers (ICANN) memorandum of understanding. Finally, ISOC was able to provide additional assistance to the IETF through greater support of its administrative activities and other contributions. As part of its efforts to make the benefits of IETF participation available to a wider audience, and to increase participation in the open development of standards, ISOC launched its Fellowship to the IETF programme, which places and mentors Internet technologists from developing nations at IETF meetings they would otherwise be unable to attend. In 2006, individuals from countries including Fiji, Kenya, Mexico, Somoa, and Togo participated in the programme. As ISOC's successes, resources, and leadership continue to grow, we look forward to meeting the new priorities of an ever-growing and changing Internet community. Our influence and our potential have gained considerable momentum and the future promises to be even more exciting. We look forward to working with our Individual and Organisation Members, Chapters, and partners to meet these challenges, to grow ISOC, and to help ensure the Internet is for everyone. Thank you for your support and encouragement. I look forward to working with all of you to make the Internet Society even stronger in the years to come. ISOC IN 2006 A YEAR OF GROWTH, INFLUENCE, AND LEADERSHIP From staff resources to global recognition, 2006 was a year of growth, influence, and leadership. Drawing on our roots as a leading force in Internet policy and education, ISOC has become a respected and mobilising presence among technologists, educators, and policy makers worldwide. ISOC Achievements ISOC's achievements in 2006 add up to more than just the sum of its parts. They speak to our desire to make a difference, both locally and globally. In 2006, ISOC began implementation of its strategic and multiyear Chapter development programme, which serves the interests of a critical segment of the global Internet community. The first Regional Bureau--a strategic activity that extends ISOC's reach in emerging markets--opened in Africa. Additional staff resources were secured to expand ISOC's ability to grow Membership, Chapters, education and policy initiatives worldwide. In recognition of ISOC's deepening influence in the area of Internet policy, ISOC president and CEO Lynn St. Amour was named to the Strategy Council of the United Nations Global Alliance for ICT Policy and Development. The position will enable her to play a central role in shaping the policy and development focus of that initiative. In addition, ISOC's director of public policy, Matthew Shears, joined the Advisory Group of the newly formed Internet Governance Forum (IGF), which represents major stakeholders within the Internet community. The Advisory Group was instrumental in determining the agenda, focus areas, and content of the first meeting of the IGF in Greece in October. These appointments, plus our contributions to the discussion on the future of the DNS transition and the USDoC-ICANN MoU, reinforced ISOC's role in both Internet governance matters and broader policy issues related to the Internet. ISOC participated in the International Telecommunication Union's 2006 Plenipotentiary Conference, where the Union's general policies and strategic and financial plans are set and the organisation's leadership, including Secretary General, elected. We also made substantive submissions into the National Telecommunications and Information Administration Notice of Inquiry and Public Hearing, as well as various OECD activities. 2006 was an important year for ISOC's educational initiatives, including the expansion of the regional INET meetings. In May, INET Africa was held in Nairobi, Kenya, in conjunction with the AfNOG and AfriNIC meetings. The second INET Africa, held in Mauritius in November, brought together 40 people from throughout Africa to work on Internet security issues. ISOC's financial support of the fellowship programme of AfriNIC-5 made it possible for many more individuals to attend than would otherwise be possible. In fact, during 2006, ISOC provided support to numerous network operator meetings, including AfNOG, SANOG, WALC, and PacNOG, all of which brought together network engineers for tutorials and workshops on contemporary technical, operational, and policy issues. With those accomplishments in mind, we believe ISOC's greatest achievement was the growth and maintenance of a team of experienced and influential staff members. In 2006, the Internet Society made a difference. Jonathan B. Postel Service Award In November 2006, the Internet Society announced that Bob Braden and Joyce K. Reynolds were this year's recipients of the prestigious Jonathan B. Postel Service Award. The award was presented for their stewardship of the RFC (Request for Comments) series that enabled countless others to contribute to the development of the Internet. Reynolds worked closely with Postel and, together with Bob Braden, she has been coleader of the RFC Editor function at the University of Southern California's Information Sciences Institute (ISI) since 1998. In this role she performed the final quality control function on most RFC publications. Braden, who has more than 50 years of experience in the computing field, joined the networking research group at ISI in 1986. He was active in the ARPAnet Network Working Group, contributing to the design of the FTP protocol in particular. He also edited the Host Requirements RFCs and cochaired the RSVP working group. The Jonathan B. Postel Service Award was established by the Internet Society to honour those who have made outstanding contributions in service to the data communications community. The award focuses on sustained and substantial technical contributions, service to the community, and leadership. The award is named after Dr. Jonathan B. Postel, who embodied all of those qualities during his extraordinary stewardship over the course of a 30-year career in networking. ISOC Funding Helps Chapters Shine In 2006, ISOC's Project Funding Initiative programme provided USD 105,900 in project support. Of the 12 applications funded, nine went to Chapter projects. More information about