SoylentNews

martyb writes:

I have a couple things to bring to the attention of the community concerning site funding and comment moderations. As always, if you are not interested in these matters, feel free to skip past this one; another story will be along shortly. Otherwise read beyond the fold for an update.

Finances:

A recent comment to a journal article about SoylentNews now having a privacy policy prompted me to pursue something that had been nagging at me for a long while.

In short, I have learned it costs more to run this site than I had estimated. We have actually been operating at a loss for the past couple years. I have, therefore, provided a revised fundraising goal of $3500.00 for the first half of this calendar year in the "Site News" slashbox (that appears on the right-hand-side of the main page).

I have been advised our current funds on hand can support the site for just six months.

For those who have been around for a while, it will come as no surprise to learn that I try to keep a handle on subscription income for this site. Further, I have been maintaining what we affectionately refer to here as the "Beg-O-Meter' that appears in the "Site News" slashbox. It provides a running tally of our financial goal for the period and how far along we are towards attaining that goal. Lastly, I have posted stories in the past apprising the community as to our progress towards those goals.

We are an entirely volunteer organization (no staff member has ever been paid anything for their work on SoylentNews). All funding for the site comes entirely from the community (we have never run advertisements and are strongly resistant to any suggestion to do so). The vast majority of our funding comes from subscriptions.

My prior estimates of $4000.00 per year were based on the only information I had available at that time. Our monthly web hosting costs ($260/month), the fact that we needed to file and pay taxes, and that we paid an accountant to prepare them. Twelve months at $260/month works out to $2160 per year. I reasoned a goal of $3000 for the year would give us about $840 for those other expenses... that should do it, right?

Apparently not.

Thanks to the above-referenced comment, I reached out to a member of our board of directors and inquired as to our financial status. In very short order I received a pile of PDF files. A separate file for each fiscal year's Profit and Loss Statement and a separate file for each year's Balance Sheet. It took a surprising amount of effort, but thanks to the concerted effort of a few staff members, these have been uploaded to our Wiki and can now be accessed through the SoylentNews Finance page.

A couple things bear explanation. You may notice that there are expenses associated with subscriptions. The amount of a subscription made to SoylentNews is a gross amount. From that, Stripe or PayPal charge a processing fee for each subscription. These fees do add up and amount to the aforementioned expense.

Also, why is a Delaware company paying Massachusetts state taxes? I reached out for an answer from a board member, and here is his reply:

We pay Massachusetts income tax (since we are not profitable, we pay the minimum amount of $456 each year, but if we ever become profitable, we will have to pay more) because we are physically located in MA (through me). A physical address was required to open our checking account with BoA[*], and for various other things. For example, we need a physical address to sign the engagement letter with our accountant every year. Note that we are not required to pay Delaware income tax because we are not physically located in DE. The tax that we pay to Delaware each year is technically a franchise tax that we pay for the privilege of being incorporated in Delaware (allowing us to be a Public Benefit Corporation, among other benefits).