Lecture Notes: Wikipedia's Fundraising and Financial Situation
Introduction
Discussion around Wikipedia's fundraising tactics and financial status.
Wikipedia frequently asks for donations to maintain and grow the platform.
Wikipedia's Origins and Growth
Founded on January 15, 2001, by Jimmy Wales and Larry Sanger.
Originally intended for expert-written entries, it pivoted to a model where anyone could contribute.
Now one of the most popular websites with over 6.8 million pages in English alone.
Funding Model
Wikipedia has never used advertisements; it relies on donations.
Wikimedia Foundation (WMF) is the non-profit managing Wikipedia.
Money goes to WMF, not to volunteer editors.
Fundraising Campaigns
First major fundraising campaign in 2005; initial goal surpassed.
Frequent campaigns have continued; high-profile figures like Jimmy Wales have been featured.
In 2010, fundraising became a significant part of Wikimedia’s activities.
Financial Health and Criticism
WMF's revenue has been growing; raised $165 million in fiscal year 2022-23.
Net assets of almost $255 million plus $120 million in an endowment fund.
Criticism for continued aggressive fundraising despite financial stability.
Donations primarily support a large staff rather than just keeping the site operational.
Use of Funds
In 2023, over $100 million spent on salaries and benefits; $3.1 million on hosting.
Funds also used for lobbying, events, and grants to similar organizations.
The foundation has expanded beyond Wikipedia to projects like Wikimedia Commons and Wikibooks.
Controversies and Responses
Aggressive campaigns have been perceived as misleading.
Criticism from volunteers and editors on the tone and approach of campaigns.
Foundation's response emphasizes operational costs and global reach.
Recent changes in suggested donation amounts in places like India.
Future Directions
Wikimedia Enterprise launched to provide big tech companies access to Wikipedia content.
WMF considering new revenue streams while maintaining a donation-funded model.
Conclusion
Wikipedia’s future seems secure financially.
Importance of transparency in fundraising efforts.
Community collaboration to improve campaign strategies.
Volunteer editors are crucial to Wikipedia's success and integrity.
Key Takeaways: Wikimedia Foundation is financially stable yet continually raises funds through emotional and sometimes misleading campaigns. Transparency and collaboration with the community could improve public perception and align fundraising with the values of the volunteer-driven platform.