So we go from NGO to B rated to IPO!

I don’t know what to think of this except for that we’ve been missing out on some financial analysis here. So…

Some random numbers

I don’t think the valuating the company based on the number of 3 million members makes any sense, a large part of those are not active (heck, quite a few must have died by now even). So let’s do a search “Everywhere” for people with host status Yes or Maybe. Today, I get about 350.000 results.

If we assume that 7.6 million US$ have bought 10% of the company that gives a value of a bit more than 200$ per host.

With the current rate of 30.000 new signups per week and a hosting ratio of about 40% (yes+maybe) that means the company’s value is increasing with 2.4 million US$ every week.

Not bad, aye?

Well, that presumes that the new signups are as much into hosting as people who signed up 5 years ago.

Funny enough, today there were 2500 fewer potential hosts than yesterday.

And… rumors have it that over 100.000 members have deleted their profile in the first week after the announcement of going B-corporate.

For those just tuning in, where are we in the scenario? We’ve seen a community founded on lofty ideals, grow, nay burst with activity and numbers, we’ve seen hubris take the form of work-as-permanent-vacation, we’ve seen scandals of every sort imaginable, we’ve seen the falling out of all the idealistic volunteers and – not so long ago – the original founder has gone into hiding. As predicted, the money-flow eventually became insufficient to full-fill the beast that was created. Worse yet, the beast had not been paying taxes because “the IRS didn’t understand the innovative commercial nature of our non-profit” and now must be fed even more:

“I think the best possible structure is the one we have. One of the challenges with nonprofits is it’s difficult to adapt quickly and easily from a business model perspective because you need clearance from the IRS. Now we get that flexibility and we’re still making a statement.” – Dan Hoffer (in Techcrunch)

What is amazing is that they have found VC money (a mere 7,6 million $, which is actually pretty abismal and probably indicative of the low expectancy of success) and have thus kept afloat even now. The CS inner crowd are survivors, you have to respect that at least. And they know how to lie to, judging by this bit:

“Indeed, one of the big reasons they decided to take funding and switch the company’s classification was to make it easier to recruit stock-option seeking engineers.” (same Techcrunch article)

Anyone who knows anything knows the switch in classification was forced unto CS, after years of fruitfully trying to obtain 501(c)3, but I guess it’s important to start rewriting history as soon as possible.

Here’s the problem though. How are they going to earn those VC’s their big bucks? You have to keep in mind that the expectation here is about 5-7 times (!) the investment in about 4-5 years and the clock has started ticking. It is easy to see that the current revenue stream just doesn’t work: verification fees are eventually going to dry up (most likely have hit their peak already). And donating to a for-profit? I just don’t see it happening. This means CS is going to have to find a steady income stream and – I would expect – even have already made indications to the VC’s of where they might get it. Now, I only see two options:

1. They start making money off the “daily activity”, which would be hosting itself. Dan hints at “premier services”, but I don’t think that is going to fly for a two reasons. a) You can only run a verification scam once. b) It is insanely hard to convert non-paying volunteers into paying customers. c) There are still free alternatives out there, BeWelcoming everyone with open arms. (OK, that’s three reasons.) I honestly doubt they will go this route, but with Todor Tashev on board it might just happen. Todor Tashev is also on the board of Meetup, a company that successfully makes money from their volunteer-run activities.
2. They go the Facebook route of leveraging the personal data that is embedded in the social network that Couchsurfing is to a large extent. The fact that Matt Cohler (heavy duty ex-Facebook guy) has joined the board as well makes this a very frightening possibility. On a practical level, this would mean letting companies access the enormous amount of personal information, so they can give you those personalized ads you’ve always wanted. The advantage is that this can be introduced in a nice and sneaky way, the disadvantage is that a large majority of couchsurfers are on there precisely because they don’t have cash to burn. I guess you can always try to schlepp airplane tickets or discount backpacks, but that is a rough business (travel is an industries with razor-thin margins, keeping afloat mainly on quantity).

Hello translation team members!

First, I want to thank you all for your dedication to this team and for wanting to help make CouchSurfing available to more members around the world. Translations is important to us and we couldn’t do it without you.

I understand from Benjamin that this team is on strike and no longer actively translating the site. He has brought up several issues with us that we are trying to better figure out. This area is important to us and we want to be sure that we have thoroughly researched the issues before we proceed with a larger scale solution and possibly make it worse. I apologize if this process is taking longer than some of you may like. As you know, CouchSurfing is a non-profit organization. With very limited funding we, in turn, have very few resources to dedicate full-time attention to every program that we offer. Our tech team alone has hundreds of priorities listed and are working around the clock to get to everything as quick as possible.

We have certainly not given up on our Translations area and are working to correct the issues as soon as possible. Many of these issues are complex and difficult to understand exactly what is wrong with them but the tech team has been steadily resolving the reported bugs concerning it. For example, this weeks’ updated code release included some fixes to some backend functions that should help. It was reported that some updated translations were overwritten whenever our website code was updated. This should now be fixed. If you see this still happening please report it to the SBOT team, through your designated coordinator, or directly to us at www.couchsurfing.org/help and choose the Translations option in the dropdown menu at the bottom of the page.

Also, our WebOps coordinator has asked Benjamin to step down from leading this team. In the coming weeks we’ll be talking to some team leaders about forming a new overall leadership post.

We understand that the translation system is not optimal and some of you may choose to remain on strike. But if you’d like to continue translating please do. It’s completely up to you. If you no longer wish to remain on the translations team we ask that you kindly remove yourself from the translation groups and let us know in the future if you’d like to come back. Again, this is completely up to you. We appreciate and value your help and want to help you help the organization for as long as you’d like to contribute.