the programme can be found at www.isoc.org/chapters/projects. -ISOC Pacific Islands: Competition to localize Firefox to the native language of the user. USD 3,000 -ISOC Argentina and Disability & Special Needs: Promote Web Accessibility in Argentina. USD 6,450 -ISOC Belgium : Run a project called Internet Ombudsman. Defining success factors in e-business and e-security for the user. USD 7,500 -ISOC Hong Kong: Conduct and publish a study of the emerging Digital Sphere examining its impact and influence in Greater China. USD 9,000 -ISOC Pacific Islands: Conduct a study of the Internet in the Pacific Islands. USD 9,950 -Jim Forster: Development of the Airjaldi Summit, a three-day summit designed to explore the best means of integrating existing technologies into replicable and affordable wireless solutions for rural communities in developing countries and laying groundwork for establishing a wireless technologies training center in Dharamsala for students from developing countries. USD 10,000 -ISOC Georgia: Organise workshop on developing methods for distance education. USD 10,000 -ISOC Israel: Develop tools for online social networking between Arabic and Israeli high school students. USD 10,000 -ISOC Morocco: Create a portal for the visually impaired in Morocco. USD 10,000 -ISOC Quebec: Develop a showcase for achieving 95 percent Internet connectivity in Quebec by 2017. USD 10,000 -Christian Sandvig (University of Illinois): Produce an educational video, The Tribal Digital Village: The Value of Open Standards for Development. USD 10,000 -Siaosi Sovaleni (SOPAC Fiji): Produce an Internet educational booklet for Pacific Islands Kids. USD 10,000 ISOC Regional Bureaus In 2006, ISOC chose Dawit Bekele to open and lead its Regional Bureau in Africa, the first pilot site of a Regional Bureau for ISOC. The bureau will serve as a focal point for ISOC activities in the region related to education, capacity building, and public policy. Dr. Bekele, an Ethiopian citizen living in Addis Ababa, has been involved in numerous activities related to the Internet in Africa. The Regional Bureaus play an important role in all ISOC chapter development initiatives. They: * support and amplify existing chapter initiatives; * encourage new regional initiatives among chapters; * act as a resource for chapters and encourage, but not direct, chapter activities; * serve as an extension of the ISOC team in the region, including functioning as an integral part of the ISOC team working with chapters and members. "I'm very happy to be taking on this role and lending my efforts to making the Regional Bureau concept effective and meaningful for both Africa and ISOC," said Dr. Bekele. Internet Society-European Chapters Coordinating Council In 2006, the Internet Society-European Chapters Coordinating Council (ISOC-ECC), a coalition of ISOC's European chapters, was formalised as a legal entity. Headquartered in Barcelona, the ISOC-ECC promotes discussion among European chapters on topics of mutual interest in order to share information and experiences. The group also fosters European cooperation in Internet projects while promoting dialogue among European parties involved in Internet-related issues. In addition, it serves as a forum for collaboration on projects and activities supporting the Internet Society's global mission. For more information about the ISOC-ECC, see www.isoc-ecc.org. ISOC Fellowship to the IETF In 2006 ISOC announced the launch of the ISOC Fellowship to the IETF. With ISOC's support, the programme enables technologists from developing countries to be more involved in the IETF by attending meetings in person. The programme was piloted in July at IETF 66 in Montreal and in November at IETF 67 in San Diego. Five fellows participated in the progamme, one each from Kenya, Togo, Mexico, Fiji, and Samoa. Based on the success of the pilot, the Fellowship will be expanded as a core initiative in 2007. "Meeting those involved in the IETF, knowing the authors of drafts and RFCs, and seeing firsthand the relations among the working groups and other organisations is very useful," said fellow Azael Alcantara. "It reinforces what I do at work, increases my participation in mailing lists, and motivates me to write an RFC with others." For more information about the ISOC Fellowship Programme, see www.isoc.org/educpillar/fellowship/. WHAT IS THE INTERNET SOCIETY? The Internet Society was founded in 1992 to promote the evolution and growth of the Internet as a global communications infrastructure, to provide support for the Internet Engineering Task Force (IETF), and to encourage the responsible and effective use of the Internet through education, discussion, and advice to public policy makers. ISOC's activities--particularly in developing countries-- have helped expand the reach of the Internet, bringing benefits to people around the world. ISOC enjoys a well-deserved reputation for integrity and service to the public interest and is recognised as a strong advocate for the core values of an open and accessible Internet. Mission and Role The mission of the Internet Society is to promote the open development, evolution, and use of the Internet for the benefit of all people throughout the world. Together with our Organisation Members, Individual Members, Chapters, the IETF, and the Public Interest Registry, ISOC stands at the forefront of Internet standards development, education, and public policy. We collaborate with the Internet Corporation for Assigned Names and Numbers, the root server operators, the Network Startup Resource Center, and the Regional Internet Registries, as well as with national and international governments and civil society groups. Operating both on a local level and in the global arena, ISOC works to promote the formulation and adoption of policies that make the Internet accessible to everyone; to safeguard the integrity and continuity of Internet developments and operations; to support and contribute to the continuing evolution of the Internet as an open, decentralised platform for innovation, creativity, and economic opportunity; and to bring authoritative, unbiased information about the Internet to individuals