Archive for the 'Donations' Category

CS organisational policies vs the risk of litigation

As posted in the politics and policy group

As Norbert points out here, the LT’s apparent unwillingness to make haste with the 501c3 application for tax exempt status, as well as their unwillingness to publish corporate bylaws or make drafts of these available for discussion, may well be construed as an (attempt at) fraud, because donations and services are and have been obtained under the (currently false) pretense that CS is a charity.

Needless to say, this renders CS extremely vulnerable to all sorts of liability suits, interestingly of the kind that is likely not to be covered by the ToA. Basically, any user who has donated volunteer work or money (besides the verification fee) to CS can claim that he has been the victim of this fraud; add to this the easy access to legal representation in the US (due to no cure, no pay) and Norbert’s prediction that liability is likely to extend to all natural persons working in, and owning CS, and you can easily grasp the size of the time bomb Casey’s currently sitting on.

And how do you reckon that Casey, Jim and Mattthew were to produce the funds needed for compensation if this happens? Precisely, from the sale of CS to a commercial third party, which is entirely within Casey’s right…

Follow the money

To anyone who is trying to sort out what is going on in CS and who to believe, I suggest you apply what many consider to be the “First Rule of Investigation”.

“Follow the Money”.

Something very significant happened to CS during the year since CS 2.0 was launched as a volunteer-centered community-based enterprise. The corporate income drastically increased from a level where there was barely enough to make ends meet, to a big surplus, with the reasonable expectation of much more to come.

It doesn’t take much imagination, knowing human nature, to construct various scenarios that would explain much of what has happened in CS. It’s a certain fact that Casey, at the very least, from early on, was leveraging his position in CS for his own personal profit.

“Site design by Casey Fenton Consulting”

used to appear at the bottom of all emails to members and (if I remember right) every page on the site, with a link to his personal business. Now, this, in itself, is not necessarily a problem. Whether it is or not has everything to do with with impressions given to and agreements made with people who signed on to do do full-time volunteer work for what they thought was a noble cause, for a community built specifically on the value of freely giving without expecting a financial reward, and who literally saved CS from termination.

Things are going well for a young rapidly growing volunteer enterprise, there is tremendous community spirit, creativity, new initiatives, large numbers of highly talented people wanting to get involved. And then suddenly, the rug is pulled out from under them. Some of the most active and committed volunteers are made to feel unappreciated and all but shown the door. Announcements come down about new paid positions for Casey’s close associates.

We are told paid employees are needed to do the necessary tasks that volunteers won’t do, because they tend to do things on a whim. I, myself, had spent 5 months doing nothing but things that needed to be done, fixing hundreds of bugs, postponing my “whim” project (which would have greatly benefited the community, I believe, but never happened). I did all this in spite of the LT, who for the most part, were unresponsive, non-participating, prone to arbitrary assertions of executive authority without understanding the situation, and even at times seriously undermining worthy, community-based projects.

We are told democracy can’t work in an organization like CS and that voting is impractical. Aside from any philosophical arguments, the plain fact is that democracy and voting are happing right now in bewelcome.org, and very successfully, I might add.

These kind of statements defy logic and reality, so why would they be made? Just look at the result: concentration of power and money in the pockets of Casey and his hand-picked associates. A paid developer will be hired, who will do what he or she is told, to replace the 6 highly qualified computer professionals who used to work for CS but are now working for BW, where their individual creative ideas, personal ideologies and cultural diversity are welcome and valued.

We question all this and are branded “whiners” and “CS-haters”.

I would never have given a good part of a year of valuable service to CS if I had known where it was headed. When I started having concerns about what the Admins were up to in their secret meetings back in December, I wrote a long, detailed, thoroughly documented letter to them. It was entitled “Request for Information from the Admins” (approx.). It was posted in a CS group named “CS Core Volunteer Communication” (approx.) created specifically for the purpose of allowing for communication between volunteers and the Admins, who previously were unavailable for communication as a group, and could only be communicated with through a liason.

I specifically mentioned problems with responsiveness, participation and arbitrary assertions of power. I expressed concerns about accountability. I said I was in CS to work freely for the community, and was not willing to work for Casey and/or the Admins if they were not accountable to the community.

The only response I got from the Admins was, from one of them, “Your letter is too long, so I’m not going to read it.” (approx.) This is when I became very concerned.

I started paying more attention to the NDA issue, which was very troubling to me, and I had only accepted it provisionally with the assurances that “it is being worked on and will be fixed soon.” (approx.). It was already going on 6 months.

I wrote another letter to the Admins after about a month or two, reminding them I was still waiting for a response from my first letter, and amplifying my concerns, which continued to be validated.

There was no response from any of the Admins who were in power before the crash.