Thanks for your help, everyone. We couldn’t do what we all do together if it wasn’t for team members like yourself. You rock!

Happy Surfing and translating!

Jim Stone
Chief Operations Officer
CouchSurfing International

I couldn’t have written a better analysis than Margaret’s:

…has the CS management never heard of working together to reach a compromise? What about ‘negotiation’…does that word ring a bell?

I find Jim Stone’s answer to the Translations Team to be both disrespectful and disingenuous. If I had to devise an approach to the management of volunteer groups which would definitely *not work*, and would alienate and anger any competent volunteer, I could not have come up with a better example than this post from the COO.

I cannot imagine why any sane person, excepting those with pathologically low levels of self-esteem, would continue to volunteer for this organization.

This post is an example of exceptionally incompetent volunteer management because:

1. Jim says that his team must more thoroughly research the areas of concern, that Ben and this same team have already clearly and concretely outlined, before making any changes…why? Because (in classic arrogant disregard of volunteers by paid staff…) to follow the advice outlined by Ben, the team leader, would “…possibly make it worse” (“it” being the situation…please see paragraph 1 in the link Kasper provides). This is administrative double-speak at it’s most irritating….and is a thinly veiled excuse to buy time.

2. Jim excuses his own management incompetence by saying this: “As you know, CouchSurfing is a non-profit organization. With very limited funding we, in turn, have very few resources to dedicate full-time attention to every program that we offer.”

NO! I have never, ever, in my 5 years of reviewing non-profits, seen any organization excuse unprofessional behavior by saying, well…ya know…we’re *just* a non-profit.

Non-profits are held to even GREATER standards of professionalism than for-profits; they have to be, because they rely upon the public trust for funding. You never, ever, ever, want to betray this public trust…so to say that you cannot run or fund your programs appropriately because you are too poor is admitting your own inability to run the org….every non-profit is in this same situation…other managers just manage it better!

Jim Stone suggests that CS can’t do its job because it does not have the riches of a for-profit company; this excuse is simply insulting to the literally millions of non-profits which perform miracles, daily, on shoestring budgets: providing food, housing, jobs, hope and life to humanity, simply because this is their charitable mission. This can-do spirit is INSPIRING to volunteers…people want to join an org that puts it out there, for the universal good, despite having limited funding. Limited funding is not an excuse in the non-profit world. NO ONE wants to pitch in and help an organization which excuses its own management incompetence by saying they dont’ have enough money!! Do these guys want to drive away their own staff? good lord, it’s astonishing.

(the poverty plea is actually a lie: CS has tons of money…more than enough…to fund its programming. They simply *choose* to not put this money toward programming. What do they spend it on? Cohabitation bonuses, airfare, rent for luxurious spaces on the beach, and that nebulous catch-all category: Talent http://www.couchsurfing.org/donation/where_does_the_money_go

Jim has shown, in this post, a distressing lack of talent. If you add the entire expenditures from the Talent portion of the financial pie, you’ll see that CS spent (I’m assuming this past year, since this info is not dated…incompetence again) $1,590,172 on “Talent” alone…and for what? We get a reference counter that is far inferior to one developed, for free, by Dan?

Jim is the head of Operations. According to the pie chart linked above, CS spent $169, 032 on operations during whatever fiscal time frame this webpage documents. What has that money purchased?? Jill Kohlberg, the PAID volunteer coordinator-type person is unresponsive and evidently AWOL (despite her LinkedIn profile saying that she’s still getting a CS paycheck (source: http://www.linkedin.com/in/jillkohlberger ) ….while the competent Translations Team leader, Benjamin, who has diligently worked for free, is *fired*.)

…and “operations” is spelled “opperations”!

Well… I have one thing to add, it’s the first public post of someone in the higher spheres of CS in a while. One has to have respect for that!

Pickwick

“just a way to pay some employees more than others”

I’m fairly certain that it’s just a way to pay for the inner circle’s rent out of company/charity funds, without paying income tax on the value of the benefit. Because that’s what it usually is. And that’s what it was about when they were paying supposedly tax free flat rate ‘daily travel allowances’ for long term employees, or before that, when they paid flat rate ‘travel expense reimbursements’, or before that, when they were offering ‘free food and lodging’, as a perk for ‘volunteers’.

And it’s not as if the IRS had never come across it. There are certain areas of maximum suspicion in all tax jurisdictions: tax free benefits in kind, foreign business travel to popular holiday resorts, employing family/friends, (sub-)contracts between legal entities owned by the same people, all kinds of expenditure that may be (partly) private, etc. They all raise red flags with tax inspectors, and give them the hope of shining in the eyes of their superiors by catching a crook.

Having a nice place, however, may well turn out to be a ‘chick magnet’, as I believe the phrase is in heterosexual womanising circles.

*Margaret*:

perhaps it’s not useful to think of CS selecting for ‘dumb’ women, but to view the managers as valuing loyalty in their hiring selection. In my opinion, you must simply do your job and keep quiet to remain employed by CS. Your place is very circumscribed and the understanding is clear: if you want this job, you lose your voice.

I hosted Mandie, the former communications directors, and she was really smart. I also admire Meredith’s writing skills (current communications director) and I hear that Rachel is simply wonderful to work with: professional, prompt, responsive and super competent. I dont’ think any of these people could be considered stupid.

I do think that CS values loyalty and discernment in their hiring choices. The way to get, and keep, your job is to either not notice problems, or notice them and shut up about it…I think CS values employees who are very patient and who do not think critically about problem solving…which is a long term concern for the survivability of this org under its current management. Most organizations value employees who notice, and point up problems, early on before they become larger concerns….it’s the only way to ensure quality.