and organisations in every part of the world. Core Values ISOC's core values are the fundamental principles that guide all of the organisation's activities. They are the beliefs and commitments on which ISOC's mission is based. * The quality of life for people in all parts of the world is enhanced by their ability to enjoy the benefits of an open and global Internet. * Well-informed individuals and public and private policy makers make up the foundation of an open and global Internet society. * If the Internet is to continue to be a platform for innovation and creativity, its open, decentralised nature must be preserved. * Enduring and sustainable progress toward ISOC's vision is best achieved by a combination of global initiatives and activities at a local level that engage people in their home regions. * Technical standards and Internet operating procedures should be developed and asserted through open and transparent processes, with minimal barriers to participation or to access to information. * The social, political, and economic benefits of the Internet are substantially diminished by excessively restrictive government or private controls on computer hardware or software, telecommunications infrastructure, or Internet content. * Rewarding and productive use of the Internet depends on the ability to trust critical services. Goals and Objectives ISOC pursues its mission and upholds its core values through programmes and projects that are designed to achieve specific goals and objectives in the three specific areas that define its scope: standards, education, and public policy. ISOC's standards activities uphold the model of Internet standards development that maximises participation and delivers the greatest benefits, while making the fruits of that process freely available to everyone. Through its education programmes, ISOC is able to deliver accurate and reliable information about the Internet--as well as assistance with Internet deployment and use. ISOC's public policy activities promote, uphold, and defend ISOC's core values in local, national, and international public policy forums, where decisions are made that affect the ability of people throughout the world to enjoy the benefits of the Internet. While many of the programmes and projects in those areas function independently, ISOC's efforts to advance standards, education, and public policy regularly converge to reflect the needs of our constituents and the realities of the marketplace. ISOC BOARD OF TRUSTEES The ISOC Board of Trustees generally consists of not more than 20 trustees, each holding office for a period of three years and for no more than two consecutive terms. Trustees are nominated, selected, and elected by ISOC Organisation Members, ISOC Chapters and Individual Members, and the IETF standards organisation. ISOC Trustees as of December 2006 (*Executive Committee member) With their representative region, term of office, and officer title Fred Baker*, U.S.A./Americas, 2002-08 Patrik Fältström, Sweden/Europe, 2006-09 Erik Huizer, Netherlands/Europe, 2002-07 Daniel Karrenberg*, Germany/Europe, 2005-08, Chair Veni Markovski, Bulgaria/Europe, 2002-07 (served until January 2007) Franck Martin*, Fiji/Oceana, 2006-09 Desirée Miloshevic*, Serbia/Europe, 2004-07 Glenn Ricart*, U.S.A./Americas, 2002-08 Stephen L. Squires, U.S.A./Americas, 2004-07 Lynn St. Amour*, Switzerland/Europe, 2001- , President/CEO Bill St. Arnaud, Canada/Americas, 2006-09 Patrick Vande Walle, Luxembourg/Europe, 2004-07 Baoping Yan, China/Asia, 2006-09 Officers (board appointments) Glenn Ricart*, U.S.A./Americas, 2002-08, Treasurer Scott Bradner*, U.S.A./Americas, 2006-07, Secretary Committees Fred Baker*, U.S.A./Americas, Elections Committee Chair Bill St. Arnaud, Canada/Americas, Nominations Committee Chair Glenn Ricart*, U.S.A./Americas, Treasurer, Audit Committee Chair, ISOC Liaison Fred Baker*, U.S.A./Americas, IETF Nominations Committee Liaison Internet Society Staff (*Joined in 2007) Dawit Bekele, Manager, African Regional Bureau, Addis Ababa, Ethiopia Sebastian Bellagamba*, Manager, Latin America and Caribbean Regional Bureau, Buenos Aires, Argentina Constance Bommelaer, Manager, Public Policy, Geneva Nancy Cole, Manager, Finance, Reston, Virginia Kevin Craemer*, Senior Manager, Events, Reston, Virginia Lynn DuVal, Director, Finance and Administration, Reston, Virginia Drew Dvorshak, Senior Manager, Organisation Members, Reston, Virgina Peter Godwin, Director, Information Technology, Geneva Mirjam Kühne, Senior Manager, Education, Geneva Martin Kupres, Manager, Corporate and Institutional Development, Geneva Anne Lord, Senior Manager, Chapters and Individual Members, Brisbane, Australia Lucy Lynch, Director, Technical Projects, Eugene, Oregon Terry Monroe, Director, Development and Membership, Reston, Virginia Karen Rose, Director, Education and Programmes, Sydney, Australia Matthew Shears, Director, Public Policy, Geneva Lynn St. Amour, President and CEO, Geneva Mark Thalhimer*, Director, Communications and Public Relations, Reston, Virginia Terry Weigler, Office Manager, Reston, Virginia Henri Wohlfarth, Web Developer, Geneva RELATED ORGANISATIONS IETF AND PIR The Internet Society is proud to be the organisational home of the Internet's premier Internet standards-making body: the Internet Engineering Task Force (IETF). Without the technical achievements of the IETF and its participants, the Internet would never have become the success that it is today. As a standardisation body, the IETF focuses on the development of protocols used in Internet-protocol-based networks. The IETF is different from most standardisation bodies in that it is a totally open community with no membership requirements. It is an international community of network designers, operators, vendors, and researchers concerned with the evolution of Internet architecture and the smooth operation of the Internet. ISOC provides a major source of funding and support for the IETF and its processes, including funding for the RFC Editor function. At the IETF's request, ISOC substantially increased its support to and participation in the IETF, with considerable progress being made