Now, in retrospect, knowing what they were working towards, I believe I may have been allowed to continue to work for free under false pretenses, while the LT was planning to use the increasing revenue which I and many other volunteers were helping to generate, to pay some of themselves, without my permission or the permission of the other volunteers.

If this is what really what happened, and the total absence of meaningful response to my two inquiries was not just sheer incompetence or negligence (and how can I know when so much is kept secret), it was an ethical breach and I and the other volunteers have every right to feel mislead and disrespected. We certainly have the right to challenge the LT without having our credibility and integrity questioned.

So, to you new investigators, I suggest, follow the money and judge for yourself.

John

The trouble with CS finances

No, Couchsurfing.com is not in financial trouble… Yet.

On June 19th, I published a analysis of the CS finances (sheet) , predicting that CS (technically it’s actually just Casey) would be able to hire 3 to 5 extra “employees” by the end of this year. It happened a lot quicker than I thought however (Jim Stone and Mattthew Brauer got hired as well as a thus far unannounced and unnamed developer). This is the part where I say “See! i was right!” and continue speculating.

Let’s have a look at where this money comes from. As far as we know, there is only one source of income for Couchsurfing: donations. This is logical, since there are no banner ads, no paid subscriptions or anything and Couchsurfing has been unable to register as a 501(c)3 organisation in the US so far, which excludes the organisation (actually, just Casey and his friends, since there is no officially elected board) from US government money.

But! Surely people that (mostly) like to travel cheaply cannot afford to collectively donate over 150.000 $ a year (projected for 2007)?!? You’re right. They aren’t donating, they are “getting verified” at 25$ per person (or less if you can prove you live in a poor area of the world). Verification is essentially proving to CS that you are who you say you are and nothing talks like money. If it was just verification they were offering, money wouldn’t need to be involved. I’ve heard of CS meetings where you could bring a passport and 25$ to get verified by an admin. Why would you need to pay if you could just show your passport and be done with it? Because, of course, this verification/donation scam is the main revenue stream for CS. Yes, a scam. If CS was genuinly interested in getting people verified for “security reasons”, a showing of passports would be more than enough. However, I have thus far never met anybody who was able to get verified without paying cold hard cash. The administrative cost of sending you a “verification code” is also negligable, a 2$ “donation” would be much closer to the actual need since all the physical posting is done by volunteers anyway.

In and of itself, this verification/donation scam is mostly harmless, even if the “sliding scale verification” is pretty cynical if you really think about it. (We’re asking people to pay as much as they can affor, so they can “prove” their identities and get the same benefits as those who can afford it, how’s that for intercultural understanding.) I mean, even I fell for it and payed to get verified. Then why is it such a problem?

The trouble is that verification money scales directly with new subscriptions to CS. This in turn means that CS can only continue to afford paying people like Jim Stone if people keep registering (and verifying) at the current rate. This definitely explains why there is so much “verification spam” on CS (visible when you haven’t “verified/donated” yet). If at any point the amount of new users starts to slow down, verification/donation money will automatically slow down as well. If CS ever hits the peak of possible subscribers, income will fall, rapidly. Subsequently, Couchsurfing cannot afford it’s employees anymore and soon it will be in real trouble.

How likely is this? Well, Hospitality Club seems to have hit it’s high point already, with subscriptions slowing down significantly. We can only assume that it’s only a matter of a year or 2 (at the most) before the same thing happens to CS, since both organisations tap more or less the same userbase.

At that point - as they say - things will start falling apart. CS will be practically forced to work with volunteers again at the “top of the food chain”, which no doubt will cause enormous amounts of stress on the tightly formed group that is privately running CS right now. Note that Casey is not preparing “his” organisation for this. It doesn’t appear that any of the donation money is being saved (for instance by not hiring Jim and Mattthew but opening a savings account) and long-term thinking doesn’t appear to be a strength of the organisation anyway. Couchsurfing is technically running on “borrowed” time, on finances that will only last as long as new users keep coming in.

An organisation like CS almost has to run on volunteers, unless it drastically changes its business model. So, either we see banner ads, “payed subscriptions”, “golden accounts”, regular “donation drives” or whatever or we’re going to see a financial breakdown. When that happens, and it most likely will, we’ll be here to pick up the pieces.

From a BeWelcome volunteer

I was just reading the BeVolunteer forum and I was happy to read lemon-head’s post about the BW mission and objectives. Here’s a part of that. Of course I was especially pleased with the remark between brackets.

No interest in organisation politics?

It was said that the ordinary CouchSurfing or Hospitality Club member doesn’t care about the legal structure of the organisation behind.

I agree that most members will choose a hospex site mainly based on the chances to find a host etc. However, as soon as volunteering or donations are involved, at least some people will start thinking. For me this was the point where I started to become interested in the legal structure of couchsurfing and hospitalityclub. Later a talk with some CS people mentioned BeWelcome, and I felt pushed to read more about it and find information from external sources (opencouchsurfing, at first).

