Grex Coop10 Conference

Item 99: I need to buy something from Grex

Entered by scott on Fri Apr 17 10:52:13 1998:

I'd like to see Grex have an official way of dealing with sales of old/donated
equipment.

Where this comes from is my attempts to buy a monitor from the pile in the
Pumpkin.  Grex (the rehab committee especially) has some amount of what could
be considered surplus equipment, such as old PCs, monitors, obselete Sun
hardware, etc.  I need a monitor for a bit of legacy gear at work, so I
grabbed one from the Pumpkin (it'll come right back to the Pumpkin if needed),
and sent mail offering $10 to rehab for it.  However, there was some objection
to me (as a staffer and board member) being able to set prices on my own,
rather than from Grex's appropriate governing system.  Further email yielded
a deafening silence (except one piece from ajax, saying that the market for
these monitors is about $1).

So who *is* willing to set a price on this?  I'm also interested in renting
an Iolan terminal server (our spare) for a day or two for research purchases.
29 responses total.

#1 of 29 by scg on Fri Apr 17 16:04:41 1998:

$10 seems more than reasonable for that monitor.  At the JCC sales, when we
couldn't get $1 for monitors like that, we first tried giving them away, and
then had to dumpster a few of them.

I also wouldn't worry about rent on the terminal server, unless you're looking
for an excuse to get your employer to give money to Grex.  We aren't using
it.  You've put a lot of time into getting the terminal servers working
correctly, and if I remember correctly, Grex has borrowed equipment from your
employer in the past.

I've certainly used stuff of Grex's for work related purposes a time or two,
and it hasn't even occurred to me to ask first.  I've also used stuff from
wrok for Grex on occasion.  For example, one of the routers on Grex's ISDN
connection right now belongs to my employer, since there was some concern
about whether the problems the line was having last week were related to the
line or to Grex's equipment.

I really hope we don't have to impose any unnecessary rules here.


#2 of 29 by scott on Fri Apr 17 16:11:33 1998:

Well, one of the members of rehab was worried that Grex needed to formalize
these types of transactions so that things like 501c3 wouldn't be compromised
by staffers just taking things and making up their own rules.

I've loaned Grex things from work on occasion, too.


#3 of 29 by dang on Fri Apr 17 16:36:00 1998:

I don't have a problem with it.  I'm also on the rehab comittee.
I guess I'm not sure what the complaint was, even though I heard it the first
time.


#4 of 29 by rcurl on Fri Apr 17 16:38:13 1998:

I'm the grouch. The issue here is a *very* small version of really serious
problems that occur when public servants divert public resources to
private use. For example, the current flap over police guns in Coleman
Young's private collection. Since it is actually more the principle at
issue here rather than the amount of money, even small borrowings can be
looked upon as unethical. After all, the fundamental ethic of non-profit
(and especially charitable tax-exempt) orgnizations is that

 ARTICLE 6
         The following restrictions will apply to the operations of
   the Corporation:

         1. No part of the net earnings of the Corporation shall
   inure to the benefit of, or be distributed to its members,
   trustees, officers or other private persons, except that the
   Corporation shall be authorized and empowered to pay
   reasonable compensation for services rendered and to make
   payments and distributions in furtherance of the purposes set
   forth in Article II.

Of course, any non-profit is able to buy and sell goods. But again it
should not show favoritism to anyone, especially not those involved in its
governance. So, if Grex wants to have its collection of old equipment for
sale, they should be for sale to anyone. If Grex has anything for sale, it
should be priced and advertised as available. The same goes for loaning
equipment - if anything can be borrowed for private use, it should be
borrowable by anyone. 

I realize that a lot of people do not attach much importance to taking or
borrowing some things from their place of employment - in fact, there are
jokes about this: pencils, paper clips, paper, staplers (?), computers
(?!)....and certainly companies look with disfavor upon this, even if they
cannot control it too well. The control I do know about is that private
companies do allow some borrowing of some things for private use, so long
as this is no problem for operations, and Grex could allow this a a "perq"
for members, if it wanted. But it should be known what the "rules" are. 



#5 of 29 by scg on Fri Apr 17 19:15:16 1998:

I think the reason Grex hasn't been pushing the old monitors and stuff like
that which we would like to get some money for is that it hasn't seemed that
anybody was interested in buying it.  When we've tried to sell it for a
dollar, there haven't been any takers.  I don't think we've tried to hide that
we have the stuff.  I don't think we have refused to sell stuff like that to
people who are not on the staff or on the board.