The consultant Mirek, also a CS-member, served at Basecamp from 16-21 July 2009 for Gadget and Matthew Brauer. The presentation of his ideas and conclusions can be found online (pdf, odp ).

Some Couchsurfing Facts from the presentation:

1. CS has 15-20 thousand new users each week
2. 5.6% of them pay verification fee of 26 $
3. That makes more than 20.000 USD flowing in every week = ca. 1 mln USD a year.
4. Expenses = 700-800 K USD
5. 200.000 USD of surplus, and growing…
6. Big Question: What to do with the extra money?

Mirek has some nice other nice observations about the organisational model of Couchsurfing. “Your present structure is based on a ‘family business’ model: tasks and responsibilities are ‘automatically’ assigned to people (mainly insiders).”

He advices to give it more structure, to have better defined functions and thinks it is a bad idea “to pay salaries to people staying [at Basecamp] up to one year, even if you have enough money. This would spoil the CS atmosphere and cause lot of formal (legal) obstacles.”

Interesting enough, Mirek explains to see donations as “a loan of trust”, which CS has to repay, “by improving the value you bring to CS users.” Couchsurfing should do that by “improving the website and services” and the organization, “so you are able to create a better product”.

Too bad that CS doesn’t use SpamAssassin. But what about the profile (https://www.couchsurfing.org/profile.html?id=BFUS6VU)

Why is a African person being able to “have a secure profile”, while everything is against him? Another proof that registration and sponsoring CS doesn’t make the system safer?

(Needless to say: I spammed the account…)

Have a great – and safe! – 2010!

What really amazed me was the reason of the leave: a programming error, and not one, but one of many. I quote:

Another issue that was concerning me were bugs with simple fixes. Europeans consistently use commas to separate dollars and cents. However, many transactions were processed incorrectly, due to the comma. A member would attempt to donate 21,50, and 2,150 would be charged. Then it’s up to the member to notice the error, since we did not mail out receipts. I attempted and notified the LT that we should fix this ASAP, but it didn’t take top priority.

To be honest, I do not fully agree with Thomas stating that this is a scam, but I’m surely interested whether all the money is payed back as it should be. The programming error also makes clear that the creditcard-payments are handled at couchsurfing.com itself, instead of a payment broker. I’m not very clear if I would be glad to be a verified member…

1. The Verification Team Leader himself admits that verification is a financial scam. There have been a lot of articles about this on OCS already.
2. The sexual atmosphere at the collective has become even more out of touch with the real world and what Brian describes is absolutely cult behavior.
3. Brian has only been volunteering for a year and he already writes: “And from what I read and gather, that’s fine by the LT. Seems that long-term volunteers are a pain in someone’s ass… not that they remember how CS was, but because they state issues, they are seen as trouble makers. I’m now one of them, I suppose.”

Welcome to the world outside of CS Brian!

The original post, now saved for prosperity and googlification:

I am attempting to abide by the guidelines within this group. I share here my letter to Jim and Casey for the reasons why I resigned as the Verification Team Leader, as many Ambs wrote to me off-site and asked for the ‘real reason.’ Here it is.
================

Dear Jim and Casey:

As you know, I’ve resigned as the Verification Team Leader. I currently remain on as a City Ambassador, NMW, CUQ Team Member, and co-moderator of the CUQ Team, unless you decide that it is not to be. I’ve always realized that this is your site, and the volunteers have very little to do with the direction that CS takes.

When I resigned from the verification team, it was a quickly written message to you. I had logged on, noticed yet another bug within the verification system, and realized that it was time for me to move on. I immediately remembered the bug of July 30 and 31 where everyone who tried to donate did so over and over, so their money was taken several times, many more than ten, but their profile was not updated. That bug immediately cost twelve man hours and we refunded almost $35,000 to members. I did not want to repeat that thankless amount of time working for free, with a ‘thank you’ given as a token gesture.

My thoughts of resigning actually began the week that I spent in San Francisco, at Base Camp. Jim and I spent a couple of weeks back and forth on email, trying to see if a ‘couch’ could be found for me at Base Camp. Mind you, this was not to be just a vacation for me, but Jim and I were going to work together to get me better trained. Back and forth the emails went, and the final note was basically, “We’ll house you somewhere… if you’re willing to sleep on a couch, then we’ll have room.” Not expecting anything else, I truly appreciated the housing accommodation as any true surfer appreciates an offer of accommodation.

The first weekend I was in SF was SF Gay Pride and I stayed with another CS friend. She also had another surfer (I’ll call her, D, as she has a starring role in this saga) for the weekend. We were invited to a CS brunch. Knowing that D was looking for longer-term couches due to a yoga class she was taking in SF, I introduced her to a group from BaseCamp at the brunch. When I mentioned that D was taking classes for Yoga, a couch was immediately offered to her at BC. And for a “week or so.” Mind you I had been emailing back and forth so that we could get some work done, but here was a young, cute lesbian who knew yoga, and she had a couch without any checking. Hmmm, didn’t someone say awhile back that if you’re cute and young……… and I’m sure one LT member would be very welcoming, in his mind.

A small side item… shortly after my visit, Jim, you requested a “friend” link. We were never friendly. We were friendly enough talking about work, etc… but while I visited SF for a week, you never once attempted to get to know me, to become friends.

I’ve coordinated volunteers for years, with many different organizations. Typically, an organization seeks to appreciate, thank and motivate all of it’s volunteers. I’ve never known an organization to house, feed and pay any of it’s volunteers. There’s never been (in my experience) an attempt to make the volunteer jobs of remote volunteers any better in this organization… not so if you’re at base camp. Meetings are held about how to make the dull volunteer’s jobs and lives better. More parties? More travel? More roadtrips? More alcohol and drugs? Perhaps you need more rooms for casual sex or perhaps an orgy room?

