1. Current Budget
- 135 Members
- 161 Pledges
- pledges: $805
- members: $685
'Monthly Deficit: $164.85' ($1.02/pledge, $1.22/member)
- 33 additional pledges needed to break even (59 additional members
- without pledges)
1.1. Current Accumulated Deficit (up to October)
2. Migration Expenses
- Server Hardware: ~$2000
PowerEdge 2970 + large raid
- Console Server
- New Colocation: ~$700/month * 2
- Actual cost pending
- We would be carrying this in addition to peer1 for up to 60 days (ideally 30)
2.1. Migration Cost Per Member
- Each month at both colos (($700 + $850) = $2250)
- Pledges: $13.97
- Members: $16.67
- Per pledge: $14.82
- Per member: $12.42
3. Dues Restructuring
Dues pegged to ceiling(recurring expenses / pledges)
- The board would be authorized to add $0-$3 per share for projected
- non-recurring costs and debts
- Dues would be adjusted quarterly based on new costs and member counts
- Plan would be enacted for December billing cycle
3.2. Short Term Increase
All numbers involving new setup are pending known colocation cost.
Assuming 161 pledges
- Adjusted to October Real Cost = $969.85
- Per pledge: $6.02
- No debt repayment / non-recurring costs adjustment
October and November would run a deficit.
- October deficit: $164.85
- November deficit: $864.85
This becomes a total migration deficit of ~$2000 + ~$1029 + $136.30 = ~$3165
3.2.2. End Peer1 Dec 1
- December real cost:$811.60
- December income (161 pledges @ $7): $1127
- Surplus: ~$315
- Per Pledge: $1.85
- Per Member: $2.34
Remaining deficit Mar 1: '$2220'
- Entire deficit paid off ~7 months later (assuming zero or slow expansion)
4. Numbers Look Better With New Members
Each new member joining before quarterly adjustment is paying 100% toward migration debt / expansion funding.
New members therefore essentially pay for the capacity expansion required to handle them.
5. Long Term Reduction
With 300 members:
- Projected real costs: $811.60
- Per member: $2.71 (3)
- Expansion fund: $1
- Total cost: $4
- Monthly surplus: $388.40 (or $688.40 with $2 expansion fund)
This is feasible within a year given our new hardware.
6. Related Ideas
6.1. Join National Cooperatives Bank
A while ago we looked at leaving Wells Fargo and joining the NCB, but the discussion died with no resolution. Do we qualify to have a business account with NCB? If we do we might qualify for an interest bearing checking account.
I can't find anything to indicate that we wouldn't be eligible for a business account with the NCB. [http://www.ncb.coop/uploadedFiles/Applications_and_Forms/Commercial/Business%20Deposit%20Account%20Application.pdf] is the NCB application for a business deposit account. Interest-bearing checking accounts are available to nonprofits, but "some nonprofit organizations may not qualify." The website has phone numbers for banking and nonprofit specialists, as well as a general contact form.
6.2. Moving Member Deposits to an Interest Bearing Account
We could open an account for storing member deposits into a savings or similar type of account and perhaps make a small amount of interest. Member deposits tend to not be touched often (if needed only the lower 2/3 of the balance could be stored in the interest bearing account), and so would be ideal for storing this way. What are the rules for HCoop as a non-profit corporation with regard to interest? Do we have to disburse gained interest to member balances, or could it instead go into a general use fund?