That doesn't mean that me being comfortable with the idea of Scott borrowing
or renting a terminal server for testing purposes means I would want to let
just anybody do that.  I don't think that's a perk we should offer to members,
but for staff people it does seem reasonable, as long as it doesn't negatively
impact Grex's operations.

Given the amount of stuff Grex has borrowed from various staff people and
their employers over the years, I don't think we can afford to be overly stiff
and bureaucratic about things like this.


#6 of 29 by dpc on Fri Apr 17 19:53:31 1998:

I also don't think we should get all constipated over this.  If someone
wants to *buy* a piece of our equipment, I suggest that s/he post an
item in Agora saying "I would like to buy the chrono-synclastic
infundibulator for $XXX.  Would anyone like to offer more for it?"
Then wait a week or so, and if no higher bids are received, the
purchaser pays aruba and that's that.

If someone wants to *borrow* a piece of equipment for a short time,
and the equipment would still be Grex property, I suggest that teh
person send mail to our fearless President asking permission.
After all, making such high-level executive decisions is what the
President is for!   8-)


#7 of 29 by tao on Fri Apr 17 20:02:11 1998:

Or better yet, Grex could auction the stuff off.


#8 of 29 by rcurl on Fri Apr 17 20:14:23 1998:

The fact that members have donated and loaned Grex a lot of stuff over
the years does not imply that the reverse is ethical. A member has
complete personal responsibility to donate or loan things. But where
does that responsibility lie in Grex? 

David's suggestions are reasonable. I would like in addition that
there is an inventory of "loose items" that people can make a bid for,
which can be consulted. There should also be a decision if that inventory
is open to everyone or just to members (as a 'perq'). Grex should have
an inventory of its property anyway (eventually for insurance or tax
purposes, perhaps). 

The borrowing of stuff is a little different. It is one thing to loan
something to an indivdual for a non-profit purpose (like Grex's own),
or for a profit making purpose. Those doing the latter should be willing
to pay for the use, just as Grex would have to pay to borrow equipment
from another business (unless they want to donate the loan). But, can
Grex *donate* the loan of equipment to a for-profit enterprise? Doesn't
sound right. 

It also seems reasonable to me that, if there is equipment that can be
borrowed by individuals - or only by members (a 'perq') - it should be
in an inventory that is available to all. From whence would come such
a privilege for a subgroup of members - as an exchange 'perq' for their
donated time? 

I do know what I am talking about as I donate much time, money and material
in other non-profits, but would not even think of expecting to buy anything
from them that is not openly offered for sale, or borrow anything unless
that privilege is open. 


#9 of 29 by other on Fri Apr 17 22:55:03 1998:

        If something belonging to the corporation has a realistic market 
        value, then I would fully concur with rcurl's concerns about its
        loan or use.

        However, I believe it is well within reason for Grex staffers to
        make use of what is essentially valueless (though not useless)
        junk which nobody has found the time or made the effort to remove
        from Grex's inventory.  So long as Grex's operation is not affected
        or threatened by these occurences, I think the ethical implications
        of this issue are of such miniscule scale as to be unworthy of
        consideration.


#10 of 29 by rcurl on Sat Apr 18 05:44:49 1998:

So, you believe that this is a 'perq' that should be restricted to staff?


#11 of 29 by cmcgee on Sat Apr 18 13:00:09 1998:

I dont think it's a perq.  It only has value for the small number of people
on Grex who can actually make use of that funky, antique stuff, and make it
function.  

In that the equipment has basically no fair-market value I don't want to
restrict those folks on staff who *can* make use of it from using it.  Why
accumulate worthless, but not useless stuff, if you aren'te going to make best
use of it?

It's not as if they are depreciating assets, or spending money.  Since
this has no actual impact on Grex's balance sheet or cash flow, I don't
see what the issue is.  They are not using up any resources.  In fact, if
a staff member wants to buy the stuff, they are actually offering to *add*
value to Grex.  




#12 of 29 by rcurl on Sat Apr 18 18:10:02 1998:

We might get a better price for it if it is auctioned on-line, as has
been suggested. Old computer stuff has value to many more people than
Grex staff - have you ever been to a computer rummage sale? EVERYTHING
has "fair market value". I also oppose "accumulating" it - make it
available (if it is not being held for something useful) for sale, or
for donation to "needy" users. And, I agree with adding value to Grex -
but who can do that is not restricted to staff.