There are 100′s, perhaps 1,000′s, of volunteers who put in many hours in support of The CouchSurfing Project. 99% of those receive nothing in return, except perhaps an Ambassador flag. These volunteers work countless hours answering member questions, responding to issues, groups management, event management, locations management, AST/AMT, Ambassadors, spreading the word, and working remotely on Tech issues, and, until recently, assisting members with the Verification Program. Yet, there are a very few special volunteers who CS seem to revolve around.

These ‘core volunteers’ who live at BaseCamp or one of the collectives (mind you many may not have had a profile before becoming a ‘core volunteer’ or their profile had few references, vouches, or perhaps they hadn’t even become verified — profiles that I would be hesitant to surf/host with…) are asked to help make decisions (by voting at BC) and other important issues, but they seem not to be surfers, at all. Most seem very unwelcoming… that another someone is invading their secret society at BaseCamp. More than one person has said of BaseCamp, “they don’t seem like surfers.”

And if you’re tired of living in San Francisco, by all means, go to Costa Rica, or even to Turkey, where we can show even more appreciation to those we’ve already shown appreciation to. While “collectives” are said to be a mechanism of reaching out, most have their doors closed — except to a special few. And by the way, CS will pay you to go ‘home’ to your new house. My understanding is that to even be considered for Turkey, you’ll have had to do at least 3 hard months at BaseCamp or Costa Rica. Wow, things are hard! We’re sorry, let’s let you go to Turkey for awhile.

Many feel that the “volunteers” who live at BaseCamp are spoiled and self-righteous. Many also feel that they do not represent CS well, as many do not seem to be “surfers” at all. Many also realize that nepotism helps you to secure a spot. It’s been stated over and over that “who you know” has no bearing on who is ‘invited’ to live at BaseCamp. I don’t think so. Mrs. Gadget has housing and a position. Jim’s girlfriend has housing and a job. *Please NOTE that I have NOTHING against neither Ms. Gadget nor CaseyAnn personally.* A former house manager was a friend of TTT’s (so it’s been reported).

And not just housing, by the way. We’ll also give you a job! And a title, perhaps. Let’s not worry if you know nothing about Human Resources, Volunteer Coordination, or have no accounting background. Many members and Ambassadors also believe that it helps someone secure BaseCamp status by returning sexual favors. At least you have the rooms/space set up for it.

I’ve never been to a non-profit’s headquarters where there were rooms specifically for sexual encounters. And it comes with anal beads, mind you. Don’t get me wrong… I am a Sex Positive person. but when positions and housing and food and travel are given because of this, then the word volunteer should be changed to another word, meaning the exchange of sex for cash or other tangible items. Do you think the American Red Cross has anal beads anywhere within their headquarters? I realize we are not the same, but still.

So, if you volunteer at BaseCamp, you’ll be rewarded richly. You’ll be housed in one of the most expensive cities in the US, or live in an international location with all the amenities you could never afford yourself volunteering.

The prior verification team leader received an amount for each verification. It makes sense to motivate this person. They are your key to income. Due to poor communication and no technical help, she resigned. I was asked to step in, and I did so. Mind you, I was never told about an “incentive” nor asked if I would like to volunteer at BaseCamp. So be it. The ‘volunteers’ who took the team over, 3 of them, will all be rewarded richly for their ‘hard work and dedication.’ They will be at BaseCamp, even though one is out of the country now so that the US government doesn’t catch on to what’s happening. I doubt the volunteers at BC actually tell Customs they are entering the US to be “paid” in housing and ‘stipends.’ Seems contradictory for a non-profit trying to gain Tax Exempt status to guide ‘volunteers’ on what to say so that the same government doesn’t block their entry into the US.

So, enough about me feeling sorry and not good enough to warrant an inquiry as to whether or not I’d like to be an “appreciated” volunteer and live at BaseCamp. We’ll bring in the store manager and let them stay a good 8 months, but not to worry, no work needs be done.

Many, many times I’ve answered members questions when they request a variance from the verification team, that “what we do for one, we must do for all.” CouchSurfing does not believe this. Let’s highly reward a very few, and the idiots who continue supporting our ‘chosen’ ones, will continue to do so, or leave. Not to worry, there are 1,000′s more who would love to give their time, energy and love to CS as others leave because they are tired of the BS.

Then comes the issue of disrespect to the volunteers who work their ass off to help us protect ourselves. Recently, a highly-respected long term volunteer left a negative reference for an LT member. Hers was the second negative reference. Both centered around inappropriate conduct. Almost immediately, the reference was removed by an LT member. NOT from the volunteer team with the responsibility to handle such issues — the MDST — but by a leadership team member. The member rewrote the reference, and it was put back onto “His” profile. Then, yet another LT member removed it. Mind you, if it were any of the 1,000′s of other volunteers NOT at BaseCamp receiving the reference, we would have had to wait until the MDST completed their review, and rightly so. But, if you “volunteer” at BaseCamp, then references don’t matter, it appears that an LT member can just delete ones they don’t like… regardless of whether it is factual or not. Again, what we do for one, we must do for all — does not apply.

Long-term volunteers are leaving in droves. I do not count myself as a long-term volunteer… I’ve only been volunteering the last year or so. And from what I read and gather, that’s fine by the LT. Seems that long-term volunteers are a pain in someone’s ass… not that they remember how CS was, but because they state issues, they are seen as trouble makers. I’m now one of them, I suppose.

Another issue that was concerning me were bugs with simple fixes. Europeans consistently use commas to separate dollars and cents. However, many transactions were processed incorrectly, due to the comma. A member would attempt to donate 21,50, and 2,150 would be charged. Then it’s up to the member to notice the error, since we did not mail out receipts. I attempted and notified the LT that we should fix this ASAP, but it didn’t take top priority.

