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Sandbox Forever is a Sandbox Community Initiative and corresponding working group that is working on Sandboxâs financial future.
Goals
The goal of the Sandbox Forever project is to establish enduring financial support, possibly through a Sandbox Endowment fund, in order to provide an in-perpetuity revenue stream for the community. This revenue stream is meant to both secure the long term future of the community while also establishing a financial foundation that could magnify impact inside and outside of the community.
This group proposed to investigate the possibility for a Sandbox Endowment structure, but may consider alternatives as they arise in the research phase.
Why an Endowment?
Currently Sandbox does not have a stable revenue stream and relies primarily on occasional member donations and certain financial support from event sales. Many other proposals, including membership fees and consulting services, have been attempted previously and found to be unworkable.
While members of the community have shown a willingness to contribute financially to the Sandbox project, there is no permanent home for these contributions and they are spent as they are raised.
And endowment is also funded by donations, but rather than being used as a general fund, endowment funds are invested and only some of the yield, or profits, from the investments are made available for expenditures. As a result, the principle invested amount grows over time, and so too should the yield, or return to the community.
Proposed Organization
Options for Legal Structure
There are a range of options for a legal structure for this project, all of which require further investigation and potential decisions regarding the range of activities of the entity.
Potential options include;
- 501c3 based charitable organization (tax deductible)
- 501c3 based private foundation / private operational foundation
- 501c7 based social club tax exempt (tax exempt)
- 509a3 supporting organization (tax exempt or deductible)
- Fiscal Sponsorship, with or without our own entity
- Corresponding options in other jurisdictions
Expected Returns
Endowment returns general track the overall investment market conditions, particular stock markets. As a result, annual returns can be volatile. US based college endowments performed poorly in 2022, returning -8%, but performed extremely well the previous year, with average returns over 30%. The 10 year average is about 8%.
Use of Funds
While the precise use of funds will be determined on an ongoing basis by the relevant organizational officers, proposed use of funds include:
- Covering annual operational expenses for Sandbox (software services, legal and financial services, etc.)
- Providing grants or stipends for Sandbox activities, including attendance at Sandbox events, or financial support for Sandbox projects
Rollout and Timeline
Fundraising Goals and Timeline
The exact timeline of activities is to be established with the working group members with the goal of announcing at the 2024 Global Summit in celebration of the Sandbox Decennial.
Working Group
The Sandbox Forever initiative is supported by a corresponding Sandbox working group.
Working Group Members
- Lead: @Michael Mayernick
- Board Liaison: @Yatan Blumenthal
- Summit Liaison:
- Members:
Meeting Schedule
- Monthly Meeting, time TDB
- Async communication via WhatsApp Group
- Participation in Sandbox Ambassadors & Initiative Leads monthly call