The first question is whether to form as an LLC, or to shoot for non-profit status. I lean toward the LLC, just because it will be easier. If the company is successful and becomes a full-time gig, we can consider hiring someone to help us with converting.
The next question is how to disburse charity money, while encouraging our customers to give. I had been considering a charity licensor, where you’re asked if you’d like to make a donation, which we would match, up to the cost of the license. Read my essay on The Power of Charity for more information.
The iTunes Application Store puts the kibosh on that idea, since presumably Apple will be handling all the licensing and DRM or what have you. Instead, I’ll just start a program whereby anyone can make a donation to our approved charity list, then send us their receipt, and we’ll send matching funds up to the cost of a license, not unlike what I did for Club Thievey.
I realize we only actually get 70% of the money for that license, from which we have to pay taxes and so forth, but none of that really matters. Ultimately the cost of a license is just a convenient unit. If we find we have too much money and need to increase giving, we can just match up to double the cost of the license, and so forth.
Then there’s the question of what to do with the money that’s left. United Lemur already has a Central Troop of engineering partners (currently just me), but the basic business model is that engineers who already have full-time jobs — or even companies of their own — volunteer their time. They get to work on iPhone games and other fun projects that they wouldn’t otherwise have time for.
One engineer’s pet project time doesn’t necessarily amount to much, but if several engineers collaborate, we can put together something people will actually pay for. The fact that the project will ultimately benefit charity is just karmic icing on the cake.
Still, I’d hate to have someone do something for funsies, expecting nothing in return, only to resent us for making a million dollars. Clearly some kind of percentage system should come into play.
Then there’s the problem of different people having different amounts of free time. Already on the current project we’re seeing some engineers doing most of the work, while other engineers barely have time to contribute to the conversation. Some kind of differential is needed.
The system should also be fun. It should make us feel like we’re on a game show, because damn it, when the work is done and it’s time to split the loot, we should be celebrating. The splitting system should make a good party game.
First, charity gets a full cut, because charity is an equal partner. Mind you this is above and beyond matching money, which comes out of revenue. Then United Lemur gets a cut. This money goes into the general fund for paying employees, taxes, and other business expenses.
Then any United Lemur engineers working on the project get a cut. They automatically get a full cut because they own the company. Since this is their full-time job, it’s assumed they’ve contributed a full share.
At this point, all engineers in the project have a chance to decide unanimously to just split the pie evenly. If anyone dissents, the United Lemur engineers will decide upon the single most deserving volunteer. All engineers must agree on the person and on the size of their cut.
For the purpose of avoiding fractions, a full share will actually be five shares. Each share also represents a vote. Charity and United Lemur itself do not vote. All decisions must be unanimous, but in the odd case of contention, I will exercise my veto power as chief primate and make the decision.
Once we’ve selected the most meritorious volunteer, that person will be able to nominate another volunteer. They will be able to cast any votes they have along with the United Lemur engineers. If the jury can decide unanimously on a number of shares to give the nominee, they will be accepted.
The process continues, with the new guy nominating the next guy, until either all volunteers have received at least one share, or until the jury can no longer come to a unanimous agreement.
When the work is done and it’s time to split the loot, we should be celebrating. The splitting system should make a good party game. Photo by Mary Brunson.
Thursday, March 6, 2008
The Troop has Spoken