Then there’s the issue where members were using other person’s credit cards and the cards were approved. Even though the names did not match. Changing the wording from “Name has been checked” to “Identity Checked” doesn’t quite cut it, in my opinion.

The push to hit up members within their first few hours of joining is an attempt to raise funds, not to make the system safer. Period. It’s for money. Sadly, I believe that the same amount of money could be raised by asking for a donation, simply and plainly… but you seem to not want to ask for funds to keep the service ad-free and running… but calling it ‘verification’ seems to rid you of the guilt in asking for funds.

So, with that, you have my ‘real’ reason for resigning. If you’d rather I not volunteer at all, I’ll understand. I still believe in the spirit and ideals of CouchSurfing and love meeting other surfers and hosts. I do not have to be a volunteer to do that. I will remain on to help other Ambassadors and community members.

I would like to train future ambassadors on how they can best serve the community, our fellow surfers and hosts. I also wish to remain on as a co-coordinator of the CUQs… again, to help my fellow members and ambassadors.

However, I leave that to you. Either way, I’m happy to not have the stress and pressures. I never could fill my predecessors shoes, and 3 replacements will have a difficult time in filling mine. But now that they are all “corporation volunteers” they will fall in line, or lose their ‘core volunteer’ status, not to mention their housing, food and travel expenses.

Casey, this is to you personally. I believe you have great ideas and a great site here. But I also believe that you have advisors who advise you incorrectly. I believe that they only have their best interests at heart. You have an LT member who actively gropes and fondles females… female volunteers, and female guests. Many, many times we lowly members and volunteers have heard of how he places his genitalia on other volunteers’ keyboards. Again, I am not a prude… I’m a sexually positive person and believe sex should be enjoyed — with a consensual partner! He gets away with it, but it will come back to bite you in the ass. He will grope the wrong person, and there will be a price to pay. Please do not be like the Catholic Church and shuffle this person off to a place where women are traditionally treated like material objects… where his gropes will be just as emotionally damaging, but where the objects of his unwanted advances will probably not speak out due to cultural issues. Don’t put a wolf in the chicken coop. You already have one ambassador within walking distance of CS who won’t speak out publicly about the things this person has done to her, and in her home. Is this really the best you can do to coordinate/energize your Ambassador corp?

Sincerely,
Brian

Gardener / Landscaper

Purpose:

• Creates beautiful outdoor spaces for the well-being of CS volunteers, personnel, and guests.

Responsibilities:

• Create flower and vegetable gardens from scratch
• Build any needed irrigation systems
• Build bushes, vines, or related plant-based privacy screens
• Establish house plants
• Train residents how to maintain landscaping

Requirements:

• Extensive knowledge of local weather and its effects on landscaping
• Extensive knowledge of appropriate indoor and outdoor plants for various uses

This continues what Jim Stone started back in New Zealand all those years ago. A campaign to drive verification revenues ever higher. Given that you only need to pay once to become “verified”, CouchSurfing International Inc rely only on a continual stream of new members to make “donations”. If they can increase the percentage of people “donating”, more money for the coffers.

Perhaps we can subvert this new feature by framing our own profile pictures and adding a different symbol to donate that we opt out of the so-called “verification” system. We could even combine that with a real verification system based on the verification of actual identity and physical location. Food for thought…

Employee related expenses account for 62.8% of total expenses. In that figure I’ve included salaries, tax, payroll fees, rent, travel, food, and staff development. Admin expenses includes anything not in hosting / verification. Hosting is server costs plus telephone / communication. I suspect most of the telephone / communication expenses belong in Employees, but I left it there to be on the safe side. Finally, verification, the source of 99% of the income, costs only 6% of total expenses. I included printing and mailing in the verification cost.

The numbers are:

Employees: $405’440.59
Admin Expenses: $116’901.33
Hosting costs: $86’723.33
Verification: $36’589.83

It costs more than $400k to staff CS Inc with how many employees? Five? That would be a cost of $80k per person per year.

Hopefully this helps to understand where the money goes.

http://www.bewelcome.info

The real background about this “democratic, transparent, legal” (sic) network.

The person who got the job, the new Fundraising Guru, wants “to engineer and implement a comprehensive, sustainable fundraising and PR strategy which will enable the CS team to maintain, develop and promote CS, and its services, well into the future, in the most economical and efficient way possible.” Uhm, will CS be sponsored by a travel company soon, or is it just a solo idea that came out of the hood of Matthew? Why would a CS fund-raiser need that specific skill-set?

Regarding finances, check for yourself, the finances of the first quarter of 2008 are available. Salaries are the biggest post on the expenses side. That doesn’t include flights and other costs of Collectives. Less than 10% of the income is used for servers and there was a surplus of almost 60.000 US$.

(note: meals and groceries were bought in Thailand!)

“I take it that back when CS was a more grassroots thing (correct me if i am wrong), all collective volunteers had to find their own way of getting to them. And that all the work was done pro-bono, even those who were working on improving CS on a full-time basis. In such a case, i wouldn’t think it’s fair that there are people on the payroll now, but those who helped cs in the initial startup days don’t get shit for all that they have contributed… “

CS never was very grassroots. PEople (like me) just tried to move it there. Casey has received a 2000 US$ per month salary ever since there was money coming in. It’s always been under control of Casey, and later Casey and his close friends.

I think paying some people is fine. Though, only people who are really needed, e.g. system administration to keep the site up 24/7, and further, let the community decide where their money is used. Whenever there’s a donation, add some checkboxes where you can give options where the money can go after the basics (administrative stuff, server costs, basic legal costs) have been covered (e.g. none, publicity, collectives, salaries for casey’s friends, food and lodging for groupies).