#13 of 29 by dang on Sun Apr 19 01:19:00 1998:

I have real problems with having open borrowing.  I know and trust
scott.  Not because he's staff, but because I know him well.  I don't
know the overwhelming majority of people on grex.  So, I have no problem
with Scott borrowing something, but I do have a problem with just saying
"Here is a list of stuff that can be borrowed." 


#14 of 29 by rcurl on Sun Apr 19 03:13:09 1998:

That means setting up (perhaps implicitly) a list of those "OK" to borrow
things. Hence, a staff (and board?) 'perq'? Actually, I'm not strongly
opposed to that - but it should be an established principle, rather than
an under-the-table activity. What I would question is borrowing things
for commercial use (or use on behalf of a for-profit company). 


#15 of 29 by scott on Sun Apr 19 11:31:58 1998:

Which is what my use of the spare terminal server would be, a use for a
commercial company.  But what if Grex were paid a fair rent for use of the
device?


#16 of 29 by mta on Sun Apr 19 13:49:57 1998:

This sounds like a tempest in a teacup to me.  I think if we need to make it
"an established principle", then so be it.  But the staff of Grex has donated
much, much more to Grex than the short-term loan of antiquated equipment can
ever repay.

If borrowing something that Grex isn't using anyway can make the other things
they do easier (and maybe free up some of their already overburdened time)
I say they ought to have that perq.


#17 of 29 by other on Sun Apr 19 15:39:16 1998:

I think that in this case, the rigid adherence to principle is an unnecessary
burden.  

If a for-profit operation is making use of even the most ancient junk Grex
has, then I'm all in favour of Grex receiving some nominal rental fee for it.

My primary feeling about this is based on the fact that those in whose hands
the operation and maintenance of Grex rests may benefit in such a way as to
benefit Grex from activities in which they make use of this equipment, even
if not directly connected to Grex's operation.  Since it costs Grex nothing
for this stuff to be used, and there is potential benefit, even if it is a
small potential, I see no problem with allowing staff free and unfettered use
of Grex's junk collection.  calling it a 'perq' suggests that it is a benefit
to the user alone.  I don't think that is the case, and in any case, the
benefit to anyone is small.

In the event that someone wants to own a piece of the aforementioned junk
collection, I think it fair if the intending person posts an item in agora
or coop stating their desire and the price they wish to pay.  If in a week,
there is no other user expressing a desire accompanied by a greater bid, or
no objection based on Grex's need of the equipment, then call it sold.


#18 of 29 by rcurl on Sun Apr 19 18:13:03 1998:

That at least would be a fair way to find out there is purchasable junk,
if no one wants to do an inventory.

Re #16: you have again brought up "repaying" volunteers for their time and
personal contributions. When I volunteer I do not expect a repayment -
except "appreciation". But repayment in tangible ways goes against the
very principle of volunteerism, not to mention running into issues of
compensating volunteers with more than "minor" benefits (ala IRS
regulations).



#19 of 29 by keesan on Mon Apr 20 03:27:21 1998:

Scott, until people can agree on this stuff, would you like to borrow any
monitors from Jim?  He is not a non-profit corporation, and has access to
quite a lot of antique stuff.  Same goes for any other staff member that we
know personally.


#20 of 29 by scott on Mon Apr 20 10:50:36 1998:

Thanks, Keesan.  I'm beginning to think I should just find the monitor
elsewhere.  Probably we should see if anything gets resolved at the Board
meeting Wednesday.


#21 of 29 by jep on Mon Apr 20 16:17:48 1998:

It seems to me there ought to be some procedure in place for borrowing 
and/or selling Grex's equipment and resources.  Someone should be in 
charge of stuff, and people who want to take/borrow/buy stuff should 
record it with someone and get permission from some authority.

I understand the assumption of trust for certain people here, and that's 
a good thing, but mistakes can happen.  Someone can forget he borrowed 
something, someone can forget they got paid for something, it's even 
possible that trust has been given too soon.  Accusations have flown for 
years about equipment that may have come up missing from Arbornet's 
office.  A little record keeping, and a path of authority, seems 
reasonable.  At the very least, if X took something that Y thought would 
be there, then Y can know whom to contact to get it back or whatever.


#22 of 29 by keesan on Mon Apr 20 18:31:22 1998:

At Kiwanis, we sell monochrome composite monitors for $5, TTL for $10,
color composite and CGA are $30.   By the way, there are bulk prices on
these things (if you buy 10 or more they are half or one quarter price).