2000 US$/month

From Jim Stone Aug 4 Met in person

Extremely Negative

I once thought Kasper was able to separate friendship from business and keep things professional. I was wrong. Friends don’t routinely bash each other personally in public and scream “you’re a f*cking asshole!” in public forums. I should have known better, but Kasper will do whatever it takes to push his twisted agenda. He’ll demand special treatment and then cry when he doesn’t get his way. Beware - this man will stab you in the back after he borrows the knife from you. In his own words ( http://www.couchsurfing.com/group_read.html?gid=3886&post=304127 ): “I don’t know what I’m trying to achieve. But I’m not stopping.”

Thanks Jim. How do you seperate friendship and business now that you get 2000 US$ a month to coordinate volunteers?

CouchSurfing - An Equal Opportunities Employer

According to the job spec for the new CouchSurfing Lead Software Architect, CouchSurfing is an equal opportunities employer. Yeah right.

The position is “contract at-will” under US law apparently. This means either party can terminate the arrangement, at any time, for any reason. In other words, this means absolutely zero job security. If the verification propaganda starts to fail, and members stop donating money, you can bet the paid developer will be the first person to get fired.

The person is expected to work 40+ hours per week, 6 days per week. According to the spec, the position will be “an amazing opportunity for adventure”. Of course the unlucky candidate won’t have any time for such adventures as they’ll be on their computer 6 days a week working for CouchSurfing.

My condolences to whomever is unfortunate enough to be given this job.

CouchSurfing is Hiring

It was announced yesterday that CouchSurfing is seeking to hire a full time developer. They’ve just hired two core volunteers (Jim Stone and Mattthew Brauer). Where are they getting all this cash from? If they’re each paid $2′000 USD a month, between those three and Casey, that makes $96′000 a year.

So the CouchSurfing Corporation is finally starting to pay off…

Reflections…

…two months after resigning as a CS volunteer, in the form of responses to two calls for an egalitarian CS community in the CS Brainstorm group.

Hello Abrahim,

I appreciate your efforts to bring this issue to the attention of the community again. You obviously put a lot of thought into your post and recognize the critical importance of this to a community which shares the values that we do. I hope I’m proven wrong, but I feel certain that the kind of movement you are proposing would end up going nowhere in CS.

Just over a year ago, there was an excellent opportunity to redirect the course of the CS community away from being under the control of a small elite group, unaccountable and unanswerable to the community at large. This opportunity coincided with a major crash of the servers followed by Casey’s termination of the CouchSurfing Project. For most of the last year since the community-led rebuilding effort, some volunteers worked towards an egalitarian community, which they thought was consistent with the stated CS 2.0 goal of decentralized participation, while the former administrators of the website redefined themselves in secret. A few months ago, the elite group re-emerged in the form of the “Leadership Team”. These self-appointed leaders are really rulers (if you consider CS as a community) or managers (if you consider CS as a corporation). Leaders generally lead by consent of the led. Rulers need no consent.

Since the Leadership Team members were each chosen (or at least endorsed) by Casey, the owner of the Corporation, and by extension felt entitled to govern the community that has formed around the web site as they saw fit, some of us who hoped for a different CS realized that our cause was lost and moved on, in some cases to alternative hospitality organizations which do have an egalitarian community.

The Leadership Team has clearly taken a stand against democracy. They have taken upon themselves the role of guardians of the CS mission, as they define it. Their “constitution” is as much about protecting their power as it is about protecting the mission. They don’t seem to be aware of the hazards of this stance. It is an easy mistake to make, since they are generally good people with good intentions and a noble mission. But the structure itself is inherently flawed and prone to abuse and corruption. This has happened countless times throughout human history whenever too much power is concentrated in the hands of too few people, even in organizations started by the best people with the best intentions.

As one example of how easy it is for a self-reinforcing group with no accountability to the people they claim to serve, consider the mission of intercultural understanding that they purport to promote and protect. The very essence of intercultural understanding is respect for diversity. Yet, the structure of the leadership team requires unanimous agreement among themselves to make important changes. The implication is that, knowing that one person could bring the effectiveness of the Leadership Team to a complete halt, extreme care will be used to select only those people that will not disrupt the consensus; in other words, people who will not create “divisiveness” or “conflict”, but conform to the established groupthink. This is perhaps the worst possible environment for promoting diversity of values, opinions and ideas, cultural or otherwise. Yet it seems they consider themselves to have a special insight and virtue which entitles them to be the guardians of the CS mission.

I have already seen cases where extremely valuable volunteers have been blacklisted because of what seems to me are mostly cultural or gender differences, or because they had an ideology not in sufficient conformity with the elite’s ideology.

Besides being inconsistent with the CS mission, the LT policies are inherently non-viable according to the lessons of nature, where diversity is the primary guarantee of adaptability and survivability in the face of changing environmental conditions and random events.

