Wikimedia Foundation's $177 Million Budget Faces Scrutiny Over Subgrants

A recent social media post from "near," a prominent voice in the open-source and online community, has highlighted ongoing discussions surrounding the Wikimedia Foundation's budget, particularly its allocation to subgrants. The tweet indicated that a conversation with Wikipedia founder Jimmy Wales helped clarify aspects of the budget, though some skepticism remains regarding specific subgrants.

"Wikipedia founder spoke with me after this and convinced me much of the budget is reasonable," stated near in the tweet. "I remain skeptical of several subgrants but broadly view Wikipedia as a massive success compared to any other decades-old nonprofit."

The Wikimedia Foundation (WMF), the non-profit organization supporting Wikipedia and its sister projects, operates with a substantial annual budget. For the 2023-2024 fiscal year, the Foundation's budget is projected to be around $177 million. A significant portion of this budget is dedicated to personnel costs (59%) and grants and movement support (14%), reflecting its commitment to both its staff and the global volunteer community.

Despite near's acknowledgment of the overall budget's reasonableness, their continued skepticism towards certain subgrants points to ongoing community interest in the granularity of WMF's financial expenditures. The Foundation has consistently emphasized its dedication to financial transparency, regularly publishing annual plans and detailed financial reports. It has also received high ratings for financial efficiency and transparency from organizations like Charity Navigator.

Jimmy Wales, who holds the "community founder's seat" on the WMF Board of Trustees, has previously underscored the Foundation's cost-effectiveness and broad impact. The WMF's financial documents show a concerted effort to increase direct support to the movement, with the overall grants budget slated to increase by an average of 7% across all regions, and the Community Fund grant program growing by 10%. These grants are often unrestricted, providing flexibility to recipient communities.

The dialogue initiated by near's tweet reflects the continuous scrutiny and active engagement from the Wikimedia community regarding the Foundation's financial stewardship. This ongoing conversation underscores the balance between maintaining a global digital infrastructure and directly empowering the diverse volunteer base that builds and sustains free knowledge.