And don’t pay 2000 US$ per month plus expenses plus flights plus food and lodging. During a stay at a Collective it’s extremely easy to not spend more than 300 US$ per month…

Apart from the flights to and away from New Zealand (800 US$) I hitchhiked to the three CouchSrufing collectives I worked at. The laptop I bought to work on CS (1000 US$) broke quickly after I stopped volunteering, because of an extremely ridiculous non-disclosure agreement was “leaked” that does not allow working on any similar project (e.g. Wikitravel or other social networks).

BeWelcome will take time to grow. The BeVolunteer organization is already far ahead of anything else in hospex world in terms of flexibility, transparency and democracy. The software is about to follow. 3500 members is already a large pool of active people to connect with.

And note that BeWelcome now has (alpha stage) functionality where all members can verify members, for free. And it’s ID card or passport verification, not just address verification (which can very easily be falsified).

My idea about couchserfing was that it could be used as a vehicle to do much more than just hospitality exchange for college aged low-budget travelers. With so much money coming in and such a huge community behind it it would be extremely simple to set up much more sharing and society enhancing projects. E.g. a good friend of mine who also attended the New Zealand Collective is setting up groundcrew.us. If it would have been done from the inside of CS it would have been big by now. Though, on the other hand, I’m extremely happy that I didn’t accept Casey’s offer to host Hitchwiki.org with CouchSurfing…

My idea is to offer people a way to support CouchSurfing financially, while also supporting the ideals of OpenCouchSurfing. That’s the basic premise.

I think it could work as follows. We create one or more funds or trusts. These funds are clearly constituted. They exist to support the work of CouchSurfing, within certain conditions. Rather like the government supports universities in the UK, but the money comes with requirements. The universities must behave in a certain way to be eligible for the cash.

A simple example might be server costs. We could create a fund to pay for CouchSurfing’s server costs. So long as CouchSurfing International Inc submits invoices for these costs, the fund would reimburse the expenses. This is just a simple example.

The underlying concept is to give members a way to financially support CouchSurfing, while still upholding the principles of OpenCouchSurfing.

We could also provide a mechanism for members to display and verify their donations. For example, images which could be inserted into the user’s profile, showing how much that user has donated. This might help to spread the message amongst members. In effect, we would be creating an alternative to the CouchSurfing verification system.

This is very much an idea right now. It needs considerable research and discussion before being implemented. Please share your thoughts at this early stage. Can you see merit in the concept? Would you be willing to donate money through such a framework? All feedback will be appreciated.

As the membership continues to grow, the potential for abuse also continues to grow. I think this situation must be brought to a head as a matter of urgency.

My proposal is to start a CouchSurfing legal fund. A financial fund where individuals could choose to donate money. That money would be used to pursue legal action against crimes perpetrated by CouchSurfing International Inc and Casey Fenton.

I think a number of issues would need to be addressed prior to any donations being accepted.

• The constitution of the organisation / fund
• Who would direct the legal action (I propose Pickwick as a core figure, if he accepts)
• How lawyers would be appointed to carry out the action
• Specifically, what action would be taken

Pickwick has diligently researched the legal constitution CouchSurfing. I think this work has made the greatest progress towards the goals of OpenCouchSurfing. I believe this area of work should be financially supported on a larger scale.

To start the ball rolling, I, Callum Macdonald, pledge $100 to this fund. I’ll make the actual donation once the fund is in place.

I warmly invite you to share your opinion, and if you feel appropriate, make a financial pledge. (Dislcaimer, financial pledges will be entirely voluntarily, so any commitment you make here is not legally binding.)

I just received a BeWelcome newsletter about what is happening there; main point was that they just had their first conference (where following my knowlegde everybody could participate, not only “approved people”, so if you want to go to the next one keep your eyes open for the dates). I’m not going to post the whole text here, but there were some interesting links in it that I’m pasting in at the end of this post. I want to point out that this is not supposed to be advertisement for BeWelcome, but an insight in other networks and more specifically a network claiming to be transparent and democratic.

I want to draw your attention to this line in their blog, which I found interesting (but make up your own mind!):

“We had 200 € in expenses, which covered all of the food and drinks for the entire weekend, except of course the party on Saturday night. The participants payed 9 € on average (2,2 € minimum, 11 € maximum), no BeVolunteer money was ever used. To put this in perspective, we could (theoretically) do 58 of these weekends with the money that Couchsurfing spends on their collectives and meetings in 3 months (as an example), without spending any of our donation money.”

As said, make up your own mind, here’s the links about the conference which were inside of the message:

(Sorry, I don’t know how to make the direct links on this site, you’ll have to copy-paste them) Update: Links have been added.

The video:

http://video.google.nl/videoplay?docid=-5605653070159143554

The blog:

http://blogs.bevolunteer.org/blog/2008/01/20/sunday-activities/

The tech blog:

http://blogs.bevolunteer.org/tech/2008/02/04/antwerp-unconference-seen-from-the-outside/

I hope nobody minds me writing this here; I think comparing the networks and their ideas is interesting for all of us. In my opinion the OCS site is not only about Couchsurfing, as the ideals of transparency and democracy (I dare to suggest all people writing here share those) are not about a specific network.

Nevertheless I want to draw special attention to Kaspar’s (in whose critical opinion about the conference I’m interested) stylish hat while he is “Couch-Surfing” (Couch-Relaxing? Being Welcomed on a Couch? Alright, I’m not funny..) in the video.