in establishing a new, more productive and efficient administrative support structure. ISOC's support of Internet standards and the IETF also extends to its policy, education, and public relations functions as well as to its legal and insurance coverage. ISOC, along with its Platinum Contributors, is the IETF's sole source of financial support apart from IETF meeting revenue. Support from companies whose products and services so clearly depend on the standards developed by the IETF is essential. A major source of programme funding for many of ISOC's initiatives is the Public Interest Registry (PIR), a not-for-profit corporation created by ISOC in 2002 with ISOC as its sole member. PIR's mission is to manage the .ORG domain in an exemplary manner, while educating and empowering the global noncommercial community to use the Internet more effectively and, concurrently, to take a leadership position among Internet stakeholders on policy and related issues on behalf of the .ORG community. With support from PIR, ISOC was able to respond to regional coordinating groups that needed limited, supplemental funds to sustain local resources and to carry out important training events. Afilias Limited, a global leader in advanced domain name registry services, provides registry support services for PIR and is an ISOC Platinum Contributor. www.ietf.org, www.pir.org, www.afilias.info MEMBERS, CHAPTERS, AND PARTNERS GLOBAL PRESENCE, LOCAL STRENGTH Individual Membership The 24,000 Individual Members of the Internet Society bring a unique and valuable perspective to the organisation. They reflect the diverse needs of individuals throughout the world whose quality of life depend on unfettered access to the Internet. Through its Individual Membership programme, ISOC is able to complement the needs and contributions of large organisations and institutions with the social, cultural, and professional priorities of the men and women who make up the millions of Internet users worldwide. Individual Members in all parts of the world play important operational and strategic roles in ISOC. Unlike many traditional membership organisations--which typically focus mainly on serving their members--ISOC's primary mission is to support the development of the Internet. ISOC Members are partners who participate in the pursuit of that mission. Any individual who agrees to the ISOC Code of Conduct may join the organisation as an Individual Member. ISOC has two Individual Membership levels: Global Members, whose membership is free of charge, and Sustaining Members, who pay an annual membership fee, which provides additional financial support to the organisation. In addition to the benefits enjoyed by Global Members, Sustaining Members are eligible to participate in the election of ISOC trustees. Approximately 50 percent of ISOC's Individual Members are affiliated with an ISOC chapter. Many have a professional interest in the Internet and its related technologies; others are concerned about the role the Internet will play in their lives and in their communities. ISOC addresses those interests and concerns through its many programmes and communications activities, and by connecting its members to each other and to the many companies, organisations, and government bodies that are shaping the future of the Internet. Most important, Individual Members play a vital role in ISOC by serving as ISOC ambassadors in all regions of the world and by supporting ISOC's mission in promoting the open development of the Internet to people everywhere. www.isoc.org/members/ Chapters Internet Society Chapters are organised voluntarily by individual members who reside in a particular geographic region--such as a city, country, or larger geographic area--or who share a common interest, such as the needs of those with disabilities or other special needs. Chapters are approved by ISOC under procedures meant to empower meaningful activity on a local level while retaining an overall commitment to ISOC's goals and objectives. Chapters are expected to serve the interests of their specific geographic or nongeographic segment of the global Internet community in a manner consistent with ISOC's mission and core values. ISOC Chapters play two important roles: (1) They amplify, on a local or regional level, ISOC's efforts to achieve its mission and (2) they infuse ISOC with local and regional perspectives on developments and issues that affect the evolution of the Internet. ISOC's relationship with its Chapters is very much a two-way street: Chapters serve as local and regional agents of ISOC's mission, as well as important sources of the information that informs that mission. And, ISOC provides an infrastructure, educational opportunities, and global influence in support of local and regional growth of the Internet. Like all of our members, Chapters are partners that participate in the pursuit of our joint mission. Chapters enable ISOC Members to be personally involved in the future of the Internet. They bring a sharper and more personal focus to local and regional issues affecting the Internet. And they provide opportunities for those issues to be recognised. Chapters also offer numerous opportunities for Members to network with other Internet-oriented people and to participate in locally organised programmes and events that promote ISOC's core values. www.isoc.org/chapters/ Organisation Members Organisation Members are the critical link between ISOC and the interests of the private sector as well as governmental, nongovernmental, and civil society institutions. Their unique and well-informed perspectives provide insight into the needs of businesses and groups that depend on the global Internet for their successes. Representatives of each Organisation Member bring that perspective to ISOC through participation on the Advisory Council. ISOC's Organisation Members are corporations; nonprofit, trade, and professional organisations; foundations; educational institutions; government agencies; and other national and international groups that share ISOC's commitment to an open and accessible Internet. Their financial and intellectual investment is vital to ISOC's