General Manager's Annual Report

January 28, 1999

Summary of 1998

Landmarks:

We conducted a member survey, which may become an annual event. We instituted annual account renewals, which immediately became TCFN's largest source of regular income and will allow us to track our membership more precisely than ever before. We received a $10,000 grant from ADC Telecommunications. We moved out of our office in the 511 Building and into a "virtual office," with the server at MRNet, the mailbox in downtown Minneapolis, and the voicemail in St. Paul. Outstanding volunteers of the year included Bob Alberti, Tony Calguire, Mark Holtz, Mike Huck, Hans Lillejord, Lou Miranda, Nolan Venkatrathnam, David Woolley, and many others.

Registrations:

1998 saw the lowest rates of account creation and confirmation in the Free-Net's history (Fig. 1); however, the downward trend of 1997 appears to have stopped.

Deletions:

In early January 1999, nearly 3000 unused accounts were deleted from both the Free-Net server and the membership database (see table below). Almost 2500 more accounts, among those labeled "Suspended Registered" below, will be automatically deleted i n February in the final phase of the renewal process. From then on, we will be able to monitor precisely the number of active accounts on the Free-Net from month to month.

Account Type in Database December '98 January '99
Provisional 5239 2769
Active Registered 1331 1343
Suspended Registered 2638 2659
Deleted Provisional 265 3
Deleted Registered 133 1
Total 9606 6775

Donations:

Account Type in Database	December '98	January '99
Provisional	5239	2769
Active Registered	1331	1343
Suspended Registered	2638	2659
Deleted Provisional	265	3
Deleted Registered	133	1
Total	9606	6775

Due primarily to the renewal process, total donations from individuals in 1998 exceeded those of all previous years (Fig. 2). The "renewal bulge," which we can expect to occur approximately every 10 months from now on, has reversed the past two years' downward trend in donations, so that now even a linear trendline slopes upward. Average donations also increased throughout 1998 (Fig. 3), and January 1999 had the highest average donation of any month in TCFN history. Our 1998 operating cost was only $25.70 per member -- less than 50 cents a week (see table below). If average donations increased to that level, we could be 100% self-sufficient. To look at it another way, we could keep the current average donation if we had 857 more members.

total 1998 expenses $34,509.08
total 1998 individual donations $21,065.27
average donation per active member $15.69
operating cost per active member $25.70
# members needed at current avg. 2200
new members needed at current avg. 857

total 1998 expenses	$34,509.08
total 1998 individual donations	$21,065.27
average donation per active member	$15.69
operating cost per active member	$25.70
# members needed at current avg.	2200
new members needed at current avg.	857

Current Status and Potential of TCFN

Financial Situation:: It is a rare nonprofit organization that can claim to receive more than 60% of its income from individual members' voluntary donations. Other community networks worldwide are struggling to wean themselves from grant funding and gain the level of self-sufficiency TCFN already enjoys. Of course, most of these CNs used their grant money to expand, and if we want TCFN to expand, we must also seek grants.
Organizational Allies:: Given the rapidly declining cost of access to Internet technology, TCFN's best chances for survival, let alone expansion, lie in its more than 100 organizational members and their constituents. Fortunately, a number of major grants are soliciting proposals in the next few months for collaborations with just such groups. TCFN's existing relationships with neighborhood community organizations in particular should prove invaluable for all parties.
Volunteers and Interns:: TCFN is very fortunate to have a pool of more than 400 volunteers. Organizing these volunteers into a stable yet resilient workforce continues to be an elusive goal. We must market hands-on work experience at TCFN as a valuable training resource for interns at both the high school and college levels. Plans are already being finalized for a spring 1999 intern.
Technological Status:: In order to maintain its appeal in a rapidly changing market, the Free-Net must update its technology and user interface. We face the challenge of meeting the user-friendliness expectations of our better-off members without deserting our target populations. Our Web-based architecture is tremendously flexible, but we will have to use it creatively to meet the needs of both "haves" and "have nots."
Office Space:: The Free-Net's office in the 511 Building was unsuitable as a headquarters for TCFN staff and events, but it did lend us a certain legitimacy as an institution. Our present "virtual office" is too intangible to serve that important purpose, and so we may want to find another office space when our budget allows. We have received an offer from Stevens Square Community Organization to use a room of their office in the event that we obtain a collaborative grant this spring.

Plans for 1999

Fundraising:

Two major grant deadlines are approaching in March: the TIIAP and Minneapolis Foundation grants. Although I plan to attend fundraising workshops and clinics in the near future, I can never meet these deadlines alone. It is therefore imperative that the board form a fundraising committee which will meet biweekly or more often until proposals for the two grants have been completed.

Plans are already forming to collaborate with Elliot Park Neighborhood, Inc. (EPNI) and Stevens Square Community Organization (SSCO) on the Minneapolis Foundation grant, and with Neighborhood Planning for Community Revitalization (NPCR) on the TIIAP. SSCO also seeks our collaboration in a proposal for a St. Paul Companies grant.

Publicity:

The more than 1300 active members of TCFN are its lifeblood. As of last spring's survey, most members had heard about TCFN by word of mouth, but the brochures we introduced last summer have proven popular with libraries and other public access site. If we are to rise out of our present membership doldrums (Fig. 1), we must form an effective publicity strategy.

We have long talked about "targeted publicity" for individual conferences, but we have yet to make it happen. We are in the process of overhauling our Web presence, but we lack a coherent vision of what it should become. Perhaps the best strategy would be to form a publicity committee, led by a board member to supervise both our offline and online makeovers.

Staffing:

At the time I was hired, I was tentatively promised that my hours would increase to full-time at the end of a year. It is my opinion that the Free-Net's money would be better spent hiring a second part-time employee. Such an arrangement would provide a secure redundancy in the Free-Net's management while reducing the likelihood of my ignoring one problem while acting prematurely on another. Other staffing possibilities include paid interns and consultants.

If the Free-Net had more than one employee, it would make sense to vacate our "virtual office" in favor of another actual one, more suited to our needs than our suite in the 511 building was. Accessibility, visibility, and ergonomics would be considerations as well as rent.

Requests for Motions

That a fundraising commitee be re-formed, with a board member in charge, and that it meet biweekly or more often until all grant proposals are submitted.
That a publicity committee be formed, with a board member in charge, to oversee both print and online media.
That the board pay the General Manager's $115 transportation to the TIIAP grant workshop in Chicago, February 11.
That the board pay for the General Manager to attend the $400 fundraising clinic series offered by MAP for Nonprofits, March 17 to May 5.
That organizational membership fees be raised from a sliding scale of $40-$200 per year to a sliding scale of $50-$250 per year (a 25% increase).
That organizational members' disk quotas be raised from 3 MB to 5 MB.
That suggested annual donations from individuals be raised from $40 regular, $25 senior/student to $52 regular, $26 senior/student (i.e. $1 or $.50 per week).
That individual members' disk quotas be raised from 200 KB to 500 KB.
That TCFN offer virtual domain-name hosting as a service to its organizational members at a rate of $125 per year, with name registration not included.

This site Š1999 by Twin Cities Free-Net.
This page maintained by genmanager@tcfreenet.org; Last Modified 1999-02-04.