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

[Seun Ojedeji]

Hello Alan,

On the assumption that ICANN can legally use part of the proceeds to fund
reserve, I'd be also can live with up to a 20% of whatever is the
accessible amount of the AP.

However on a related note, I do personally think ICANN operating cost is
quite on the high side in the first place and while effort is being made to
get a 1 year reserve, i will be interested to know how much effort the
Board is putting on 2 specific items:

1. Avoid continuous increase on the operating cost which could then make a
year target meaningless.

2. Minimize operating cost as much as possible (of course without affecting
the SO/AC part of things) so a 1 year reserve could end up sufficient for
many more months when the need arises.

Regards

Sent from my mobile
Kindly excuse brevity and typos

On Oct 25, 2017 2:07 AM, "Alan Greenberg" <alan.greenberg at mcgill.ca> wrote:

> 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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