success. Similarly, membership in ISOC aligns those same businesses, groups, and institutions with an internationally respected and influential voice that speaks for the interests of all organisations that wish to ensure a fully accessible and highly functional Internet, whether they are technology developers or institutions that rely on the Internet to serve the needs of customers or constituents. As Members, businesses and noncommercial entities are positioned among leading Internet standards-developers and policy makers. Via membership, those same organisations contribute to the success of education and communications programs that increase the availability of the Internet to emerging markets. Organisation Membership is available at varied levels of annual support. ISOC welcomes general and directed sponsorships. in addition to membership fees. www.isoc.org/orgs/ ISOC's Platinum Contributor Programme ISOC's Platinum Contributor Programme enables supporters to dedicate their contributions to specific areas of activity. Funds are placed in a restricted account as determined by the Platinum Contributor and are used for those designated purposes. Platinum Contributor annual fees begin at USD 100,000 and are discounted by 50 percent for nonprofit organisations. Please consult ISOC's Web site to see a complete description of the Platinum Contributor Programme. www.isoc.org/members/platinum.shtml Platinum Programme Contributors Afilias is a global leader in advanced back-end domain name registry services and provides a wide range of advanced capabilities essential to the smooth and efficient operation of any Internet domain name registry. Afilias services support the operation of the .ORG registry. www.afilias.org ARIN (American Registry for Internet Numbers) is a Regional Internet Registry providing services related to the technical coordination and management of Internet number resources in its service region. www.arin.net Cisco Systems is the worldwide leader in networking for the Internet. Today, networks constitute an essential part of business, education, government, and home communications, and Cisco's Internet-protocol-based networking solutions form the foundation of these networks. www.cisco.com RIPE NCC is a Regional Internet Registry providing services related to the technical coordination and management of Internet number resources in its service region. www.ripe.net ISOC Bulgaria ISOC Bulgaria was integral in coordinating the 4 July meeting in Sofia between Bulgarian President Georgi Parvanov and Prime Minister Sergey Stanishev (both members of ISOC) and a delegation of IT experts, including Fred Baker, Vint Cerf, Esther Dyson, George Sadowsky, and Lynn St. Amour. Representatives from ISOC and others participated in a public session with the President's Information Technologies Council and met with Plamen Vachkov, minister of information technology and telecommunications, as well as representatives of private business, nongovernmental organisations, and the media. ISOC Germany Building on an effort initiated several years ago to document an historical time line about networks in Germany, ISOC Germany brought 100 networking pioneers to the Haus der Geschichte, the museum of German History, in April in Bonn, to celebrate 25 years of networking. The conference was a huge success and, in its aftermath, chapter representatives were approached about continuing the event. The Chapter is currently seeking a partner and talking to museums about setting up a collection of items and documents that will give future historians a chance to understand the development of networks and the Internet in Germany. www.isoc.de ISOC Hong Kong ISOC Hong Kong was formed by local Internet professionals and experienced users, with the mission to improve the Internet governance and on-line civil society in Hong Kong. Hong Kong enjoys an advanced Internet and telecommunications infrastructure and has one of the highest broadband penetration rates in the world. ISOC Hong Kong serves the community via the advocacy of important online civic values, such as information freedom, privacy, fair use, and digital inclusion. www.isoc-hk.org ISOC Puerto Rico As part of a government-sponsored programme, ISOC Puerto Rico (PR) provided underserved communities with community centers equipped with basic Internet infrastructure and training programs. The effort offers young people access to educational, career, and leadership-development opportunities via peer-to-peer learning, advanced Internet collaboration technology, and internship programmes. So far, ISOC PR has trained 25 public school teachers and more than 50 students. www.isocpr.org ISOC Senegal In partnership with l'Agence National de l'Informatique, ISOC Senegal moderated a national workshop on the digital economy in 2006. They also coordinated the ADEN project, a French initiative aimed at closing the digital divide through the use, for example, of community access centers in rural areas. The Chapter contributed to the development of a 2007-2010 strategic plan for the Agence de Regulation des Telecommunications et des Postes and participated in a study on the development and financing of universal service. The group launched a Java Users Group and coordinated an IPv6 deployment project that includes working with others to establish a test laboratory at the University of Sheik Anta Diop. www.isoc.sn ISOC Mexico The value of ISOC Mexico proved immeasurable in 2006 when it organised public discussions on topics such as cybercrime and phishing. The chapter contributed to a legislative discussion on spam and continues to connect those interested in innovation to the services that the Internet offers society. www.isocmex.org.mx ISOC Morocco With funding from USAID, ISOC Morocco trained 170 soon-to-be released detainees in basic Internet and computer skills. The Chapter served as coorganiser of the June ICANN meeting in Marrakech. It was instrumental in the creation of the Moroccan Task Force for the development and promotion of IPv6. The first summit of the Moroccan IPv6 Task Force took place in March 2006. ISOC Morocco's toolkit for teaching Internet usage has been adopted by