[Ccwg-auctionproceeds] New Deadline - 26 July 2019 - input on updated draft Final Report and outstanding questions

Alan Greenberg alan.greenberg at mcgill.ca
Thu Jul 25 15:36:14 UTC 2019


B was not an ICANN Subsidiary but some other existing entity that we 
could team up with so that we did not have to re-invent services that 
we could outsource. That being said, I am happy to eliminate it! 
Mechanism A always has the option of outsourcing some of the functions.

BTW, under the California law that we operate under, a Public 
Interest Corp cannot have a "subsidiary", but that is just a 
nomenclature issue.

Alan

At 25/07/2019 01:35 AM, John Levine wrote:
>>Mechanism B: I presume the phrase "established at a public charity" 
>>should be "established as a public
>>charity". I do not understand why the issue of tax benefits is 
>>being raised as in our case all of the
>>money is coming form ICANN which does not pay any taxes. So it 
>>SOUNDS like a benefit but is in fact
>>meaningless in our case.
>>It should be made clear that at this point, it is not clear what 
>>parts would be outsourced and what
>>will be kept within ICANN (except the application evaluation which 
>>must be outsourced).
>
>I believe that this is supposed to say that ICANN establishes a 
>captive foundation as a subsidiary.
>
>Having done exactly that at ISOC, I can say that for the CCWG's 
>purposes, giving away a one-time pile of money, this mechanism is 
>inferior in every way to mechanism A.  It costs more, takes longer, 
>has a lot more bureaucratic overhead, and can do no more or no less 
>than mechanism A. As Alan notes, it has no tax benefits.  It is a 
>waste of everyone's time to pursue it further.
>
>If anyone has a concrete reason why they believe this would be a 
>good idea, and is reasonably familiar with US non-profit tax law so 
>they understand what's involved, I would like to hear about it.
>
>R's,
>John
>
>PS: ISOC's situation is quite different and it makes sense for us. 
>If anyone wants details write me privately.



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