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Archive for the 'Donations' Category

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Congratulations and some worried thoughts

If you are a member of CS, undoubtedly you have received an email from Casey Fenton himself  announcing the new 501(c)3 status. The email seemed a bit confusing, because the envelope he’s holding is obviously the application to the new status, but then it seems implied CS is already a 501(c)3? I have no idea how fast the US bureaucracy works, but it seems awfully fast from application to acknowledgment. Is CS applying for it or is it already a charity? Is the outcome guaranteed?

However, congratulations are in order. After 3 years of talking about it and no less than 100 hours of work by Casey himself (a full two and a half weeks!), they were finally able to get the right papers in order. Phew. Good news is that CS is now eligible  for grants and your donations will be tax deductible (if you live in the US). There is money to be made!

Since we can take at least a bit of credit for speeding the process up, basically by shaming Casey into action, here are some of the things I would like to see CS take up:

  1. Reduce the operational cost and significantly reduce the cost of “verification”, far beyond the sliding scale idea. There is absolutely no obvious need to be collecting and spending such a large amount of money. It is almost the anti-thesis of an organization that is based on free and voluntary lodging and low-cost traveling.
  2.  Finally make the organization reflect the community. Get rid of the heavy US centric distribution in the leadership team. Organize elections.
  3. Set up localized non-profit organizations, to allow the same financial and legal “benefits” for European CS-ers (the largest community in any case) and to allow a better local functioning.
  4. Open up, become at least a bit more transparent. Get rid of the multitude of private groups. Publish meeting agenda’s, publish regular and non-PR reports.
  5. Give back to the world. Share the code that so many people have worked on voluntarily or payed for by the community back to that community and to the world at large.
  6. Cooperate. Finally get over your pride and cooperate with HC and BeWelcome. Not a single one of the users benefits from the fragmentation and competition between the different hospitality organizations.
  7. Learn to be humble. Learn how to admit mistakes when you make them instead of lying about it or covering it up. Talk to people like the OCS-ers, even if every fiber in your body seems to struggle against that. You fears are unfounded.

My 7 wishes for CS in 2008.

Thomas

Reasons for not using CouchSurfing.com

To preserve this information in case of a decision by the CS ‘leadership’ to suspend my profile for having the wrong hairdo or something, and because OCS attracts more readers than my CS profile, what follows is my current list of 10 reasons for not using CouchSurfing.com. It is personal, not exhaustive, and contains little explanation. Still, I hope it will give first-time visitors to this website some kind of overview of all that is wrong with CouchSurfing.com. Comments and additions (and corrections if factually incorrect!) are much appreciated.

  1. The company that owns CouchSurfing.com, CouchSurfing International inc., is privately owned and has Casey Fenton as is its sole owner and director. He holds all power over the company and, consequently, the website. This means that, when push comes to shove,
    1. He cannot be held accountable for how donations are spent
    2. He can sell CouchSurfing.com to whomever and walk away with the dough whenever he gets tired of it
    3. CS users have no of influence whatsoever on anything CS-related
  2. Although incorporated as a not-for-profit, CouchSurfing International inc. is not a charitable organisation. Not-for-profit status only means that the company cannot pay dividend to its owners (i.e. Casey); the company and its assets still are his, and his alone. Casey can do with it whatever he wants, whenever he wants it
    1. In addition, not-for-profit status does give not any kind of guarantee that company assets are not utilised for personal enrichment. For instance, as its sole owner/director, Casey can give out loans to himself or others at zero-interest rates, and use that money privately to make a profit
    2. Such potential abuse of company assets is even easier because CouchSurfing International inc. does not appear genuinely interested in obtaining a “501c3″ tax exemption. Non-profit organisations can easily apply for this designation with the IRS, but it requires compliance with strict disclosure and reporting duties, plus having a board of directors, and Casey doesn’t like that much openness. Therefore, part of user donations is waisted on avoidable tax-paying
    3. Most importantly, CouchSurfing International inc. does not have a clause in its bylaws that irrevocably dedicates company assets to a charitable cause. This means that Casey can always revoke the company’s not-for-profit designation and cash in, by volition but also by necessity (for instance, when he or the company ever get sued for damages)
  3. In clause 5.1 of the Terms of Use, CouchSurfing International inc. claims a virtually unbounded and irrevocable right to use whatever material you decide to upload to its servers for its own purposes, without limiting these in any way. This opens up the road to selling user data, including your contact and site usage details, to third parties. At the same time, CouchSurfing International inc. does not have a published policy detailing how they keep your personal information safe
  4. There are no published protocols how the company deals with users committing crimes (violence, abuse, theft…) that involve other users; instead, these appear to be dealt with in an ad hoc fashion. In addition, it is extremely difficult to find who’s responsible for what when it comes to safety. By being so negligent, CouchSurfing International inc. puts the users of CS at risk
  5. On the whole, CouchSurfing.com scores very poorly on transparency. There are hardly any protocols about anything; there is no full list of people on the payroll of CouchSurfing International inc., information is scattered across countless forums and scores of mailgroups, etc. The current management seems to take no interest whatsoever in even starting to improve this situation
  6. Apart from being fraudfully sollicited (i.e., under the pretext that CS is a charity / non-profit), aspiring volunteers are asked to sign a non-disclosure agreement in which they cede all rights on the material they develop to CouchSurfing International inc.
  7. All known employees of CouchSurfing International inc. (i.e., Casey Fenton, Matthew Brauer, Jim Stone and Weston Hankins, all of whom are members of the Leadership Team) are male caucasian US citizens.
  8. The verification procedure is a blatant scheme for increasing donations. It does not offer any kind of added security, and could be carried out at a fraction of the current fee
  9. What little financial information is available gives cause for suspicion. There are interesting discrepancies between assets and interest gained, and attempts to get this clarified are met with deafening silence
  10. Casey and the other employees of CouchSurfing International inc., as well as the influential volunteers in CouchSurfing.com simply do not respond to any kind of question or criticism at all, while still hammering on CS being a community-thing