the national commission that is supervising a nationwide program aimed at equipping 8,500 schools with computers and ensuring that information technology is an integral part of school curricula. www.misoc.ma ISOC Pacific Islands In 2006, ISOC Pacific Islands (PICISOC) organised PacINET 2006, the leading ICT conference for the region, in Samoa. The event was keynoted by Internet pioneer Vint Cerf and opened by the Hon. Tuilaepa Lupesoliai Sailele Malielegaoi, Prime Minister of Samoa. PICISOC also organised the Information and Communication Technologies to achieve Millennium Goals (ICT for MDG) at the Internet Governance Forum in Athens. The Chapter is a member of the Council of Regional Organisations in the Pacific (CROP) ICT Working Group. PICISOC also participates in the International Open Source Network node for the Pacific Islands. www.picisoc.org Chapters help ISOC see the world with local intelligence. They help local communities connect to, and be a part of, international developments. --Michiel Leenaars, ISOC Netherlands ISOC CHAPTERS WORLDWIDE Africa 1. Benin 2. Cameroon 3. Egypt 4. Gambia 5. Ghana 6. Mali 7. Mauritius 8. Morocco 9. Niger 10. Nigeria 11. Senegal 12. South Africa 13. Uganda Asia 14. Bahrain 15. Bangladesh 16. India-Delhi 17. Israel 18. Japan 19. Pakistan 20. Palestine 21. Philippines 22. Saudi Arabia 23. South Korea 24. Taiwan 25. Thailand 26. Turkey Europe 27. Belgium 28. Belgium-Wallonia 29. Bulgaria 30. Catalonia 31. Denmark 32. England 33. Finland 34. France 35. Germany 36. Greece 37. Hungary 38. Ireland 39. Italy 40. Luxembourg 41. Netherlands 42. Norway 43. Poland 44. Scotland 45. Serbia 46. Slovenia 47. Spain 48. Spain-Aragon 49. Spain-Asturias 50. Spain-Galicia 51. Spain-Madrid 52. Sweden 53. Switzerland-Geneva Latin America and the Caribbean 54. Argentina 55. Brazil 56. Colombia 57. Ecuador 58. Mexico 59. Peru 60. Puerto Rico 61. Venezuela North America 62. Canada 63. Canada-Quebec 64. Canada-Toronto 65. U.S.A.-Chicago 66. U.S.A.-Hawaii 67. U.S.A.-Los Angeles 68. U.S.A.-New Jersey 69. U.S.A.-New York Metro 70. U.S.A.-South-Central Texas 71. U.S.A.-Washington, D.C. Oceania 72. Australia 73. Pacific Islands Nongeographic Disability and Special Needs ORGANISATION MEMBERS THAT SUPPORTED THE INTERNET SOCIETY DURING 2006 ACOnet Afilias AfriNIC Alcatel APNIC ARIN Association for Computing Machinery Assumption University of Thailand Boeing Company Catapult Communications CERN Cisco Coallition for Networked Information COMPTEL DENIC eG DISA Dubai Municipality ECMA Educause Egypt Ministry of Communications & Information Technology Ericsson France Telecom Geneval Financial Center Foundation Gibtelecom Google Grabensee Rechtsanwaltkanzlei Hitachi HP Hungarnet/NIIF IAjapan IBM ictQATAR IEEE IIS Foundaton IIT Institute for Informatics & Telematics Intel Interact srl Interisle Consulting Group LLC Internet Initiative Japan Internet2 InternetNZ Japan Network Information Center Japan Registry Service Co. Ken Stubbs Internet Presence Consultant LACNIC Lombard Odier Darier Hentsch & Cie Lucent Matsushita Electric Co. Ltd. Microsoft Motorola NEC nic.at NOB Nokia Nominet NORDUnet Nortel NTT Nysernet OKI Electric RIPE NCC Siemens Networks GmbH & Co. KG SITA Stichting Nlnet Stockholm University Sunet Surfnet Swiss Federal Office of Communications Swisscom SWITCH TDC Song OY TERENA Thales UKERNA Uni-C UNINETT Norid University of Washington VanDyke Software Verizon WIDE Our company's future depends on an open and universally accessible Internet. The Internet Society's objective analysis of important policy and technology developments injects a critical and unique voice of reason into the worldwide debate about the Internet's future. Supporting ISOC is an absolutely essential element of our business strategy. --Lyman Chapin, Interisle Consulting Group Organisation Members' unique and well-informed perspectives provide insight into the needs of businesses and groups that depend on the global Internet for their success. PLANS FOR THE FUTURE GROWTH, REFINEMENT, AND ONGOING IMPROVEMENT The next few years will be focused on the growth, refinement, and improvement of many of ISOC's activities. We will work to sustain our leadership position in the Inter-net governance space and we will continue to assert our leadership in areas of significance to the Internet. ISOC's public policy programmes are expected to broaden and deepen in the future to address some unprecedented challenges facing the Internet today and tomorrow. The concept of "open development, evolution, and use of the Internet for the benefit of all people throughout the world" is under considerable pressure as a result of a number of commercial, technical, and policy challenges that are certain to influence the future of the Internet. To address those challenges, in 2007 ISOC will roll out a major new strategic policy programme under the umbrella of the User Centric Internet Campaign, in order to identify and address the forces that are likely to shape--and even change--the Internet and what it represents. In order to build on our position as a global organisation with a local perspective, ISOC will strengthen and expand its Chapters around the world. ISOC's Chapter development programme will inspire a stronger sense of shared purpose and mission by providing the tools and increased opportunities for Chapter-to-Chapter communication, information sharing, access to communications material, and supporting documentation on best practices, enhanced collaboration possibilities through the use of on-line tools and in person meetings and forums. Increased funding also will be available to Chapters via the continuation of the Project Funding initiative, a grant programme of USD 200,000 for projects that advance ISOC's mission and goals. In early 2007, ISOC launched its second Regional Bureau, this one serving Latin America and the Caribbean. Located in Buenos Aires, the Regional Bureau for Latin America and the Caribbean will be a focal point for ISOC activities in education, capacity building, and policy initiatives. The Regional Bureaus are a key element in the Chapter development programme stimulating enhanced participation and