Grex Coop10 Conference

Item 97: To buy or not to buy, that is the question

Entered by janc on Thu Apr 9 13:40:41 1998:

Here's a small puzzle:

  (1) The board made three motions at the last meeting:
      - to pay $150 for 501(c)3 application, if the money can be raised in
        a fundraiser.
      - to pay $200 for a mail machine disk, if the money can be raised in
        a fundraiser.
      - to pay $600 for 4/670, and to hold a fundraiser for that amount.
      Note that the 4/670 spares were held to be sufficiently urgent that we
      wanted to be able to go after them without waiting for the fundraiser
      to finish, so that motion was worded differently.

  (2) At this time, the $150 for the 501(c)3 application has been raised.
      In addition, $459 of the other $800 for the other stuff has been
      raised.

  (3) Charles has assembled most of the mail machine (largely with parts
      he donated).  It is waiting on a disk (and a keyboard, but that should
      be easy to find.  We'd like to be able to buy the disk and continue
      work on the project.

  (4) Spare parts are a higher priority than the mail machine, but we are
      still shopping for a good price on those.

So, can we go ahead and by the disk for the mail machine on the presumption
that the rest of the money for spares is going to come in?  Or should we
wait till we have all the money for the higher-priority item, the spares,
before we spend any money on the lower-priority (but more immediately useful)
item, the disk?
23 responses total.

#1 of 23 by mary on Thu Apr 9 18:31:33 1998:

Don't buy anything on the presumption money will appear.  Please 
don't go further into the general fund until that balance looks
a little better.

We need take a deep breath, stop spending, and evaluate why
folks are not supporting this fund drive before we start
writing more checks.


#2 of 23 by dang on Thu Apr 9 19:33:37 1998:

I say don't buy the mail disk until after the money is in.  Buy the spare
parts when we get a good deal. 


#3 of 23 by dpc on Thu Apr 9 20:38:53 1998:

We should wait until the money comes in for the spare parts.
I think we are in danger of getting over-extended and in deep
financial doo-doo.


#4 of 23 by other on Fri Apr 10 00:23:26 1998:

my inclination is to buy the spare 670 parts whenever the "right" price
becomes available, and to maintain the lower priority of the mail machine.


#5 of 23 by mta on Fri Apr 10 13:26:10 1998:

*sigh*  I hate to admit it, but I have to agree that, as tempting as it it is
to go ahead when we're so close, it is more prudent to wait.


#6 of 23 by aruba on Fri Apr 10 14:39:21 1998:

I think the issue is a matter of cash flow.  We expect to have enough to
pay for everything, assuming we take in as much money in dues and auction
proceeds this year as we did last.  But to pay for it now would mean
dipping into our $2000 cushion, which we agreed not to do unless it's an
emergency. 

I think if some staff member were willing to buy the disk and set up the
machine, and be reimbursed later in the year, I'd go along with that.  Of
course there's always the possibility that there will be some disaster
requiring all of Grex's resources, and we won't be able to pay for it until
later than this year.

I'm well aware that if momentum on a project like this gets squandered,
it's hard to build it up again later.


#7 of 23 by janc on Sat Apr 11 22:46:05 1998:

Yeah, that's pretty much the answer I expected from sane and sober people.
It's a bummer.  We need more people to donate to the fund-raiser, and there
hasn't been a new pledge in days.  What do we do?


#8 of 23 by scg on Sat Apr 11 23:26:10 1998:

Like some others here, I would like to see us go ahead and buy the spare
parts, while holding off on the mail machine disk.  We are almost up to the
amount we need for the spare parts.

There are a couple of problems here, I think, that made me reluctant to vote
for having a fundraiser.  With the other recent, successful, fundraisers, we
have been running on a really slow computer on a really slow Net connection.
People were complaining pretty constantly about the slowness, and we were
having fundraisers for things that would make it much faster.  It was a really
easy sell.

Now we are on hardware that is fast enough, on an Internet connection that
is fast enough.  Convincing people that there is a problem which really needs
to be fixed is somewhat of a hard sell.

That's not to say that adding the mail machine won't have lots of benefits.
Even Grex's spiffy new computer will get slow with enough load on it, and the
mail machine will make the useful life of the 670 much longer.  Setting it
up now rather than waiting for the 670 to become unbearably slow is good
future planning, assuming your goal is to avoid agonizing slowness.  I suppose
that should be pointed out in the fundraiser item.  Maybe, though, this is
a lost cause and after the fact fixes for sloness are what sells.

I've also been wondering if we've had too many fundraisers recently, and maybe
people are feeling as if they have given what they can afford to give.  The
ISDN fundraiser was more than six months ago, though, so I don't think that's
the case (or am I forgetting a more recent fundraiser?).


#9 of 23 by rcurl on Sun Apr 12 05:26:39 1998:

What are called "fundraisers" are pretty ad-hoc, sort of sprung without
much discussion, and certainly no vote. This rather diminishes their
apparent import. It is amazing they work as well as they do, but it is
usually the same people that donate, a rather small group.


#10 of 23 by mary on Sun Apr 12 12:56:15 1998:

Agreed.  Fundraisers should be fairly unusual events and
the merits of holding one most certainly calls for discussion
in co-op, not just at a Board meeting prior to a vote.  I
would think the Board would want membership feeback on such
an issue.