More CouchSurfing BS

The latest email from comrade Casey uses the word volunteer no less than 4 times, the only mention of the word employ is referring to Weston Hankins leaving his previous hot-shot employers. Would it be fair to say that Casey is misleading CouchSurfing members by not mentioning that staff now receive salaries from their donations? The email also asks for more volunteers, should those people be told some of their “colleagues” will be “more equal” than others?

The full email follows…

Dear Sucker,

This message is to give you an update about the technology behind the CouchSurfing website. We’re making exciting improvements to our website hardware, software, and volunteer Tech Team that we want to make you aware of.

On Thursday, November 9th, at 1:00am in New York, 6:00am in Paris, 10:30am in Delhi, and 4:00pm in Sydney, the CS website will be unavailable for a brief period of up to 4 hours while we install new hardware that runs the website software. This necessary downtime will replace some outdated hardware and improve the site’s speed and reliability in order to keep pace with our growing membership. To prepare for this down time, please make sure you write down or print out any important information you may need during the outage.

Thanks to your support and enthusiasm, CouchSurfing is now the largest website of its kind, with over 60,000 people using the site each week and over 10,000 members meeting each other face-to-face each week! We’re taking action in advance to prepare for the needs of our growing community. As we make these upgrades during November, you may experience other unannounced website outages, but we expect these to be few and brief.

CouchSurfing’s volunteer Tech Team has been acting literally around the clock from several time zones to fix the issues effecting our email delivery system. For several days scattered over the past few weeks, emails were delivered up to a day late, and we understand the frustration that can cause. We’re happy to report that the Tech Team now has the issue under control, and we thank them for their determined efforts.

Thanks also goes to our new Tech Team Coordinator, Weston Hankins. Bringing Weston on board has been a huge score for CS. Weston has previously worked for automaker, Daimler Chrysler, and he co-developed core aspects of the Microsoft Windows operating system. He was willing to leave his high-profile employers and volunteer for CS because he shares our mission and love of travel.

Providing CouchSurfing’s free service depends on the amazing output of our dedicated volunteers including Weston, the Tech Team, and many others. We’re always seeking more help to continue to provide members with excellent service.

If you are a professional Linux system administrator with several years experience and knowledge of distributed file systems, load balancing, or database replication, please contact us.

We look forward to providing all members with improved website performance and reliable email delivery in the next month and into the future.

Happy CouchSurfing,

–Casey Fenton

Casey, please comply with the law

Please note that this post does not necessarily reflect views shared by all OCS posters and sympathisers. I put it here on my own initiative.

Norbert has placed the following post in the brainstorm forum on CS. I felt it should be cross-posted here, so that it can be given due public support by those who feel that’s appropriate. It sure has mine!