Another inconsistency: in a community which is as much about freely giving as anything, truly built upon the generosity of people willing to give without expecting a financial return, how is it that the owner, who should be exemplifying the spirit of the community, is the only one getting financial benefit for his contributions? If someone is to be granted an exception to the otherwise universal policy (so far) of voluntary work, voluntary donations and voluntary hosting, shouldn’t the community, who provides the money used to operate the infrastructure, have a say in this? I’ve heard all the counterarguments to this, but nevertheless I’m certain that CS could be run entirely by volunteers. The fact that it isn’t has not been a community decision.

Without going into details now, there is now doubt in my mind that the lack of participation and responsiveness of many of the so-called leaders in many areas at many times is a symptom of the structural problem (lack of accountability to the community) and the attitude it fosters. (For example: over a year and counting and still no acceptable NDA, something of such grave importance to several volunteers that they stopped volunteering because of this fiasco). Likewise, the chronic server problems and the slow response to member requests for bug fixes and feature enhancements are also traceable to the same problem.

The only possibility I see for CS to become an egalitarian community is for the community to obtain ownership of the Corporation. In other words, buy out Casey. But I don’t think this is realistic considering that perhaps 99% of the users of the CS website are reasonably happy with the free service that it provides. The number of members actively involved in the community (beyond hosting and surfing) are a small percentage of the total membership and of those, only small percentage of us are really concerned with such philosophical and political matters as we’re discussing. There are some other hospitality communities where self-government is considered as important an objective as intercultural understanding, and inextricably linked to it. For me, it is more efficient to start over with one of those communities. Indeed, I was given no choice. Casey himself stated that if we don’t like the way CS is run, then leave and come back later [after all the structural changes now being implemented are locked in - he has veto power over any proposed structural change in the future]. Don’t get me wrong, I like a strong, assertive leader, and even encouraged Casey that way, but any leader without accountability to those led is a dictator, even if a benevolent dictator.

I recommend you think of CS in terms of the Western culture notion of “corporate entity” and all the concepts of ownership and entitlement that go with that, rather than a diverse community of equals with shared values. That may save you a lot of heartache. For me, it is best to think of the new CS as a social website like Myspace combined with a travel website like Expedia. Then, Casey is just a dot.com entrepreneur carefully protecting his investment and his personal vision and getting his just reward financially. No problem with that if you’re a fan of Western corporate culture! (Just be clear about it to potential volunteers: your free work and ideas are welcome, but Casey is the only one who financially benefits from them, and you have no say in that.) We are all free to use what the CS Corporation offers and to go elsewhere if we object to the way it is managed. Thankfully. Just the mere fact that this post will not be censored is a credit to the LT — they ARE doing some things well!

John

   

Responding to David Lee Frazer’s commentary on the “Wolf Pack Psychology” of the LT in another thread:

Hi David:

The following is meant to be taken partly in jest.

I don’t think “Wolfpack” is the best analogy to descibe the LT, although it’s imaginative. I just don’t see Casey as the alpha male of the pack. Brute force is not his means of holding power.

“Monarchy” is a better analogy: King Casey and the Lords and Ladies of CouchSurfing. But most monarchies do not justify their entitlement to power as virtuous protectors of a noble mission. It is enough for them to claim hereditary entitlement, or royal blood, in many cases, or else “might makes right”.

“Religion” is an even better analogy. Pope Casey the First and the College of Cardinals. The Global Ambassadors would be the Bishops, from whom the Cardinals are chosen. The other ambassadors complete the priesthood, and the rest of us are the bleating flock, who are shepherded by the wise and learned Bishops. Very good description, actually. Can you imagine an election for the Pope by the flock ever happening?

Those of use who resigned as volunteers could be thought of as the Protestants and have gone on to find a more tolerant and open cultural milieu. Among other things, we didn’t like the idea of the CS Corporation claiming custody of our creative ideas like a Church claiming custody of our souls. We even had a heretic among us, who was shunned after enormous contributions (Kasper).

The Roman Church began with a noble mission but which over time, due to the inherent structure it shares with CS, erred in many ways. The leaders acquired an attitude of condescension and hubris, thinking themselves infallible, not needing checks and balances. They became enamored of their wealth and power, drifting far astray from the example of Jesus, who wanted neither. Protecting their power became more important than the original mission. Anyone who is ignorant of this danger of concentrated power, or thinks themselves immune to it, is surely vulnerable.

All men having power ought to be distrusted to a certain degree. — James Madison

If I claim to be a wise man, it surely means that I don’t know. — Kansas

You know that those who are regarded as rulers of the Gentiles lord it over them, and their high officials exercise authority over them. Not so with you. Instead, whoever wants to become great among you must be your servant. — Mark 10:42-43

John