All the best

Michel

• Casey might not be the most educated IT guru, but he’s definitely a guru and at this point he’s probably the only person capable of keeping the CouchSurfing website up and running.
• The entire CS “Leadership Team” and Board of Directors consists of Casey’s friends. They would be quite clueless if Casey suddenly disappeared.
• Casey is great. He might not have made the right decisions and I cannot agree with his attitude in many ways, but I am sure that I will feel happy if I will be able to give him a genuine hug again, maybe in 2009.

Still, even legally there is a problem with Casey in a paid position while being a member of the Board. And it would be totally useful if Casey’s ideas about transparency and volunteer participation would change a little bit. Though, also without it, with an estimated half a million US dollars coming in during year 2008 it’s unlikely that the ship will go down any time soon. And I am sincerely happy about that.

That title works to grab everyones attention. Hello there lazy bums in Thailand, celebrating ineptitude under the sun!

I was thinking how all the work of the motivated volunteers full of ideals and good intention can be saved. The title was my only answer. One thing i have learned is that people dont really change, i dont expect Casey or the majority of his buddies to be different, despite all the visionary leadership.

Why do I point out that people don’t change? Because I am convinced that they would have to change if Couchsurfing is supposed to progress. Couchsurfing as a website and Organization has grown beyond the size that is governable with the attitude and management employed by Casey and his appointed BurningManBeer Buddies. We are dealing with an Organization that is crooked and mismanaged from the Top. Casey might be a nice guy, he might be a good coder, he might even have that MC1R sexyness to get all the good bitches in the pack, but he is about as good as a manager as Paris Hilton is an expert on Quantum Mechanics.

From the Top down, it was all about happiness and fun, NEVER about accountability and results. Casey initially, when first launching cs.com public, already made a claim on how cs is a 501c3 non profit. He either made a false claim, which would make him a liar and crooked person, possibly a felon, since he collected the donations, or an amazingly inept manager. You don’t run an Organization without knowing its legal status, dot! I tend to go with a third option though. He is a hopeless dreamer, who wants to make a 501c3 and heal the world, but gets ahead of reality way too much. This pattern was followed in the whole CS team and Spirit of Organization. Sure, it would be great to have a good manager, but lets settle for someone who COULD be a good manager, such as TTT, but who actually sucks ass since he settles for having a manager title, rather than doing the job, just like Casey and 501c3. On CS, the culture of Vaporware needs to go. The people will not change, so unless they go, Cs will never proceed beyond the Fratboys who would LOVE to be cool, but end up being drunk failures.

They ALL lack the self confidence to critically reflect upon their managerial skills or the apparent lack of. The root of all this is of course, Casey. He appointed Managers who lack the wit and gut to debate with a dissenting community. A dissenting community that actually argues constructively and is kind enough to share all the solutions.

CS, thanks to the pressure built up by Pickwick, is about to arrive in the cloud of Accountability that is the real world. I hereby Claim that there will be no milestone accomplishment at the Thai Collective, which will make it nothing more than an expensive party for Casey and his equally inept cronies.

You run an Organization and fail to deliver, you go. If Couchsurfing.com is all about buying Caseys’ Burning Man crew 4 Months of sponsored Holidays on the beach along with pussy that would not be available to this elusive group of mediocre men, then Couchsurfing.com is indeed a brilliant success for aforementioned visionary leader and his associates. It would of course make it a racket and scam, morally at least, regardless of how it would be judged by a legal professional.

If Couchsurfing is not a racket and scam but instead an organization with genuinely good intentions, then it is a failure on all accounts. Absolute top-performing professionals in their respective field get alienated or sacked by a management that has possibly not even learned how to spell (project) management. The Couchsurfing Management in its current incarnation is a direct result of Casey Fentons inability to accept superior skill from employees and volunteers. The current management has a track record of rejecting highly skilled employees and outside advice, lacks skill and self confidence along with the inability to accomplish anything themselves.

You guys all need to go. I am glad CS is in the Real World SOON, legally speaking. Casey and friends, you guys talk all the talk, all the time. I have yet to see anyone walk the walk. I invite you to prove me wrong, but you and me, we both know, you fail.

p.s. i invite everyone to personally attack me on my position, preferably somewhere in real life

p.p.s please, since i am so full of shit, be so kind and make a list of all the accomplished managerial successes of the current leadership team, since thats all that it takes to turn my whole posting into a pile of shit. hint: most mangers work 45-50h a week and deliver results correlating to this

Kasper: “major source of income”

Is that income needed? Surely a much smaller stream of new members, recruited in a better way, could raise the moderate amounts necessary to pay server costs, paper clips and a few postage stamps.

Current spending is mostly for
A) salaries, and I think we had much better quality work from the volunteers “no longer retained”;
B) the exodus to Thailand, and I have yet to see any actual WORK mentioned that was done there in the 31 days of December (other than picking the place for January).

So the money seems to benefit those who make the decisions. Thankfully we are a charity now and published accounts have to be more accurate and more detailed than hitherto. Which reminds me that there are still areas of concern regarding the charitable status:

1. The financial statements online are still not identical with the ones filed with the US tax authorities and the New Hampshire charities regulators.

2. Casey may have perjured himself by stating falsely to the Attorney General that from 2003 to 2006 the company had several directors besides himself. The major reason for that could be that the truth may affect the legality of his own employment.

a) New Hampshire law requires a minimum of five directors, so with Casey as sole director the company had no legally composed Board of Directors. For that reason alone contracts entered into during that time may be invalid, including the employment contract he made with himself.

b) Casey as sole director signed his own employment contract on the dotted lines of both sides of the contract. There could not be a more blatant violation of all ‘conflict of interest’ principles, and for that reason alone this contract may be invalid.

c) New Hampshire law does not allow the chairman/president of a charity to be an employee at the same time. So when Casey as chairman/president signed his own employment contract he violated that law, and for this reason alone the contract may be invalid.

d) If Casey’s employment contract is invalid, he will have received his salaries without legal grounds, and may have to pay ~$70,000 back to the company. (That, and the other ~$70,000 of accumulated profits in the bank should keep CouchSurfing going for a good many years to come, as a volunteer based charity, without ill prepared world trips for the management.)