“This is my final appeal to Casey and the Leadership Team. I haven’t filed my report yet with the Attorney General of New Hampshire. I would prefer not to do it. I don’t like the role. And I don’t like the fact that this may divert resources into legal procedures, costs, and possible fines. Don’t get me wrong, though: I’m not making any excuses for myself. I will do it if I have to, whether I like it or not. It will not be my fault for reporting it, but the fault of those who broke the law. Yet I feel there is still time to ‘heal’ the situation. CouchSurfing has been represented as a charity without being one, and has thus violated the law. It has failed to comply with registration, reporting and disclosure duties. It has obtained donations of money, time and skills under false pretenses. It has broken the law. It has done the wrong thing. The best defence against those charges obviously is to make it a real charity immediately. That would not undo the legal violations, but it would make them ‘technical’ rather than substantial, and I suppose they could then be overlooked.

This would have to be done with credibility. Mere words will no longer be enough, especially when they are cold, and don’t show an intention to reach out. It would be good to hear an admission of mistakes here and there, or at least an acknowledgment that help from members could be useful. I would like to see the true message of strength from the Leadership Team that comes with admitting they’re not perfect. How could they be? They are mostly young, motivated people, at the beginning of their professional lives, working for us in exchange for a bag of peanuts! So be who you are; don’t claim to be Bill Gates! If you say: this is what I’m good at, and here’s where I need assistance, people will come and help you. If you claim to be perfect, and are arrogant with it, people will try to prove you’re not so perfect after all. If we disagree, by all means do it your way, and not mine, as you’re the ones doing the work, but don’t lie and don’t bully.

I believe a genuine charity is the best way forward, as it will allow motivating future volunteers. This organisation has to spend a lot of time and effort on finding out what it wants from volunteers, and more importantly: what it wants to offer them. It needs to learn urgently that volunteering is a give and take situation, and not a one way street. That doesn’t negate that many volunteers are perfectly happy. They have found rewards for their work, mostly in their own local communities. But that is their own achievement, just like the volunteering itself. The organisation does not seem to be offering much. Where’s the volunteer training? Where are the written testimonials given for thousands of hours of dedicated services, that people might use for job applications in their CV, proving they exercised and acquired skills? Instead cold emails are sent out that “your services will no longer be retained due to personal differences”. Wrong way. Volunteers need to be at the very heart of the organisation. Please treat them as ‘human resources’, not as free labour without minds. I fear there is no ‘healing’ of the wounds suffered by some ex-volunteers, as some of them seem too deep. The effort here will need to be: not to let it happen again.

CouchSurfing, and a number of individuals, may face serious legal consequences, and real pressure can be put on you to honour your word and become a charity. That will happen unless you make it obsolete by doing the right thing now. You can’t, however, be forced legally to put the word ‘irrevocable’ in your bye-laws asset dedication, but you may realise it’s the ‘open sesame’ that leads forward and restores trust. In any event, the obligations that come with genuine charity status (irrevocable or not) to adopt acceptable (team) corporate governance instead of a one-man-band, to have annual reporting and disclosure duties, in other words: public supervision, will be a huge improvement. It will be both: control and support mechanism, to ensure you’ll do the right thing. Please do it.”

Jim Stone on Refunds

In this thread on member verifications, Jim had some interesting things to say about refunding verification money. However, the last three posts have now been removed by an “administrator”. Here’s what they said (I have the full HTML of the page saved if anyone would like a copy).

Mikky:

found a member recently who sent the money but when i verified her, she had her profile already deleted, guess we should refund her the money.
right?

Mikky

Jim:

We only refund when asked to do so.

Jim

Mikky:

 would you (“we”?) qualify this as fair, serious and professional behaviour?

i would call it a second class behaviour

+ it doesn´t fit to all the wannabee speech…

“we” might wanna reconsider this

Mikky

Jim:

As far as I know this person has not asked for a refund. It’s not up to us to decide that they suddenly want their money back unless they ask for it. What do you not get about that?

I don’t appreciate your tone here, Mikky. If you have a problem with me please try to learn to be respectful of your other teammates and take this out of this group where we can deal with this privately.

Jim

Mikky:

well i asked a simple question if CS will follow a professional well will spirit of fair trade

you gave a simple answer

easy as that

i don´t think that your privat appreciations are a topic here.
feel free to email me and i would gladly inform you what RESPECT is all about.

Mikky

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?