Sandbox Forever is a Sandbox Community Initiative and corresponding working group that is working on Sandbox’s financial future.
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.
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
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.
The Sandbox Forever initiative is supported by a corresponding Sandbox working group.
Working Group Members
- Lead: @Michael Mayernick
- Board Liaison: @Yatan Blumenthal
- Summit Liaison:
- Monthly Meeting, time TDB
- Async communication via WhatsApp Group
- Participation in Sandbox Ambassadors & Initiative Leads monthly call
July 6, 2023, Initial Board & Governance Team Kick-off Discussion
September 21, 2023, Legal Options Discussion
- Review overall purpose and goals
- Discuss background questions on legal entity, charitable purpose, and jurisdiction
November 8th, 2023, Task List Review
- Review overall purpose and goals
- Review timeline
- Introduce and review task list and identity possible contributors
- Discussion on source of initial donations and potential yield
- Goal for initial raise
- Use of funds
- Thomas: What’s the expected raise and yield? We should not use yield to fund operations but raise money for that separately.
- Galy: Could we have a SuperHive with the tasks? Place tasks in the items. Also include estimated times required. Add in agenda for ambassadors. Forward to hubs.
- Michael: Have there been any other experiments with atomic tasks and if there are any learnings?
- Galy: Create task to design / project manage these projects
- Guillermo: can support after this month, but maybe work with some leads. Share first and can collaborate with anyone that volunteers
- Galy: Can we adopt total responsibility model? Make it clear that people are signing up to step up but also need to run with it or find others
- Galy: can we have a check-in at the end of next week for sign ups?
- Michael: Galy, do we have any template for total responsibility that we can include in our ask?
- Yatan: provide details of current financial status of organization, ongoing costs, etc.
- Michael: expand notion page background with some of the questions that come up on calls
- Michael: add estimated time commitment
- Michael: share template of task list
- Michael: set deadline for signup and report on status by end of next week