At the New Hampshire Department of Justice the case has been queued for review by an investigator in early 2008. My advice to the new Board of Directors is: sort it out before they start asking questions.

To sum up: I don’t think money is a valid argument to continue this unhealthy growth pattern.

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

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

How I just love retired accountants! It seems that Pickwick is on to another scandal…

According to the (minimal, and legally insufficient) financial reports over the 3rd quarter 2007, CouchSurfing International inc. is well in the dough, and has a neat $101,900.69 in the bank… but wait a second, over that sum, why has the company made only $281.26 interest??!!

I know banks in the US are in a difficult position these days, but an interest rate of less than 0,27% seems pretty strange… Or could it be that someone is turning a private profit on these funds? Nah, that would be ridiculous, CS being a ‘non-profit’ and all…

A charity needs to be non-profit, but not every non-profit organisation is automatically a charity.

A Non-Profit Corporation can’t pay the owner a dividend. He has to pay himself (or others) a salary instead, which he does ($88,150.22 since 2005, for salaries, payroll taxes, and temporary help). The rest of the money needs to be piled up on the company’s books: there’s an ‘emergency fund’ of $30,000 and accumulated ‘net income’ of $40,135.89 from 2004 to date. Other than that, a Non-Profit Corporation, which is NOT a charity, can do whatever it wants with its money like any other privately owned company. This includes the possibility of one day dissolving the company, or changing its status to For-Profit, and cashing in.

A CHARITABLE non-profit corporation will have a clause in its corporate bye-laws where corporate assets are dedicated to charitable purposes. It receives tax privileges, and in exchange comes under public supervision and is subject to reporting and disclosure duties. It will be much more difficult for individuals to profit, and if done right, even impossible.

The confusion is understandable because colloquially the terms ‘charity’ and ‘non-profit’ are sometimes used as if synonym. The problem here is that this misunderstanding might be intentionally exploited. Ultimately the proof whether an organisation is or isn’t a charity lies in the public register of charities, both on State and Federal level, neither of which contains an entry for this company.

So the logical conclusion is that either it is NOT a charity and claims that it is are false, or it IS a charity, in which case it has not complied with registration, reporting and disclosure duties. In either case, as a NON-charity, or as a NON-REGISTERED (unrecognised) charity, any charitable solicitations, for money or volunteers’ time, might be illegal.

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.”

CouchSurfing now has 4 full time, paid members of staff. That’s a 300% increase in professional resources within the organisation. What exactly are all these professionals doing?

Here’s a few things they’re not doing which they could be doing.

• Publishing finances, up to the minute (it’s really not hard)
• Getting 501(c)(3) status (again, really not hard)
• Publishing LT meeting minutes (extremely easy)
• Getting a new NDA sorted (seriously, it doesn’t take 15 months)

Perhaps they’re too busy partying, having threesomes, burning da man, banning people from the wiki, spreading the verification disease, etc. Who knows eh?

It’s getting heart breaking in here. And cold. Icy cold. All the ‘open source’ and ‘charity’ debate left me disagreeing, but unhurt. This Thai project does me in.
www.couchsurfing.com/collective_thailand_application.html

First the cold, demanding, uppity language itself. Then what looks like a “suck ‘em dry & spit ‘em out” attitude of present and future ‘Volunteer Coordination’. Then the cynicism luring generous, well meaning people to commit crimes and risk jail for lying to immigration police in a post 9/11 world.
www.couchsurfing.com/group_read.html?gid=429&post=401914#pos…

Shame on you. Shame on those who do it. Shame on those who sit close by and watch in silent complicity. It’s time to hold Casey & Friends accountable, if not to members, then at least to the law.

The Royal Thai Government have received a formal query about the immigration requirements for the project. They know you are coming, so you better cut out the criminal part of your plan.

The charity question needs a decision. Casey opened his mouth in 2003, and he now either sings, or shuts it again. No more smoke screens. Run the show how you think you must, but run it well, and stop lying. A thoroughly documented formal query about possible Unlawful Charitable Solicitations will be placed before the Attorney General of New Hampshire “practically tomorrow”. My advice: hurry and be there first, with a genuine charity.

• Why limit the number of questions at all?
• A leadership circle of 13 people plus 3 paid employees plus tons of volunteers should be able to answer 10times so many questions.
• Some of the answers should have been published anyway (yes, without being asked).
• While the most of the Leadership Circle plays “dead man”, Jim gets paid to spent time for complaining about not having time, blocking people from the wiki and developing the cs-haters conspiracy theory. I guess, simply answering questions would need less time.
• Statistics? wouldn’t be the first time someone lies about numbers at cs (funny enough: Mikky says so). So even if there is a reaction it would be easy to call it a minority issue. (In my opinion some of the questions really are, but that’s not a reason not to answer them.)

It’s not a matter of choosing the right questions or limiting them to a smaller number. Or presenting them from a Survey. Again it’s a matter of the Leadersship Circle’s will to communicate with the users and if they want to make their work transparent (or at least visible).

To me the survey is completely ridiculous.

CS is “accepting applications for a small number of specific positions, including a full-time House Manger whose airfare to Thailand will be paid by CouchSurfing.”

I hope the Leadership Team is aware of the very strict laws in Thailand.

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”.

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

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.