CoTech Coordinator Working Group/Proposals/Funding
The following is a draft proposal. If any section concerns you or you would like to add some detail, please contact someone in this thread on the forum: https://community.coops.tech/t/coordinator-proposal-working-group/2945
Draft Text of Proposal
- Cotech fund contribution formula is changed from £1/member/week to 1% revenue/year
- Any project contracts that Cotech brings in and offers to its members, Cotech takes a 5% slice of for the central fund
Revenue and Commission Basis
Why those numbers? "I just picked the numbers because they sound reasonable, I haven't done any financial modelling" - John
Why that structure?
The current contribution formula works by the principle that the largest coops should pay more. Size should be determined by revenue, rather than membership count as this is more closely related to the ability to pay.
The funding structure for the organisation creates strong incentives for the employees of the organisation as well as some weaker incentives for the members. The employees incentives are to raise the revenues of member coops and to bring in large amounts through contracts that the member coops can take on. The member coops have an incentive to work more efficiently, so that their surplus is larger without having to increase their revenue.
Cotech could get a grant to support its activities.
- Is this funding plan reasonable?