[ALAC] Briefing note: Use of gTLD Auction Proceeds for ICANN Reserve

Wed Oct 25 03:28:53 UTC 2017

Alan.. I believe that Judith was simply explaining where the auctions group
is up to at this point in time.

We have been discussing potential uses of the funds and are now looking at
how they might be administered. We have already been asked about how much
of the funds might be given back to ICANN as part of their reserve and the
consensus appeared to be that if anything was going to go back as reserve
funds then it would not be over the 10% mark.

You are right though, we should get some feedback from the rest of the ALAC.

My 2c
Maureen

On 25/10/2017 4:13 pm, "Alan Greenberg" <alan.greenberg at mcgill.ca> wrote:

> Judith, I feel it is important to get the feeling of At-Large. What others
> feel is not the issue here. It is not unusual for us to have a different
> view. Occasionally we actually convince others to follow us and not the
> other way around.
>
> The IANA transition is one such case. And the accountability measures.
>
> Alan
> --
> Sent from my mobile. Please excuse brevity and typos.
>
> On October 24, 2017 11:04:20 PM EDT, Judith Hellerstein <
> judith at jhellerstein.com> wrote:
>>
>> HI Alan,
>>
>> Thanks for beginning this conversation and I look forward to the
>> discussion.  What Alan has left out is that there was a survey done of all
>> the members and the participants about what types of activity could
>> possibly receive money from Auction Proceeds.  We heard several
>> presentations by Xavier and his team and by Samantha Eisner to give
>> everyone a better understanding of the situation. While the survey showed
>> that putting money back in the reserve fund is an option, however, it
>> scored much lower than other options such as Capacity building and training
>> activities.  Moreover, while people thought that the reserve fund could be
>> an option, the feeling was that it should be under 10%.  There were a
>> number or arguments that ICANN should use other money to replenish the
>> reserve and that this money should not be used to do this. Others thought
>> that the reserve fund could be a possibility but thought it should be 5%
>> and not 20%.
>>
>> Currently the group is reviewing types of categories and capacity
>> building activities that could be candidate for the proceeds and are also
>> within the ICANN bylaws and mission. We also came up with a preamble of
>> what we mean by the Open Internet and now will be focusing on compiling a
>> list of possible mechanisms that could be considered by CCWG guided by a
>> frame work of several different approaches for managing the money. 1) have
>> the personnel and staff to be part of ICANN.org, (This department would be
>> part of ICANN Org and take full responsibility for solicitation and
>> evaluation of proposals, and disbursement process, in accordance with the
>> recommendations of the CCWG) 2) a Hybrid organization, this would be one
>> where Proceeds Allocation Department Created as part of ICANN Org which
>> would work in collaboration with an existing charitable organization
>> (Responsibilities for solicitation and evaluation of proposals, and
>> disbursement process would be split between the newly created department
>> and the existing charitable organizations) 3)A new structure would be
>> created outside of ICANN Org which would be responsible for solicitation
>> and evaluation of proposals, and disbursement process, in accordance with
>> the recommendations of the CCWG.4) An established entity / entities (e.g.
>> foundation or fund) would be responsible for solicitation and evaluation of
>> proposals, and disbursement process, in accordance with the recommendations
>> of the CCWG.
>>
>> Looking forward to seeing everyone soon
>>
>> Judith
>>
>> _________________________________________________________________________
>>
>>
>> Judith Hellerstein, Founder & CEO
>> Hellerstein & Associates
>> 3001 Veazey Terrace NW, Washington DC 20008
>> Phone: (202) 362-5139  Skype ID: judithhellerstein
>> Mobile/Whats app: +1202-333-6517 <+1%20202-333-6517>
>> E-mail: Judith at jhellerstein.com   Website: www.jhellerstein.com
>> Linked In: www.linkedin.com/in/jhellerstein/
>> Opening Telecom & Technology Opportunities Worldwide
>>
>>
>> On 10/24/2017 9:05 PM, Alan Greenberg wrote:
>>
>> Thanks Leon, and thank you for starting the discussion via e-mail.
>>
>> The ongoing replenishment (or growth) is, in my mind, a given, and
>> hopefully that message will be clear from the public comment.
>>
>> For the auction funds, I would tend to limit any contribution to perhaps
>> 20% if we have the full $235m, and of course less if we have a smaller
>> amount. My rationale is rather self-serving in that if we do not get such a
>> contribution, there will be a  big draw on annual budgets for some years to
>> come to get up to a reasonable level, and that will put great pressure on
>> operational budgets and the AC/SO budgets which are perhaps more
>> vulnerable.
>>
>> Alan
>>
>>
>>
>> At 24/10/2017 07:31 PM, LeÃ³n Felipe SÃ¡nchez AmbÃa wrote:
>>
>> Thanks Alan,
>>
>> I believe that replenishing the reserve fund at least in the same amount
>> to that spent in the transition should be supported by us all.
>> We should also be asking the ICANN Org on a plan to continue this
>> replenishment until it reaches its desired/planned level.
>>
>> My 2 cents
>>
>> Leon
>>
>> Enviado desde mi iPhone
>>
>> El oct. 25, 2017, a la(s) 2:07 a. m., Alan Greenberg
>> <alan.greenberg at mcgill.ca> <alan.greenberg at mcgill.ca> escribiÃ³:
>>
>> > This is a briefing note in preparation for the discussion in AbuDhabi
>> current scheduled for 9:30 am, local time, on Sunday.
>> >
>> > As is common for non-profit organizations, and particularly ones where
>> their income or expenses might be subject to unexpected fluctuations, ICANN
>> maintains a "Reserve Fund" to allow it to cover unexpected expenses or
>> below expectations income. Currently the target for the fund is one year's
>> regular expenses, but due to unexpected expenses (primarily associated with
>> the IANA transition and accountability exercise), it is below that. There
>> is an open Public Comment where you can find out more about the fund -
>> https://community.icann.org/x/GJNEB.
>> >
>> > It has been suggested that some portion of the proceeds of the new gTLD
>> Auctions (currently about $235m, although there is some chance it could be
>> as low as $105m) be used to help build back the reserve.
>> >
>> > Excluding this possibility, the target use of the Auction Funds will be
>> projects that are aligned with ICANN's mission and enhance the Internet
>> (wording still under debate).
>> >
>> > This brief discussion will be to solicit thoughts on whether this would
>> be a good idea or not.
>> >
>> > Alan
>> >
>> > _______________________________________________
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>> >
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>> display/atlarge/At-Large+Advisory+Committee+(ALAC)
>>
>>
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>>
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