#11 of 23 by other on Mon Apr 13 04:24:08 1998:

Whether or not to hold a fundraiser to pay for priorities the membership has
already established seems a bit redundant a subject for widespread discussion.
The membership decided to obtain the new machine, and spare parts are
essentially part of the deal.  If anything, it seems that it is only a matter
of a minor deficiency of foresight not to have included them in the costs
originally determined, or to have made incremental allocations in the past
year since the new machine was obtained for their purchase.

It is good that the leadership of Grex goes to great lengths to employ
inclusive decision-making techniques, but there are limits of practicality.

If either  the membership rates or the fee amounts were to take even a slight
increase, then there would be less frequent need for fundraisers.  *That* is
a pair of subjects ideal for widespread discussion


#12 of 23 by rcurl on Mon Apr 13 05:28:23 1998:

My point was that I wished to consider whether fund raisers would be more
effective and reach their goals more readily if the membership (and
interested users) were involved in the development of the goals and the
approach to be used in a fund raiser, and in the decision to proceed,
compared to a small group declaring a fund raiser in an ad hoc manner
without such democratic consultation with everyone. 


#13 of 23 by janc on Mon Apr 13 14:03:16 1998:

Very likely.  Our situation now is that if we want Grex to continue to grow
then we need a bit more income.  I entered an item here asking how people
thought we might be able to increase our income by adding members or whatever.
That amounts to kind of a belated discussion of the question, but it hasn't
led to many ideas.

Our staff has sort of the mental habit of always looking for new, inexpensive
(though often labor intensive) ways to expand the performance and capabilities
of the system.  Right now performance is OK.  Should we relax on issues like
the mail machine until Grex once again starts feeling the squeeze?

I don't know.  When Grex is slow I hear theories that people don't want to
give money to such an unusable system and that when the system is faster
people will give more money.  When Grex is fast, the opposite theory seems
to come into fashion - since everything is great, people don't want to give
money.

I agree that we are effectively hitting up the same people over and over again
for money.  How do we reach more of our user base?


#14 of 23 by other on Mon Apr 13 16:10:38 1998:

I still believe that a wrapper on email and party programs which functions
like a shareware registration notice (it tells you that you can help support
this free service and as a bonus, the message will go away if you do) is a
really good idea.

it is a mild inconvenience, but i think it is well within justifiable reason
to slightly inconvenience users of s free service to tell them how they can
help provide the support the service needs to keep running for them to use.


#15 of 23 by remmers on Mon Apr 13 18:03:09 1998:

Clever folks will be able to make the wrapper go away without
becoming members.


#16 of 23 by mary on Mon Apr 13 19:57:37 1998:

If the new computer crashed and burned tomorrow could we
go back to the old computer as a backup to get online
and ask for emergency funding?


#17 of 23 by aruba on Tue Apr 14 05:33:39 1998:

Re #9,10,12:  I was the one who pushed for a fundraiser at the last 
board meeting, so I will take the rap for not consulting the users 
before going ahead with it.

The fact is, I didn't know what else to do.  Staff informed the board 
in no uncertain terms that we ought to get the spare parts right away 
(or at least, they wanted the authority to get them as soon as a good 
deal came along).  The mail machine was almost ready to go too.  We 
also felt strongly that the 501(c)3 application ought to go through as 
soon as possible.

As I told everyone at the budget meeting, we expect to take in $1300 
over and above our operating expenses this year.  (That's an estimate 
based on last year's receipts.)  That *is* enough to pay for the items 
mentioned above, but if we were to get them right now, we would have to 
dip into our emergency cushion.  And in any case we are cutting our 
margin pretty fine.

The only way I could think of to increase our cash-on-hand right now 
was to hold a fundraiser.  (There was also the hope among those present 
at the board meeting that the usership was "on a high" from the speed 
of the new machine, and would therefore contribute a lot to helping 
out.  That hope has proven to be false.)  I agree that it would be nice 
to hold fundraisers less frequently and only for more specific goals, 
but I just didn't have any other ideas for getting us some cash *now*, 
nor did anyone suggest any.


#18 of 23 by rcurl on Tue Apr 14 05:44:21 1998:

Re #15: I wouldn't mind Grex being supported by less clever folk, so long
as they get the message.


#19 of 23 by mta on Tue Apr 14 12:45:14 1998:

Even if they can turn the wrapper off, they will have seen the message at least
once.  (Was that your point, Rane?)


#20 of 23 by mary on Tue Apr 14 12:52:18 1998:

Mark, I'm sorry you felt so pressured.  You shouldn't need 
to feel that way and I hope next time you can simply say
you have concerns about a purchase and ask the Board to
take it to coop for discussion.


#21 of 23 by valerie on Tue Apr 14 20:23:06 1998:

This response has been erased.



#22 of 23 by rcurl on Wed Apr 15 00:38:34 1998:

Re #21/20: that, and a lot might be persuaded to join, even if they can't
turn it off.


#23 of 23 by aruba on Wed Apr 15 03:28:32 1998:

Re #20:  Mary, it wasn't as if I felt that these purchases came up 
out of the blue; they were in fact agreed upon at the budget meeting.  
It's just a matter of cash flow - we didn't have the cash on hand to 
do them right now.  So if I had asked for a discussion of the 
purchases in coop, it would have been to discuss timing only.

I suppose I could have done that.


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