EGAs $40, VGA monochrome $50, VGA color $60.
They are of course cheaper if you buy a computer with them (a working
2-floppy 8088 with monitor and keyboard is $25, etc.)
Rummage sale prices are a lot lower.  This stuff has been checked out.
I am willing to set people up and provide support on one of these
computers, if they will join grex as paying members for 6 months.  I have
things set up so you only have to turn on the machine and it tells you
whether you have e-mail.  If anybody knows anybody non computer literate
who wants  to join grex, send them to me at Kiwanis.

Scott, what sort of monitor did you need?  I have a fairly complete
collection at home, too, that you can just borrow free.


#23 of 29 by valerie on Tue Apr 21 14:15:55 1998:

This response has been erased.



#24 of 29 by rcurl on Tue Apr 21 16:33:34 1998:

I am not asking to apply "bureacratic rules". I am asking that no individuals
have "special access" - that any such goods be available to all if to
anyone. Post an offer to sell that monitor to the highest bidder - maybe
Scott could get it for less than $10 (or, if we are lucky, for more).

Let's distinguish borrowing and buying - and also between non-profits
(like neighbors) and with for-profits. The local hardware store will
not participate in that neighborly exchange you described.


#25 of 29 by keesan on Tue Apr 21 17:15:03 1998:

I have no objection to knowledgeable staff borrowing grex equipment (the more
useful stuff, not the worthless monitors) but think the average member should
not be allowed access to it because the average member, if anything like me,
could damage the equipment and the member.  Would somebody be willing to
classify grex's equipment into 1. stuff useful to grex that can be borrowed
by people who have used it already, and their employers if stuff has been
borrwed from their employers and 2. stuff of no use to grex, that people can
offer to buy, and if nobody bids higher within three days it is theirs?  The
stuff in the second category could be posted in classifieds and maybe grex
could actually get rid of some of it before it is totally obsolete.  WOuld
it be a very long list?


#26 of 29 by other on Tue Apr 21 18:00:43 1998:

i'm all in favor of staff doing whatever they please with whatever grex has,
while we spend the rest of eternity discussing policy initiatives to cover
such activities.


#27 of 29 by rcurl on Tue Apr 21 18:23:37 1998:

You're thinking of grex as a funky club of enthusiasts with no
responsibilities, personally or financially. That's partly true, but
not enough to really avoid thinking about legal, financial and ethical
responsibilities.


#28 of 29 by janc on Tue Apr 21 20:47:43 1998:

I have to agree with Rane in principle.  As a non-profit, we do have to be
careful about "donating" things to for-profit organizations.  It's literally
illegal.

If we sell things, we need to have some reason for believing we are getting
fair market value for them.  There should be some procedure.  Something like
what Dave suggested would be fine.  Do just what Scott did - post something
on line saying you want to buy item X for price Y.  If nobody complains that
that is too low a price, then we can reasonably assume it is at or above
market value, so we can sell it.  I think that has been established for the
monitor that Scott wanted.

This still leaves the problem that only a few people know what old junk Grex
has, so only they can try to buy it.  I've been wanting to assemble and post
an inventory for quite some time now, but I keep finding more interesting
projects.

The loan is a bit more difficult problem.  I don't know what the market value
of a lease on a terminal server is.  Scott's company has loaned us equipment
in the past, and if it had been done on an explicit "we'll loan you this if
you'll loan us that" basis, then I think it would be OK.  I certainly do *not*
want to establish a policy of loaning our spares out to whomever might want
them.  Much as I'd like to help out in a small way a company that has been
helpful to us, the fact that we are non-profit and they are for-profit limits
the kinds of informal exchanging of assets that we can do.  I think we'd have
to charge a nominal fee to rent the terminal server.


#29 of 29 by lilmo on Tue May 26 22:51:32 1998:

What Jan said.

IMHO loans to other than profit-making enterprises should be in the hands of
the staff.  If someone wants to borrow something, staff should have "written"
noticeof when it is being taken, by whom, where (at least which town), and
when its return is anticipated.  That someone should also be known to staff,
and there should be some consensus that it is OK for said person to be
entrusted with Grex property.

Do we need anything more formal?

Oh, and notice of purchasing a Grex junk item should, IMHO, be in Agor _and_
Coop  (er, Agora).  In Agora for widest distribution, in coop for those of
us who might care, but don't have the time or energy to deal with the mob of
users and plethora of itmes and responses there.  :-)


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