collaboration across ISOC activities and creating a stronger regional presence for ISOC. In addition to endorsing the need for ISOC to excel in its delivery of core technical education programmes, the Board of Trustees has voiced strong support for providing education to policy makers on the key issues that are shaping the future of the Internet, both regionally and globally. These types of activities signify a shift in ISOC's approach to programme development and implementation. In the future, our core interests in standards, education, and policy will be more fully integrated as the lines that separate those activities become increasingly indistinguishable in the marketplace. ISOC's education strategy will focus on growing and improving its technical and policy education activities in their own right, while leveraging opportunities to create synergy between the two. With the addition of a new director of education and programmes, we increased our staff and expanded the skill base dedicated to achieving our goals for the future. The ISOC Fellowship to the IETF, which was piloted in 2006, will be developed into a robust core initiative. The curriculum of the ccTLD workshops will be expanded to include an advanced course covering security issues in more depth. ISOC will establish Alumni Networks that will extend a student's education experience and facilitate communications between students after events. The Alumni Networks also will enable ISOC to maintain contact with our fellows and students as they progress in their careers. As part of our outreach initiatives, ISOC will continue publication of the popular IETF Journal. Also in 2007, ISOC will seek to heighten its coverage, visibility, and participation in international forums that focus on ICT development, education, and policy. We also plan to renew participation in the FRIDA and Pan-Asia Small Grants programmes, which support Internet capacity building in developing countries through small development grants. In 2007 and beyond, we will continue leveraging our experience and our expertise in order to positively shape and influence the future of the Internet for the benefit of individuals, organisations, and businesses worldwide. STATEMENT OF FINANCIAL POSITION 31 December 2006 31 December 2005 ASSETS Cash and cash equivalents $3,787,683 $1,451,012 Endowment-Public Interest Registry 1,725,297 2,540,338 Accounts receivable 153,988 100,178 Due from Public Interest Registry 622,439 - Prepaid expenses 133,211 28,435 ______________________________________________________________________________ TOTAL CURRENT ASSETS 6,422,618 4,119,963 Furniture, equipment, leasehold (Net) 220,476 203,545 OTHER ASSETS Deposits 48,213 8,213 TOTAL ASSETS $6,691,307 $4,331,721 ______________________________________________________________________________ ______________________________________________________________________________ LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable $859,079 $199,520 Accrued salaries and benefits 275,419 111,612 Security deposit - 8,083 Deferred revenue 270,387 235,826 Endowment due to Public Interest Registry 891,964 873,672 ______________________________________________________________________________ TOTAL CURRENT LIABILITIES 2,296,849 1,428,718 OTHER LIABILITIES Endowment due to Public Interest Registry 833,333 1,666,666 Security deposit 4,035 4,035 ______________________________________________________________________________ TOTAL LIABILITIES 3,134,217 3,099,414 NET ASSETS Unrestricted 3,526,925 1,185,001 Temporarily restricted 30,165 47,306 ______________________________________________________________________________ TOTAL NET ASSETS 3,557,090 1,232,307 TOTAL LIABILITIES AND NET ASSETS $6,691,307 $4,331,721 ______________________________________________________________________________ ______________________________________________________________________________ STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Year Ended 31 December 2006 (with Summarised Totals for the Year Ended 31 December 2005) Temporarily Unrestricted Restricted Totals 2006 Totals 2005 REVENUE Programme support $6,060,300 - $6,060,300 $3,400,000 Organisation Members and Platinum sponsors 1,087,152 - 1,087,152 994,621 Contributions 3,575 132,459 136,034 79,912 Individual Member dues 5,550 - 5,550 5,100 Interest/dividend income 100,821 206 101,027 27,102 IETF meetings and misc- ellaneous IETF revenue 2,323,849 - 2,323,849 - Other meetings, programme revenue, and miscellan- eous revenue 77,574 - 77,574 87,344 Net assets released from restrictions 149,806 (149,806) - - ______________________________________________________________________________ TOTAL REVENUE 9,808,627 (17,141) 9,791,486 4,594,079 EXPENSES Direct programme costs 6,338,287 - 6,338,287 3,459,193 General and administrative 1,108,416 - 1,108,416 841,502 Postel Award 20,000 - 20,000 20,000 ______________________________________________________________________________ TOTAL EXPENSES 7,466,703 - 7,466,703 4,320,695 Change in net assets 2,341,924 (17,141) 2,324,783 273,384 Net assets, beginning of year 1,185,001 47,306 1,232,307 958,923 ______________________________________________________________________________ NET ASSETS, END OF YEAR $3,526,925 $30,165 $3,557,090 $1,232,307 ______________________________________________________________________________ ______________________________________________________________________________ NOTES ON FINANCIAL INFORMATION Summary of Significant Accounting Policies and General Information The Internet Society was incorporated as a nonprofit organisation in the District of Columbia on 11 December, 1992 to provide leadership in Internet- related standards, education, and public policy. The Society is exempt from Federal income tax under Section 501(c)(3) of the Internal Revenue Code. The Internet Society is not a private foundation. Cash and Cash Equivalents For purposes of cash flows, the Internet Society considers all cash on hand, cash in banks, and cash invested with a short-term maturity of three months or less to be cash equivalents. Classification of Net Assets Net assets of the Internet Society are reported in two self-balancing