Re: [ga] Letter from Lynn to Sheppard

[Eric Dierker <ERIC@HI-TEK.COM>]

There is a very simple explanation in the tax code governing ICANN's status. If
a church holds a bake sale and you write a check for the cake, only that portion
above the worth of the cake is deductible  -- correspondingly the church can
only use as qualified non-profit income that portion above the worth of the
cake.

This funding concept appears to be paying the worth of the ICANN services, if
this is the funding model it will not qualify when reviewed again, as is
required. Funding cannot be based on services rendered.  If ICANN insists on
this model then it will have to amend it's agreement with the DOC to it being a
profit based corporation, something which is beyond my knowledge as to
appropriateness.

Sincerely,

Michael Froomkin wrote:

> actually, doesn't 100% of the money come from the end users ultimately?
>
> --
>                 Please visit http://www.icannwatch.org
> A. Michael Froomkin   |    Professor of Law    |   froomkin@law.tm
> U. Miami School of Law, P.O. Box 248087, Coral Gables, FL 33124 USA
> +1 (305) 284-4285  |  +1 (305) 284-6506 (fax)  |  http://www.law.tm
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>
> On Thu, 10 May 2001, Jonathan Weinberg wrote:
>
> > At 01:31 AM 5/10/2001 -0400, Danny reprinted a letter from Stuart Lynn
> > responding to the proposal that ICANN provide funds for the DNSO:
> > >[snip]
> > >Certainly other questions arose. Since 90% of ICANN's discretionary
> > >funds (that is, the portion not earmarked for a corresponding
> > >expense) comes from certain DNSO constituencies, for ICANN to provide
> > >financial support to the DNSO Secretariat would in effect be
> > >returning funds already raised from those constituencies. In other
> > >words, ICANN would be increasing its expenditures by $100,000 for
> > >which there would be a corresponding increase of $90,000 contributed
> > >from certain DNSO constituencies (the remaining 10% would essentially
> > >come from ASO contributed funds). If those constituencies wish to
> > >contribute $90,000 to the DNSO Secretariat, can they not choose to do
> > >so directly within the DNSO budget framework?
> >
> >          Lynn's letter does suggest a way forward:  Constituencies can
> > contribute to the DNSO budget in the same proportion that they contribute
> > to ICANN's base revenues directly.  Using the numbers from the proposed
> > 2001-2002 budget, that would translate roughly to:  60% from the
> > unsponsored gTLD registries; 26% from the ccTLDs; 10% from the registrars;
> > 3% from the sponsored TLD registries; and zippo from B&C, IPC, ISPCPC, and
> > NCDNHC.  The numbers would take some tweaking (that's rather too much for
> > the ccTLDs), but it's a start.
> >
> > Jon
> >
> >
> > Jonathan Weinberg
> > weinberg@msen.com
> >
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