groups. * Unrestricted net assets represent funds that are available for the support of the Internet Society's operations. They include contributions received without donor-imposed restrictions. * Temporarily restricted net assets represent resources that have been donated and are to be used in accordance with the stipulations set by the donor. Membership Dues Deferred revenue consists of membership dues collected in advance. Membership dues are recorded as deferred revenue upon receipt and are recognized as revenue ratably over the period to which the dues relate. Platinum Sponsors Platinum donations are recognised when committed by the donor. The revenue is recorded as temporarily restricted support, since the donor stipulates the use of the donated funds. When a donor restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities and change in net assets as net assets released from restrictions. Related-Party Transaction On 7 October, 2002, the Internet Society formed a separate but related entity known as Public Interest Registry (PIR) to operate the .ORG registry. PIR was incorporated as a Pennsylvania nonprofit corporation with the Internet Society as its sole member. Soon after incorporation, PIR applied to the Internal Revenue Service for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. In July 2004, PIR received a favorable ruling from the IRS and was granted tax-exempt status. In January 2003, the Internet Society became custodian of a USD 5,000,000 grant given to them on behalf of PIR. The grant is to be distributed evenly in the amount of USD 833,333 per year plus accrued interest through 2008. The funds are to be used to establish an endowment to fund future operating costs of PIR. If PIR loses its status as the operator of the .ORG registry, the remaining endowment will be transferred to the successor registry operator. In any year in which PIR creates a surplus over a predetermined reserve for operating expenses, the surplus is transferred to the Internet Society in support of its mission. In 2006, this surplus provided over sixty-one percent of the Internet Society's revenue. Internet Administrative Support Activity In 2005, the Internet Engineering Task Force (IETF), a large, international community of network designers, operators, and researchers responsible for developing and defining the standards and protocols that make up the Internet, restructured their support operations within the Internet Society. The Internet Society has always considered itself the organizational home of the IETF; however the Secretariat function and other administrative duties were performed by other organizations. In early 2005, as part of a long-term restructuring plan, the IETF created an IETF Administrative Support Activity (IASA), to replace the other organizations and formally structure all administrative support functions within the Internet Society. In December 2005, the IETF, the Internet Society and the Corporation for National Research Initiatives (CNRI) created the IETF Trust to hold existing and future intellectual property used in connection with the Internet standards process and its administration. The trust was organized and operates so that it may qualify for exemption from Federal income tax under Section 501(c)(3) of the Internal Revenue Code. During 2006, the Trust had no income of its own and all its expenses were funded by the Internet Society. The creation of the Trust and transfer of the intellectual property was the last step in the restructuring plan of the IETF. Awards The Jonathan B. Postel Service Award was established by the Internet Society to honor those who have made outstanding contributions in service to the data communications community. The USD 20,000 Award is given annually and is named after Dr. Jonathan B. Postel, who embodied technical expertise, extraordinary leadership, and service to the community over his thirty-year career. Temporarily Restricted Net Assets Temporarily restricted net assets at December 31 consist of: 2006 2005 Security Expert Initiative (EU) $ -- $47,232 Jonathan B. Postel Service Award -- 74 Postel Network Operator's Scholarship Fund 30,165 -- Net Assets Released from Restriction Net assets which were released from restrictions by incurring expenses, which satisfied the restrictions specified by the donor: 2006 2005 Security Expert Initiative (EU) $149,232 $145,859 Jonathan B. Postel Service Award 574 20,000 All figures cited in U.S. dollars. FOR MORE INFORMATION About ISOC ISOC Strategic Operating Plan www.isoc.org/isoc/mission ISOC Financial Statements www.isoc.org/isoc/fin/ ISOC Board of Trustees www.isoc.org/isoc/general/trustees/ ISOC Staff www.isoc.org/isoc/general/staff/ Standards ISOC Internet Standards Programmes www.isoc.org/standards/ Internet Engineering Task Force www.ietf.org Internet Architecture Board www.iab.org Public Policy ISOC Public Policy Programmes www.isoc.org/policy/ World Summit on the Information Society (WSIS), Working Group on Internet Governance (WGIG) www.isoc.org/isoc/conferences/wsis/Education ISOC Education Programmes www.isoc.org/edu/ ISOC Workshop Resource Centre ws.edu.isoc.org Membership Individual Membership www.isoc.org/members/ Organisation Membership www.isoc.org/orgs/ ISOC Advisory Council www.isoc.org/orgs/ac.shtml Platinum Programme www.isoc.org/members/platinum.shtml ISOC Chapters www.isoc.org/chapters/ ISOC Chapter News www.isoc.org/members/newsletters/ ISOC Member Surveys www.isoc.org/members/surveys/ ISOC Discussion Groups www.isoc.org/members/discuss/ Publications ISOC Member Briefings www.isoc.org/briefings/ ISP Column www.isoc.org/pubs/isp/ Articles of Interest www.isoc.org/pubs/int/ Press Press Releases www.isoc.org/isoc/media/releases/ Conferences www.isoc.org/isoc/conferences/ Public Interest Registry www.pir.org About the Internet Histories of the Internet www.isoc.org/internet/history/ JOIN ISOC TODAY! www.isoc.org/members CONTACT INFORMATION 1775 Wiehle Avenue, suite 102, Reston, VA 20190 U.S.A. tel +1 703 326 9880 * fax +1 703 326 9881 info@isoc.org www.isoc.org 4, Rue des Falaises | CH-1205 Geneva, Switzerland tel +41 22 807 1444 * fax +41 22 807 1445 info@isoc.org www.isoc.org